Changes To Rescission Of Insurance Policies In Calif.

Law360 (August 26, 2010, 4:27 PM EDT) -- Rescission of health insurance policies occurs when an insurer cancels existing coverage on the grounds that the insurer was misled in issuing the policy. In the past, we have reported on an increased number of rescissions — compounded by egregious results to insureds — that has increased scrutiny by regulators, doctors and plaintiffs' lawyers, who have all described insurers as too quick to rescind coverage for ill insureds. The issue of rescissions of health care policies has attracted national attention in the health care debate and increased attention in a number of states. With the Patient Protection and Affordable Care Act signed into law on March 23, Congress and President Barack Obama have enacted the most sweeping reform of the U.S. health care system since the creation of Medicare in 1965....

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