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Favoring Policy Provision Over State Statute

Law360 (February 16, 2011, 12:04 PM EST) -- On Feb. 9, 2011, a California Court of Appeal ruled that Blue Shield’s health insurance policy afforded a three-year statute of limitation for an insured’s tortious breach of contract claim, rather than a shorter two-year period provided by state statute. Under California’s insurance statutes, an insurer may draft insurance provisions that are more favorable to the insured than as provided by statute.

On the merits of this action, the insured alleged that Blue Shield improperly rescinded her health insurance policy after she received pre-authorization and underwent...
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