In Download Blue Cross of California, Inc. v. Superior Ct. (Cal. 2d DCA Opinion Filed December 15, 2009), attached Official Slipsheet Opinion at 2, a California Trial Court refused to dismiss a lawsuit filed by the Los Angeles City Attorney as a result of alleged "postclaims underwriting," i.e., alleged Rescission of Health Insurance Policies issued by the Defendant after the Policyholders made Claims. The Appellate Court upheld the Trial Court's refusal to dismiss the case.
In its Opinion, the California Appellate Court pointed out that "postclaims underwriting" is "a practice prohibited by section 1389.3 of the Health and Safety Code and section 10384 of the Insurance Code." Download Blue Cross of California, Inc. v. Superior Ct. (Cal. 2d DCA Opinion Filed December 15, 2009), at 3. The Statutory Prohibition is enforceable by local Prosecutors such as the City Attorney of Los Angeles, the Court held.
The decision and its evolving aftermath in California are commented on by Lisa Girion, "Healthcare/Health Insurers' Rescission Practices Are Exposed to More Scrutiny/Local Prosecutors, Such as City Attorneys, Can Sue Over the Practice of Revoking Sick Patients' Policies, an Appellate Court Rules" (Los Angeles Times Online, Saturday, January 2, 2010).
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