Rescission: When the Insurance Company Doesn't Want to Provide the Coverage You've Been Paying For

Posted on Sep 09, 2009
This article, "When Your Insurer Says You're No Longer Covered," in the Washington Post discusses the insurance industry practice of rescission, which occurs when a company cancels a policy because it claims it was misled.  It is unclear how widespread the practice is although the five largest insurers in California have paid $19 million in fines over the last year and a half for wrongly cancelling policies. One of these insurance companies, Health Net, paid a $1 million fine and admitted to paying bonuses to employees for coming up with reasons to try and justify rescinding a policy.

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