Insurance Industry Sues to Halt Anti-Rescission Rules in CA
Cheryl Clark, for HealthLeaders Media
, August 20, 2010
- Require use of new and improved health history questionnaires that are approved by the Department of Insurance before the insurer can rescind.
- Require that agents attest if they help applicants with a health insurance application.
- Prohibit confusing phrasing of application questions like double-negatives and certain compound questions.
- Require that consumers be given a copy of their application to check for discrepancies.
- Require insurers to not rely solely on self-reported health history when possible.
- Prohibit insurers from conducting certain rescission-focused investigations long after becoming aware of a possible misrepresentation or omission by the applicant. The rules also prohibit insurers from seeking information outside the scope of such an investigation.
- Require that insurers give consumers the opportunity to respond during rescission investigations, and require insurers to listen to consumer-provided information.