The California Department of Insurance will be requiring an insurer in the state to offer new health coverage to 926 consumers whose coverage has been rescinded during the past 4 years.
The department says it has negotiated an agreement with a total value of $25 million with an insurance unit of Health Net Inc., Woodland Hills, Calif.
The settlement is based on consumer complaints and a market conduct exam indicating that the Health Net unit was too quick to take back policies when some insureds filed claims, officials say.
Health Net itself has emphasized that it has not admitted any wrongdoing or liability and is settling to avoid the expense and distractions of litigation.