California Insurance Commissioner Steve Poizner wants to limit the ability of individual health insurers in the state to review the applications of enrollees who file claims.
Poizner has proposed regulations that would discourage state-regulated health insurers from rescinding policies based on findings that insureds had lied about their health on application forms, or had failed to provide relevant information.
The three carriers that serve 85% of the California individual health insurance market already have accepted settlement agreements that impose similar rescission rules, Poizner says.
The proposed regulations would apply to the insurers that serve the remaining 15% of the California individual health market.
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The proposed regulations would require insurers to:
- Show that they have met all underwriting standards before they can consider rescission.