The Association of California Life & Health Insurance Companies (ACLHIC) has filed a lawsuit in an effort to keep California from enforcing new anti-rescission regulations.
ACLHIC, Sacramento, Calif., says in a petition filed in a state court in Sacramento that the regulations are too expensive and too difficult to implement, and that California Insurance Commissioner Steve Poizner exceeded his authority when he developed the regulations.
Poizner has put out a statement calling the suit “unconscionable.”
“Illegal rescissions are a repugnant industry practice,” Poizner says. “In this current environment, this lawsuit is simply short-sighted and morally wrong.”