News Headlines Article

Insurer trade group fights new Calif. rules
Modern Healthcare

An insurance industry trade group has filed a lawsuit in California seeking to block new state underwriting rules for individual policies.

The rules, which went into effect on Aug. 18, seek to end the practice of rescissions, where insurers revoke members’ policies after they fall ill. Under the rules, insurers must conduct a thorough underwriting process before accepting a policyholder and their premiums. The rules also ban insurer investigations into policyholders who have high medical costs.