In December, the California Court of Appeal affirmed summary judgment to an insurer that had rescinded its healthcare policy because the insured made material misrepresentations in a policy application. Hagan v. California Physicians' Service, 2011 WL 6820396 (Cal. Ct. App. Dec. 28, 2011).
For four years, the insured suffered from various illnesses related to her reproductive system. She was treated with medication and had been recommended for surgery. In 2005, she applied for health insurance with Blue Shield of California. Blue Shield's application asked her about her medical history, including specific questions regarding her reproductive health. She denied prior medical history and pre-existing conditions, and Blue Shield issued her a policy.
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