[Source: Health and Life Science Law Daily, Sept. 21, 2007]
Law.com (9/21, Hirsch) reports that next week, California's 4th District Court of Appeal will hear arguments in the "closely watched" Hailey v. California Physicians' Service (pdf), a case that "challenges Blue Shield of California's practice of rescinding coverage based on inaccuracies in an application." The case centers the issue of "willful misrepresentation" and insurers' ability to rescind an individual's coverage based on inaccurate information in an application. Law.com writes, "Plaintiff attorneys in the field contend that a showing of willful misrepresentation is required before yanking coverage; defense attorneys say the mention of willful misrepresentation does not amount to a prerequisite. ... If the 4th District requires a showing of willful misrepresentation, health insurers will likely find it harder to get cases thrown out early."
