Insurance commissioners examining rescissions

NEWS IN BRIEF — Posted Aug. 31, 2009

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A task force of members of the National Assn. of Insurance Commissioners is working to gauge to what extent health insurers rescind individual policies and will recommend regulations to help prevent abuse. The group sent a letter to Rep. Bart Stupak, (D, Mich.) July 24 outlining what the NAIC is doing to address the issue of rescissions.

Stupak's Energy and Commerce subcommittee on oversight and investigations held hearings in June over health insurance rescissions and postclaims underwriting, the practice of canceling an individual policy. Without admitting guilt, several insurers have settled cases with California regulators over allegations they rescinded policies only after members submitted expensive claims.

According to the group's letter to Stupak, the NAIC's Regulatory Framework Task Force has asked health plans around the country to provide the NAIC with information about how many policies it has rescinded over the past five years. The task force will examine proposals for new regulations including establishing independent third-party rescission review bodies in each state.

Note: This item originally appeared at

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