In a landmark decision that perhaps offers a preview of legal setbacks for insurance companies, the South Carolina Supreme Court has fined an insurance company $10 million for rescinding the policy of a college student after he tested positive for HIV.
Murray Waas, writing at the Huffington Post, said the court found the insurance company's decision "reprehensible."
... "In Febuary 2008, a private arbitration judge in Los Angeles ordered Health Net Inc. to pay more than $9 million to a breast cancer patient whose health insurance it revoked shortly after her diagnosis and while she was undergoing chemotherapy. The plaintiff in that case, Patsy Bates, a then-52-year-old grandmother and hair-salon owner, was unable to continue her chemotherapy for several months. During the case, evidence emerged that Health Net had paid bonuses to employees to reward them based on the number of policyholders they had rescinded. The judge who awarded Bates the $9 million said in his decision: "It's difficult to imagine a policy more reprehensible than tying bonuses to encourage the rescission of health insurance that keeps the public well and alive."...
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