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<<Perhaps someone else would like to explain the first comment posted above?

</snip>

Back during the Chickenhawk Years of Bush/Cheney, health insurers had the "privilege of rescission" on insurance contracts.

Obviously, they didn't want to spend the money required to thoroughly vet every health insurance application that came through the door. So they only closely examined applications "after the fact" when the customer filed a claim.

You could be paying premiums for ten years, and then when they discovered you had melanoma and it cost $150,000 to treat it. The insurer would go back over your medical records and say "you failed to disclose that blistering sunburn you got as a teenager" so we're clawing back your health insurance coverage.
>>


Heh, heh! Often I enjoy intercst's colorful phrasing!

I'll agree that kind of thing can be abused, but also point out that such decisions could typically be litigated for reasonableness. Of course that's a burdensome procedure to go through ton get insurance coverage you have paid for. If I'm recalling correctly, Washington State required that insurers who refused to pay claims and lost in court had to pay three times the damages as a penalty. That's something, anyway.

I'm guessing insurance companies didn't include arbitration as the norm in settling such disputes?


Anyway, thank you intercst, for your explanation.



Seattle Pioneer
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