ACLHICAssociation of California Life and Health Insurance Companies (Sacramento, CA)
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The rescission regulations that are the subject of the ACLHIC suit follow Hailey which revealed that in California, the test of rescission is different for health plans:
ACLHIC filed a petition contending that the regulations are too expensive and too difficult to implement, and that former California insurance Commissioner Steve Poizner exceeded his authority when he developed the regulations.
ACLHIC President Brad Wenger said in a statement that member insurers have no problem with the underlying law on policy rescissions and cancellations but believe that the guidance is unclear in places and difficult to implement in others, and that the court ruling is also unclear.
The 24% figure [of denied LTC claims, which the ACLHIC had originally reported for 2005] is extra-ordinarily high and well beyond what has been seen in earlier years," she says.