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It will simply prevent the CDOI from assessing improper and unjustified fines.
To call it such in a regulation is a canard and an indication that the CDOI either has no idea about the law of rescission or is ignoring statutory and case law.
The CDOI has accused health insurers of using rescissions to rescind policies issued to individuals who had made innocent mistakes on applications or left out information that was not relevant to their current health status.
During 2007/2008 fiscal year, the CDOI identified and reported 4,973 suspected fraudulent claims; assigned 515 new cases; made 375 arrests; and referred 432 submissions to prosecuting authorities.
In addition to the increased assessments, the bill also will require the CDOI to annually post on its web site the performance outcomes of its fraud investigative program.
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