No health care service plan shall engage in the practice of postclaims underwriting. For purposes of this section, “postclaims underwriting” means the rescinding, canceling, or limiting of a plan contract due to the plan’s failure to complete medical underwriting and resolve all reasonable questions arising from written information submitted on or with an application before issuing the plan contract. This section shall not limit a plan’s remedies described in subdivision (a) of Section 1389.21.
Cal. Health & Safety Code § 1389.3
Underwriting Practices
Known as the Knox-Keene Health Care Service Plan Act
The act spans §§ 1340–1399 (617 sections).
Applied in 3 court decisions — leading case 181 Cal. App. 4th 60 - Nieto v. Blue Shield of California Life & Health Insurance (2010)
Most recently applied in Bhakta v. Hartford Life & Annuity Insurance Co. (December 2016)
Amended by Stats. 2010, Ch. 658, Sec. 9
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.