Insurance companies’ practice of rescinding policies based on misrepresentations in an application has come under significant criticism in the area of health insurance. In several publicized cases, companies have been accused of canceling health insurance contracts based on minor or technical defects in the original applications, typically after the insured has already incurred significant healthcare expenses due to serious illness. In response to these cases, the Obama administration issued regulations (link will be provided to the assigned writer) that limit insurers’ ability to rescind health insurance contracts.
As a policy analyst for a consumer advocacy agency, you have been asked to write a short (3-5 page) pamphlet explaining the regulations to consumers. Your pamphlet should discuss why the regulations were issued (drawing on examples of real cases you can find on the Internet) and explain how the regulations change the rules that would normally apply under the common law.
