Insurance Company Must Pay $10 Million For Revoking Policy Of Teen With HIV

  • auryn

    Posts: 2061

    Sep 17, 2009 5:19 PM GMT
    Serves those bastards right.

    The South Carolina Supreme Court has ordered an insurance company to pay $10 million for wrongly revoking the insurance policy of a 17-year-old college student after he tested positive for HIV. The court called the 2002 decision by the insurance company "reprehensible."

    That appears to be the most an insurance company has ever been ordered to pay in a case involving the practice known as rescission, in which insurance companies retroactively cancel coverage for policyholders based on alleged misstatements - sometimes right after diagnoses of life-threatening diseases.

    The ruling emerges from a conservative Southern state with one of the most pro-business climates in the country. And it comes as progressive Democrats on Capitol Hill are pressing for health care reforms, such as a public insurance option, that reflect wariness about the private insurance industry's motives.

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    Sep 17, 2009 5:38 PM GMT
    This is really chump change for a company like this, and doesn't really fix anything. But what's good is that now there's precedent for this, maybe insurance companies will be less likely to keep doing this.