February 25, 2008
$9 Million Fine for Cancelled Insurance
From Reuters:
A California arbitrator ordered Health Net Inc to pay $9.4 million in damages and expenses for what he described as "reprehensible" conduct in canceling the policy of a cancer patient after she fell ill, according to documents made public on Friday.
The award to Patsy Bates, 51, included $8 million in punitive damages and raised concerns about the company's practice of retroactively canceling policies of individuals who make large claims and paying bonuses to underwriters for meeting cancellation targets.