California insurer wins a reprieve on class actions

Los Angeles Times, January 7, 2008

A California appeals court has vacated its decision that had allowed policyholders the right to sue as a class over canceled health coverage and granted Blue Shield of California a rehearing on the hotly contested issue. The ruling called into question the practice of waiting until individual policyholders incurred medical expenses before scrutinizing their applications for misstatements--and then canceling for alleged omissions and errors.