Ehrlich Law Firm wins reversal of summary judgment for insurer on health-care rescission case
Ehrlich Law Firm wins reversal of summary judgment for insurer on health-care rescission case. After the Nazaryetan family’s twins were born with severe brain injuries, Blue Shield rescinded the policy to avoid having to pay for the cost of their care. It claimed that the family had misstated their health history on their application form. The trial court granted Blue Shield’s motion for summary judgment. The Court of Appeal reversed, finding that whether or not Blue Shield’s underwriting practices were reasonable and designed to resolve all questions on the application was a factual issue that could not be resolved on summary judgment. (Nazaryetan v. California Physician’s Service (2010) 182 Cal.App.4th 1601.)