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Blue Cross Company Under Fire For Dubious Policy Terminations

Another insurer in California is under fire for revoking health insurance coverage. The California Department of Insurance says B.C. Life and Health improperly canceled a number of policies in 2004 an

Blue Cross Company Under Fire For Dubious Policy Terminations

Another insurer in California is under fire for revoking health insurance coverage. The California Department of Insurance says B.C. Life and Health improperly canceled a number of policies in 2004 and 2005. KPBS reporter Kenny Goldberg has more.

State regulators say more than half of the cancellations they reviewed from B.C. Life and Health were wrongly handled. In one example, the company terminated a policy because of an undisclosed medical condition. As it turns out, the policyholder had mentioned the condition on their application.

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Bryan Liang is with San Diego's California Western School of Law . He says it's time for state regulators to get tough.

Liang : They've got to wield the stick of both a fine -- a significant fine -- that gets the attention of a multi-billion dollar company, and secondly, you have to reinstate these people. You've got to get them the insurance back that they need.

B.C. Life is a Blue Cross company. Earlier this year, state regulators fined Blue Cross $1 million for illegally cancelling a woman's policy.

Kenny Goldberg, KPBS News.