Health Care Service Plans

Health Insurer May Not Raise Defense Of Fraud Based On Statements Insureds Made In An Application When The Application Had Been Neither Attached To, Nor Endorsed On, The Policy When Issued.

The California Court of Appeal reversed and remanded a trial court’s denial of class certification for a plaintiff’s Unfair Competition Law (“UCL”) complaint. The Court of Appeal ruled that equitable defenses cannot be used to defeat a UCL cause of action, and that an insurer may not raise the defense of fraud based on statements that insureds made in an application for insurance where the application had been neither attached to, nor endorsed on, the policy when issued.

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