Quote:
Originally Posted by aceventura3
Talk about scare tactics, for example today the President is going on about how insurance companies will scour your application to find a reason to deny coverage when you get sick. Legally an insurance company has two years to cancel a policy for a material misrepresentation on the original application. After that two year period they are bound to provide coverage. Also, the misrepresentation has to be "material".
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I wonder how many people are denied this way? I read somewhere that only about 0.5% of total policies are rescinded. I also read that they usually scour the policies for descrepancies only after someone has made a large claim. I believe that only a small percentage of total policy holders make a large claim so the percentage of those dropped would seem to be rather high.
The examples the president gave at the town hall today seem to be particularly troubling.