Health insurance rescission case successfully resolved

SBE attorneys reached a confidential settlement with the Celtic Life Insurance Company, resolving a lawsuit brought on behalf of a 19-year-old motorcycle enthusiast from Southern California who had purchased a Celtic health insurance policy.

The young man sustained injuries in a motocross incident and required hospitalization. He recovered, but Celtic refused to pay his medical bills and rescinded the policy, asserting that it had been misled on the insurance application. The lawsuit alleged that the rescission violated state and federal health insurance laws. Corby acknowledged that health insurance rescissions have become a dying breed owing to new laws and years of litigation spearheaded by SBE against health insurers.