Tuesday, August 7, 2012

What is recission?

When you apply for private insurance you have to fill out pages of info about your health and any health issues/treatments you've had. You've probably had to do this. I have. This can be a source of major suckage right away. For example, when my friend Ursula was in her thirties (she's in her early 60's now) she found a lump in her breast. Her doctor told her that she was pretty sure it was just a fat deposit, but that she should have a biopsy "just to be 100% sure." So Ursula did. And it was a fat deposit. No worries, no further problems. But now most insurance companies won't cover her at all, and the one she finally found that would has very high premiums and deductible - and cancer treatment is excluded!

Anyway, that's not recisssion. Recission is when you fill it all out and then they happily take your premiums for years, but when you're diagnosed with something expensive - heart attack, cancer, etc - they pull out your original application and then comb through all of your medical records with sophisticated computer programs until they find something you didn't put on the form. At which point they say, "Aha! You didn't tell us everything! Policy cancelled!"

But of course even the most honest person in the world might not remember every single trip to the doctor for their whole life, or they might not recognize a medical term on the form for something they were treated for . . .

And then this is what happens:




[posted on 8/5/09]

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