Malpractice News: Health Insurer Ordered to Pay $9 Million for Canceling Sick Woman's Policy

Malpractice News: In October 2008, a health insurer was ordered to pay a Gardena, California woman $9 million in damages for canceling her health insurance while the woman was undergoing treatment for breast cancer.

The 52-year old woman was diagnosed with breast cancer in 2004. She had undergone surgery to remove the cancerous tumor and had undergone two chemotherapy treatments when she learned her policy had been rescinded. As a result, the woman was unable to pay outstanding medical bills or undergo additional chemotherapy treatments.

The insurance carrier unsuccessfuly argued they had canceled the woman's policy because of errors in her application form; however, it was later found the appplication had been completed by an insurance agent, who obtained the information while interviewing the woman at her hair salon while she was styling a client's hair.

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