Case Summary

4976 REVIEW DENIED The trial court properly exercised its discretion in determining summary judgment was not barred because the operative motion addressed fraud, an issue not raised by the prior motion. In its motion for summary judgment, the insurer adequately pleaded fraud. The information appellant provided to her insurer was false, and the insurer had no statutory duty to show appellant’s application had been physically attached to the insurance policy, nor to conduct any further inquiry during the underwriting process to ascertain the truthfulness of appellant’s representations before it issued its policy. Thus, by rescinding the policy, the health insurer did not improperly engage in post-claims underwriting, and did not breach the implied covenant of good faith.

NIETO v BLUE SHIELD OF CALIFORNIA (Rescinding Insurance for Bank Pain) 181 CA4 60 [See Ticconi v. Blue Shield of California,160 CA4 27 (2008); T/AT 04/2008]