Because that's the way contracts work.
If they can do that, then what’s the point of having insurance? Why would a hospital take such insurance?
You don’t even know if you are insured.
Will Progressive retroactively cancel your car insurance 6 months after the accident?
How far can this go?
Can the insurers ask for money back that they paid already?
Can you get a bill for a 2 year old settled claim?
And if a person was not covered, do they get their premiums back?
Cancelled retroactively even though they took yer money eh because you didn’t want to pay a claim? Hmm that sounds like breach of contract to me.
Statements like this don’t help; I realize it’s hearsay but it can still start the bricks in the wall to start crumbling for a company:
“We called Anthem Blue Cross, and they said, ‘Well, we can cancel people whenever we want. We can do whatever we want,’” Xanttopulos said.
I’m sure BCBS will say their claims representative didn’t say that and then quitlh terminate their employment because that’s what they do. WH SOP as well.
Does it work in reverse? Should not policyholders be allowed to make insurance premiums for a year and then if we have no claims retroactively cancel and demand a full refund? Rinse, wash, and repeat with another insurance company.
Does the article clearly state *why* the insurance was being [retroactively] cancelled? I can’t see an explanation for it.
Is it a result of false information on the application?