That article was slanted to make the insurance company look evil. (duh, what else is new?)
The article states that one insurance company rescinded (cancelled) in-force policies of sick people.
What it didn’t say was that in most states (probably all, but I haven’t checked all of them), state law PROHIBITS rescinding a policy unless it has been in force for LESS THAN 2 YEARS AND THE APPLICANT LIED ON THE APPLICATION ABOUT THE HEALTH OF ONE OF THE INSUREDS.
In other words, the company can rescind a policy for the applicant COMMITING FRAUD to obtain coverage and lower rates - but ONLY if within 2 years (maybe 1 or 3 years in some states) of the application. After that, the company is stuck with the policy unless premiums go unpaid beyond the grace period.
Some people just refuse to read their insurance policy, so when a claim is unpaid or coverage denied, they accuse the insurance company of being evil.
A policy is a unilateral contract and it’s provisions can not be changed after issuance except for changes allowed in the contract itself. The insured/owner can cancel the policy by not paying premiums when due. The insurance company can NOT cancel or refuse to renew coverage except by conditions or renewal provisions specified in the contract.
READ THE DAMN POLICY!
I have NO PITY for those who won’t read their policy, and instead rely only on their agent or call-center contact or employee of the company.