Letter to the Editor

Misrepresentations

San Luis ObispoDecember 5, 2013 

‘If you like your insurance, you can keep your insurance, period.” “If you like your doctor you can keep your doctor, period.” Barack Obama was selling Obamacare to us and advocating that insureds with “grandfathered policies” should change them to the “superior” Affordable Care Act ones.

Let’s evaluate Obama’s sales pitch and multiple lies in light of California insurance code:

Insurers and producers are prohibited from making, or allowing others to make, statements, estimates, illustrations, circulars or other communications, whether spoken or written, that are known, or should be known to be a misrepresentation of policy terms or benefits.

Misrepresentations may not be made for the purpose of persuading: a consumer to purchase a policy; a consumer to refuse a policy issued by another insurer and instead purchase one from the insurer or producer making the misrepresentation; or a policyholder to lapse, forfeit, change or surrender a policy.

Making misrepresentations is punishable by: a fine of up to $25,000; a fine up to three times the amount of the loss suffered in a case in which the victim’s loss exceeds $10,000 or imprisonment in a county jail for a period not to exceed one year.

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