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While a certain amount of variation is tolerated, Mr. Wagner said, "the standard for fraud is a misrepresentation of material fact".
However, the language of the law still allows companies to rescind coverage in case of "a covered individual who has performed an act or practice that constitutes fraud or makes an intentional misrepresentation of material fact as prohibited by the terms of the plan or coverage".
"In the spirit of the recently passed health reform legislation, UnitedHealthcare moved quickly to eliminate the practice of rescissions, except in cases of fraud or intentional misrepresentation of material fact," said Gail Boudreaux, president of UnitedHealthcare.
The rescission law, according to the legislation, "shall not apply to a covered individual who has performed an act or practice that constitutes fraud or makes an intentional misrepresentation of material fact as prohibited by the terms of the plan or coverage".
UnitedHealthcare, "has ended its limited use of rescissions effective immediately, except in cases of fraud or intentional misrepresentation of material fact," the company announced on Wednesday in a clear admission that it was engaged in the practice as a matter of policy.
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That is a deliberate misrepresentation of a material fact".
But they can be reopened, according to the service, if evidence arises of "fraud, malfeasance or misrepresentation of a material fact".
To quote Judge Sidney H. Stein, who wrote in April, "All plaintiffs provided evidence of a misrepresentation of a material fact — namely, that the I.J.L. interviewer had at least two matches in mind during the intake interview".
Specifically, according to Della Barnett, a plaintiffs' employment attorney in California, "Affirmative misrepresentation of a material fact can be construed as fraud" and your potential future employer could sue you for it.
Another state judge that year imposed $5,000 in sanctions and ordered the firm to pay $14,500 in attorneys' fees, ruling that "misrepresentation of the material statements here was outrageous".
They unearthed the Weasel Parade News as part of their lawsuit against CIBC, which they charge with deceit, misrepresentation and nondisclosure of material facts involving CIBC's handling of Renaissance's $200 million offering.
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CEO of Professional Science Editing for Scientists @ prosciediting.com