Got this from Washingtonmonthly.com:
One executive said rescission is about “stopping fraud and material misrepresentations that contribute to spiraling healthcare costs.” So, for example, when a woman in Texas was diagnosed with aggressive breast cancer, her insurer dropped her coverage because the company found an instance in which she visited a dermatologist for acne, and didn’t tell the insurance company about it. This, the insurer said, was an example of “fraud and material misrepresentation.”
This executive seems to have confused the companies self-interest with what they are contracted to do as an insurance company like pay for thetreatment of people who get sick. This is sort of like the auto executives flying their private jets to Washington so that they could beg for money.