Misrepresentations in the Affordable Care Act

January 23, 2014

OPINION By MATT KOKKONEN

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

Let‘s evaluate Obama’s sales pitch and multiple blatant 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.

• Persuading a policyholder to lapse, forfeit, change, or surrender a policy.

Making misrepresentations is punishable by:

• A fine of up to $25,000.

• In a case in which the victim’s loss exceeds $10,000, a fine up to three times the amount of the loss suffered.

• Imprisonment in a county jail for a period not to exceed one year.”

Who says Obama is or should be above the laws that commoners have to live by?

Matt Kokkonen is a Chartered Life underwriter and a Chartered Financial consultant in San Luis Obispo. Contact him at (805) 541-1880 or (805) 886-1880.