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Insurer cannot terminate association's health coverage.

Article Excerpt
In a case with important implications for people who obtain their health insurance through small membership organizations in California, a state appeals court recently held that a health insurer could not cancel its coverage of the San Francisco Trial Lawyers Association (SFTLA).

Health Net of California, Inc., told SFTLA in 2003 it would not renew its contracts because the association did not qualify as a "guaranteed association." A guaranteed association includes at least 1,000 insureds; about 300 people are insured under SFTLA's plan. Many of those members are sole practitioners who would have difficulty getting coverage otherwise. The association filed suit for breach of contract, and Health Net petitioned to compel arbitration.

A state superior court granted a preliminary injunction to block Health...

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