On January 29, 2010, a Boulder County, Colorado jury awarded $37 million
to Jennifer Latham of Lafayette, Colorado, whose health insurance was
canceled after the woman sustained severe injuries in an auto accident,
including multiple fractures and a brain injury.
Latham had purchased a health insurance policy from Assurant Health just
five months before the 2005 accident. After she spent a month in the hospital
and another month in rehabilitation at a cost of about $185,000, Assurant
Health canceled her policy and refused to pay her medical bills, claiming
that Latham had failed to disclose in her application an emergency room
visit for shortness of breath and treatment for a uterine prolapse. Latham
claimed her insurance company acted in bad faith. The jury agreed with Latham.
Assurant Health was one of the companies investigated by the House Subcommittee
on Oversight and Investigations for its policy cancellation practices.
It is not known if Assurant Health will appeal the verdict.