Health Net Fined

From another source: California officials fined Health Net Inc. $1 million Thursday for misleading state investigators about employee bonuses linked to policy cancellations. The insurer acknowledged last week that it had set goals for employee performance and cost saving based on the number of policyholders who were dropped each year. Officials are continuing a broad investigation of the insurer’s cancellation practices.

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Amazingly, this isn't just limited to health insurance. Property and casualty insurers are accused of offering bonuses to adjusters who meet certain goals in minimizing payments. Underwriters also may get bonuses for cancelling policies during a claim or pre-claim.

It reminds me a lot of "The Rainmaker" by John Grisham. Sometimes fiction is close to fact.