WellPoint Inc. (WLP) agreed to pay $6 million to settle a 2008 lawsuit by the city of Los Angeles, which alleged the insurer used illegal rescission methods when individual policyholders filed a claim.
WellPoint denies wrongdoing and has changed its rescission practices, including using a third-party, independent review process, City Attorney Carmen Trutanich said today in a statement. Kristin Binns, a spokeswoman for Indianapolis-based WellPoint, declined to comment further on the settlement.
