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January 03, 1991|From Times Staff and Wire Reports

State to Examine Claims Against Blue Cross: The California Department of Insurance has ordered Blue Cross of California to appear at a March 13 hearing to respond to allegations of unfair practices made by some former policyholders in three separate complaints. The hearing order involves allegations that Blue Cross failed to promptly inform a policyholder of a decision to rescind coverage and includes separate complaints charging that the insurer failed to investigate and process claims in a reasonable time. The allegations involve practices prohibited by state regulation, with penalties of $5,000 to $10,000 for each act.

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