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A summary of Southern California-related business litigation developments during the past week.

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From United Press International

Health Insurer Sued Over Cancellations: A class-action suit was filed Tuesday against Great Republic Insurance Co. for its cancellation in May of health insurance to about 14,000 customers. The breach-of-contract suit was brought in Los Angeles Superior Court. It is on behalf of those covered under a master policy for group insurance who were being treated for an insured medical condition when Great American canceled. The policy expressly gave Great American the right to cancel coverage. But the suit contends that the insurer “devised a scheme” to deprive the insured of their coverage by terminating the policy, then offering a conversion policy with limited coverage. At the time of the cancellations, claims were exceeding premiums, Great Republic attorney John Chakman said. (Filed July 17, 1990. Case No. BC005960)

For the record:

12:00 a.m. July 25, 1990 For the Record
Los Angeles Times Wednesday July 25, 1990 Home Edition Business Part D Page 2 Column 3 Financial Desk 2 inches; 36 words Type of Material: Correction
Wrong Company--In a summary of business litigation on Monday, an item about a lawsuit against Great Republic Insurance Co. incorrectly mentioned “Great American” in a subsequent reference. The lawsuit had nothing to do with Great American Insurance Co.

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