James David Rosen

James David Rosen is a student and activist involved in efforts to bring about universal health care, and end exclusionary health insurance practices.

Assurant Health, the country's oldest provider of individual health insurance policies, has had a few public relations problems lately.

In addition to the debate over such companies making hundreds of millions in profits by canceling policies, there was also the staggering $37 million verdict against Assurant that Boulder jurors awarded to Jennifer Latham, who suffered a devastating car wreck, then had her insurance rescinded.

Now, more troubles for the company: A Reuters report indicates that Assurant's practice of rescinding policies in the wake of potentially costly claims is more systematic and more widespread than the Latham jury thought -- and that among those targeted for cancellation are clients who test positive for HIV.

The Reuters piece is based on documents from the case of Jerome Mitchell, a South Carolina teenager whose health-care coverage was dropped by Fortis Their shoddy investigation, rush to rescind and apparent destruction of records resulted in a $10 million punitive verdict against the company.

Records in that lawsuit a company policy to avoid paying huge claims by any pretext possible. Reporter Murray Waas writes that Assurant developed a computer program that would flag "every policyholder recently diagnosed with HIV for an automatic fraud investigation."

Although many records of case are sealed, Murray Waas quotes rulings by trial judge Michael Nettles blasting the company for its "reprehensible" conduct: "Fortis has for some time been making recommendations for rescission... without good-faith investigation."