Nelson Profar

Nelson Profar has worked in consumer compliance, primarily regarding the health insurance industry and disability insurance industry.

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, City Attorney Carmen Trutanich said today in a statement.

In its 2008 complaint, the city had alleged that WellPoint’s Anthem Blue Cross of California unit investigated policyholders’ medical histories for inconsistencies with their insurance applications only after they filed claims.

“Patients have a right to meaningful coverage when they need it most, when they are ill and in need of medical treatment,” Trutanich said. “Health insurance companies must honor their policies and provide coverage to patients in full compliance with the law.”

Last month, WellPoint was selected as one of 13 insurers who can participate in California’s health exchange through which the state’s residents can buy health insurance under the Affordable Care Act.