Lying Eye's

You can't hide your lyin' eyes
And your smile is a thin disguise
I thought by now you'd realize
There ain't no way to hide your lyin eyes

The Eagles knew it. Seems a California judge feels the same way.

In a key victory for Blue Shield of California, a judge ruled the health insurer acted properly when it rescinded a couple's policy because they made misrepresentations about medical history on their application for coverage.

Rescission's are a difficult part of the individual health insurance market, but if you lie on an application you will get caught.

Blue Shield opened a rescission investigation after Steve Hailey was hospitalized soon after he signed the application for coverage that claimed he had no prior health problems, Blue Shield said. When medical records indicated he failed to disclose numerous serious medical conditions, Blue Shield rescinded the contract. Between the time it opened its investigation and the time the policy was rescinded, Hailey was involved in a car accident, Blue Shield said.

According to press reports, Hailey accused Blue Shield of wrongly dropping his coverage after the accident left him with bills of more than $400,000.

Tough break.

He lied about his medical history in order to obtain health insurance, then was involved in an auto accident. Some would call that justice.

After five years of litigation, the decision "proves that Blue Shield of California had every right to rescind the Haileys' coverage," Jacobs said in the statement. The Haileys admitted that they understood the Blue Shield application and that the application "was clear and unambiguous," he said.

Five years and countless lawyer fees.

Thanks to Jeff Milne for this tip.