False promises bring us this week’s Marketplace Money Buzzword: rescission.
Rescission usually means cancelling a contract by mutual agreement, but some insurers think it means cancelling when they have to pay up. They sign up customers for a policy, but when a claim is filed, they revoke it.
The companies say they issue rescission only if customers hide information when they apply, but this week, California regulators said insurers can’t do it unless they prove a customer intentionally lied. In other words, they might have to use a little more rescission precision.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
You make our
Support nonprofit news you love with a gift today.