Rescission is when an insurer cancels your coverage retroactively, treating it as though it never existed, usually alleging a material misstatement on your application. The Affordable Care Act sharply limits rescission, permitting it generally only for fraud or intentional misrepresentation. A rescission must come with advance notice and can be appealed.
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Disclaimer: This definition is provided for general educational purposes only and is not legal, medical, or insurance advice. Insurance rules, deadlines, and terminology vary by plan, state, and over time. Always check your own plan documents and confirm current details before acting.