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Insurers ordered to reinstate policies

State officials ordered California's largest health insurers to reinstate 26 improperly canceled health policies Thursday and said they plan to review thousands more in coming months. Harrison Sheppard in the Daily News.

The order was the first action out of a two-year investigation into whether insurers regularly violate state law when canceling policies.

The state Department of Managed Health Care is planning to review the case of every Californian who has had a health insurance policy canceled in the past four years - a number expected to exceed 10,000.

"We couldn't find any evidence that these (26) people should have been rescinded," said DMHC spokeswoman Lynne Randolph.

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