HMOs to face stricter rule;
<h3>A state agency plans a move that would make it harder for insurers to drop sick policyholders.</h3><p class="source">The Los Angeles Times</p>
<p>Randolph disclosed Ehnes' plans in response to a petition the department received Monday from consumer advocates. The petition demanded that the agency move to stop the industrywide practice of canceling policies over misinformation in applications, whether or not the policyholder intended to lie. The petition was filed by the Foundation for Taxpayer and Consumer Rights, which says a 1993 state law clearly prohibits the cancellation of health insurance unless a company can prove "willful misrepresentation."</p>
