What Do You Mean It's Not Covered: No Coverage for a Pregnant Woman

None of this was true. Life Investors didn't cover women more than three months pregnant with its health insurance policies. Although Yannacito initially told Charles Cozza that the health insurance would not be effective until the policy was approved by Life Investors, he later said the Cozzas' expected twin babies would be covered by the policy in the event the children had significant post-delivery problems. Yannacito gave Cozza an application for a combination life and health insurance policy with Life Investors. On September 28, 1982, the application was completed by the Cozzas and returned together with the first month's premium to Yannacito, who in turn gave it to Campbell, who forwarded it to Life Investors. It was received by Life Investors on October 4. The company denied coverage, because Kim Cozza's pregnancy was more than three months along, on October 7. On October 17, Kim Cozza prematurely delivered twin boys. On October 18, Yannacito was notified by Life Investors that it had denied the Cozzas coverage. Yannacito notified Charles Cozza about the denial of coverage on October 20. The Cozzas filed a complaint with the Colorado Insurance Division about Life Investors' denial of health coverage. On December 12, the Insurance Division initiated administrative proceedings against Life Investors. The regulators set up two counts against Life Investors for alleged violations of the Colorado Insurance Code. The first count asserted that "through its agent, Yannacito, respondent [Life Investors] misrepresented the benefits, advantages, conditions, or terms of its health policy coverage in violation of [Colorado law]." The second count asserted that the alleged violation in the first count was a "knowing violation" under [Colorado law].