The Bay Area Reporter - Friday, April 9, 1999
M.R. Richards, B.A.R. Capitol Correspondent

Eventually Galanty submitted a claim for disability benefits because he had developed AIDS. Four months after they began paying benefits, the Paul Revere company wanted Galanty's medical records, and several months after that stopped paying benefits. Galanty filed suit in December 1995 but the company received a summary judgment in their favor and the California Court of Appeals later affirmed the decision. In December 1995, Quackenbush had intervened in the case by issuing an order to show cause to the insurance company, alleging that it had passed the time period within which they could have denied Galanty's claim for an illness that existed prior to the date the policy was issued.

Quackenbush then filed the amicus brief with the California Supreme Court. Quackenbush said, "I am supporting Mr. Galanty in this case to ensure that important consumer protection statutes are not weakened. We must not allow insurance companies to create statutory loopholes in order to deny valid consumer claims." Quackenbush expressed deep concern about the appellate court decision because it would severely dilute the strength of consumer protection statutes.

"The legislative intent behind the incontestability clause is clearly to protect consumers by preventing insurance companies from denying claims after two years based on pre-existing conditions," he said. "It sets a very bad precedent to allow the specific language of an insurance company contract to override a consumer protection statute. More importantly, it is unfair to penalize an AIDS victim, who never lied about his HIV status and who paid premiums for many years, just when he needs his insurance most."

Galanty's attorney, Robert Gianelli, raised a frightening issue: "If insurers are allowed to disregard the incontestability clause, they will forever be pointing to obscure, old symptoms and argue they were prior manifestations of a current disabling condition. Suddenly a higher than average cholesterol reading, 10 years prior, will be deemed the cause of a disabling heart condition. No consumer will be free from post claim scrutiny no matter how long he has had his policy."

Quackenbush is joined by AIDS Project Los Angeles, California Women's Law Center, Western Law Center for Disabled Rights, Protection and Advocacy Inc. and the ACLU of Southern California.

When asked why the usually low-profile, conservative commissioner would so strongly support Galanty's cause, press aide, Scott Edelen said, "It's very simple. It was the right thing to do."
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