Kavruck

This is an appeal from summary judgment in favor of Blue Cross of California (Blue Cross) in a class action. The class is made up of subscribers whose health insurance policies were changed so that their premiums were no longer based on their initial enrollment age but on their attained age at the time of renewal. We conclude there are triable issues of material fact whether Blue Cross breached these contracts, precluding summary judgment. We reverse the judgment. We affirm the order denying class certification as to the causes of action for fraud, negligent misrepresentation, and unfair competition.

Factual and Procedural Summary

In 1984, Deborah A. Kavruck purchased a Blue Cross individual health insurance policy which provided that premiums would be rated based on the subscriber’s initial enrollment age. (We refer to this type of policy as an “entry age” policy.) In 1987, Blue Cross stopped marketing these entry age policies, but the existing entry age policies remained in effect. In 1994, Blue Cross transferred subscribers with entry age policies (contract Nos. 1002, 1708, 1709, 1918) into new policies, in which premiums were calculated based on the subscriber’s…