Nazaretyan

In 2004, plaintiffs Gevork Nazaretyan and Narine Ghazaryan applied for and obtained health coverage from defendant California Physicians’ Service, doing business as Blue Shield of California (Blue Shield), a health care service plan. In 2006, Blue Shield rescinded plaintiffs’ coverage on the ground that their application contained several material misrepresentations concerning their medical history. Plaintiffs then filed suit against Blue Shield but lost on summary judgment. We reverse.

BACKGROUND

Nazaretyan immigrated to the United States from Armenia when he was 11 years old, and he never finished high school. Ghazaryan is Nazaretyan’s wife; she came to the United States from Armenia in 1999. When she arrived she spoke no English, having studied only Armenian and Russian. She now understands English “[u]p to [a] certain point,” which she estimates to be “[p]erhaps 40 percent.”

In August 2004, plaintiffs had health insurance through a Blue Cross HMO (health maintenance organization) plan. Because their coverage was restricted to the HMO’s “in-plan” doctors, they sought a plan that offered broader coverage.

Ahmad Yusop was an insurance broker selling products offered…