Calabria v. Associated Hospital Service

MEMORANDUM

BONSAL, District Judge.

This action was brought by plaintiffs, residents of New Jersey, on their own behalf and on behalf of a purported class consisting of all persons residing outside of the state of New York who purchased Blue Cross policies from defendant Associated Hospital Service (“AHS”) and who were denied benefits pursuant to the exclusion clause in their policy (Article V—A.4.) * Plaintiffs allege that defendant’s construction of the word “rehabilitation” in the exclusion clause is “unwarranted and unauthorized” ; that it is construed to “favor the insurer and against…