Schmidt v. Foundation Health
California Court of Appeal
1Opinion of the Court
Opinion
SPARKS, J.
In this appeal, we conclude that the Knox-Keene Health Care Service Plan Act of 1975 (Act) (Health & Saf. Code, § 1340 et seq.) and section 1300.46 of title 10 of the California Code of Regulations (hereafter regulation 1300.46) prohibit a broker of health care service plans from rebating commissions to his clients.
Plaintiff James R. Schmidt worked as an independent broker for the health care plans offered by defendants Foundation Health (Foundation) and St. Joseph’s-Omni Health Plan, Inc. (Omni), and received a commission from defendants for the clients he obtained. In an…
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