I have preemie twins they are 4 now and very healthy children. A Health insurance company denied them b/c it stated on their records that they could have CP due to being premature. Neither one of them have CP but they were still denied b/c of this can they deny a child insurance due to a medical condition they don't even have???

If you're looking at individual health insurance policies, they can deny you for ANY REASON. They don't even have to tell you why.

You can talk to the agent that got you the quote, ask them to talk to the underwriter, and see if they would review the file and accept a statement from their pediatrician that they are CP free.