Anthem Blue Cross has agreed to pay $10 million to California regulators and reinstate 1,770 dropped health insurance policies.

Department of Managed Health Care Director Cindy Ehnes says the settlement announced Thursday sends a message that insurers who want to operate in California will have to play by the rules.

Anthem Blue Cross has confirmed the settlement and says it plans to comment later.

The announcement came shortly after Blue Shield of California agreed to pay a $3 million fine and reinstate policies for 450 enrollees.

-- Associated Press