Key legal question
Whether the IV office had to issue a new prior notice before the final refusal
Extracted holding
No. The insured had already been heard on the decisive issues, and the change from the prior notice to the decision did not require a renewed notice.
Extracted reasoning
The office did not obtain new medical reports after the prior notice; it simply reassessed the existing psychiatric report and rejected the 20% limitation previously assumed. Both acts were rent-denying decisions, and the insured suffered no procedural disadvantage.