State RegulationsFL specificDifficulty 2/5
Which practice is required of a Florida agent whose client is replacing an existing Medicare supplement policy with a new one?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Fla. Stat. 627.6741, a Medicare supplement replacement must be handled transparently: the applicant receives the required disclosure documents (such as the outline of coverage for the new policy), and the existing insurer is notified of the replacement. This gives the consumer a fair comparison and preserves the continuity protections that attach to qualifying replacements, such as the waiver of preexisting and waiting periods. Concealment or misdescription of the policies is exactly what the replacement rules exist to prevent.
Why the other options are wrong
- A) Premiums must not be collected before the applicant receives the required disclosures.
- B) Concealing the replacement from the existing insurer defeats the required notification process.
- C) Misdescribing the policies as identical when they differ is misrepresentation, not a required practice.
Memory hook
Replace in the open: disclose, compare, notify.