State RegulationsFL specificDifficulty 2/5
A Florida consumer already owns a Medicare supplement policy. Why should an agent NOT sell her a second one to keep alongside the first?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 627.674, Medicare supplement policies are designed to fill the gaps in Medicare — deductibles, coinsurance, and copayments — once. A second Med Supp policy duplicates the first and provides essentially no additional benefit, so selling one is an inappropriate, wasteful sale. Regulators treat knowingly selling duplicative coverage as a marketing violation. Florida law provides proper ways to change coverage, such as replacement with the required disclosures.
Why the other options are wrong
- A) The first policy is not automatically cancelled; the problem is that the second one duplicates it, not that it terminates it.
- C) Medicare does not bar owning multiple policies; the issue is that duplicate Med Supp coverage serves no purpose.
- D) There is no special higher tax rate on a second Med Supp premium; the problem is duplication, not taxation.
Memory hook
One gap, one filler — a second Med Supp buys nothing.