State RegulationsFL specificDifficulty 2/5
A Florida agent markets Medicare supplement policies in a subsidized housing complex whose residents are largely on Medicaid, telling everyone that 'all Medicare beneficiaries need this plan.' Why is this a problem?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Marketing Medicare supplement coverage to consumers whose Medicaid already pays their Medicare cost-sharing promotes insurance with little or no value to the buyer. Under Chapter 627, Florida Statutes, and the sales practice standards enforced by the Department of Financial Services, knowingly selling duplicative or unsuitable coverage is a deceptive practice. Suitability — matching the product to the consumer's actual needs — is the core duty the agent is dodging with a blanket pitch.
Why the other options are wrong
- A) The problem is not trespass; it is the promotion of duplicative, unsuitable coverage.
- B) Medicare supplement policies are sold through licensed agents in many settings; banks are not the exclusive channel.
- C) No Medicaid consent is involved; the issue is the deceptive nature of selling duplicative coverage.
Memory hook
Sell the need, not the pitch — Medicaid recipients often need nothing.