State RegulationsIL specificDifficulty 1/5
How are Medicare supplement policies regulated under Illinois law?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Illinois regulates Medicare supplement policies through 215 ILCS 5/363 and 215 ILCS 5/363a, which impose Illinois minimum standards, open enrollment rights, and disclosure requirements, with administrative detail at 50 Ill. Adm. Code 2008. Federal Medicare rules set the national floor, but the Illinois Department of Insurance enforces these additional state-specific standards on every Medicare supplement policy sold in Illinois.
Why the other options are wrong
- A) Medicare's federal character does not exempt Medicare supplement policies from Illinois law; 215 ILCS 5/363 and 5/363a expressly regulate these products.
- C) Illinois regulation goes far beyond advertising; 215 ILCS 5/363a and 50 Ill. Adm. Code 2008 set policy and disclosure standards.
- D) Medicare supplement policies are a distinct product category under Illinois law, not ordinary major medical without state-specific rules.
Memory hook
Federal floor, Illinois walls: Med supp policies answer to both Medicare and 215 ILCS 5/363.