State RegulationsMA specificDifficulty 2/5
What is the consumer-protection purpose behind the Medicare supplement replacement requirements that Massachusetts imposes under 211 CMR 71.13?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The replacement provisions in 211 CMR 71.13 are built around informed consent. Medicare supplement buyers — often older consumers on fixed budgets — can be talked into switching policies that are no better, or into holding overlapping policies whose benefits simply duplicate one another. The Massachusetts Division of Insurance uses the replacement disclosure process to slow the transaction down and surface the comparison, so the replacement happens only when it genuinely serves the applicant.
Why the other options are wrong
- B) The rules protect the applicant, not the producer's commission position; compensation arrangements play no role in the replacement framework.
- C) The framework does not force applicants to stack policies; it ensures that any replacement decision is informed, including the decision to keep only one policy.
- D) Claims responsibility is not silently shifted; the disclosure process exists so the applicant knows exactly what is ending and what is beginning.
Memory hook
Replacement rules exist so nobody sleepwalks into a switch.