State RegulationsMA specificDifficulty 2/5
An insurer wants to market a Medicare supplement policy in Massachusetts whose benefit design falls below the state's prescribed standards. Under 211 CMR 71.08, what is the consequence?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
211 CMR 71.08 sets the floor for Medicare supplement benefit designs in Massachusetts, and the Massachusetts Division of Insurance enforces conformity through its policy form review. A policy whose benefits fall short of the prescribed standards is a nonconforming form: it simply cannot be issued or delivered in the Commonwealth, whatever disclosures accompany it. There is no group-market carve-out, and no self-service waiver window for insurers that prefer a leaner design.
Why the other options are wrong
- A) Disclosure cannot cure a nonconforming design; the benefit standards under 211 CMR 71.08 are mandatory, not advisory.
- B) The benefit standards apply to Medicare supplement policies generally; there is no exception that permits substandard designs in the group market.
- D) Massachusetts provides no one-year sale window pending a waiver; a nonconforming Medicare supplement form stays off the market.
Memory hook
Below-standard med supp design = nonconforming form = no sale in Massachusetts.