State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California law (Insurance Code Section 10192.20), which practice in the sale of Medigap policies is prohibited?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10192.20 prohibits improper sales practices in the Medigap market, including replacing a policy when the replacement is not in the consumer's best interest, high-pressure or misleading marketing, and replacement without the required disclosure documents such as an outline of coverage and replacement notice. These protections guard against agents churning senior clients into new Medigap policies merely to earn new commissions, and the section is a California Medigap sales-conduct rule.
Why the other options are wrong
- B) Providing an outline of coverage before the application is a required disclosure, not a prohibited practice.
- C) Offering a choice among the standardized Medigap plans is a legitimate and expected part of Medigap sales.
- D) Reviewing the consumer's existing coverage is sound practice and is not prohibited.
Memory hook
Medigap anti-churning law: replacing a senior's policy for the agent's commission, without disclosure, is a no-go.