Before a Medigap policy is sold, California law requires the applicant to receive:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California's Medigap statutes, including CIC Section 10192.17, require that applicants receive an outline of coverage before purchase, along with other disclosures such as the premium rate guide, application information, and replacement procedures. The outline of coverage summarizes the benefits of the standardized plan so the consumer can compare policies and make an informed choice. These pre-sale disclosure rules are designed to prevent misleading sales of Medicare supplements. The outline of coverage is a mandated pre-sale document that standardizes how Medigap benefits are presented across issuers. It lists the plan's benefits in a uniform format, states the premium, and explains rights such as the free-look period and guaranteed-issue circumstances, so the consumer can compare plans on equal footing.
Why the other options are wrong
- B) Financial statements are regulatory filings with the department, not required disclosures to individual Medigap applicants. The applicant's pre-sale disclosure is the outline of coverage; the insurer's annual financial statements are not part of the mandated consumer disclosure.
- C) Medigap is a supplement to Medicare, not an investment; no investment return disclosure applies. Medigap is health coverage, not an investment product, so a guaranteed investment return disclosure is inapplicable.
- D) The policy and its disclosures are delivered at sale, not withheld until a claim is filed. The outline must be provided before purchase; delivering the policy only after a claim is filed would defeat the disclosure's purpose.
Memory hook
Medigap sale = outline of coverage on the table first. Read before you sign.