State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under California law, when a Medigap policy is sold to replace an existing Medigap or similar policy, the insurer must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California's Medigap rules require that when a policy replaces another Medigap policy, the applicant receives a replacement disclosure and an outline of coverage so the consumer can compare benefits and understand what is being given up. These disclosure rules, including the outline of coverage requirements of Insurance Code Section 10192.17 and the replacement provisions of Section 10192.18, protect seniors from unnecessary policy churning. This replacement disclosure obligation is part of the Medigap sales-practice material examined under AH-III.D.1e.
Why the other options are wrong
- B) The law requires disclosure, not a refund of past premiums on the replaced policy.
- C) No provision waives the new policy's first-year premium upon replacement.
- D) Replacing a Medigap policy has nothing to do with canceling Medicare Part B.
Memory hook
Swap a Medigap policy and you get a disclosure first, no fine print surprises.