State RegulationsNJ specificDifficulty 3/5
Which statement about a Medicare supplement policy sold in New Jersey is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Medicare supplement policies sold in New Jersey are guaranteed renewable under the framework of N.J.S.A. 17B:26A-1 through -17: the insurer cannot cancel the policy because of the policyholder's health or claims experience. Combined with standardized benefits, this protects buyers from losing coverage precisely when they use it most. The New Jersey Department of Banking and Insurance polices violations of these Medigap protections.
Why the other options are wrong
- A) High claims are not a cancellation ground; the guaranteed-renewable rule forbids it.
- B) Standardization means a given plan letter carries the same core benefits across companies.
- D) Describing the policy as federal Medicare coverage would be a misleading misrepresentation the department prohibits.
Memory hook
Medigap sticks with you: guaranteed renewable, no matter the claims.