A Queens applicant is completing an application for a Medicare supplement policy. The disclosure statement that New York law requires the insurer or agent to furnish is designed to:

Why B is correct

Under the New York Insurance Law and the rules of the New York State Department of Financial Services, a Medicare supplement applicant must receive a disclosure statement, accompanied by an outline of coverage, describing the policy's benefits and how the policy coordinates with Medicare. The disclosure gives every buyer the same standard picture of what is being sold, which is what makes an informed, side-by-side comparison of competing Medicare supplement policies possible.

Why the other options are wrong

• A) The disclosure relates to the policy's benefits and its relationship to Medicare, not to the insurer's financial statements.
• C) A list of the insurer's policyholders is confidential customer information and has nothing to do with the disclosure requirement.
• D) The agent's personal tax affairs are irrelevant to the applicant's right to standardized pre-purchase disclosure.

Memory hook

The disclosure statement shows how the policy fills Medicare's gaps so buyers can compare.