State RegulationsNY specificDifficulty 1/5
At a seminar for seniors in Albany, a producer tells the audience that the Medicare program is about to be discontinued and urges them to buy the Medicare supplement policy she is selling before their benefits disappear. Under New York law, this approach is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the New York Insurance Law, the marketing standards enforced by the Superintendent of Financial Services forbid sales approaches built on fear and misinformation. Falsely telling seniors that Medicare is ending in order to stampede them into buying a supplement misrepresents both the federal program and the product being sold, and the setting - a seminar rather than a one-on-one meeting - does not exempt the conduct. Pressure and falsehood are exactly what the standards target.
Why the other options are wrong
- A) Fair pricing does not rescue a pitch that rests on a false emergency; the misleading claim itself is the problem.
- C) Seminars are marketing conduct subject to the same standards as any other solicitation; informality is not an exemption.
- D) Where and when the application is signed does not matter; the misleading pitch at the seminar is itself the violation.
Memory hook
Scaring seniors about Medicare is a sales tactic with a discipline date.