Once a Medicare supplement policy is issued in New York, what renewability standard applies under Reg 193?

Why A is correct

Under Reg 193 (11 NYCRR Part 58), New York Medicare supplement policies must be guaranteed renewable: the insurer must continue the coverage while premiums are paid and may not refuse renewal because the insured's health deteriorates or claims mount. As with other guaranteed renewable coverage, the insurer retains the right to adjust premiums on a class basis, but never to single out an insured for cancellation.

Why the other options are wrong

• B) Optional renewability would let the insurer drop coverage precisely when it is needed; the regulation requires the guaranteed form.
• C) Age-based termination is not a feature of New York Medigap renewability; coverage continues with payment of premiums.
• D) Claims experience cannot be used to refuse renewal of a guaranteed renewable Medigap policy.

Memory hook

Medigap in New York: issued year-round, renewed guaranteed.

Why A is correct

Under the New York Insurance Law and the rules of the New York State Department of Financial Services, Medicare supplement policies in New York are guaranteed renewable. The insurer must continue the coverage as long as the insured pays the premiums, and it may not use the insured's advancing age, deteriorating health, or claims history to drop the coverage. This continuity protection is central to Medicare supplement regulation in New York because insureds rely on the coverage to fill Medicare's cost-sharing gaps.

Why the other options are wrong

• B) Optional renewability would let the insurer decline renewal at each anniversary; that falls short of the guaranteed renewability New York requires for Medicare supplement policies.
• C) A Medicare supplement policy cannot be cancelled at the insurer's pleasure; termination is confined to narrow grounds such as nonpayment of premium or fraud.
• D) Conditioning renewal on good health is precisely what guaranteed renewability forbids.

Memory hook

Guaranteed renewable: pay the premium, keep the policy.