State RegulationsNY specificDifficulty 1/5
Under New York law, a Medicare supplement policy must be:
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Answer & full 3-part explanation (select an option above, or peek)
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.