A Queens producer tells a prospect that the Medicare supplement policy he is recommending 'is sponsored and officially endorsed by the federal Medicare program.' Under New York law, this statement is:

Why D is correct

Under the New York Insurance Law, marketing a Medicare supplement policy as though it were sponsored, endorsed, or sold by the federal Medicare program or any government agency is a deceptive practice that the Superintendent of Financial Services can punish. Medigap policies are private insurance; standardizing their plan designs does not make them government products, and no disclosure statement cures a false claim of official endorsement.

Why the other options are wrong

• A) Standardization of plan designs says nothing about who sells the product; the plans remain private insurance.
• B) Handing over required disclosures does not launder a false claim of government endorsement.
• C) The prospect's Medicare enrollment status is irrelevant to whether the producer may pretend the policy is a government product.

Memory hook

Private plan, private paper - never say 'Medicare endorses this.'