When a licensed New York agent takes an application for a Medicare supplement policy, the application must include, or have attached to it, the agent's signed statement that:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the appropriateness standards for Medicare supplement insurance enforced by the New York State Department of Financial Services, an application taken by an agent must include, or have attached to it, a statement signed by the agent confirming that the agent has reviewed the applicant's current health insurance coverage and finds that additional coverage of the type and amount applied for is appropriate for the applicant's needs. The signed statement puts the producer's suitability judgment on the record and gives the Department a basis for enforcement if unsuitable coverage is sold.
Why the other options are wrong
- A) The required statement concerns the review of current coverage and the appropriateness of the additional coverage; it is not a waiver of preexisting condition limitations.
- C) The statement does not guarantee premiums; guaranteed renewable policies still permit class-based premium revisions.
- D) Verification of Medicare eligibility is not the content of the required statement; the statement addresses the appropriateness of the coverage applied for.
Memory hook
The agent's Medigap application signature: 'I reviewed your coverage; this fits your needs.'