Under the Medicare supplement marketing standards enforced in New York, which producer practice is prohibited?

Why D is correct

Under the Medicare supplement marketing standards enforced by the New York State Department of Financial Services, cold lead advertising is prohibited: a marketing method may not fail to disclose in a conspicuous manner that a purpose of the method is the solicitation of insurance and that contact will be made by an insurance agent or insurance company. Fair and accurate plan comparisons, inquiries into existing coverage, and the first-page buyer notice are all permitted or required practices, so only the undisclosed solicitation method is prohibited.

Why the other options are wrong

• A) Asking whether a prospect already has accident and health insurance is required, not prohibited; issuers must make every reasonable effort to identify existing coverage.
• B) Comparing the features of benefit plans fairly and accurately is expressly permitted; issuers must establish procedures to ensure such comparisons.
• C) Displaying a notice on the first page that the policy may not cover all medical expenses is a required marketing practice, not a violation.

Memory hook

Cold lead ad = hidden pitch; the solicitation must be conspicuous.