A New York agent solicits a Medicare supplement policy from a prospect without asking whether the prospect already has accident and health coverage or what types and amounts are in force. Under New York's Medicare supplement marketing standards, the issuer, directly or through its agents, must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under the Medicare supplement marketing standards enforced by the Superintendent of Financial Services, an issuer, directly or through its agents, must inquire and otherwise make every reasonable effort to identify whether a prospective applicant for Medicare supplement insurance already has accident and health insurance, and the types and amount of any such insurance. The duty exists to prevent the sale of excessive or duplicate coverage, so soliciting without any inquiry into existing coverage violates the standards and exposes the issuer and producer to Department of Financial Services action.
Why the other options are wrong
- B) The duty to inquire rests with the issuer and its producers; it is not satisfied by waiting for the applicant to volunteer coverage information.
- C) No advance approval from the Superintendent is required for solicitation; the requirement is an affirmative inquiry into existing coverage.
- D) The standards do not restrict sales to the least comprehensive plan; they require identification of existing coverage so that excessive insurance is not sold.
Memory hook
Before selling Medigap: ask what coverage the prospect already has.