State RegulationsTN specificDifficulty 2/5
An applicant asks a Tennessee agent whether each insurer may set its own qualifications for who may buy a Medicare supplement policy. What is the accurate response?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Eligibility for Medicare supplement coverage in Tennessee is fixed by T.C.A. § 56-7-1453 and the implementing rule sections Tenn. Comp. R. & Regs. 0780-1-58-.13 and -.14. Insurers and producers must apply those statutory and departmental standards rather than substituting their own criteria, and the Tennessee Department of Commerce & Insurance oversees compliance.
Why the other options are wrong
- A) Insurer discretion does not control; the state statute and rules define who may be issued the coverage.
- B) A producer completing an application has no authority to create eligibility standards; the producer must apply the state's standards.
- D) The federal Medicare program exists, but the eligibility standards at issue are established by Tennessee statute and departmental rule.
Memory hook
Med supp eligibility is statutory, not improvised.