State RegulationsTN specificDifficulty 2/5
A Tennessee producer explains to a senior client how Medicare supplement insurance is regulated in this state. Which statement is correct?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The Tennessee Department of Commerce & Insurance administers rule chapter 0780-1-58, which supplies the required terms, definitions, prohibited provisions, and minimum standards for Medicare supplement policies delivered in the state. Long-term care is governed separately under the Long-Term Care Insurance Act and its own rule chapter 0780-1-61, and the Medicare supplement rules expressly do not apply to long-term care policies (see T.C.A. § 56-42-102).
Why the other options are wrong
- A) The federal program connection does not create an exemption; Tennessee actively regulates Medicare supplement policies through rule chapter 0780-1-58.
- C) Long-term care policies are governed by the Long-Term Care Insurance Act and rule chapter 0780-1-61; the Medicare supplement rule chapter 0780-1-58 does not supply their standards.
- D) Individual insurers cannot set the standards; the Tennessee Department of Commerce & Insurance fixes them by rule.
Memory hook
Med supp has its own book: 0780-1-58 — LTC sits elsewhere.