State RegulationsFL specificDifficulty 2/5
What must a Florida Medicare supplement policy itself contain, prominently, regarding cancellation by the insured?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 627.674(4)(d), a Medicare supplement policy must contain a prominent no-loss cancellation clause informing the insured that the policy may be returned within 30 days of receipt for a full premium refund. This puts the free-look right on the face of the contract itself, so the senior sees the exit door without needing to consult anyone. Clauses restricting cancellation or making premiums nonrefundable would defeat the statutory free look.
Why the other options are wrong
- A) The clause protects the insured's right to cancel, not a right of the insurer to cancel by age.
- C) The insured's cancellation right during the free look does not depend on the insurer's consent.
- D) Nonrefundable-premium clauses contradict the full-premium-refund requirement of the free look.
Memory hook
The exit door is printed on the policy itself.