State RegulationsFL specificDifficulty 2/5
A Florida agent is replacing a client's Medicare supplement policy with one from a different insurer. Which practice complies with Florida's marketing standards?
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 D is correct
Under Fla. Stat. 627.674 and 627.6741, a proper Med Supp replacement is a transparent one: the agent reviews the disclosure documents with the applicant, compares the existing and proposed coverage so the client understands exactly what changes, and completes the required replacement documentation. When replacement of qualifying coverage occurs, the new insurer must waive preexisting and waiting periods. Hiding the replacement from the existing insurer or misdescribing the benefits is the opposite of compliant marketing.
Why the other options are wrong
- A) Premiums must not be collected before the required disclosure documents are provided.
- B) Concealing the replacement from the existing insurer defeats the required notice and comparison process.
- C) Misdescribing the new policy's benefits is misrepresentation, not compliant marketing.
Memory hook
Replace in daylight: compare, disclose, document.