State RegulationsMA specificDifficulty 2/5
A Massachusetts producer asks whether he may earn commissions on Medicare supplement sales. Which statement is correct under the Massachusetts Division of Insurance's rules, including 211 CMR 71.18?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Massachusetts does not ban compensation for Medicare supplement sales; 211 CMR 71.18 regulates it. Producers may be paid for these sales, but the compensation arrangements must conform to the Massachusetts Division of Insurance's permitted-compensation framework and must not be designed to reward sales that are inappropriate or excessive for the applicant. The producer's question therefore has a two-part answer: yes to being paid, no to any pay plan that pushes inappropriate selling.
Why the other options are wrong
- A) Compensation is permitted; the rule regulates its structure rather than prohibiting payment outright.
- B) The rule does not draw a cash-only line; its concern is whether the arrangement rewards inappropriate sales.
- C) The Part B enrollment status of the applicant is not the compensation trigger; 211 CMR 71.18 turns on the appropriateness of the pay structure.
Memory hook
Pay is allowed, but the pay plan itself must play by the rules.