State RegulationsMA specificDifficulty 1/5
Under 211 CMR 71.19, why must Massachusetts insurers report to the Commissioner when an applicant for Medicare supplement coverage holds multiple Medicare supplement policies?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
211 CMR 71.19 requires Massachusetts insurers to report when Medicare supplement applicants hold multiple policies, and the purpose is regulatory oversight: the Commissioner of the Massachusetts Division of Insurance uses the reports to detect excessive or duplicative Medicare supplement coverage — the very problem the appropriateness standard of 211 CMR 71.15 targets on the sales side. The reporting rule gives the regulator market-wide visibility into policy stacking that no single insurer would see on its own.
Why the other options are wrong
- A) The reporting duty has nothing to do with advertising budgets; it exists to expose excessive coverage.
- C) The Commissioner's role is monitoring, not dictating which policy an applicant cancels; the rule feeds oversight, not cancellation orders.
- D) Massachusetts has no state group Medicare supplement plan into which applicants are enrolled; the reports serve detection of duplication.
Memory hook
Report the pile-up: the Commissioner watches for too many policies.