Under California Insurance Code Section 10192.20, which Medigap sales practice is prohibited?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 10192.20 targets improper sales and replacement activity in the Medigap market. Replacing a Medigap policy with another that offers no real advantage to the insured, particularly when the agent stands to earn additional commissions, is prohibited because it churns policies and adds cost without benefit. By contrast, furnishing an outline of coverage, honoring a free-look period, and selling to a properly entitled Part A and B enrollee are all legitimate, required practices. This anti-churning rule is a California-specific Medigap compliance point in the senior health products outline.
Why the other options are wrong
- B) Delivering an outline of coverage to applicants is a required disclosure, not a prohibited practice.
- C) The free-look period is a consumer protection that California requires.
- D) Selling to a beneficiary enrolled in both Part A and Part B is the normal, proper sale.
Memory hook
Swapping Medigap policies for commissions is a California no-go.