State RegulationsFL specificDifficulty 2/5
A Florida Medicare supplement advertisement claims Medicare 'no longer pays anything for hospital care' — a statement that is false — to frighten seniors into buying the policy. Why is this prohibited?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Fla. Stat. 627.674, Medicare supplement advertising may not make false or misleading statements about Medicare's coverage, because the entire sales proposition of a Med Supp policy depends on which gaps it fills. Falsely telling seniors that Medicare pays nothing for hospital care misrepresents the need for the product. The Department of Financial Services treats such ads as misleading advertising and unfair trade practices, regardless of the policy's own accuracy.
Why the other options are wrong
- A) An accurate policy does not cure false advertising about Medicare coverage that induced the purchase.
- B) An agent's characterization of Medicare's coverage is a factual claim, not protected opinion, when it is false and material.
- D) The prohibition applies at all times; it is not limited to states of emergency.
Memory hook
Scaring seniors with lies about Medicare = prohibited ad.