State RegulationsFL specificDifficulty 2/5
Which statement by a Florida agent to a Medicare supplement applicant is prohibited misrepresentation?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 626, Florida Statutes, misrepresentation includes making false or misleading statements about the terms or benefits of a policy being sold. Medicare supplement policies are designed to fill gaps in Medicare, not to pay duplicate benefits regardless of actual expenses, so promising a full additional cash benefit for every hospital day is a false statement of material fact. The other statements accurately describe the product and the consumer's rights. The Department of Financial Services treats such misrepresentations as unfair trade practices.
Why the other options are wrong
- A) Describing the policy as filling Medicare gaps is an accurate statement, not misrepresentation.
- B) Telling the applicant about the free-look refund right is accurate and required disclosure, not a misrepresentation.
- C) Accurately describing the outline of coverage is a proper disclosure statement.
Memory hook
Promise benefits the policy doesn't pay = misrepresentation.