State RegulationsIL specificDifficulty 2/5
An insurer files a Medicare supplement form in Illinois and argues that the general accident and health rules are the only standards that apply. What is wrong with that position?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Medicare supplement policies are accident and health products, but Illinois layers product-specific rules on top of the general standards: 215 ILCS 5/363 and 215 ILCS 5/363a set Medicare supplement minimum standards, enrollment rights, and disclosure duties, implemented through 50 Ill. Adm. Code 2008 and overseen by the Illinois Department of Insurance. An insurer cannot satisfy its obligations by pointing to the general health rules alone.
Why the other options are wrong
- A) The insurer is not correct; the Medicare supplement statute and rule impose additional Illinois requirements beyond the general health provisions.
- C) Illinois does not defer entirely to the federal government; 215 ILCS 5/363 establishes state-specific standards such as the birthday open enrollment rule.
- D) Approval authority rests with the Illinois Department of Insurance under Illinois law, not with the federal Medicare program.
Memory hook
General health rules plus a Med supp layer: 215 ILCS 5/363 stacks on top.