State RegulationsMA specificDifficulty 2/5
A Massachusetts insurer drafts a Medicare supplement outline of coverage that highlights several attractive benefits, some of which the underlying policy does not actually contain. Under the Medicare supplement disclosure rules, what is wrong with this approach?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
211 CMR 71.13 requires the outline of coverage to be a truthful, uniform summary of the policy actually being sold. An outline promising benefits the policy lacks is a misleading disclosure that the Massachusetts Division of Insurance treats as a violation of its Medicare supplement disclosure standards — the uniform format exists precisely so applicants can rely on the outline when deciding whether to buy. An accurate policy document does not redeem an inaccurate summary, and a producer's verbal corrections cannot launder a false one.
Why the other options are wrong
- B) A misleading outline is itself a violation under 211 CMR 71.13; the accuracy of the policy behind it does not excuse the false summary.
- C) Verbal clarification cannot cure a written disclosure that misstates the policy; the outline itself must accurately describe the benefits.
- D) The outline is a required disclosure document whose accuracy is enforceable by the Massachusetts Division of Insurance; it is not disposable advisory material.
Memory hook
The outline must match the policy — a summary that oversells is still a misrepresentation.