Under California law, before selling a Medicare supplement (Medigap) policy, the insurer must provide the applicant with:

Why A is correct

California's Medigap rules (CIC Section 10192.17) require the insurer to furnish an outline of coverage to the applicant, disclosing the standardized plan's benefits, premiums, exclusions, and limitations before or at the time of application. This disclosure helps seniors compare the standardized plans and understand exactly what they are buying, reducing the risk of unsuitable or duplicative purchases.

Why the other options are wrong

• B) Medigap is not Medicare Advantage; an MA plan comparison is not the required outline of coverage.
• C) A drug formulary applies to Part D plans, not to Medigap, which does not include drug coverage.
• D) The outline of coverage is a standardized policy disclosure, not a certificate about the individual applicant.

Memory hook

Outline of coverage comes before the sale — know the benefits before you sign.

Why A is correct

California Medigap law (CIC Section 10192.17) requires that an outline of coverage be furnished before the application is completed, describing the policy's benefits, limitations, and other key terms. This disclosure lets the consumer compare standardized Medigap plans before buying. Related disclosure rules require that replacement situations be handled with specific notices, and that a buyer's guide be available. The outline of coverage is a central consumer-protection feature of the Medigap sales process. The outline must describe benefits in a standardized format so consumers can compare lettered plans side by side. Delivering the outline only after the sale or failing to discuss it violates California's Medigap disclosure requirements.

Why the other options are wrong

• B) A physician directory is not a Medigap sales document; Medigap covers any Medicare-eligible provider that accepts the policy terms.
• C) The insurer has no right to the applicant's Medicare claims history before the application is completed.
• D) Agent compensation is not a required pre-application disclosure for Medigap sales.

Memory hook

Outline first, application second. Medigap says show your benefits before you take the signature.