For purposes of New York's Medicare supplement replacement rules, a replacement takes place when:

Why B is correct

Under the New York Insurance Law, a Medicare supplement replacement is a transaction in which a new Medicare supplement policy is sold to take the place of Medicare supplement coverage the insured already has. Once a sale qualifies as a replacement, the protective machinery of New York's replacement rules is triggered, including the applicant disclosures the agent must deliver and the notice obligations that follow, so the insured can compare the old and new policies before the old one is dropped.

Why the other options are wrong

• A) An ordinary sale in which no existing coverage is being displaced is not a replacement; the definition turns on superseding coverage the person already has.
• C) Converting group coverage to an individual policy after employment ends is a statutory conversion privilege, not a Medicare supplement replacement.
• D) A rider increasing a life insurance death benefit has nothing to do with replacing Medicare supplement coverage.

Memory hook

Replacement means the new Medigap policy takes the place of coverage the client already has.