Arkansas Life and Health Insurance Practice Exam

All the following statements regarding the regulation of Medicare supplement policies sold in the state of Arkansas are correct, except:

1. A Medicare Supplement policy must be non-cancellable and guaranteed renewable

2. Medicare Supplement policies are subject to state regulations

3. Premiums for Medicare Supplement policies are standardized

4. Specific benefits for Medicare Supplement policies can vary

The correct answer is: A Medicare Supplement policy must be non-cancellable and guaranteed renewable

In Arkansas, Medicare Supplement policies must be non-cancellable and guaranteed renewable. This means that as long as the policyholder pays their premiums on time, the insurance company cannot cancel the policy and must renew it. This provides policyholders with ongoing coverage and peace of mind. The other statements are also correct: - Medicare Supplement policies in Arkansas are indeed subject to state regulations, ensuring that the policies meet certain requirements and provide adequate coverage to policyholders. - Premiums for Medicare Supplement policies are standardized, meaning that an insurance company must charge the same premium for the same policy, regardless of the policyholder's age or health condition. - While Medicare Supplement policies must offer certain basic benefits, specific benefits can vary between policies. Policyholders have the flexibility to choose a plan that best fits their needs and budget. Therefore, the correct answer is A, as it is incorrect to state that Medicare Supplement policies in Arkansas do not need to be non-cancellable and guaranteed renewable.