Indiana State Life and Health Insurance Practice Exam

An applicant must receive an Outline of Coverage when an applicant is taken for a?

1. Endowment

2. Annuity

3. Medicare Supplement Policy

4. Universal Life Policy

The correct answer is: Medicare Supplement Policy

The requirement for an applicant to receive an Outline of Coverage is specifically mandated for Medicare Supplement Policies. This is due to the unique nature of these types of insurance, which are designed to help cover costs not covered by Medicare. The Outline of Coverage provides essential information about the benefits, limitations, and exclusions of the policy, ensuring that applicants can make informed decisions about their coverage options. Medicare Supplement Policies also aim to fill gaps in Medicare coverage, which can lead to considerable differences in benefits among different plans. This makes it crucial for applicants to understand what they are purchasing in order to effectively compare plans and select one that meets their needs. Other types of policies, while they may also involve some form of disclosure requirements, do not have the same specific regulation that necessitates providing an Outline of Coverage upon application. This distinction highlights the importance of consumer protection in the Medicare supplement market, which is central to ensuring that older adults and individuals with specific medical needs are sufficiently informed.