Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
031 - BUREAU OF INSURANCE
Chapter 275 - Medicare Supplement Insurance
Section 031-275-21 - Appropriateness of Recommended Purchase and Excessive Insurance

A. In recommending the purchase or replacement of any Medicare supplement policy or certificate a producer shall make reasonable efforts to determine the appropriateness of a recommended purchase or replacement.

B. Any sale of a Medicare supplement policy or certificate that will provide an individual more than one Medicare supplement policy or certificate is prohibited.

C. An issuer shall not issue a Medicare supplement policy or certificate to an individual enrolled in Medicare Part C unless the effective date of the coverage is after the termination date of the individual's Part C coverage.

D. A producer recommending the replacement of a Medicare supplement policy with a Medicare Advantage plan shall provide the beneficiary with a written notice advising that if the individual is terminating the Medicare supplement policy to enroll in a Medicare Advantage plan for the first time, the individual may be entitled to obtain a Medicare supplement policy in the state of Maine if he or she returns to original Medicare Part A and Part B within three years. The notice shall specifically advise that the right to return to original Medicare Part A and Part B is governed by federal law and that for many enrollees federal law only permits Medicare beneficiaries to return to original Medicare Part A and Part B during an annual enrollment period. The notice shall specifically advise that Medicare Advantage enrollees may need to return to original Medicare Part A and Part B in less than three years in order to obtain a Medicare supplement policy on a guaranteed issue basis.