Ins 3.39(21)(a)(a) An issuer may provide and an agent or other representative may accept commission or other compensation for the sale of a Medicare supplement policy or certificate, or Medicare select policy or certificate only if the first year commission or other first year compensation is no more than 200% of the commission or other compensation paid for selling or servicing the policy or certificate in the 2nd year. Ins 3.39(21)(b)(b) The commission or other compensation provided in subsequent renewal years shall be the same as that provided in the 2nd year or period and shall be provided for at least 5 renewal years. Ins 3.39(21)(c)(c) If an existing policy or certificate is replaced, no entity may provide compensation to its producers and no agent or producer may receive compensation greater than the renewal compensation payable by the replacing issuer on the policy or certificate. Ins 3.39(21)(d)(d) For purposes of this section, “compensation” includes pecuniary or nonpecuniary remuneration of any kind relating to the sale or renewal of the policy or certificate including but not limited to bonuses, gifts, prizes, awards, finder’s fees, and policy fees. Ins 3.39(21)(e)(e) No issuer may provide an agent or other representative commission or compensation for the sale of a Medicare supplement or Medicare cost policy or certificate to an individual who is under age 66 which is either calculated on a different basis or is less than the average of the commissions paid for the sale of a Medicare supplement or Medicare cost policy or certificate to an individual who is age 65 to age 69. Ins 3.39(21)(f)(f) No issuer may provide an agent or other representative commission or compensation for the sale of any other Medicare supplement policy or certificate, or Medicare select policy or certificate to an individual who is eligible for guaranteed issue under sub. (34), calculated on a different basis of the commissions paid for the sale of a Medicare supplement policy or certificate, or Medicare select policy or certificate to an individual who is eligible for open enrollment under sub. (3r). Ins 3.39(22)(a)(a) Medicare supplement and Medicare cost policies and certificates shall include a renewal or continuation provision. The language or specifications of such provision must be consistent with the type of contract issued. Such provision shall be appropriately captioned and shall appear on the first page of the policy and shall include any reservation by the issuer of the right to change premiums and any automatic renewal premium increases based on the policyholder’s age. Ins 3.39(22)(b)(b) Except for riders or endorsements by which the issuer effectuates a request made in writing by the insured, exercises a specifically reserved right under a Medicare supplement or Medicare cost policy, or is required to reduce or eliminate benefits to avoid duplication of Medicare benefits; all riders or endorsements added to a Medicare supplement or Medicare cost policy after date of issue or at reinstatement or renewal which reduce or eliminate benefits or coverage in the policy shall require a signed acceptance by the insured. After the date of policy or certificate issue, any rider or endorsement which increases benefits or coverage with a concomitant increase in premium during the policy term shall be agreed to in writing signed by the insured, unless the benefits are required by the minimum standards for Medicare supplement or Medicare cost insurance policies, or if the increased benefits or coverage is required by law. Where a separate additional premium is charged for benefits provided in connection with riders or endorsements, such premium charge shall be set forth in the policy. Ins 3.39(22)(d)(d) If a Medicare supplement policy or certificate or Medicare select policy or certificate contains any limitations with respect to preexisting conditions, such limitations may appear on the first page or as a separate paragraph of the policy and be labeled as “Preexisting Condition Limitations.” Ins 3.39(22)(e)(e) Medicare supplement or Medicare cost policies and certificates shall have a notice prominently printed on the first page of the policy and certificate or attached thereto stating in substance that the policyholder or certificateholder shall have the right to return the policy or certificate within 30 days of its delivery and to have the premium refunded if, after examination of the policy or certificate, the insured person is not satisfied for any reason. Ins 3.39(22)(f)(f) As soon as practicable, but no later than 30 days prior to the annual effective date of any Medicare benefit changes, an issuer shall notify its policyholders and certificateholders of modifications it has made to Medicare supplement, Medicare select, or Medicare cost policies or certificates in the format similar to Appendix 4, Appendix 4m, or Appendix 4t. The notice shall satisfy all of the following: Ins 3.39(22)(f)1.1. Include a description of revisions to the Medicare program and a description of each modification made to the coverage provided under the Medicare supplement policy or certificate, Medicare select policy or certificate, or Medicare cost policy; and Ins 3.39(22)(f)2.2. Inform each policyholder or certificateholder as to when any premium adjustment is to be made due to changes in Medicare. Ins 3.39(22)(g)(g) The notice of benefit modifications and any premium adjustments shall be in outline form and in clear and simple terms so as to facilitate comprehension. Ins 3.39(22)(h)(h) Such notices shall not contain or be accompanied by any solicitation. Ins 3.39(22)(i)(i) Issuers shall comply with any notice requirements of the MMA. Ins 3.39(23)(23) Requirements for application forms and replacement coverage. Ins 3.39(23)(a)(a) Application forms for a Medicare supplement policy or certificate, a Medicare select policy or certificate, and a Medicare cost policy shall comply with all relevant statutes and rules. The application form, or a supplementary form signed by the applicant and agent, shall include the following statements and questions: [Statements]
Ins 3.39(23)(a)1.1. You do not need more than one Medicare supplement, Medicare cost or Medicare select policy. Ins 3.39(23)(a)2.2. If you purchase this policy, you may want to evaluate your existing health coverage and decide if you need multiple coverages. Ins 3.39(23)(a)3.3. You may be eligible for benefits under Medicaid and may not need a Medicare supplement, Medicare cost or Medicare select policy. Ins 3.39(23)(a)4.4. If after purchasing this policy, you become eligible for Medicaid, the benefits and premiums under your Medicare supplement, Medicare cost or Medicare select policy can be suspended, if requested, during your entitlement to benefits under Medicaid for 24 months. You must request this suspension within 90 days of becoming eligible for Medicaid. If you are no longer entitled to Medicaid, your suspended Medicare supplement, Medicare cost or Medicare select policy, or, if that is no longer available, a substantially equivalent policy, will be reinstituted if requested within 90 days of losing Medicaid eligibility. If the Medicare supplement, Medicare cost or Medicare select policy provided coverage for outpatient prescription drugs and you enrolled in Medicare Part D while your policy was suspended, the reinstituted policy will not have outpatient prescription drug coverage, but will otherwise be substantially equivalent to your coverage before the date of suspension. Ins 3.39(23)(a)5.5. If you are eligible for and have enrolled in a Medicare supplement or Medicare cost policy by reason of disability and you later become covered by an employer or union-based group health plan, the benefits and premiums under your Medicare supplement or Medicare cost policy can be suspended, if requested, while you are covered under the employer or union-based group health plan. If you suspend your Medicare supplement or Medicare cost policy under these circumstances, and later lose your employer or union-based group health plan, your suspended Medicare supplement or Medicare cost policy or, if that is no longer available, a substantially equivalent policy will be reinstituted if requested within 90 days of losing your employer or union-based group health plan. If the Medicare supplement or Medicare cost policy provided coverage for outpatient prescription drugs and you enrolled in Medicare Part D while your policy was suspended, the reinstituted policy will not have outpatient prescription drug coverage, but will otherwise be substantially equivalent to your coverage before the date of suspension. Ins 3.39(23)(a)6.6. Counseling services may be available in your state or provide advice concerning your purchase of Medicare supplement or Medicare cost insurance and concerning medical assistance through the state Medicaid program, including benefits as a Qualified Medicare Beneficiary (QMB) and a Specified Low-Income Medicare Beneficiary (SLMB). See the booklet “Wisconsin Guide to Health Insurance for People with Medicare” which you received at the time you were solicited to purchase this policy. [Questions]
If you lost or are losing other health insurance coverage and received a notice from your prior insurer saying you were eligible for guaranteed issue of a Medicare supplement insurance policy, or that you had certain rights to buy such a policy, you may be guaranteed acceptance in one or more of our Medicare supplement plans. Please include a copy of the notice from your prior insurer with your application. PLEASE ANSWER ALL QUESTIONS.
[Please mark Yes or No below with an “X”]
To the best of your knowledge,
1. a. Did you turn age 65 in the last 6 months?
Yes ______ No _______
b. Did you enroll in Medicare Part B in the last 6 months?
Yes ______ No _______
c. If yes, what is the effective date?
___________________________
2. Are you covered for medical assistance through the state Medicaid program?
Yes ______ No _______
[NOTE TO APPLICANT: If you are participating in a “Spend-Down Program” and have not met your “Share of Cost,” please answer NO to this question.]
If yes,
a. Will Medicaid pay your premiums for this Medicare supplement policy?
Yes _____ No _______
b. Do you receive any benefits from Medicaid OTHER THAN payments toward your Medicare Part B premium?
Yes ______ No ______
3. a. If you had coverage from any Medicare plan other than original Medicare within the past 63 days (for example, a Medicare Advantage plan, or a Medicare health maintenance organization or preferred provider organization), fill in your start and end dates below. If you are still covered under this plan, leave “END” blank.
START ___/___/___ END ___/___/___
b. If you are still covered under the Medicare plan, do you intend to replace your current coverage with this new Medicare supplement policy?
Yes _____ No ______
c. Was this your first time in this type of Medicare plan?
Yes _____ No ____
d. Did you drop a Medicare supplement policy to enroll in the Medicare plan?
Yes _____ No _____
4. a. Do you have another Medicare supplement policy in force?
Yes _____ No _____
b. If so, with what company, and what plan do you have [optional for Direct Mailers]?
______________________________________________
c. If so, do you intend to replace your current Medicare supplement policy with this policy?
Yes ______ No ______
5. Have you had coverage under any other health insurance within the past 63 days? (For example an employer, union, or individual plan)
Yes _____ No ______
a. If so, with what company and what kind of policy?
________________________________________________
________________________________________________
________________________________________________
________________________________________________
b. What are your dates of coverage under the other policy?
START ___/___/___ END ___/___/____
(If you are still covered under the other policy, leave “END” blank.)
Ins 3.39(23)(b)(b) Agents shall list, in a supplementary form signed by the agent and submitted to the issuer with each application for Medicare supplement coverage, any other health insurance policies they have sold to the applicant as follows: Ins 3.39(23)(bL)(bL) In the case of a direct response issuer, a copy of the application or supplemental form, signed by the applicant, and acknowledged by the issuer, shall be returned to the applicant by the issuer upon delivery of the policy. Ins 3.39(23)(c)(c) Upon determining that a sale will involve replacement, an issuer, other than a direct response issuer, or its agent, shall furnish the applicant, prior to issuance or delivery of the Medicare supplement policy or certificate, Medicare select policy or certificate, or Medicare cost policy, a notice regarding the replacement of Medicare supplement coverage in no less than 12 point type. One copy of the notice signed by the applicant and the agent, except where the coverage is sold without an agent, shall be provided to the applicant and an additional signed copy shall be retained by the issuer. A direct response issuer shall deliver to the applicant at the time of the solicitation of the policy the notice regarding replacement of Medicare supplement coverage. Ins 3.39(23)(d)(d) The notice required by par. (c) for an issuer shall be provided in substantially the form as shown in Appendix 7. Ins 3.39(23)(e)(e) If the application contains questions regarding health and tobacco usage, include a statement that health questions should not be answered if the applicant is in the open-enrollment period described in sub. (3r), or during a guaranteed issue period under sub. (34). Ins 3.39(24)(a)(a) Every issuer marketing Medicare supplement insurance coverage in this state, directly or through its producers, shall do all of the following: Ins 3.39(24)(a)1.1. Establish marketing procedures to assure that any comparison of policies by its agents or other producers will be fair and accurate. Ins 3.39(24)(a)2.2. Establish marketing procedures to assure excessive insurance is not sold or issued. Ins 3.39(24)(a)3.3. Inquire and otherwise make every reasonable effort to identify whether a prospective applicant or insured for Medicare supplement insurance already has accident and sickness insurance and the types and amounts of any such insurance. Ins 3.39(24)(a)4.4. Display prominently by type-size, stamp or other appropriate means, on the first page of the policy the following: “Notice to buyer: This policy may not cover all of your medical expenses.” Ins 3.39(24)(b)(b) Every issuer marketing Medicare supplement insurance shall establish auditable procedures for verifying compliance with par. (a). Ins 3.39(24)(c)(c) In addition, the following acts and practices are prohibited: Ins 3.39(24)(c)1.1. ‘Twisting.’ Knowingly making any misleading representation or incomplete or fraudulent comparison of any insurance policies or issuers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another issuer. Ins 3.39(24)(c)2.2. ‘High pressure tactics.’ Employing any method of marketing having the effect of or tending to induce the purchase of insurance through force, fright, threat whether explicit or implied, or undue pressure to purchase or recommend the purchase of insurance. Ins 3.39(24)(c)3.3. ‘Cold lead advertising.’ Making use directly or indirectly of any method of marketing which fails to disclose in a conspicuous manner that a purpose is solicitation of the purchase of insurance and that contact will be made by an agent or issuer. Ins 3.39(24)(e)(e) In regards to any transaction involving a Medicare supplement policy, no person subject to regulation under chs. 600 to 655, Stats., may knowingly prevent or dissuade or attempt to prevent or dissuade, any person from: Ins 3.39(24)(e)1.1. Filing a complaint with the office of the commissioner of insurance; or
