Which is a valid reason for canceling a Medicare Supplement policy by the insurer?

Which is a valid reason for canceling a Medicare Supplement policy by the insurer?

• A. Change of address
• B. Divorce
• C. Nonpayment
• D. Age increase

Answer: (C)

Medicare Supplement policies are designed to be guaranteed renewable, so coverage isn’t lost due to life changes like moving, divorce, or simply getting older. The insurer can cancel only for nonpayment of the premium (and, in some cases, for fraud or misrepresentation on the application). If the premium isn’t paid within the policy’s grace period, the policy can lapse and be canceled. This structure protects you from losing coverage for reasons unrelated to financial upkeep, while giving the insurer a lever to maintain payment compliance.

Medicare Supplement policies are designed to be guaranteed renewable, so coverage isn’t lost due to life changes like moving, divorce, or simply getting older. The insurer can cancel only for nonpayment of the premium (and, in some cases, for fraud or misrepresentation on the application). If the premium isn’t paid within the policy’s grace period, the policy can lapse and be canceled. This structure protects you from losing coverage for reasons unrelated to financial upkeep, while giving the insurer a lever to maintain payment compliance.