Kentucky Health Insurance Practice Exam

Which provision must be included on the first page of a Medicare supplement policy that states the insurer's right to change premium amounts?

1. Coverage limitations

2. Continuation provision

3. Premium provision

4. Insurer's rights

The correct answer is: Continuation provision

The correct answer highlights the necessity for the continuation provision to be included on the first page of a Medicare supplement policy. This provision is crucial as it informs policyholders about their rights concerning the continuation of coverage and specifies the insurer's ability to adjust premium amounts over time. Essentially, the continuation provision ensures transparency by clearly stating that while coverage remains in effect, the insurer has the right to modify premium costs. This transparency is vital for consumers, as it allows them to understand potential financial changes in their insurance coverage and aids in financial planning. While there are other important considerations in a Medicare supplement policy, such as the specific terms outlining coverage limitations or detailing the insurer's rights, the continuation provision specifically addresses the aspect of premium changes directly on the first page, making it an essential component for policyholders to recognize their rights and obligations regarding the policy.