WILLIAM DONALD SCHAEFER, Governor

Ch. 474

(1)  Contain an outline of Medicare coverage; and

(2)  Include advice and other information regarding
the purchase of Medicare supplement policies, including a
reference to the right of the purchaser to cancel a policy during
the first 10 30 days after it is delivered, as provided in [§
438] § 468CB of this article.

(c) The Commissioner shall publish the text of the guide in
the Maryland Register and contemporaneously forward a copy of the
text to the Office on Aging.

(D)   IN ORDER TO PROVIDE FOR FULL AND FAIR DISCLOSURE IN THE
SALE OF MEDICARE SUPPLEMENT POLICIES, A MEDICARE SUPPLEMENT
POLICY OR CERTIFICATE MAY NOT BE DELIVERED IN THE STATE UNLESS AN
OUTLINE OF COVERAGE IS DELIVERED TO THE APPLICANT AT THE TIME
APPLICATION IS MADE DELIVERED.

(E)  (1) THE COMMISSIONER SHALL PRESCRIBE THE FORMAT AND
CONTENT OF THE OUTLINE OF COVERAGE REQUIRED BY THIS SECTION. FOR
PURPOSES OF THIS SECTION, "FORMAT" MEANS STYLE, ARRANGEMENTS, AND
OVERALL APPEARANCE, INCLUDING THE SIZE, COLOR, AND PROMINENCE OF
TYPE AND THE ARRANGEMENT OF TEXT AND CAPTIONS.

(2) THE OUTLINE OF COVERAGE SHALL INCLUDE:

(I)  A DESCRIPTION OF THE PRINCIPAL BENEFITS AND
COVERAGE PROVIDED IN THE POLICY;

(II)  A STATEMENT OF THE EXCEPTIONS, REDUCTIONS,
AND LIMITATIONS CONTAINED IN THE POLICY;

(III)  A STATEMENT OF THE RENEWAL PROVISIONS,
INCLUDING ANY RESERVATION BY THE INSURER OF A RIGHT TO CHANGE
PREMIUMS; AND

(IV)  A STATEMENT THAT THE OUTLINE OF COVERAGE
IS A SUMMARY OF THE POLICY ISSUED OR APPLIED FOR AND THAT THE
POLICY SHOULD BE CONSULTED TO DETERMINE GOVERNING CONTRACTUAL
PROVISIONS.

(F)  THE COMMISSIONER MAY PRESCRIBE BY REGULATION A STANDARD
FORM AND THE CONTENTS OF AN INFORMATIONAL BROCHURE FOR PERSONS
ELIGIBLE FOR MEDICARE BY REASON OF AGE, WHICH IS INTENDED TO
IMPROVE THE BUYER'S ABILITY TO SELECT THE MOST APPROPRIATE
COVERAGE AND TO IMPROVE THE BUYER'S UNDERSTANDING OF MEDICARE.
EXCEPT IN THE CASE OF DIRECT RESPONSE INSURANCE POLICIES, THE
COMMISSIONER MAY REQUIRE BY REGULATION THAT THE INFORMATION
BROCHURE BE PROVIDED TO ANY PROSPECTIVE INSUREDS ELIGIBLE FOR
MEDICARE AT THE TIME OF DELIVERY OF THE OUTLINE OF COVERAGE.
WITH RESPECT TO DIRECT RESPONSE INSURANCE POLICIES, THE
COMMISSIONER MAY REQUIRE BY REGULATION THAT THE PRESCRIBED
BROCHURE BE PROVIDED ON REQUEST TO ANY PROSPECTIVE INSUREDS

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