Which of the following statements about a Medicare supplement policy is CORRECT?

A) The insurer may cancel it on the grounds of the insured's health status alone.

B) The insurer may cancel it because the insured has not paid the premiums.

C) It can indemnify against losses resulting from sickness on a different basis from claims resulting from accidents.

D) The insurer may cancel it on the grounds of the insured's geographic location.

Answer: B) The insurer may cancel it because the insured has not paid the premiums.