B and A are married and purchased Medigap policies from the same company. B's policy was cancelled two months later when the insurer discovered that he had committed fraud on a claim with another company just a few months prior to buying this policy. What can the insurer do with A's policy?
B and A are married and purchased Medigap policies from the same company. B's policy was cancelled two months later when the insurer discovered that he had committed fraud on a claim with another company just a few months prior to buying this policy. What can the insurer do with A's policy?
a. Continue the policy in full force.
b. The insurer may suspend coverage for A for 24 months until it is evident there will not be a similar problem with her policy.
c. The insurer may surcharge A's policy because her husband may be eligible for coverage under her policy.
d. The insurer must keep A's policy in force until the first renewal, at which time they may cancel her policy.
Answer: A
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