HEARING - U.S. Senate Special Committee on Aging

55
-7-
regulators accelerated aient enforcement proceOures to curtail sales acuses.
In 1979 HIA'As president wrote all eeier capenies end insurarce regulators
cflno for Joint efforts to remedy sales abses by a few, but nevertheless
emarrassing n-mber of agents. That sane year, the National Association of
hsurance Omissioners appointed a special cols.mer-oriented Advisory
Cmmittee on this isste, which 2 clued representatives from M, the FTC,
cormsmer and senior citizen groups, and meibers of the insurance industry. As
a result of the Advisory Cinittee's efforts, the NAIC then adopteo medel
state standards later entraced on the federal level in the 1980 Baucus
Amendment. Consequently, virtually all Medicare Supplement policies now on
the market meet or exceed those standards.
Additionally, this multi-interested Akvisory Cam:ittee developed the Guide
to Fealth Insurance for People with Medicare, presently available through
HCFA. Current state law reguires that this smplified buyers' guide be
provided to purchasers of Medicare Supplement coverage, along with an outline
of coverage depicting gaps in Medicare coverage and how particular Medicare
Supplement policy benefits relate to these gaps. Also, current law reguires
delivery of a special notice when replacement or addition to existing coverage
is involved. The HIAA wuld be glad to furnish the toimittee with examples of
these materials upon req#est.
Further, state law reqirements dealing with Medicare Supplement policies
offer the beneficiary the opportunity to return a policy within 30 days of
purchase, as well as receive a full refund. Also, state laws dealing with
Medicare Supplesent policies reqgre high loss ratios, truth in advertising,
fair trade practices (incluclng sales, unaerwriting and clams practices, and
simplified policy language requirements), and other valuable consumer
protections.