In a Medicare Supplement policy that involves replacement, where must verification occur?

In a Medicare Supplement policy that involves replacement, verification must occur on the application. This requirement is in place to ensure that all information related to the replacement of existing insurance is accurately documented from the outset. When an applicant indicates that they are replacing an existing Medicare Supplement policy, it is crucial for the insurance company to confirm this during the application process. This helps prevent issues such as lapses in coverage and ensures that the applicant fully understands the implications of switching policies.

The application serves as a formal record that includes the applicant's consent and acknowledgment of the replacement. This can also include details about the coverage being replaced, which is significant for both the insurer and the insured to understand the new policy in relation to the old one.

Thus, the focus on the application aligns with regulatory standards designed to protect consumers in the Medicare Supplement market, ensuring transparency and thoroughness right from the beginning of the policy acquisition process.