What step must a producer take before offering a Medicare supplement policy?

Delivering the outline of coverage is a crucial step that a producer must take before offering a Medicare supplement policy. This outline serves as an informational document that provides a summary of the benefits, coverage options, and limitations of the policy. It is designed to help the potential policyholder understand what the supplement policy entails, enabling them to make an informed decision about whether to proceed with the purchase.

The requirement to provide this outline is not just a best practice but a regulatory obligation to ensure transparency and customer protection. By delivering this outline, producers ensure that the applicant comprehends the essential elements of the Medicare supplement plan, which can foster trust and clarity.

Other steps, such as reviewing medical history or evaluating current coverage, may play a role in the overall process but are not mandated preconditions for offering the policy itself. Submitting an application is a subsequent step that occurs after the potential client has agreed to the coverage options presented, whereas delivering the outline of coverage is fundamental to initiating the policy discussion.