What Do You Mean It's Not Covered: A Key Issue: Replacement

IMPORTANT MESSAGE TO OUR POLICYHOLDERS -- REPLACEMENT OF COVERAGE: Canceling a health insurance policy which you already own and purchasing a new one, on account of encouragement by any agent, is called replacement. Some states have laws which forbid any misrepresentation or incomplete comparison by any agent that may occur at the time of replacement. Those laws require that a written and signed comparison of your existing policy and the recommended new policy be given to you. Beware of anyone who encourages you to replace this policy without allowing you time to carefully investigate the replacement proposal, or discourages you from talking with a representative of the company whose policy is being recommended for replacement. For your protection, if you are encouraged to replace this policy, we urge you to seek advice and to take the time to investigate any recommendation. Keep in mind that you can request changes in this policy long after its effective date.

This is another warning concerning replacement of health insurance. Canceling existing health insurance (or, for that matter, life insurance) and purchasing a new policy can expose you to reduced benefits and new limitations on preexisting conditions. For these reasons, state laws frequently require that a complete written comparison of policies be provided when replacement is recommended. More than a few unscrupulous salespeople will promise that their new, cheaper insurance covers you for everything that your existing policy does. Some will even talk about "continuing benefits" or "rolling over" coverage. Don't believe any of this without seeing the replacement policy. You should carefully investigate any replacement proposal you hear. As this item says, your existing policy can almost always be modified if you need a change in benefits.