AHIP Practice Exam

What is required of Agent Armstrong to market MA plans in multiple states?

1. He needs to be licensed in his home state only

2. He needs to be licensed and appointed in every applicable state

3. Licensing is not required

4. He only needs permission from ABC Health Plan

The correct answer is: He needs to be licensed and appointed in every applicable state

To market Medicare Advantage (MA) plans in multiple states, Agent Armstrong must be licensed and appointed in every applicable state. This requirement is in place to ensure that agents meet the legal standards and regulations established by each state's Department of Insurance. Each state has its own laws governing the sale of insurance products, including Medicare plans, which necessitates that agents have the appropriate licenses in those jurisdictions to operate legally. Licensing involves the successful completion of state-specific training and examinations, ensuring that agents possess the necessary knowledge regarding the products they sell and the relevant regulations. Additionally, appointment refers to the formal relationship that needs to be established between the agent and the insurance carrier for the agent to offer their products. This dual requirement—licensing in each state and being appointed by the insurance carriers—ensures that clients receive professional and compliant assistance in selecting their Medicare Advantage plans. The other options do not align with these standards. Being licensed only in his home state, not requiring a license, or just needing permission from the health plan does not sufficiently adhere to the regulatory framework necessary for marketing MA plans across state lines. Therefore, to operate legally and effectively, Agent Armstrong must fulfill both licensing and appointment requirements in each state where he intends to sell MA plans.