Final answer:
When a Medicare Supplement policy is replaced, verification must be made on a designated question within the new policy's application. This regulatory requirement helps ensure that applicants understand the consequences of policy replacement and make an informed choice.
Step-by-step explanation:
If a Medicare Supplement policy involves replacement, it must be verified on a specific question located within the application materials for the new policy. This question typically seeks to ensure that the applicant is aware they are replacing their current policy, and that they understand the implications of doing so. The verification process is a regulatory requirement aimed at preventing unnecessary replacements that may not be in the policyholder's best interest. It is essential for consumers to compare the benefits, costs, and coverage of the old and new policies to make an informed decision. In the case of replacing Medicare Supplement policies, beneficiaries should be aware of possible changes in coverage, the potential for new pre-existing condition waiting periods, and the financial impact of switching.