Which reason can lead to the cancellation of a Medicare Supplement policy by the insurer?

A Medicare Supplement policy can be canceled by the insurer due to nonpayment because timely premium payment is a critical obligation of the insured. If an individual fails to pay their premiums, the insurer has the right to terminate the policy. This ensures that the insurer can maintain a sustainable business model, as it relies on the collection of premiums to cover claims and operate effectively.

While issues such as failure to pay claims or exceeding age limits can have implications for coverage or benefits, they do not directly enable the insurer to cancel the policy. Additionally, transferring ownership typically does not lead to cancellation but may require notification to the insurer or a different procedure, depending on the policy terms. Hence, nonpayment clearly establishes a justifiable reason for cancellation under the terms of a Medicare Supplement policy.