Which statement is TRUE regarding the replacement of health insurance policies?

The statement indicating that patterns of improper replacement may subject an insurer to disciplinary action is accurate because it emphasizes the importance of ethical practices in the insurance industry. When a policy is replaced without fully disclosing the implications, such as gaps in coverage or higher premiums, it can lead to financial harm for the insured. Regulatory bodies enforce strict rules against improper replacement to protect consumers from potential abuses or misleading practices by insurers. This ensures that the interests of the policyholders are prioritized and that insurers maintain fair practices. Understanding this principle is crucial for both insurance professionals and consumers to navigate the complexities of health insurance policies and ensure informed decision-making.