Federally-Facilitated Marketplace (FFM) Agent/Broker Certification Practice Exam - Free Practice Questions and Study Resources 2026

The statement is true because the Centers for Medicare & Medicaid Services (CMS) has the authority to suspend an agent's Marketplace Agreement if there is a suspicion of fraud that could cause harm to consumer Personally Identifiable Information (PII). This is a protective measure designed to safeguard consumers and ensure the integrity of the Marketplace. If an agent's actions are suspected to be fraudulent or could jeopardize consumers' sensitive information, CMS can act decisively to prevent further potential harm by temporarily suspending that agent's ability to operate in the Marketplace. This policy reflects the seriousness with which CMS views the protection of consumer data and the importance of maintaining trust in the health insurance system.

In the context of the other options presented, the phrase "it depends on the case" would imply that multiple interpretations could apply, but the policy is clear and specific about actions taken in instances of suspected fraud. The idea that an agent can only be suspended if reported by a client does not fully encompass the proactive stance taken by CMS, as they can intervene based on their own investigations or information received from various sources, not just clients.