If you neglect to pay your premiums on time, if you gave incorrect or misleading information on your initial application, or if your insurance company becomes bankrupt or insolvent, your coverage may legally be dropped. Your company may not drop your coverage for any other reason unless you purchased your policy prior to 1992. If you have a Medicare Supplement policy and you move to a new state, your policy will not be canceled and you do not have to switch to a policy from the new state unless you want to. Most seniors base the decision of whether or not to switch on which state has a lower premium. You may run into unique challenges if you have a Select policy and you move out of its in-network area. Medicare’s website can help you understand your rights.