Massachusetts Life and Health Insurance Guaranty Association: exam guide and questions
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The Massachusetts Life and Health Insurance Guaranty Association Law, M.G.L. chapter 175, section 146B, is the first topic in section II of the Massachusetts part of both producer exams: Massachusetts laws and regulations pertinent to life insurance, and the same section for accident, health or sickness insurance. Each of those sections has 15 questions. [1] The outline also cites the association's advertising rule, 175:146B(19), under producer responsibilities. [1] This page explains the law and gives 10 practice questions.
What the association is for
The law states its purpose: "to protect, subject to certain limitations," covered persons "against failure in the performance of contractual obligations, under life and health insurance policies and annuity contracts" because of "the impairment or insolvency of the member insurer that issued the policies or contracts." [2] Protection runs to persons who are owners of or certificate holders under covered policies or contracts, among others. [2]
Membership
"All member insurers shall be and remain members of the association as a condition of their authority to transact insurance in the commonwealth." [2]
Coverage limits
The association's liability is capped at the lesser of the insurer's contractual obligations or the limits in the law. With respect to any one life, regardless of the number of policies, the limits include: [2]
| Coverage | Limit |
|---|---|
| Life insurance death benefits | $300,000 |
| Net cash surrender and net cash withdrawal values under life insurance | $100,000 |
| Disability income insurance | $300,000 |
| Long term care insurance | $300,000 |
| Basic hospital, basic medical-surgical or major medical expense insurance | $500,000 |
| Other health coverage, including cash values | $100,000 |
| Present value of annuity benefits, including cash values | $250,000 |
Overall, the association is not obligated to cover more than an aggregate of $300,000 in benefits for any one life, except that for basic hospital, medical-surgical or major medical benefits the aggregate is $500,000 for any one individual. For one owner of multiple non-group life policies, the cap is $5,000,000 in benefits regardless of the number of policies. [2]
The advertising ban
No person, "including an insurer, agent or affiliate of an insurer," may publish or make any advertisement, announcement or statement, written or oral, "which uses the existence of the Massachusetts Life and Health Insurance Guaranty Association for the purposes of sales, solicitation, or inducement to purchase any form of insurance covered by this section." The ban does not apply to the association itself or to any entity that does not sell or solicit insurance. [2]
Practice questions
1. What does the Massachusetts Life and Health Insurance Guaranty Association protect against?
A. Poor investment returns on variable products
B. A member insurer's failure to perform because of impairment or insolvency
C. Claim denials by a healthy insurer
D. Premium increases
Answer: B. (M.G.L. c. 175, s. 146B(3)) [2]
2. Can a licensed insurer writing covered lines choose not to join?
Answer: No. Membership is a condition of an insurer's authority to transact insurance in the commonwealth. (146B(6)(A)) [2]
3. What is the death benefit limit for any one life?
Answer: $300,000. [2]
4. What is the limit on life insurance cash surrender and withdrawal values?
Answer: $100,000. [2]
5. What is the limit for long term care insurance benefits?
Answer: $300,000. [2]
6. What is the limit for major medical expense insurance?
Answer: $500,000. [2]
7. What is the limit for the present value of annuity benefits?
Answer: $250,000. [2]
8. A business owns many non-group life policies on its managers. What is the most the association covers for that owner?
Answer: $5,000,000 in benefits, regardless of the number of policies. [2]
9. A producer's brochure says, "Your policy is protected by the state guaranty association." Is that allowed?
Answer: No. No person, including an agent, may use the association's existence to sell or induce the purchase of covered insurance. (146B(19)) [2]
10. Does the advertising ban apply to the association itself?
Answer: No. It does not apply to the association or to any entity that does not sell or solicit insurance. (146B(19)) [2]
Study tips
- Memorize the table as four numbers: 300 (death, disability income, LTC, aggregate per life), 100 (cash values, other health), 250 (annuities), 500 (hospital and major medical).
- The association steps in only when a member insurer is impaired or insolvent.
- Never use the association in a sales pitch.
Practice more with the free Massachusetts insurance law practice test.
Prep Retention is independent and is not affiliated with Pearson VUE or the state.
Sources
Laws and exam documents quoted as of October 2026.
- Pearson VUE, Massachusetts content outlines 122301 (effective July 22, 2026): https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/122301.pdf
- M.G.L. c. 175, s. 146B: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section146B