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Massachusetts life insurance law practice questions

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The Massachusetts Life Producer exam has 15 questions on "Massachusetts Laws and Regulations Pertinent to Life Insurance." The outline groups them under the guaranty association law, producer responsibilities, individual underwriting by the insurer, policy provisions, annuities and the Life Settlement Act. [1] Our Massachusetts life flashcards cover the policy provisions. This page covers underwriting, privacy, annuities and life settlements, with 12 practice questions.

Underwriting rules in chapter 175

Practice questions

1. An insurer requires every applicant over 50 to take a genetic test before it will issue a life policy. Is that allowed in Massachusetts?
A. Yes, if the test is free
B. Yes, with the applicant's consent
C. No, a genetic test cannot be a condition of issuing or renewing a policy
D. Only for policies over $1 million

Answer: C. (175:120E) [5]

2. An application asks whether the applicant has taken a genetic test. Must the applicant answer?
Answer: No. "The applicant is not required to answer any questions concerning genetic testing." (175:120E) [5]

3. An insurer declines a life application solely because the applicant is blind. Is that legal?
Answer: No. (175:120B) [3]

4. Can an insurer refuse an individual life policy for the sole reason of an intellectual disability?
Answer: Not for a Massachusetts resident who has reached the age of three years, if no other insurance is in force or pending consideration on that person's life. (175:120A) [6]

5. Before an insurer orders an investigative consumer report, what must it tell the applicant?
Answer: That they may request to be interviewed for the report, and that they are entitled to a copy of it on request. (175I:7(a)) [7]

6. What information can never be in an investigative consumer report?
Answer: Information designed to determine a person's sexual orientation, among other limits in the section. (175I:7(d)) [7]

7. When must a notice of information practices be given to an applicant?
Answer: No later than the time the application for insurance is made. It must be in writing. (175I:4) [8]

8. A person insured under a group life policy wants to transfer the right to name the beneficiary. Can they?
Answer: Yes. Subject to the policy's terms, they may assign any or all incidents of ownership, including the right to designate a beneficiary. (175:134C) [9]

9. Can an annuity company delay paying a cash surrender benefit?
Answer: Yes, for no more than 6 months after demand, and only after a written request and the commissioner's written approval. (175:144A 1/2) [10]

10. Who must hold a Massachusetts license to act as a life settlement broker for a Massachusetts owner?
Answer: Anyone acting as a broker, unless an exception applies. A life producer licensed with a life line of authority for at least 1 year who meets the section's terms is deemed to meet the requirement, but must notify the commissioner within 30 days of first acting as a broker. (175:213(a), (c)) [11]

11. How long does an owner have to cancel a life settlement contract?
Answer: Not more than 15 days after it is signed by all parties. (175:220(a)(5)) [12]

12. How often may a provider or broker contact the insured to check health status?
Answer: No more than once every 3 months if life expectancy is over 1 year, and no more than once a month if it is 1 year or less. (175:220(a)(15)) [12]

Life settlement disclosures

Not later than the date of application, a life settlement provider must give the owner a signed disclosure that includes, among other items: that alternatives exist, including accelerated benefits; that proceeds may be taxable; that proceeds may be subject to creditors' claims; that proceeds may affect eligibility for public assistance; that proceeds will be sent within 3 business days after the provider receives the insurer's acknowledgment of the transfer; and that a life settlement broker represents only the owner and owes the owner a fiduciary duty. (175:220(a)) [12]

Attorneys, certified public accountants and accredited financial planners who are retained by the owner, and not paid by the provider or purchaser, may negotiate for the owner without a broker license. (175:213(d)) [11]

Study tips

More Massachusetts law questions are in 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.

  1. Pearson VUE, Massachusetts content outlines 122301 (effective July 22, 2026): https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/122301.pdf
  2. M.G.L. c. 175, s. 120: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section120
  3. M.G.L. c. 175, s. 120B: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section120B
  4. M.G.L. c. 175, s. 120D: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section120D
  5. M.G.L. c. 175, s. 120E: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section120E
  6. M.G.L. c. 175, s. 120A: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section120A
  7. M.G.L. c. 175I, s. 7: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175I/Section7
  8. M.G.L. c. 175I, s. 4: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175I/Section4
  9. M.G.L. c. 175, s. 134C: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section134C
  10. M.G.L. c. 175, s. 144A 1/2: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section144A1~2
  11. M.G.L. c. 175, s. 213: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section213
  12. M.G.L. c. 175, s. 220: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section220

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