Free Massachusetts Life insurance exam practice test

Last updated October 12, 2026

These 25 questions follow the mix of the Massachusetts Life Producer exam that Pearson VUE has given since July 22, 2026: 16 general life insurance questions and 9 on Massachusetts law. Pick your answers, then check them. Every question explains all four choices and quotes the law or official source it comes from.

These are practice questions written by Prep Retention, not questions from the actual exam.

Question 1 Types of life policiesAn insurer is preparing the periodic status report it sends to its universal life policyowners. Under Section 7A of the NAIC Universal Life Insurance Model Regulation (#585), how recent must the end of the report period be?

A. Within three months before the report is mailed
B. Within six months before the report is mailed
C. Within thirty days before the report is mailed
D. Within twelve months before the report is mailed

Show the answer and explanation

Correct answer: A. Within three months before the report is mailed

A. Correct. The end of the current report period must be not more than three months previous to the date of the mailing of the report.
B. Incorrect. Section 7A sets three months, not six.
C. Incorrect. Section 7A allows up to three months, not thirty days.
D. Incorrect. Section 7A sets three months, not twelve.

The end of the current report period must be not more than three months previous to the date of the mailing of the report.
Source: NAIC Universal Life Insurance Model Regulation (#585), Section 7A (Periodic Disclosure to Policyowner), second sentence

Question 2 Types of life policiesUnder Section 7B of the NAIC Universal Life Insurance Model Regulation (#585), what notice must a universal life policy's annual report give the policyholder?

A. That the owner may ask for a refund of past cost of insurance charges
B. That the owner may ask to convert the policy into a fixed annuity
C. That the owner may request an illustration of future values
D. That the owner may ask to lock in the current credited interest rate

Show the answer and explanation

Correct answer: C. That the owner may request an illustration of future values

A. Incorrect. Section 7B concerns notice of the right to request an illustration, not refunds of charges.
B. Incorrect. Section 7B does not address conversion to an annuity.
C. Correct. Under 7B, Current Illustrations, the annual report must give notice that the policyholder may request an illustration of current and future benefits and values.
D. Incorrect. Section 7B does not give a right to lock in a credited rate; it requires notice about illustrations.

Current Illustrations. The annual report shall provide notice that the policyholder may request an illustration of current and future benefits and values.
Source: NAIC Universal Life Insurance Model Regulation (#585), Section 7B (Current Illustrations)

Question 3 Types of life policiesA client is considering an indexed annuity that is not registered as a security. According to FINRA's article on indexed annuities, who regulates that annuity?

A. State insurance commissioners
B. The SEC and FINRA, acting jointly
C. The SEC acting by itself
D. FINRA acting by itself

Show the answer and explanation

Correct answer: A. State insurance commissioners

A. Correct. FINRA says all indexed annuities are regulated by state insurance commissioners, and only those registered as securities are also regulated by the SEC and FINRA.
B. Incorrect. FINRA says only indexed annuities registered as securities are regulated by the SEC and FINRA.
C. Incorrect. SEC regulation applies only to indexed annuities registered as securities; all are regulated by state insurance commissioners.
D. Incorrect. FINRA regulation applies only to indexed annuities registered as securities; all are regulated by state insurance commissioners.

While all indexed annuities are regulated by state insurance commissioners, only those that are registered as securities are regulated by the SEC and FINRA. If the indexed annuity is a security, generally a prospectus will be delivered to you.
Source: FINRA Investor Insights, The Complicated Risks and Rewards of Indexed Annuities (July 14, 2022), regulation

Question 4 Types of life policiesAccording to the NAIC Buyer's Guide for Deferred Annuities, during which period does a deferred annuity make income payments to the owner?

A. The accumulation period
B. The surrender period
C. The free look period
D. The payout period

Show the answer and explanation

Correct answer: D. The payout period

A. Incorrect. During the accumulation period, the value of the annuity changes; income payments are made in the payout period.
B. Incorrect. A surrender period relates to charges for taking money out early, not to income payments.
C. Incorrect. A free look period is the time to change one's mind after buying, not a period of income payments.
D. Correct. The guide states that deferred annuities have an accumulation period and a payout period, and that during the payout period the annuity makes income payments.

They have an accumulation period and a payout period. During the accumulation period, the value of your annuity changes [...] During the payout period, the annuity makes income payments to you.
Source: NAIC Buyer's Guide for Deferred Annuities (2022)

Question 5 Types of life policiesRosa, age 70, is told her new annuity contract is structured as an immediate annuity. According to the SEC publication "Variable Annuities: What You Should Know," what does that structure mean for her?

A. Payments begin after an accumulation phase of at least a year
B. Payments begin at age 72, after a required accumulation phase
C. Payments begin right after purchase, with no accumulation phase
D. Payments begin once the account has grown by a set amount

Show the answer and explanation

Correct answer: C. Payments begin right after purchase, with no accumulation phase

A. Incorrect. The SEC says an immediate annuity has no accumulation phase.
B. Incorrect. The SEC says payments start right after purchase, with no accumulation phase; no age 72 rule applies.
C. Correct. The SEC says immediate annuities have no accumulation phase and payments start right after you purchase the annuity.
D. Incorrect. Payments start right after purchase, not after the account reaches a growth target.

some annuity contracts are structured as immediate annuities, which means that there is no accumulation phase and you will start receiving annuity payments right after you purchase the annuity.
Source: SEC, Variable Annuities: What You Should Know (immediate annuities)

Question 6 Life policy riders, provisions and optionsA federal employee insured under FEGLI dies without any designated beneficiary. He is survived by his wife, two children, and his mother. Under the order of precedence in 5 U.S.C. 8705(a), who receives the proceeds?

A. His wife, as his widow
B. His children, in equal shares
C. His mother, as surviving parent
D. His estate, through the executor

Show the answer and explanation

Correct answer: A. His wife, as his widow

A. Correct. If there is no designated beneficiary, the proceeds go second in the order of precedence to the widow or widower of the employee.
B. Incorrect. With no designated beneficiary, the statute directs payment to the widow or widower, not to the children.
C. Incorrect. With no designated beneficiary, payment goes to the widow or widower, so the mother does not take ahead of the wife.
D. Incorrect. With no designated beneficiary, payment goes to the widow or widower rather than to the estate.

in the following order of precedence: [...] Second, if there is no designated beneficiary, to the widow or widower of the employee.
Source: 5 U.S.C. 8705(a) (lead-in and Second)

Question 7 Life policy riders, provisions and optionsRaj, a federal employee, carries Federal Employees' Group Life Insurance (FEGLI) Option C, and his wife is an insured family member under it. She dies while Raj is living. Under 5 CFR 870.801(e), and assuming paragraph (f) does not apply, to whom are the Option C benefits paid?

A. To the beneficiary that Raj's wife had named herself
B. To Raj, who is responsible for the withholdings
C. To the executor of the wife's estate
D. To the couple's children in equal shares

Show the answer and explanation

Correct answer: B. To Raj, who is responsible for the withholdings

A. Incorrect. Section 870.801(e) directs Option C benefits to the person responsible for the withholdings, not to a beneficiary named by the family member.
B. Correct. Under 870.801(e), upon the death of an insured family member, Option C benefits are paid to the employee, annuitant, or compensationer responsible for withholdings.
C. Incorrect. Section 870.801(e) does not pay the family member's estate; it pays the employee responsible for withholdings.
D. Incorrect. Section 870.801(e) pays the employee responsible for withholdings, not the children.

Upon the death of an insured family member, Option C benefits are paid to the employee, annuitant, or compensationer responsible for withholdings under § 870.402(a), except as provided in paragraph (f) of this section.
Source: 5 CFR 870.801(e)

Question 8 Life policy riders, provisions and optionsAn agent is delivering a new life insurance policy and wants to show the owner where to find how long she has to review it and return it for a full refund. According to the NAIC Life Insurance Buyer's Guide, where is that review period usually stated?

A. In the agent's appointment papers
B. In the outline of coverage only
C. On the first page of the policy
D. In the insurer's annual statement

Show the answer and explanation

Correct answer: C. On the first page of the policy

A. Incorrect. The agent's appointment papers are not where the guide says the review period appears.
B. Incorrect. The guide points to the first page of the policy, not an outline of coverage.
C. Correct. The guide says the review period usually is stated on the first page of the policy.
D. Incorrect. The insurer's annual statement is a financial filing; the guide says the review period is usually on the first page of the policy.

If you're not satisfied with your new policy, you can return it for a full refund within a certain period, usually 10 days after you receive it. The review period usually is stated on the first page of the policy.
Source: NAIC Life Insurance Buyer's Guide (2026), read your policy carefully

Question 9 Life policy riders, provisions and optionsAn annuity application is taken online, and the Buyer's Guide and disclosure document are not provided at or before the time of application. Under the NAIC Annuity Disclosure Model Regulation (#245), what free look period must the applicant receive to return the contract without penalty?

A. At least 10 days
B. At least 30 days
C. At least 15 days
D. At least 5 days

Show the answer and explanation

Correct answer: C. At least 15 days

A. Incorrect. Model 245 sets a minimum of fifteen days in this situation, not ten.
B. Incorrect. Thirty days is not the period stated in Section 5A(2)(d); the minimum is fifteen days.
C. Correct. Section 5A(2)(d) requires a free look period of no less than fifteen days when the Buyer's Guide and disclosure document are not provided at or before the time of application.
D. Incorrect. Five business days is the deadline for sending the documents, not the length of the free look period.

Where the Buyer's Guide and disclosure document are not provided at or before the time of application, a free look period of no less than fifteen (15) days shall be provided for the applicant to return the annuity contract without penalty.
Source: NAIC Annuity Disclosure Model Regulation (#245), Section 5A(2)(d)

Question 10 Life policy riders, provisions and optionsAn employer's group life policy follows Section 5A of the NAIC Group Life Insurance Definition and Group Life Insurance Standard Provisions Model Act (#565). The employer misses a renewal premium (not the first premium) and gives no written notice of discontinuance. An insured employee dies 20 days after the due date. Is the death benefit coverage in force?

A. Yes, because a 31-day grace period applies
B. No, because group coverage ends on the premium due date
C. No, because the group grace period is just 15 days
D. Yes, but the death benefit is reduced by one half

Show the answer and explanation

Correct answer: A. Yes, because a 31-day grace period applies

A. Correct. Under Section 5A the policyholder has a 31-day grace period for any premium except the first, and the death benefit coverage continues in force during it unless written notice of discontinuance was given in advance.
B. Incorrect. Section 5A gives the policyholder a grace period during which coverage continues.
C. Incorrect. The Section 5A grace period is thirty-one days, not fifteen.
D. Incorrect. Section 5A continues the death benefit coverage in force; it does not cut the benefit.

The policy shall contain a provision that the policyholder is entitled to a grace period of thirty-one (31) days for the payment of any premium due except the first, during which grace period the death benefit coverage shall continue in force, unless the policyholder gives the insurer written notice of discontinuance in advance of the date of discontinuance and in accordance with the terms of the policy.
Source: NAIC Group Life Insurance Definition and Group Life Insurance Standard Provisions Model Act (#565), Section 5A

Question 11 Life applications, underwriting and deliveryAn insurer asks whether the federal E-SIGN Act's rules on electronic signatures and records reach insurance transactions. Under 15 U.S.C. 7001(i), what did Congress state?

A. It leaves insurance to state law, so the Act does not apply
B. It applies the Act to group insurance but not individual policies
C. It applies the Act to health insurance but not life insurance
D. It intends the Act to cover the business of insurance

Show the answer and explanation

Correct answer: D. It intends the Act to cover the business of insurance

A. Incorrect. Congress stated the opposite: the Act applies to the business of insurance.
B. Incorrect. Subsection (i) covers the business of insurance without a group or individual split.
C. Incorrect. Subsection (i) is not limited to one line of insurance.
D. Correct. Subsection (i) states that it is the specific intent of the Congress that the Act apply to the business of insurance.

It is the specific intent of the Congress that this subchapter and subchapter II apply to the business of insurance.
Source: 15 U.S.C. 7001(i) (Insurance)

Question 12 Life applications, underwriting and deliveryUnder the Gramm-Leach-Bliley Act definitions in 15 U.S.C. 6809(9), which of these buyers is a consumer?

A. Acme Corp., which buys key person coverage on its officers
B. Ann, who buys a life policy to protect her family
C. Ben, who buys overhead expense coverage for his dental practice
D. City Bank, which buys a group policy for its employees

Show the answer and explanation

Correct answer: B. Ann, who buys a life policy to protect her family

A. Incorrect. A corporation is not an individual, so it is not a consumer under 6809(9).
B. Correct. A consumer is an individual who obtains financial products or services from a financial institution to be used primarily for personal, family, or household purposes.
C. Incorrect. Coverage for a business is not used primarily for personal, family, or household purposes.
D. Incorrect. A bank buying coverage for its workforce is not an individual obtaining products for personal purposes.

an individual who obtains, from a financial institution, financial products or services which are to be used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.
Source: 15 U.S.C. 6809(9) (Consumer)

Question 13 Life applications, underwriting and deliveryAn insurer that is a financial institution looks up a policyholder's premium payment history from its own records of her policy. Under the Gramm-Leach-Bliley Act definition in 15 U.S.C. 6809(4)(A), is that payment history nonpublic personal information?

A. No; data the insurer creates itself falls outside the definition
B. Yes; it is identifiable financial data from her dealings with it
C. No; the definition reaches data the consumer hands over directly
D. Yes; any record an insurer keeps is covered regardless of type

Show the answer and explanation

Correct answer: B. Yes; it is identifiable financial data from her dealings with it

A. Incorrect. The definition covers information resulting from any transaction with the consumer, which includes the insurer's own payment records.
B. Correct. Section 6809(4)(A) defines nonpublic personal information as personally identifiable financial information provided by a consumer, resulting from any transaction with the consumer or service performed for the consumer, or otherwise obtained by the institution.
C. Incorrect. Information the consumer provides is one category, but the definition also covers information resulting from transactions and information otherwise obtained.
D. Incorrect. The definition is limited to personally identifiable financial information; it does not reach every record an insurer keeps.

The term "nonpublic personal information" means personally identifiable financial information [...] provided by a consumer to a financial institution; [...] resulting from any transaction with the consumer or any service performed for the consumer; or [...] otherwise obtained by the financial institution.
Source: 15 U.S.C. 6809(4)(A)

Question 14 Life applications, underwriting and deliveryAn applicant is buying a life policy that has no unconditional refund provision. Under the NAIC Life Insurance Disclosure Model Regulation (#580), when must the insurer provide the Buyer's Guide to this prospective purchaser?

A. At the time the policy is delivered to the new policyowner
B. Within 30 days after the insurer issues the policy
C. Before it takes the first premium or any premium deposit
D. Whenever the applicant asks for one in writing

Show the answer and explanation

Correct answer: C. Before it takes the first premium or any premium deposit

A. Incorrect. Delivery with the policy is permitted only when the policy has an unconditional refund provision of at least ten days.
B. Incorrect. The Buyer's Guide must be provided before the initial premium or premium deposit is accepted.
C. Correct. Section 5A(1) requires the Buyer's Guide before the insurer accepts the initial premium or premium deposit; delivery with the policy is allowed only when there is an unconditional refund provision of at least ten days.
D. Incorrect. The model requires the insurer to provide the Buyer's Guide to all prospective purchasers, not on request.

The insurer shall provide a Buyer's Guide to all prospective purchasers, prior to accepting the applicant's initial premium or premium deposit. However, if the policy for which application is made contains an unconditional refund provision of at least ten (10) days, the Buyer's Guide may be delivered with the policy or prior to delivery of the policy.
Source: NAIC Life Insurance Disclosure Model Regulation (#580), Section 5A(1)

Question 15 Retirement plans and other life topicsIn 2026, Paul gives his nonqualified deferred annuity to his adult daughter and receives nothing in return. At that time its cash surrender value is $90,000 and his investment in the contract is $60,000. Under 26 U.S.C. 72(e)(4)(C)(i), how is Paul treated?

A. As receiving $90,000, the contract's full cash value
B. As receiving $30,000, the gain over his investment
C. As receiving $60,000, the amount of his investment
D. As receiving nothing, since the transfer was a gift

Show the answer and explanation

Correct answer: B. As receiving $30,000, the gain over his investment

A. Incorrect. Only the excess of the cash surrender value over the investment in the contract is treated as received, not the full value.
B. Correct. A holder who transfers an annuity without full and adequate consideration is treated as receiving the excess of the cash surrender value ($90,000) over the investment in the contract ($60,000), or $30,000.
C. Incorrect. The investment in the contract is subtracted from the cash surrender value; it is not the amount treated as received.
D. Incorrect. 72(e)(4)(C)(i) applies exactly to transfers without full and adequate consideration, such as a gift.

If an individual who holds an annuity contract transfers it without full and adequate consideration, such individual shall be treated as receiving an amount equal to the excess of [...] the cash surrender value of such contract at the time of transfer, over [...] the investment in such contract at such time, under the contract as an amount not received as an annuity.
Source: 26 U.S.C. 72(e)(4)(C)(i), (i)(I) and (i)(II)

Question 16 Retirement plans and other life topicsAn agent is helping a client with young children decide how much life insurance to buy. According to the NAIC Life Insurance Buyer's Guide, what does the right amount of coverage depend on?

A. The financial needs that will continue after the client's death
B. A fixed multiple of the client's yearly income
C. The premium the client can comfortably afford today
D. The client's age and health rating at purchase

Show the answer and explanation

Correct answer: A. The financial needs that will continue after the client's death

A. Correct. The guide says how much life insurance to buy depends on the financial needs that will continue after death, such as supporting a family, paying for children's education and paying off a mortgage.
B. Incorrect. The guide describes a needs-based approach, not a fixed multiple of income.
C. Incorrect. Affordability matters when choosing a policy, but the guide ties the amount of coverage to the needs that continue after death.
D. Incorrect. Age and health affect the premium, not how much coverage the family needs.

How much life insurance to buy depends on the financial needs that will continue after your death. Examples include supporting your family, paying for child(ren)'s education, and paying off a mortgage.
Source: NAIC Life Insurance Buyer's Guide (2026), how much coverage do I need?

Question 17 Massachusetts laws for all linesA Massachusetts individual producer let his license lapse and pays the overdue renewal fee 7 months after the due date. Under M.G.L. c. 175, s. 162M, which statement describes his reinstatement?

A. He must pass the written exam again before reinstating
B. He may reinstate but owes a double-fee penalty
C. He may reinstate and owes only the regular fee
D. He must apply for a brand new license instead

Show the answer and explanation

Correct answer: B. He may reinstate but owes a double-fee penalty

A. Incorrect. Within 12 months of the renewal fee due date, 162M(c) allows reinstatement without passing a written examination.
B. Correct. 162M(c) allows reinstatement of the same license within 12 months of the due date without an exam, but a renewal fee received after the due date carries a penalty of double the unpaid renewal fee.
C. Incorrect. A renewal fee received after the due date triggers the double-fee penalty, so the regular fee alone is not enough.
D. Incorrect. At 7 months he is within the 12-month window in which the same license may be reinstated.

(c) An individual insurance producer who allows his license to lapse may, within 12 months from the due date of the renewal fee, reinstate the same license without the necessity of passing a written examination, but a penalty in the amount of double the unpaid renewal fee shall be required for any renewal fee received after the due date.
Source: M.G.L. c. 175, s. 162M(c)

Question 18 Massachusetts laws for all linesAn insurer imprints a facsimile of its president's signature on the life insurance policies it issues. Under M.G.L. c. 175, s. 33, how is that facsimile treated?

A. As valid once the commissioner has approved it
B. As valid on riders but not on the policy itself
C. As valid when an agent also countersigns it
D. As valid as the president's written signature

Show the answer and explanation

Correct answer: D. As valid as the president's written signature

A. Incorrect. 175:33 does not condition the facsimile's validity on the commissioner's approval.
B. Incorrect. 175:33 covers a facsimile imprinted on any policy or contract, as well as on riders and endorsements.
C. Incorrect. 175:33 does not require an agent's countersignature for a facsimile signature to be valid.
D. Correct. 175:33 names the president as one of the officers who sign policies, and gives a facsimile of such an officer's signature imprinted on a policy or rider the same validity as the officer's written signature.

All such policies or contracts issued by such company shall be signed by its secretary or an assistant secretary, or in their absence by a temporary secretary, and by its president or a vice-president, or in their absence by two directors. [...] A facsimile of the signature of any such officer imprinted on any policy or contract or any rider or endorsement attached thereto, or a facsimile of the signature of any such agent or representative imprinted on any rider or endorsement which under this section he is authorized to sign, shall have the same validity as his written signature.
Source: M.G.L. c. 175, s. 33

Question 19 Massachusetts laws for all linesAn insurer creates a new application form designed to be attached to its policy form and, once attached, to be part of the contract. Under M.G.L. c. 175, s. 192, how do the laws on filing and approval of policy forms apply to it?

A. They do not apply to application forms at all
B. They apply only after the commissioner asks for it
C. They apply only to applications for life policies
D. They apply to it as they apply to the policy form

Show the answer and explanation

Correct answer: D. They apply to it as they apply to the policy form

A. Incorrect. 192 expressly includes applications designed to be attached to policy forms.
B. Incorrect. 192 applies the filing and approval laws directly; it does not wait for a request from the commissioner.
C. Incorrect. 192 is not limited to life policy applications.
D. Correct. 192 extends all provisions of law on filing and approval of policy forms to riders, endorsements and applications designed to be attached to the policy forms and to become part of the contract.

Section 192. All provisions of law relative to the filing of policy forms with, and the approval of such forms by, the commissioner shall also apply to all forms of riders, endorsements and applications designed to be attached to such policy forms and when so attached to constitute a part of the contract;
Source: M.G.L. c. 175, s. 192 (first sentence)

Question 20 Massachusetts laws for all linesAn agent collects a premium for a policy issued by a company lawfully doing business in Massachusetts but does not pass it on to the company. Under M.G.L. c. 175, s. 176, when is his failure prima facie evidence that he used the premium for another purpose?

A. When he fails to pay within 10 days after collecting it
B. When he fails to pay after the company's written demand
C. When he fails to pay before the grace period ends
D. When he fails to pay after the insured asks orally

Show the answer and explanation

Correct answer: B. When he fails to pay after the company's written demand

A. Incorrect. Section 176 ties the presumption to failure after written demand, not to a set number of days.
B. Correct. Under s. 176, failure to pay over the premium after written demand is prima facie evidence that he used it for another purpose.
C. Incorrect. The trigger in s. 176 is failure to pay after written demand.
D. Incorrect. Section 176 requires a written demand, and the money is owed to the company.

An insurance agent or broker who acts in negotiating or renewing or continuing a policy of insurance or an annuity or pure endowment contract issued by a company lawfully doing business in the commonwealth, and who receives any money or substitute for money as a premium for such a policy or contract from the insured or holder thereof, shall be deemed to hold such premium in trust for the company. If he fails to pay the same over to the company after written demand made upon him therefor, less his commission and any deductions to which, by the written consent of the company, he may be entitled, such failure shall be prima facie evidence that he has used or applied the said premium for a purpose other than paying the same over to the company, and upon conviction thereof he shall be guilty of larceny.
Source: M.G.L. c. 175, s. 176

Question 21 Massachusetts life insurance lawsUnder 211 CMR 31.05(1)(a), when must an insurer generally provide the Buyer's Guide to a prospective purchaser of life insurance?

A. Within 10 days after the policy has been issued
B. Before it accepts the applicant's initial premium
C. At the first anniversary of the policy
D. Within 30 days after the application has been signed

Show the answer and explanation

Correct answer: B. Before it accepts the applicant's initial premium

A. Incorrect. The general rule requires delivery before the initial premium is accepted, not after issue.
B. Correct. The insurer must provide the Buyer's Guide prior to accepting the applicant's initial premium or premium deposit.
C. Incorrect. The policy anniversary has nothing to do with the Buyer's Guide timing rule.
D. Incorrect. The rule is tied to acceptance of the initial premium, not a 30-day period after application.

(1) Requirements Applicable Generally. [...] (a) The insurer shall provide a Buyer's Guide to all prospective purchasers prior to accepting the applicant's initial premium or premium deposit.
Source: 211 CMR 31.05(1)(a) Duties of Insurers

Question 22 Massachusetts life insurance lawsThe insured under a policy being settled has a life expectancy of more than one year. Under the disclosure required by M.G.L. c. 175, s. 220(a)(15), how often may the life settlement provider or broker contact the insured to check health status?

A. No more than once per month
B. No more than once every 6 months
C. No more than once every 12 months
D. No more than once every 3 months

Show the answer and explanation

Correct answer: D. No more than once every 3 months

A. Incorrect. Monthly contact applies when life expectancy is 1 year or less.
B. Incorrect. The limit for a life expectancy over 1 year is once every 3 months, not 6.
C. Incorrect. The limit is once every 3 months, not once a year.
D. Correct. Contact is limited to once every 3 months when the insured's life expectancy is more than 1 year.

(a) Not later than the date of application for a life settlement contract, a life settlement provider shall provide to the owner, in a separate document signed by the owner, the following information: [...] (15) that the insured may be contacted by either the life settlement provider or life settlement broker or its authorized representative for the purpose of determining the insured's health status or to verify the insured's address; provided, however, that this contact shall be limited to once every 3 months if the insured has a life expectancy of more than 1 year and not more than once per month if the insured has a life expectancy of 1 year or less;
Source: M.G.L. c. 175, s. 220(a)(15)

Question 23 Massachusetts life insurance lawsAn insurer wants to deny a death claim based on a statement the insured made orally to the agent that never appeared in the written application. Under M.G.L. c. 175, s. 132, provision 3, may the insurer use that statement in defense to the claim?

A. Yes, if the agent recorded it in the field notes
B. Yes, if the statement was material to the risk
C. No, unless the insurer mails a copy within 30 days
D. No, since it is not in the attached application

Show the answer and explanation

Correct answer: D. No, since it is not in the attached application

A. Incorrect. Provision 3 requires the statement to be in a written application endorsed on or attached to the policy; agent notes do not qualify.
B. Incorrect. Provision 3 bars use of the statement in defense unless it is in the written application, regardless of materiality.
C. Incorrect. Provision 3 requires the application copy to be endorsed on or attached to the policy when issued, not mailed later.
D. Correct. Provision 3 says no statement by the insured may be used in defense to a claim unless it is contained in a written application, a copy of which is endorsed on or attached to the policy when issued.

3. A provision that the policy and the application therefor shall constitute the entire contract between the parties, and that no statement made by the insured or on his behalf shall be used in defence to a claim under the policy unless it is contained in a written application, and a copy of such application is endorsed upon or attached to the policy when issued.
Source: M.G.L. c. 175, s. 132, provision 3

Question 24 Massachusetts life insurance lawsUnder M.G.L. c. 175, s. 212, a life settlement broker is a person who, for a fee, commission or other consideration, offers or attempts to negotiate a life settlement contract on behalf of whom?

A. The life settlement provider acquiring the policy
B. The insurance company that issued the policy
C. The owner of the life insurance policy
D. The investor financing the policy purchase

Show the answer and explanation

Correct answer: C. The owner of the life insurance policy

A. Incorrect. The provider is the other party to the contract; the broker acts on behalf of the owner.
B. Incorrect. The definition says the broker acts on behalf of an owner; the issuing insurer is not named.
C. Correct. A life settlement broker acts on behalf of an owner, defined as the owner of a life insurance policy (or a group certificate holder) who enters or seeks to enter into a life settlement contract, to negotiate a contract between the owner and a life settlement provider.
D. Incorrect. The definition says the broker acts on behalf of the owner, not an investor.

Life settlement broker: "a person who, on behalf of an owner and for a fee, commission or other consideration, offers or attempts to negotiate a life settlement contract between an owner and a life settlement provider." [...] Owner: "the owner of a life insurance policy or a certificate holder under a group policy who enters or seeks to enter into a life settlement contract
Source: M.G.L. c. 175, s. 212 Definitions: Life settlement broker; Owner

Question 25 Massachusetts life insurance lawsA whole life policy went into default in 2025, and the holder chose to take, and was paid, its cash surrender value. In 2026 the holder asks to reinstate. Under M.G.L. c. 175, s. 132, provision 11, is the holder entitled to reinstatement?

A. Yes, since it is within three years of default
B. Yes, if the cash value is repaid with interest
C. No, since the limit is one year from default
D. No, since the cash surrender value was paid

Show the answer and explanation

Correct answer: D. No, since the cash surrender value was paid

A. Incorrect. The three-year window applies only if the cash surrender value has not been paid and the extension period has not expired.
B. Incorrect. The provision gives no right to reinstate by repaying a cash value already paid out.
C. Incorrect. The period is three years from default; the reason here is the paid cash surrender value.
D. Correct. The reinstatement right does not apply if the cash surrender value has been duly paid.

11. A provision that the holder of a policy shall be entitled to have the policy reinstated at any time within three years from the date of default, unless the cash surrender value has been duly paid or the extension period has expired, upon the production of evidence of insurability satisfactory to the company and the payment of all overdue premiums and any other indebtedness to the company upon said policy, with interest at the rate of not exceeding six per cent per annum or, at the option of the company, with interest as aforesaid compounded semi-annually.
Source: M.G.L. c. 175, s. 132, provision 11

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