Life policy riders and provisions practice questions (Massachusetts)
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Section II of the Massachusetts Life Producer exam, "Policy Riders, Provisions, Options, and Exclusions," has 15 scored questions. [1] The outline lists ten riders (including waiver of premium, guaranteed insurability, accidental death, long term care, return of premium and cost of living), seventeen provisions and options (including beneficiary designations, grace period, reinstatement, nonforfeiture options and accelerated death benefits), and three exclusions: war, aviation and dangerous occupation. [1] This page focuses on riders, beneficiaries and what happens when premiums stop. For grace period, incontestability and the free look, see our Massachusetts life flashcards.
Riders, in the Division of Insurance's words
The Division of Insurance calls added benefits "riders." [2]
- Accelerated death benefits: "You may receive all or a part of the benefits of your life insurance policy before you die." [2]
- Accidental death benefits: "Also known as a 'double indemnity', this rider pays an additional amount if death is accidental." [2]
- Automatic premium loan: the company "will automatically make a loan against your policy to cover the cost of the premiums." [2]
- Guaranteed insurability: lets you "buy additional life insurance at specific times without having to answer any questions about your health." [2]
- Premium waiver: you "will not have to pay premiums for the duration of the disability." [2]
Massachusetts law allows life policies to include an accidental death benefit that pays more for accidental death, and waiver of premium or special benefits if the insured becomes totally and permanently disabled. Those provisions must state the benefits, their cost, and what counts as total and permanent disability. (M.G.L. c. 175, s. 24) [3]
Practice questions
1. Which rider pays an extra amount if death is accidental?
A. Guaranteed insurability
B. Accidental death benefit (double indemnity)
C. Premium waiver
D. Automatic premium loan
Answer: B. [2]
2. A client wants to buy more coverage later without new health questions. Which rider fits?
Answer: Guaranteed insurability. [2]
3. A premium is missed and the company borrows against the policy to pay it. Which provision is working?
Answer: Automatic premium loan. [2]
4. A disability rider in a Massachusetts life policy must define what?
Answer: What constitutes total and permanent disability, along with the benefits and their cost. (M.G.L. c. 175, s. 24) [3]
5. What is a contingent beneficiary?
Answer: A secondary beneficiary who receives the proceeds if a primary beneficiary dies before the insured. [4]
6. A beneficiary designation says "per stirpes." What does that mean?
Answer: Shares are distributed according to the family tree or branch. Under "per capita" ("per head"), a deceased child's family receives nothing. [4]
7. Premiums stop and the grace period ends. What happens to the policy?
Answer: It lapses, which ends the relationship with the insurer, and beneficiaries get no death benefit. [4]
8. After a default, which options does Massachusetts law give the holder?
Answer: To surrender the policy for its cash value (if premiums have been paid for at least three full years, except as section 146 provides) or to take a specified paid-up nonforfeiture benefit. (M.G.L. c. 175, s. 144) [5]
9. What does the Division say about reinstating a lapsed policy?
Answer: Most companies allow reinstatement for up to three years, which takes paying overdue premiums with interest and repaying loans, and may require a new health questionnaire or exam. [4]
10. Can accelerated death benefits help pay for a nursing home?
Answer: Some people use them that way. The Division notes this usually gives less protection than long-term care insurance. [4]
Study tips
- Learn each rider by what triggers it: accident (double indemnity), disability (premium waiver), a future purchase date (guaranteed insurability), a missed premium (automatic premium loan), serious illness (accelerated benefits).
- Know the beneficiary terms: primary, contingent, per stirpes and per capita.
Practice more with the free Massachusetts Life practice test.
Prep Retention is independent and is not affiliated with Pearson VUE or the state.
Sources
- Pearson VUE, Massachusetts content outlines 122301 (effective July 22, 2026): https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/122301.pdf
- Massachusetts Division of Insurance, Buying Life Insurance and Annuities in Massachusetts, Part Two: https://www.mass.gov/info-details/buying-life-insurance-and-annuities-in-massachusetts-part-two
- M.G.L. c. 175, s. 24: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section24
- Massachusetts Division of Insurance, Life Insurance Basics: https://www.mass.gov/info-details/life-insurance-basics
- M.G.L. c. 175, s. 144: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section144