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State RegulationsMA specificDifficulty 1/5

Under the Massachusetts Division of Insurance's accelerated benefits regulations, what does an accelerated benefit provision in a life insurance policy generally allow?

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

211 CMR 55.00, the Massachusetts Division of Insurance's accelerated benefits rule, treats an accelerated benefit provision as a living benefit: it lets the insured receive part of the policy's own death benefit before death upon a qualifying event, such as terminal illness, so the money can be used for care and expenses while the insured is alive. The amount taken early reduces what is ultimately paid at death. Recognizing this as an advance of existing coverage — not new or additional protection — is the core of the concept.

Why the other options are wrong

  • B) No provision lets a beneficiary enlarge the benefit at claim time; an accelerated benefit is exercised by the insured while living, under 211 CMR 55.00.
  • C) Exercising a living benefit does not expose the policy to cancellation; the contract continues with its remaining value intact.
  • D) Producers have no borrowing rights in a client's policy; the accelerated benefit belongs to the insured under Massachusetts rules.

Memory hook

Accelerated = the death benefit arrives early, while the insured is alive to use it.

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