State RegulationsMA specificDifficulty 1/5
Under M.G.L. c. 175, § 119C, when does interest begin to run on the death proceeds of an individual Massachusetts life policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.G.L. c. 175, § 119C requires interest on individual life death proceeds to begin thirty days after the date of death, with the right conditioned on the insurer having received proof of death. The interest accrues at the rate the insurer pays on amounts left on deposit with it — defaulting to 6% where no such rate is paid. Neither the moment of death nor the eventual settlement of the estate is the statutory starting point; the thirtieth day after death is.
Why the other options are wrong
- A) Interest does not start at the instant of death; the statute begins it thirty days after death, upon proof of death.
- C) The policy anniversary plays no role; the trigger is the date of death plus thirty days under M.G.L. c. 175, § 119C.
- D) Probate settlement is irrelevant to the statutory interest clock; proof of death, not estate administration, unlocks it.
Memory hook
Proof of death starts the clock; interest runs from day thirty.