State RegulationsMA specificDifficulty 1/5
Under M.G.L. c. 175, § 119C, at what rate does interest accrue on individual life death proceeds in Massachusetts?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.G.L. c. 175, § 119C keys the interest rate on death proceeds to the rate the insurer pays on funds left on deposit with it — the same rate a policyholder would earn on money retained by the company. Where the insurer pays no such left-on-deposit rate, the statute supplies a default of 6%. The interest begins thirty days after death upon proof of death, and the rate structure belongs entirely to the insurer's own deposit practice as bounded by this statutory default.
Why the other options are wrong
- B) 15% is the Massachusetts cap on the annual Medicare supplement late-enrollee surcharge, not the death-proceeds interest rate.
- C) 3% is not the statutory default; the default under M.G.L. c. 175, § 119C is 6%.
- D) 18% is a Mini-COBRA figure with no connection to interest on death proceeds.
Memory hook
Left-on-deposit rate first; six percent fills the silence.