State RegulationsMA specificDifficulty 1/5
Under Massachusetts law, what protection does a member of a group life insurance plan have when the group coverage terminates?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.G.L. c. 175, § 134(4), together with M.G.L. c. 175, § 134A, gives members of Massachusetts group life plans the right to convert their group coverage to an individual life policy when the group coverage ends, without having to prove insurability. The conversion right exists precisely because the member's health may have changed since the group policy was written; requiring a medical examination would defeat the provision's purpose. The converted contract is an individual policy under which the former member becomes the policyowner.
Why the other options are wrong
- A) Group coverage ends with the group arrangement; continuation is not indefinite and the conversion right — not ongoing group status — is the statutory protection under M.G.L. c. 175, § 134(4).
- B) Termination of group coverage triggers no automatic payment to the beneficiary; the benefit payable at death is what the converted or group policy provides.
- D) The defining feature of conversion under M.G.L. c. 175, § 134(4) is that no evidence of insurability is required; a new examination requirement contradicts the statute.
Memory hook
Lose the group, keep the coverage: convert with no medical exam.