State RegulationsMA specificDifficulty 2/5
A beneficiary in Massachusetts furnishes proof of death some time after the insured died. Under M.G.L. c. 175, § 119C, how should the insurer handle interest on the death proceeds?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.G.L. c. 175, § 119C starts interest on individual life death proceeds thirty days after the date of death, and makes payment of that interest dependent on the insurer having received proof of death. When proof arrives late, the insurer applies the statute: interest accrues from the thirtieth day after death at the left-on-deposit rate (or the 6% default), payable once the proof condition is satisfied. A beneficiary's demand date neither starts nor stops the statutory clock, and the age of the policy is irrelevant to this protection.
Why the other options are wrong
- A) The statute affirmatively requires interest beginning thirty days after death; it is not optional with the insurer.
- B) The clock is set by the date of death, not by the beneficiary's demand, under M.G.L. c. 175, § 119C.
- D) The interest obligation attaches to individual life death proceeds regardless of the policy's age; nothing in § 119C ties it to new policies.
Memory hook
The statute owes interest from day thirty — proof just unlocks it.