State RegulationsMA specificDifficulty 1/5
Under Massachusetts law, how long is the grace period for payment of a life insurance premium that falls due after the first policy year?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.G.L. c. 175, § 132(1) requires Massachusetts life policies to provide a grace period of 30 days for premiums due after the first policy year, during which the policy stays in force and the insurer may charge optional interest of no more than 6% per annum on the overdue premium. If the insured dies during the grace period, the claim is still paid, less the overdue premium and interest. The 30-day figure is a distinctive Massachusetts deviation from the 31-day style used in many other states.
Why the other options are wrong
- B) 31 days is the NAIC-style grace period used in many other states, not the Massachusetts period fixed by M.G.L. c. 175, § 132(1).
- C) 20 days is the right-to-examine period attached to a replaced life policy or annuity, not the premium grace period.
- D) 10 days is the free-look period for a small-face life policy under M.G.L. c. 175, § 187H, unrelated to premium payment.
Memory hook
Thirty days to catch up in Massachusetts — not the thirty-one you learned generically.