State RegulationsMA specificDifficulty 1/5
Under M.G.L. c. 175, § 120, which insurer practice constitutes unfair discrimination in Massachusetts life insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.G.L. c. 175, § 120 prohibits unfair discrimination between insureds of the same class and essentially the same expectation of life in the pricing or benefits of life insurance. Genuine risk-based distinctions — coverage amount, occupation, examination requirements — remain lawful underwriting tools. The statute targets unequal treatment among equally situated insureds, not the ordinary mechanics of risk classification.
Why the other options are wrong
- A) Premium differences by coverage amount reflect the volume of insurance bought, not discrimination among similarly situated insureds under M.G.L. c. 175, § 120.
- C) Occupation and avocation are legitimate underwriting factors; M.G.L. c. 175, § 120 does not forbid genuine risk-based distinctions.
- D) Requiring an examination for a larger face amount is a standard underwriting practice, not unfair discrimination within M.G.L. c. 175, § 120.
Memory hook
Same class, same life span — same deal: that is § 120.