Massachusetts Personal Lines Insurance License Exam — All Questions

What are the compulsory minimum auto liability limits generally required in Massachusetts?

• a.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage
• b.$25,000 per person / $50,000 per accident bodily injury and $30,000 property damage✓
• c.$50,000 per person / $100,000 per accident bodily injury and $25,000 property damage
• d.$15,000 per person / $30,000 per accident bodily injury and $10,000 property damage

Effective for policies issued or renewed on or after July 1, 2025, Massachusetts's compulsory minimum auto liability limits are 25/50/30 — $25,000 per person / $50,000 per accident for bodily injury and $30,000 for property damage (2024 Mass. Acts ch. 275, Sec. 4; M.G.L. c.90 Sec. 34A bodily injury and Sec. 34O property damage). The former 20/40/5 limits are outdated. These are minimums; producers should offer higher 'optional' limits. Verify current figures with the Massachusetts Division of Insurance (https://www.mass.gov/orgs/division-of-insurance).

How does Massachusetts treat fault for auto injury claims?

• a.It is a pure at-fault (tort) state with no first-party injury benefit
• b.It bans all lawsuits arising from auto accidents
• c.It is a no-fault state: each compulsory policy includes personal injury protection (PIP), and suits for pain and suffering are allowed only above a statutory tort threshold✓
• d.It routes all injury claims through a state-run fund

Massachusetts is a no-fault state and was among the first to adopt no-fault auto insurance. Each compulsory policy includes PIP, a first-party benefit paid regardless of fault, and a driver may sue for pain and suffering only when the claim clears a statutory tort threshold. Verify the current PIP amount and threshold with the Massachusetts Division of Insurance.

What does personal injury protection (PIP) provide on a Massachusetts compulsory auto policy?

• a.It repairs the insured's vehicle after a collision
• b.It is a first-party benefit that pays the insured's medical costs and lost wages regardless of who caused the crash✓
• c.It pays only for damage the insured causes to another person's property
• d.It is a premium discount for safe drivers

PIP is a first-party no-fault benefit that pays the insured's (and passengers') medical expenses and lost wages regardless of fault, which is why Massachusetts limits pain-and-suffering suits to claims above a tort threshold. Confirm the current PIP benefit amount with the Massachusetts Division of Insurance (https://www.mass.gov/orgs/division-of-insurance).

Which coverage is included in a Massachusetts compulsory auto policy to protect the insured against a driver who has no insurance?

• a.Collision coverage
• b.Comprehensive coverage
• c.Uninsured motorist coverage✓
• d.Gap coverage

Massachusetts compulsory policies include uninsured motorist coverage, which protects the insured when an at-fault driver has no coverage; underinsured motorist coverage is available as an optional add-on. Confirm the current required limits with the Massachusetts Division of Insurance (https://www.mass.gov/orgs/division-of-insurance).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Massachusetts?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Massachusetts Division of Insurance✓

Massachusetts, like other states, restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current Massachusetts notice periods with the Massachusetts Division of Insurance.