Massachusetts Property & Casualty Insurance License Exam — All Questions

What are Massachusetts's minimum compulsory auto liability limits for a private passenger vehicle?

• a.$25,000 / $50,000 / $25,000
• b.$25,000 / $50,000 / $30,000✓
• c.$15,000 / $30,000 / $10,000
• d.$50,000 / $100,000 / $25,000

Effective for policies issued or renewed on or after July 1, 2025, Massachusetts raised its compulsory limits to 25/50/30: $25,000 bodily injury per person, $50,000 per accident, and $30,000 property damage (2024 Mass. Acts ch. 275, Sec. 4; M.G.L. c.90 Sec. 34A for bodily injury and Sec. 34O for property damage). The former 20/40/5 limits are outdated. Verify current figures with the Massachusetts Division of Insurance.

How is Massachusetts's auto insurance system best characterized?

• a.A traditional at-fault (tort) state with no first-party medical coverage
• b.An add-on state where PIP is optional
• c.A no-fault state with a 'verbal' (descriptive) threshold that limits when an injured party may sue in tort✓
• d.A state-run fund that pays all injury claims

Massachusetts is a no-fault state and uses a verbal (descriptive) threshold: personal injury protection pays an insured's own accident expenses regardless of fault, and lawsuits for pain and suffering are limited unless the injury meets the statutory threshold, per the Insurance Information Institute no-fault overview.

Which coverage is part of Massachusetts's four compulsory auto coverages and pays an insured's own accident-related expenses regardless of fault?

• a.Collision coverage
• b.Personal injury protection (PIP)✓
• c.Comprehensive coverage
• d.Gap coverage

Massachusetts's compulsory auto policy includes bodily injury to others, personal injury protection (PIP), bodily injury caused by an uninsured auto (UM), and damage to someone else's property. PIP pays the insured's own accident-related medical and related expenses regardless of fault. Confirm the current PIP benefit amount with the Massachusetts Division of Insurance.

Massachusetts requires which coverage, at minimum limits of $25,000 per person / $50,000 per accident, to protect an insured injured by an uninsured driver?

• a.Underinsured motorist only
• b.Medical payments
• c.Bodily injury caused by an uninsured auto (uninsured motorist)✓
• d.Collision

One of the four compulsory Massachusetts coverages is bodily injury caused by an uninsured auto (uninsured motorist), with minimum limits matching the compulsory bodily-injury-to-others limits of 25/50 (effective July 1, 2025 per 2024 Mass. Acts ch. 275; M.G.L. c.90 Sec. 34A). Verify current figures with the Massachusetts Division of Insurance.