L&HMAmedium
Under Massachusetts' Standard Nonforfeiture Law for life insurance, which of the following is NOT a standard nonforfeiture option available to a policyowner upon lapse of a whole life policy with cash value?
ACash surrender value
BReduced paid-up insurance
CExtended term insurance
Automatic doubling of face amount
Why this is the answer
M.G.L. c. 175 §144 et seq. (MA Standard Nonforfeiture Law) requires whole life policies to offer three options at lapse: cash surrender value, reduced paid-up insurance, and extended term insurance. There is no statutory option that doubles the face amount automatically.
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