P&CMAmedium
Which of the following best describes the Massachusetts limited lines license framework under M.G.L. c. 175 §162H–§162X?
ALimited lines licenses authorize a producer to sell only one major line for the first year, then expand automatically to all lines without further examination
Limited lines licenses authorize transactions only in narrow categories such as travel and credit insurance
CLimited lines licenses authorize unlimited P&C transactions but cap commission earnings at $50,000 per year
DLimited lines licenses are issued only to non-resident producers under reciprocity
Why this is the answer
The Massachusetts Producer Licensing Act recognizes limited lines of authority for narrow product categories, such as limited line credit insurance and limited line travel insurance (c. 175 §162M(a)(7) and (7½)), alongside the major lines of life, accident and health, property, casualty, variable products and personal lines. A limited lines license authorizes only the named category. Massachusetts requires no pre-licensing coursework for any producer line, limited or major; for credit insurance, §162L(d) instead has the insurer give its sellers a program of instruction.
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