--- title: "Key Person Insurance in Massachusetts" description: "Learn how Massachusetts insurable-interest rules, employee consent, and life guaranty limits affect a business-owned key person policy." canonical: "https://spot.insure/coverage/key-person/massachusetts" page-type: "coverage-state-guide" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/key-person/massachusetts) # Key Person Insurance in Massachusetts For a life insurer failure, the published guaranty limit for a policy covering a life in Massachusetts is $300,000 in death benefits. Ask the broker which insurer will issue the policy and compare its financial strength separately from this limited state safety net. Massachusetts recognizes corporate interest in directors, officers, employees, subsidiary personnel, and another person whose death or disability might cause the corporation financial loss. Have the insurer document the employee’s connection to the company’s exposure, particularly for a nonemployee insured. Compare your ownership and insured’s role with Mass. Gen. Laws ch. 175, § 123A(1).[^4][^1] **Coverage:** [Key person](/coverage/key-person) · [Massachusetts](/coverage/states/massachusetts) ## What Is Key Person? Key person insurance pays the business, not the person’s family, when a founder, partner or employee it relies on dies. Disability, overhead expense and buyout funding are separate products to discuss on their own. [Read the national Key person guide](/coverage/key-person). ## What to Watch for in Massachusetts ### Document the Business Interest Massachusetts recognizes corporate interest in directors, officers, employees, subsidiary personnel, and another person whose death or disability might cause the corporation financial loss. Have the insurer document the employee’s connection to the company’s exposure, particularly for a nonemployee insured.[^1] ### Complete Written Notice and Consent Massachusetts’ corporate rule also covers physical or mental ability, but a life-only policy pays on death. If inability to work is the exposure, ask separately about disability coverage and do not assume a life policy responds.[^2][^3] ### Check the State Guaranty Backstop NOLHGA lists $300,000 in death-benefit protection for Massachusetts. The policy may promise more, so ask how a multi-life program is handled. Use that number when sizing the business continuity plan. For issuance, also check Mass. Gen. Laws ch. 175, § 123A(1).[^4][^5][^1] ## Who Regulates Insurance in Massachusetts **Massachusetts Division of Insurance.** The Massachusetts Division of Insurance licenses insurers and producers, reviews rates and forms, and handles insurance complaints. Use the State Based Systems lookup for producers, agencies, and surplus-lines brokers. For insurer status, use the DOI’s separate licensed or approved company lists, including the eligible surplus-lines company list. Before filing a complaint, contact the insurer or producer; if the response is unsatisfactory, submit the online form with supporting papers. The DOI says not to use the form for ongoing litigation.[^6][^7][^8][^9] - [Regulator website](https://www.mass.gov/orgs/division-of-insurance) - [License lookup](https://www.mass.gov/info-details/find-insurance-agents-agencies-and-other-licensees) - [File a complaint](https://www.mass.gov/info-details/doi-online-insurance-complaint-form) - Phone: 617-521-7794 ### Surplus-Lines Tax and Stamping Office **Reported tax rate:** 4% of gross premiums less gross return premiums on risks or exposures in Massachusetts or another state when Massachusetts is the insured’s home state. A diligent effort to place coverage with admitted insurers is generally required before surplus-lines placement through a specially licensed Massachusetts broker. The narrow §224 large-commercial exception is described in the note below.[^10][^11][^12][^13] **Multi-state surplus-lines tax dates and exceptions:** For this rule, home state means the state of the insured’s principal place of business or, for an individual, principal residence; if 100% of the risk is outside that state, home state is where the greatest percentage of taxable premium for that insurance contract is allocated. For multi-state policies effective on or after August 10, 2018, the Division of Insurance says the 4% tax applies to gross premium regardless of whether risks are inside or outside Massachusetts when Massachusetts is the insured’s home state. For earlier effective dates, Massachusetts risk portions are taxed at 4%, while out-of-state portions are taxed at the rates for their allocated premium. The Division lists exceptions for policies issued to the Massachusetts Bay Transportation Authority, federal credit unions when they are the purchaser, and tribal lands on reservations. Brokers still make required filings for exempt policies. Tax-exempt status alone is not specifically excluded.[^10][^11] **Narrow large-commercial placement exception:** Section 168(b)(iv) exempts the diligent-effort affidavit and excess-placement condition in §168(b)(iii) only for a §224 qualifying commercial risk or policyholder. The policyholder must acknowledge in writing that the insurer is not admitted and that the Massachusetts Insurers Insolvency Fund will not pay an insolvency loss. Section 224 eligibility is limited to a corporation, partnership, trust, sole proprietorship, or other business or public entity with at least $30,000 in aggregate property-and-casualty premiums, excluding workers’ compensation. The holder must certify its election and understanding of limited regulatory oversight and certify at least two criteria: net worth of $10 million; net revenue or sales of $5 million; more than 25 employees per individual company OR more than 50 employees per holding company aggregate; a nonprofit or public entity with annual budget or assets of $25 million or more; a municipality with population of 20,000 or more; or retention of a risk manager who is either a full-time employee or retained by the policyholder; that person must be licensed and hold one of these qualifications: certified insurance counselor, chartered property and casualty underwriter, associate in risk management, certified risk manager, or licensed insurance advisor in property and casualty.[^12][^13] ## Providers With Documented State Licenses These providers publish a national listing for Key person; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm that the product is available in Massachusetts; [check the regulator’s license lookup](https://www.mass.gov/info-details/find-insurance-agents-agencies-and-other-licensees) and confirm state availability for your business when requesting a quote. - [Vouch](/insurance-providers/vouch) — **Entity:** Vouch Specialty Insurance Services, LLC; **role:** Insurance producer, Surplus-lines broker; **checked:** 2026-09-28. **Scope:** Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability.[^21] ## Questions to Ask Before You Buy in Massachusetts 1. What Massachusetts law supports our business’s insurable interest in this person, and what should we retain to prove the role? 2. What written notice and consent must the insured receive before this policy is issued, and can coverage continue after employment ends? 3. How would Massachusetts’s guaranty-association limit apply to this policy and our other business-owned life policies? ## Key Person in Massachusetts: FAQ ### How much of a key person life policy is protected if an insurer fails in Massachusetts? For Massachusetts life benefits, the stated protection amount is $300,000. A separate owner aggregate may matter when the same company holds several nongroup policies. NOLHGA reports an aggregate $5 million limit for one owner’s multiple nongroup life policies.[^4][^5] ### Does my business need an employee’s consent for key person insurance in Massachusetts? Yes. Federal rules require written notice and consent before issue for the employer-owned life tax exception. Massachusetts’ corporate rule also covers physical or mental ability, but a life-only policy pays on death. If inability to work is the exposure, ask separately about disability coverage and do not assume a life policy responds. Ask for a copy of the dated notice before the carrier issues coverage. For state-law details, check Mass. Gen. Laws ch. 175, § 123A(1).[^2][^3][^1] ## Key Person in Other States - [Alabama](/coverage/key-person/alabama) - [Alaska](/coverage/key-person/alaska) - [Arizona](/coverage/key-person/arizona) - [Arkansas](/coverage/key-person/arkansas) - [California](/coverage/key-person/california) - [Colorado](/coverage/key-person/colorado) - [Connecticut](/coverage/key-person/connecticut) - [Delaware](/coverage/key-person/delaware) - [District of Columbia](/coverage/key-person/district-of-columbia) - [Florida](/coverage/key-person/florida) - [Georgia](/coverage/key-person/georgia) - [Hawaii](/coverage/key-person/hawaii) - [Idaho](/coverage/key-person/idaho) - [Illinois](/coverage/key-person/illinois) - [Indiana](/coverage/key-person/indiana) - [Iowa](/coverage/key-person/iowa) - [Kansas](/coverage/key-person/kansas) - [Kentucky](/coverage/key-person/kentucky) - [Louisiana](/coverage/key-person/louisiana) - [Maine](/coverage/key-person/maine) - [Maryland](/coverage/key-person/maryland) - [Michigan](/coverage/key-person/michigan) - [Minnesota](/coverage/key-person/minnesota) - [Mississippi](/coverage/key-person/mississippi) - [Missouri](/coverage/key-person/missouri) - [Montana](/coverage/key-person/montana) - [Nebraska](/coverage/key-person/nebraska) - [Nevada](/coverage/key-person/nevada) - [New Hampshire](/coverage/key-person/new-hampshire) - [New Jersey](/coverage/key-person/new-jersey) - [New Mexico](/coverage/key-person/new-mexico) - [New York](/coverage/key-person/new-york) - [North Carolina](/coverage/key-person/north-carolina) - [North Dakota](/coverage/key-person/north-dakota) - [Ohio](/coverage/key-person/ohio) - [Oklahoma](/coverage/key-person/oklahoma) - [Oregon](/coverage/key-person/oregon) - [Pennsylvania](/coverage/key-person/pennsylvania) - [Rhode Island](/coverage/key-person/rhode-island) - [South Carolina](/coverage/key-person/south-carolina) - [South Dakota](/coverage/key-person/south-dakota) - [Tennessee](/coverage/key-person/tennessee) - [Texas](/coverage/key-person/texas) - [Utah](/coverage/key-person/utah) - [Vermont](/coverage/key-person/vermont) - [Virginia](/coverage/key-person/virginia) - [Washington](/coverage/key-person/washington) - [West Virginia](/coverage/key-person/west-virginia) - [Wisconsin](/coverage/key-person/wisconsin) - [Wyoming](/coverage/key-person/wyoming) [Other Coverage in Massachusetts](/coverage/states/massachusetts) ## Sources [^1]: [2025 Massachusetts General Laws ch. 175, § 123A — Corporate Insurable Interest](https://law.justia.com/codes/massachusetts/part-i/title-xxii/chapter-175/section-123a/) — State statute (Justia U.S. Codes and Statutes); Mass. Gen. Laws ch. 175, § 123A(1). Accessed 2026-09-28. [^2]: [26 U.S.C. § 101(j) — Certain employer-owned life insurance contracts](https://uscode.house.gov/view.xhtml?req=(title:26%20section:101%20edition:prelim)) — Office of the Law Revision Counsel, U.S. House of Representatives; 26 U.S.C. § 101(j)(2), (4). Accessed 2026-09-28. [^3]: [Internal Revenue Bulletin 2009-24 — Employer-Owned Life Insurance Contracts](https://www.irs.gov/irb/2009-24_IRB) — Internal Revenue Service; Notice 2009-48, Q&A 6–7; written notice and consent. Accessed 2026-09-28. [^4]: [How You’re Protected: Coverage Levels by State](https://nolhga.com/policyholders/how-youre-protected-2/) — National Organization of Life & Health Insurance Guaranty Associations; Coverage Levels by State; life insurance death benefits; report current as of May 2025. Accessed 2026-09-28. [^5]: [Life and Health Insurance Guaranty Association Model Act](https://content.naic.org/sites/default/files/publication-model-2025-fall.pdf) — National Association of Insurance Commissioners; Section 8(A)(2)(d), owner aggregate benefit cap. Accessed 2026-09-28. [^6]: [Division of Insurance](https://www.mass.gov/orgs/division-of-insurance) — Massachusetts Division of Insurance; Official DOI overview: insurer/producer licensing, rates/forms review, complaints and solvency oversight; Contact Us / phone. Page text retrieved in search rendering; direct fetch returned 403.. Accessed 2026-09-29. [^7]: [Find Insurance Agents, Agencies and Other Licensees](https://www.mass.gov/info-details/find-insurance-agents-agencies-and-other-licensees) — Massachusetts Division of Insurance; SBS online-verification description and enumerated classes: producers, agencies, public adjusters, appraisers, advisers, reinsurance intermediaries, surplus-lines brokers, life-settlement brokers; insurers are not listed. Page text retrieved in search rendering; direct fetch returned 403.. Accessed 2026-09-29. [^8]: [Massachusetts Licensed Insurance Companies](https://www.mass.gov/lists/massachusetts-licensed-insurance-companies) — Massachusetts Division of Insurance; Directory headings distinguish Massachusetts Licensed or Approved Companies and Massachusetts Eligible Surplus Lines Companies. Page text retrieved in search rendering; direct fetch returned 403; no company row checked.. Accessed 2026-09-29. [^9]: [DOI Online Insurance Complaint Form](https://www.mass.gov/info-details/doi-online-insurance-complaint-form) — Massachusetts Division of Insurance; Introductory instructions: contact insurer/producer first; if unsatisfied complete form and attach papers; not for ongoing litigation. Page text retrieved in search rendering; direct fetch returned 403; interactive form not opened/submitted.. Accessed 2026-09-29. [^10]: [M.G.L. c.175, §168](https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section168) — Massachusetts General Court; Current statute directly opened: §168(a) home-state definition and greatest-taxable-premium fallback if 100% risk outside principal-business state; §168(d)(2) 4% on gross premiums less gross returns for risks/exposures in MA or elsewhere if MA is home state.. Accessed 2026-09-29. [^11]: [Surplus Lines Insurance](https://www.mass.gov/info-details/surplus-lines-insurance) — Massachusetts Division of Insurance; Official FAQ: “What is the premium tax rate on surplus lines insurance written in Massachusetts?” (complete answer: post-Aug. 10, 2018 flat 4% gross-premium rule and pre-date state allocation); “Are any surplus lines premiums exempt from the 4% surplus lines tax?” (complete answer: MBTA, federal credit unions when purchaser, tribal lands on reservations); “If an insured is granted tax-exempt status…” (complete answer: §168 does not specifically exclude tax-exempt organizations). Complete relevant FAQ answers appeared in official page body returned by search rendering; direct URL open returned 403.. Accessed 2026-09-29. [^12]: [M.G.L. c.175, §168](https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section168) — Massachusetts General Court; Official statute directly opened: §168(b)(iii)–(iv), lines 62–66. Complete scope: affidavit of diligent admitted-market effort and placement only of the amount unavailable from admitted companies; clause (iii) does not apply to a §224 qualifying commercial risk/policyholder with written understanding of nonadmitted status and no Massachusetts Insurers Insolvency Fund payment for insolvency.. Accessed 2026-09-29. [^13]: [M.G.L. c.175, §224](https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175/Section224) — Massachusetts General Court; Official statute directly opened: §224(a), lines 49–62. Complete large-commercial definition and all six criteria reviewed, including criterion (3): more than 25 employees per individual company OR more than 50 employees per holding company aggregate.. Accessed 2026-09-29. [^14]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21. [^15]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535.. Accessed 2026-09-22. [^16]: [Insurance Producer Licenses](https://www.corgi.insure/broker-licenses) — Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown.. Accessed 2026-09-28. [^17]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-insurance) — Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16. [^18]: [Licenses](https://www.nextinsurance.com/insurance-licenses/) — ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885.. Accessed 2026-09-28. [^19]: [About Risklytics](https://www.risklytics.ai/about/) — Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16. [^20]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number.. Accessed 2026-09-28. [^21]: [Licenses](https://www.vouch.us/legal/licenses) — Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict.. Accessed 2026-09-15. Updated 2026-09-28. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). 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