No maximum distance is specified from the point of entrance of service conductors to a readily accessible location for the installation of a service disconnecting means.....
....Some local jurisdictions have ordinances that allow service-entrance conductors to run within the building up to a specified length to terminate at the disconnecting means.....
(1) Readily Accessible Location. The service disconnecting means shall be installed at a readily accessible location either outside of a building or structure or inside nearest the point of entrance of the service conductors.
I read a SE/USE cable manufacturer's product spec literature and found that they say it's not intended for use in interior building wiring. It doesn't carry the insulation flame retardant rating that's required for interior use. It also gave a maximum length that's permitted to be run inside to the service disconnect. So, in order to maintain their UL listing, the installation of this cable must meet their requirements.
In other words, the maximum distance SE/USE cable can be run in the interior isn't set by the NEC. It's set according to what the cable manufacturer has to do to meet UL standards.
Local standards just make it easier to comply, by clarifying what the maximum is. It's 5 feet where I live.
Cheers,
EG