In Richmond, VA we are directed by our CBO to allow 3' as the "nearest point of entrance" but many "codeists" feel the nearest point of entry is the point it comes through the wall thus making the service disconnect be either outside or directly back to back with where it enters the structure. Ironically, if the person does a Like-to-Like installation for what ever reason they could have lets for topic sake say 20' of unprotected SE Cable running through the dwelling and they would allow it to remain in place on a service change as long as it was a like-to-like installation. ( like-to-like = Not moving the panel location and not moving the meter location )
Personally I would like to see them upgrade it all and make it compliant but I dont make those policies ( yet anyway )
230.70 General. Means shall be provided to disconnect all
conductors in a building or other structure from the serviceentrance
conductors.
(A) Location. The service disconnecting means shall be
installed in accordance with 230.70(A)(1), (A)(2), and
(A)(3).
(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.