On Mon, 7 Mar 2016 06:42:28 -0800 (PST), TimR
wrote:

Back to the main panel disconnect question.

My house always had the meter outside and the main panel inside, with the main disconnect on the panel.

When an upgrade was done to the main panel, an extra breaker was added outside just below the meter. The electrician said this was a code requirement, because wire between the meter and the panel needed to be protected because of the location.

Did this new breaker now become the service disconnect? And if so, is the main panel now noncompliant for having ground and neutral bonded?

Yes they should have pulled in a 4 wire feeder and separated the
neutral and ground.
The issue of how far the SE is running inside the house before it
needs protection is really undefined. Inspectors in the same
jurisdictions may even disagree.
On one extreme some say a few feet, as directly it can be run, using
SE cable, is just fine.
Others say they want a back to back installation with the wire simply
passing through the wall in a short pipe nipple.
The most extreme interpretation pretty much wants an outside
disconnect no matter what.

This is the code
230.70(A)(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.