Rhode Island Personal Lines Insurance License Exam — All Questions

What minimum auto liability limits must a Rhode Island personal auto policy carry?

• a.$15,000 per person / $30,000 per accident bodily injury and $5,000 property damage
• b.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage✓
• c.$20,000 per person / $40,000 per accident bodily injury and $10,000 property damage
• d.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage

Rhode Island requires minimum auto liability limits of 25/50/25 — $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage. State law also allows a $75,000 combined single limit as an alternative. Source: Rhode Island General Laws Section 31-47-2.

Instead of split 25/50/25 limits, Rhode Island law permits an auto policy to satisfy the financial-responsibility requirement with what alternative?

• a.No coverage at all if the driver posts a $1,000 bond
• b.Property-damage coverage only
• c.A combined single limit of $75,000 covering all liability in one accident✓
• d.A federal SR-22 filing that replaces liability coverage

Under Rhode Island General Laws Section 31-47-2, a policy may meet the requirement either with split limits of $25,000/$50,000/$25,000 or with a single combined limit of $75,000 that covers bodily injury and property damage together in one accident. Producers should explain both structures. Source: Rhode Island General Laws Section 31-47-2.

How does Rhode Island generally handle liability for auto accidents?

• a.It is a pure no-fault state; each driver's own insurer pays regardless of fault
• b.It bars all lawsuits between drivers and routes claims through a state fund
• c.It is a traditional at-fault (tort) state; the at-fault driver is responsible for the other party's injuries and damage✓
• d.It requires mandatory PIP on every policy in place of liability coverage

Rhode Island is a traditional at-fault (tort) state: the driver who causes a crash is responsible for the other party's injuries and property damage, which is why liability limits matter. Rhode Island does not use a no-fault/PIP system. Confirm current rules with the Rhode Island Department of Business Regulation (https://dbr.ri.gov).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Rhode Island?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the DBR Insurance Division✓

Rhode Island restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify current Rhode Island notice periods with the Department of Business Regulation.

Which best describes the body that writes and enforces Rhode Island's insurance regulations affecting personal lines policies?

• a.The Insurance Division of the Department of Business Regulation, a state agency✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The city clerk's office where the policy is issued

Insurance in Rhode Island is regulated at the state level by the Insurance Division of the Department of Business Regulation. There is no federal department of insurance; each state supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: Rhode Island Department of Business Regulation (https://dbr.ri.gov).