Rhode Island Property & Casualty Insurance License Exam — All Questions
2 questions
Which agency regulates insurance and licenses resident property and casualty producers in Rhode Island?
- a.The Rhode Island Secretary of State
- b.The Rhode Island Division of Motor Vehicles
- c.The Rhode Island Department of Business Regulation, Insurance Division✓
- d.The Rhode Island Public Utilities Commission
Rhode Island regulates insurance through the Insurance Division of the Department of Business Regulation (DBR) (confirmed at dbr.ri.gov/insurance). The division licenses producers, reviews forms and rates, and enforces the insurance laws. On the exam, remember it is the Department of Business Regulation, not the Secretary of State or DMV, that licenses producers.
A Rhode Island producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under Rhode Island law this is:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under Rhode Island's unfair trade practices law and can bring fines and license action by the Rhode Island Department of Business Regulation.