Free Practice
Real questions in the style of the Rhode Island Casualty Insurance licensing exam, pulled straight from the TESTivity course, each with a plain-English explanation. Start with the Rhode Island-specific rules below, then work the rest, and unlock the full simulator when you're ready to drill.
That's right — 27% of test-takers do not pass the Rhode Island Casualty Insurance exam on their first attempt. Make sure you're part of the 73% who do.
First-time pass rate: 73% · Source: NAIC, 2024 (most recent available statistics)
Question 1
To renew a Rhode Island resident producer license, a producer must complete:
Rhode Island resident producers must complete 24 credit hours of continuing education each two-year license period, and 3 of those 24 must be ethics. Hook: 24 in 2, with 3 of the 24 carved out for ethics. The ethics hours are part of the 24, not an extra 3 on top of it.
Question 2
Rhode Island's insurance regulator is:
Insurance sits inside the Department of Business Regulation as its Insurance Division. The department head is the Director of Business Regulation, a gubernatorial appointee under R.I. Gen. Laws § 42-6-4, and the division itself is administered by the Superintendent of Insurance. § 42-14-5 is the reason both titles circulate: wherever the general laws say "insurance commissioner" the term "shall be construed to mean" the superintendent of insurance. Hook: nobody is elected to this job in Rhode Island, and there is no freestanding insurance department.
Question 3
Rhode Island's auto fault standard is:
R.I. Gen. Laws § 9-20-4 is a pure comparative negligence statute: damages are "diminished by the finder of fact in proportion to the amount of negligence attributable to the person injured," with no percentage bar written into it. A plaintiff 90% at fault still recovers 10%. Hook: most states are modified, so a 50%/51% bar is the default guess and it is wrong here. Compulsory limits are 25/50/25 under § 31-47-2(13)(i)(A), and Rhode Island is an at-fault state with no PIP mandate despite its compulsory chapter being titled the Motor Vehicle Reparations Act.
Question 4
If an admitted property and casualty insurer becomes insolvent, Rhode Island policyholders are protected by:
The Rhode Island Property and Casualty Insurance Guaranty Association (RIPCIGA), created by R.I. Gen. Laws ch. 27-34, pays covered claims of insolvent member insurers, and only admitted carriers are members. Hook: admitted means guaranty-backed, surplus lines means the policyholder absorbs the insolvency - a live risk as admitted carriers retrench from the coastal homeowners market. Two further exclusions worth knowing: government-provided insurance, which takes NFIP flood out, and, for a first-party property claim, the trigger under § 27-34-5(10) is the situs of the property in Rhode Island rather than the owner's residence. There is no federal counterpart; guaranty protection is entirely state-level.
Question 5
After a Rhode Island policy has been in force more than 60 days, mid-term cancellation for nonpayment of premium requires notice of:
Ten days is the nonpayment number across every Rhode Island line. For private passenger auto, 230-RICR-20-05-2.4(A) restricts the grounds for cancellation once the policy is 60 days old (immediately on a renewal) to an enumerated list headed by nonpayment, and 230-RICR-20-05-2.5(B) then sets 30 days' notice generally "except that when cancellation is for non-payment of premium such notice shall be delivered to the named insured at least ten (10) days prior." The homeowners statutory policy form in R.I. Gen. Laws § 27-5-3 runs the same 30/10 split but with no days-in-force threshold at all, and the commercial rule, 230-RICR-20-20-1.4(B)(1), is also 10 days for nonpayment and 30 for the other grounds. Hook: 30 days is the default that makes the other options look plausible; nonpayment is the one ground that gets the 10-day fast track.
Question 6
For a Rhode Island work injury occurring on or after January 1, 2022, the workers' compensation total incapacity (TTD) benefit equals:
R.I. Gen. Laws § 28-33-17(a)(1): "For all injuries on or after January 1, 2022 ... a weekly compensation equal to sixty-two percent (62%) of his or her average weekly base wages," subject to a maximum of 125% of the state average weekly wage. Hook: 75% is not invented, it is the superseded rule, and it was never 75% of gross - the same sentence pays 75% of average weekly SPENDABLE (after-tax) base wages for injuries on or before December 31, 2021, computed off the Department of Labor and Training's spendable base wage table. P.L. 2021, chs. 402 and 403 made the switch, so the legacy net-wage method still governs older open claims and the injury date decides which rule applies. 66 2/3% is the national default that Rhode Island does not use.
Question 7
For insolvencies occurring on or after January 1, 2008, the Rhode Island Property and Casualty Insurance Guaranty Association (RIPCIGA) pays a covered liability claim up to, per claimant:
$500,000 per claimant under R.I. Gen. Laws § 27-34-8(a)(1)(i)(C) for insolvencies on or after January 1, 2008 — it was $300,000 before that date, which is why the older national figure still circulates — and in no event more than the insolvent insurer's obligation under the policy. Workers' compensation covered claims are paid in full with no cap, and returned unearned premium is capped at $10,000 per policy. Two hooks. First, the unit of measure is not uniform: effective January 1, 2026 first-party property loss claims carry a separate $1,000,000 cap measured per OCCURRENCE, not per claimant, alongside a $500,000 cyber sublimit. Second, the association's name — Rhode Island's body is a guaranty association; "Insurers Insolvency Fund" is Massachusetts terminology (M.G.L. c. 175D) and appears in Rhode Island material only by cross-border error.
Question 8
The Terrorism Risk Insurance Act (TRIA) created:
TRIA set up a federal program that shares the cost of large insured losses from certified acts of terrorism, stabilizing a market private insurers were reluctant to cover alone after 2001. Hook: TRIA is the federal backstop for terrorism losses.
Question 9
Under TRIA, insurers writing certain commercial property and casualty lines must:
TRIA requires insurers in covered commercial lines to make terrorism coverage available to insureds, who may accept or decline it. Hook: TRIA forces insurers to offer terrorism coverage, the insured decides whether to take it.
Question 10
The National Flood Insurance Program (NFIP) is a federal program that:
The NFIP offers federally backed flood insurance in communities that agree to adopt and enforce floodplain management rules, filling a gap standard property policies exclude. Hook: NFIP brings flood coverage to communities that follow floodplain rules.
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Question 1
Which type of risk is the only kind that insurance is designed to cover?
Insurance only deals with pure risk: situations where there's a chance of loss or no loss, but no chance of gain (like your house burning down). Speculative risk involves a chance of loss, no loss, OR gain. That's gambling and investing, and insurers won't touch it. If there's an upside, it's not insurable.
Question 2
A hazard is best defined as:
A hazard doesn't cause the loss itself; it just makes a loss more likely or more severe. Icy steps, frayed wiring, a careless attitude: none of those start the fire or the fall, but they tip the odds. Causes of loss are perils; hazards just stack the deck.
Question 3
An insured who becomes careless about safety simply because they know they have insurance is displaying a:
Morale hazard is the 'eh, I'm covered' attitude: indifference or carelessness that creeps in because insurance exists. It's not dishonesty (that's moral hazard) and it's not a physical condition (physical hazard). Trick to remember: moralE hazard is about a person's lazy attitudE.
Question 4
The law of large numbers is important to insurers because it:
An insurer can't predict whether your house specifically will burn down, but give them a big enough pool of similar homes and they can predict pretty accurately how many out of the whole group will. That's the law of large numbers: more similar exposures, more reliable predictions. It's the statistical engine that makes pricing coverage possible at all.
Question 5
For the law of large numbers to work effectively, the exposures in a group should be:
The law of large numbers needs lots of similar exposures to make predictions reliable. A big pool of comparable homes lets the insurer forecast losses; a handful of wildly different ones doesn't. And concentrating them all in one spot is actually bad: one hurricane could wipe out the whole pool at once.
Question 6
An insurer that has been granted a certificate of authority to do business in a state is known as a(n):
An admitted (or authorized) insurer holds a certificate of authority from the state and plays by that state's rules. A non-admitted (unauthorized) insurer hasn't been granted one, which is where surplus lines come in for hard-to-place risks. Also worth knowing: domestic equals home state, foreign equals another state, alien equals another country.
Question 7
A reciprocal insurance company is managed by a(n):
A reciprocal (an unincorporated group of members who insure each other) is run by an attorney-in-fact. The members are both insureds and insurers to one another. Niche, but the exam likes the 'attorney-in-fact' detail, so tuck it away.
Question 8
An agent who represents only one insurance company and does not own the policy expirations is typically called a:
A captive (or exclusive) agent represents a single insurer, and that insurer owns the book of business. An independent agent represents multiple companies and owns their own expirations (the renewal rights). The ownership-of-expirations detail is the classic distinguisher.
Question 9
An insurance contract is described as 'aleatory' because:
Aleatory means the exchange of value can be lopsided and depends on chance. You might pay $600 in premium and collect $200,000 on a claim, or pay for years and never file one. That built-in inequality, hinging on whether a loss happens, is what makes the contract aleatory.
Question 10
Which of the following is NOT one of the four essential elements of a valid contract?
The four elements are agreement (offer and acceptance), consideration, competent parties, and legal purpose. A notarized signature isn't on the list, so it's the odd one out. Consideration, by the way, is what each side brings to the table: the insured's premium and the insurer's promise to pay.
Question 1
An indirect (consequential) loss is best illustrated by which of the following?
An indirect, or consequential, loss is the financial fallout that follows a direct loss, like the income a business loses while closed for repairs. Business income (interruption) coverage addresses it. Hook: indirect loss is the ripple effect, the income lost after the physical damage.
Question 2
A deductible in a property policy primarily does what?
The deductible is the amount the insured absorbs on each loss, which screens out small, frequent claims and reduces the premium. Hook: the deductible knocks out the small stuff and trims your premium.
Question 3
The policy limit (limit of insurance) represents what?
The limit of insurance is the most the insurer will pay for a covered loss; amounts above it are the insured's responsibility. Hook: the limit is the ceiling on what the insurer pays.
Question 4
Negligence is best defined as what?
Negligence is the failure to act with the care a reasonable, prudent person would under the same circumstances. It's the foundation of most liability claims and is unintentional, unlike an intentional tort. Hook: negligence is falling short of the reasonable-person standard of care.
Question 5
To establish negligence, a claimant must generally prove all of the following EXCEPT:
The four elements of negligence are a duty owed, a breach of that duty, the breach being the proximate cause, and actual damages. Intent is not required; in fact, negligence is unintentional, which separates it from an intentional tort. Hook: duty, breach, causation, damages, but never intent for negligence.
Question 6
Subrogation allows an insurer that has paid a claim to do what?
After paying the insured for a loss caused by someone else, the insurer steps into the insured's shoes (subrogation) and pursues the at-fault party to recover what it paid. It prevents the insured from collecting twice. Hook: subrogation lets the insurer go after whoever caused the loss to get its money back.
Question 7
Under a pro rata other insurance provision, when two policies cover the same loss, each insurer pays what?
A pro rata provision splits a loss among insurers in proportion to each policy's limit, so a policy carrying half the total coverage pays half the loss. It keeps the insured from collecting more than the actual loss. Hook: pro rata splits the loss by each policy's share of the total limits.
Question 8
Under most property policies, the insured generally may NOT do what after a loss?
Property policies typically prohibit abandonment: the insured can't simply dump damaged property on the insurer and demand the full amount. The insurer decides whether to repair, replace, or pay. Hook: you can't abandon the wreck to the insurer and demand a full check.
Question 9
Salvage in property insurance refers to what?
When an insurer pays for a loss, it generally gains rights to the salvage, the damaged property, which it can then sell to recover part of what it paid. Hook: salvage is the leftover the insurer can sell after paying the claim.
Question 10
In insurance terms, a peril is the cause of loss, while a hazard is what?
A peril is what actually causes a loss (fire, theft, windstorm), while a hazard is a condition that makes a loss more likely or more severe, like oily rags raising the chance of fire. Hook: peril is the cause; hazard is what makes the cause more likely.
Question 1
The Personal Auto Policy (PAP) is divided into several parts. Part A provides which coverage?
Part A is Liability Coverage, the part that pays for bodily injury and property damage the insured causes to others. It is the core of the auto policy and the coverage states require. Hook: Part A is liability, what you owe others, and it comes first in the PAP.
Question 2
Liability coverage under Part A pays for:
Liability coverage responds when the insured is legally responsible for injuring someone else or damaging their property, and it also pays the cost of defending the insured. It does not pay for the insured's own car. Hook: liability pays the other guy, both his injuries and his property.
Question 3
An auto liability limit shown as 100/300/50 means the policy will pay up to:
In split limits the first number is the per-person bodily injury cap, the second is the per-accident bodily injury cap, and the third is the property damage cap per accident. So 100/300/50 is 100,000 per person, 300,000 per accident, 50,000 for property. Hook: split limits read per person, per accident, then property damage.
Question 4
A combined single limit (CSL) auto liability policy differs from a split-limit policy in that it:
A combined single limit gives one pool of money per accident that can be used for bodily injury and property damage in any combination, instead of separate per-person and per-accident caps. It offers more flexibility on large losses. Hook: combined single limit is one bucket for everything per accident.
Question 5
Under the PAP, Medical Payments coverage for the named insured and family members applies:
For the named insured and resident family members, Med Pay follows the person: it applies when they are struck by a vehicle as pedestrians or while riding in other autos, not only in the insured's car. Other passengers are covered while occupying the insured auto. Hook: for you and your family, Med Pay follows the person, not just the car.
Question 6
A deductible on physical damage (collision or comprehensive) coverage is:
A deductible is the insured's share of each physical damage loss, paid before the insurer pays the remainder. Choosing a higher deductible lowers the premium. Hook: the deductible is your slice of the loss you pay first.
Question 7
A deer runs into the road and the insured's car strikes it. This loss is typically covered under:
Hitting an animal is treated as an other-than-collision (comprehensive) loss, not a collision, even though there is an impact. This usually means the comprehensive deductible applies. Hook: hitting an animal is comprehensive, not collision.
Question 8
An insured's car has an actual cash value of $8,000. It is damaged in a collision with repairs estimated at $9,500, and the collision deductible is $500. The insurer will most likely:
When repair cost exceeds the vehicle's actual cash value, the insurer totals the car and pays the ACV rather than the higher repair bill, less the deductible. Here that is 8,000 minus 500, or 7,500. Hook: if repairs cost more than the car is worth, you get ACV minus deductible, not the repair bill.
Question 9
Damage the insured causes on purpose is treated how under the auto policy?
Insurance covers fortuitous, accidental losses, so intentional damage caused by the insured is excluded. Allowing it would invite fraud and is against public policy. Hook: on-purpose damage is never covered, insurance is for accidents.
Question 10
A state financial responsibility law, and forms such as the SR-22, are intended to:
Financial responsibility laws make drivers demonstrate the ability to pay for harm they cause, generally by carrying at least the state minimum liability limits. An SR-22 is a filing the insurer makes to confirm that coverage is in force. Hook: financial responsibility means prove you can pay, and SR-22 is the proof on file.
Question 1
A commercial insurance program that includes only one line of coverage is called a:
A monoline policy covers a single line of business, such as property alone. Add a second coverage part and it becomes a package. Hook: one line is monoline; two or more is a package.
Question 2
The Common Policy Declarations in a CPP show:
The common declarations identify who and what is insured: named insured, mailing address, policy period, a list of the coverage parts in the package, and the premium for each. Hook: the common dec is the who, when, and what of the whole package.
Question 3
Under the Common Policy Conditions, the insurer's right to inspect the insured's premises and operations is found in the:
The Inspections and Surveys condition reserves the insurer's right (but not a duty) to inspect the premises and operations and to make safety recommendations. Hook: the right to walk the premises lives in Inspections and Surveys.
Question 4
The Building and Personal Property Coverage Form (BPP) is part of which CPP coverage part?
The BPP is the workhorse coverage form of the commercial property coverage part, insuring buildings and business personal property. Hook: the BPP is the heart of the commercial property part.
Question 5
Under the BPP, Your Business Personal Property includes:
Business personal property is the contents the business owns and uses: furniture, fixtures, machinery, equipment, and stock (inventory) located at the described premises. The building itself is insured separately. Hook: business personal property is the contents, furniture, fixtures, machinery, and stock.
Question 6
Under the BPP, property of others left in the insured's care, custody, or control is:
The BPP has a separate Personal Property of Others category for property of others in the insured's care, custody, or control, such as customers' goods left for service. Hook: customers' property in your care goes under Personal Property of Others.
Question 7
A coinsurance clause in commercial property insurance is designed to:
Coinsurance rewards insuring to value: carry at least the required percentage (often 80, 90, or 100 percent) of value and losses are paid in full up to the limit; carry less and a penalty applies. Hook: coinsurance pushes you to insure to value or take a penalty.
Question 8
Business income (business interruption) coverage is designed to pay:
Business income coverage replaces the net income (and continuing expenses like payroll) the business would have earned had a covered loss not suspended operations. It is time-element coverage. Hook: business income replaces the profit you lose while you are shut down.
Question 9
How does a claims-made CGL form differ from an occurrence form?
A claims-made form is triggered by when the claim is first reported, not when the injury happened, and a retroactive date sets the earliest loss date it will respond to. Extended reporting (tail) coverage can fill gaps at expiration. Hook: claims-made looks at when the claim is reported, bounded by the retro date.
Question 10
A key difference between a CPP and a Businessowners Policy (BOP) is that the CPP:
A CPP is built piece by piece from chosen coverage parts and suits a wide range of businesses, while a BOP is a standardized bundle of property and liability designed for eligible small to mid-size businesses. Hook: CPP is build-your-own; BOP is the prepackaged small-business bundle.
Question 1
The exclusive remedy concept in workers compensation means that, in exchange for guaranteed benefits, the employee generally:
The grand bargain of workers compensation: the worker gets prompt, certain benefits and in return gives up the right to sue the employer in court over the work injury. Hook: guaranteed benefits in, the right to sue the employer out, that is exclusive remedy.
Question 2
For an injury to be covered by workers compensation, it generally must:
The two-part test is that the injury must arise out of the employment (be connected to job duties) and occur in the course of employment (during work). Both prongs generally must be met. Hook: covered injuries arise out of and happen in the course of the job.
Question 3
An employee is hurt while intoxicated and violating a clear safety rule. Under many state workers compensation laws, benefits may be:
Although comp is no-fault, most statutes still allow benefits to be reduced or denied where the injury results from the worker's intoxication or willful misconduct. No-fault does not mean no defenses. Hook: no-fault still has limits, intoxication and willful misconduct can cut benefits.
Question 4
Vocational rehabilitation benefits under workers compensation are intended to:
Vocational rehabilitation helps a worker who cannot return to the old job get back to gainful work, through retraining, job placement, or similar services. Hook: voc rehab is about getting the worker back to work, retrain and replace the income.
Question 5
Part One (Workers Compensation) of the Workers Compensation and Employers Liability policy pays:
Part One promises to pay whatever benefits the listed states' workers compensation laws require, with no dollar limit, because the insurer is standing in for the employer's full statutory obligation. Hook: Part One pays the statute in full, no dollar limit.
Question 6
Part Two (Employers Liability) of the policy covers:
Part Two protects the employer against lawsuits for work-related injuries that escape the exclusive-remedy bar, such as a third-party-over action or a consequential injury claim by a family member. It backstops the gaps Part One does not address. Hook: Part Two catches the work-injury suits that slip past exclusive remedy.
Question 7
Sole proprietors, partners, and executive officers are often:
Many states let sole proprietors, partners, and corporate officers opt out of their own workers compensation coverage or elect to be included, since they are owners rather than ordinary employees. Hook: owners can often opt in or out of their own comp coverage.
Question 8
In a monopolistic fund state, an employer must buy workers compensation insurance from:
In a monopolistic state, workers compensation must be purchased from the state fund, and private insurers do not write the coverage there. Hook: monopolistic means one seller, the state fund.
Question 9
A Second Injury Fund (subsequent injury fund) is designed to:
Second Injury Funds limit an employer's liability when a new work injury combines with a worker's prior impairment to cause a greater disability, removing a disincentive to hire workers with pre-existing conditions. Hook: second injury funds make it safer to hire workers with prior impairments.
Question 10
The fundamental trade-off at the heart of workers compensation is that the employee receives prompt, guaranteed benefits in exchange for:
The core bargain is certainty for the worker (guaranteed no-fault benefits) traded for giving up the right to sue the employer, which also caps the employer's exposure. Hook: certain benefits for the worker, no lawsuit for the employer, that is the deal.
Question 1
A commercial umbrella policy provides excess limits over which underlying coverages?
A commercial umbrella adds limits above primary liability lines like CGL, business auto liability, and employers liability. It is excess liability, not excess property coverage. Hook: the commercial umbrella tops up the liability lines, not property.
Question 2
An insured wants protection against earthquake damage to their home. The most accurate statement is:
Standard property forms exclude earth movement, but earthquake coverage can be added by endorsement or bought separately, commonly with a deductible expressed as a percentage of the dwelling limit rather than a flat dollar amount. The NFIP covers flood, not quake. Hook: earthquake is excluded but buy-back-able, usually with a percentage deductible.
Question 3
A personal articles floater (scheduled personal property endorsement) is a form of:
Scheduling valuables like jewelry, furs, or fine arts is done on a personal articles floater, which is a personal inland marine form. Hook: the personal articles floater is inland marine for your valuables.
Question 4
Ocean marine insurance covering physical damage to the vessel itself is called:
Hull coverage insures the vessel itself against physical damage, much like physical damage coverage on an auto. Cargo, freight, and protection and indemnity cover other ocean marine exposures. Hook: hull is the boat itself, the ship's physical damage.
Question 5
Despite its name, inland marine insurance today mostly covers:
Inland marine grew out of ocean marine to cover property that moves over land or is hard to insure at a fixed site, plus transportation instrumentalities like bridges and tunnels. Hook: inland marine is property on the move over land, not on the sea.
Question 6
A small pleasure boat, such as a canoe or small outboard, is often covered within limits under:
Homeowners policies give limited coverage for small, low-powered watercraft, but larger or faster boats require a dedicated boatowners or yacht policy. Hook: little boats may ride on the homeowners; real boats need their own policy.
Question 7
Liability for a large yacht or high-powered boat is best insured under:
Large or powerful vessels exceed the homeowners watercraft limits and exclusions, so their liability and physical damage belong on a dedicated boatowners or yacht policy. Hook: the bigger the boat, the more it needs its own watercraft policy.
Question 8
A fidelity bond protects an employer against:
A fidelity bond covers an employer for losses caused by dishonest employees, such as theft or embezzlement. It is about employee dishonesty, not third-party liability. Hook: fidelity bonds guard against the crooked employee.
Question 9
A contractor required to guarantee it will complete a construction project as agreed would typically provide a:
A performance bond is a surety bond guaranteeing the contractor will complete the project according to the contract; if not, the surety makes the obligee whole. Hook: performance bonds guarantee the job gets finished.
Question 10
A mobile or manufactured home that is not permanently affixed is often insured under:
Mobile and manufactured homes have unique construction and transport exposures, so they are commonly written on a specialized mobile-homeowners form rather than a standard HO-3. Hook: mobile homes get their own mobile-homeowners policy.
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