Rhode Island Property & Casualty Insurance Practice Exam Free - 2026

• A. The insurer must provide UM/UIM equal to her BI limits; she may select a lower limit in writing but not below the compulsory minimum, and may drop to zero only if she buys only minimum BI limits and signs the approved advisory notice
• B. She may reject UM/UIM bodily injury entirely at any time by written rejection
• C. UM/UIM must always equal the BI limits and cannot be reduced
• D. The insurer may offer UM/UIM at half the BI limits by default unless she requests more

Correct answer: A. The insurer must provide UM/UIM equal to her BI limits; she may select a lower limit in writing but not below the compulsory minimum, and may drop to zero only if she buys only minimum BI limits and signs the approved advisory notice

Explanation: The insurer must provide uninsured motorist coverage (which includes underinsured motorists) in an amount equal to the insured's bodily injury liability limits; the named insured may select a lower limit in writing, but not below the compulsory minimum limits, unless she is purchasing only the minimum compulsory coverage, in which case the limit may be reduced to zero only after signing an advisory notice approved by the director. Option B ignores the floor, C ignores the written reduction option, and D has no basis in the statute. See R.I. Gen. Laws § 27-7-2.1.

• A. UM property damage is omitted because he did not affirmatively request it
• B. UM property damage must be included in the policy at the $25,000 minimum limit
• C. UM property damage is included at a $10,000 limit
• D. The policy cannot be issued until he signs the rejection

Correct answer: B. UM property damage must be included in the policy at the $25,000 minimum limit

Explanation: The insurer must offer uninsured motorist property damage in a minimum amount of $25,000; if collision coverage is included no written rejection is required, but where the insured has not purchased collision a written rejection is required, and if a rejection is sent but not returned the coverage must be included at the $25,000 minimum limit. Option A reverses the default, $10,000 is not the regulatory minimum, and the regulation does not bar issuance pending a signature. See 230-RICR-20-05-1.

• A. $1,000 per person; it may be declined orally
• B. $10,000 per person and $20,000 aggregate; she may reject it in writing
• C. $5,000 per person; it cannot be rejected
• D. $2,500 per person and $5,000 aggregate; she may reject it in writing

Correct answer: D. $2,500 per person and $5,000 aggregate; she may reject it in writing

Explanation: No auto liability policy may be issued in Rhode Island unless it provides medical payments coverage of not less than twenty-five hundred dollars ($2,500) per individual and five thousand dollars ($5,000) aggregate, regardless of fault, but the named insured has the right to reject the coverage in writing; once rejected, it need not be provided in renewals unless requested in writing. The $1,000, $5,000 non-rejectable and $10,000/$20,000 options do not match the statute, and oral rejection is not sufficient. See R.I. Gen. Laws § 27-7-2.5.

• A. 10 days for nonpayment; 30 days for the license suspension
• B. 10 days for both
• C. 20 days for nonpayment; 45 days for the license suspension
• D. 30 days for both

Correct answer: A. 10 days for nonpayment; 30 days for the license suspension

Explanation: No auto insurance contract may be terminated by cancellation or nonrenewal until at least thirty (30) days after mailing notice to the named insured by certificate of mailing, except that cancellation for nonpayment of premium requires notice mailed at least ten (10) days before the effective date; the Department's auto cancellation regulation repeats the same 30-day/10-day rule and requires a statement of reasons. Options B and D apply one period to both grounds, and 20/45 days are not Rhode Island figures. See R.I. Gen. Laws § 31-47-4.

• A. A surety bond guaranteeing the project owner will pay the contractor on schedule
• B. A surety bond guaranteeing a contractor will pay subcontractors and suppliers
• C. A surety bond guaranteeing a contractor will finish the project as specified
• D. A surety bond guaranteeing a contractor will enter into the contract once the bid is awarded

Correct answer: B. A surety bond guaranteeing a contractor will pay subcontractors and suppliers

Explanation: A payment bond guarantees that the contractor will pay all subcontractors, laborers, and material suppliers. It protects these parties when they cannot place liens on public projects.

• A. A surety bond guaranteeing the contractor will complete the work according to the contract
• B. A surety bond guaranteeing the owner will award the contract to the lowest responsible bidder
• C. A surety bond guaranteeing a contractor will enter into a contract if awarded the bid
• D. A surety bond guaranteeing the contractor will pay all subcontractors and material suppliers

Correct answer: C. A surety bond guaranteeing a contractor will enter into a contract if awarded the bid

Explanation: A bid bond guarantees that if the bidder is awarded the contract it will enter into that contract and furnish the required performance and payment bonds. If the winning bidder backs out, the surety pays the owner the difference between that bid and the next acceptable bid, up to the bond's penal sum. Guaranteeing payment to subcontractors and suppliers is the job of a payment bond, and guaranteeing completion of the work is the job of a performance bond.

• A. An examination under oath (EUO)
• B. An appraisal
• C. A deposition in a lawsuit
• D. Arbitration

Correct answer: A. An examination under oath (EUO)

Explanation: The duties-after-loss conditions of property policies commonly let the insurer require an examination under oath while investigating a claim. It is contractual and happens before any lawsuit; unreasonably refusing to sit for one can jeopardize the claim. It differs from a deposition, which is part of litigation, and from appraisal, which resolves disputes over the amount of a covered loss.

• A. Coverage A
• B. Coverage E
• C. Coverage C
• D. Coverage B

Correct answer: A. Coverage A

Explanation: Coverage A generally applies to the dwelling. Other homeowners coverage parts apply to other structures, personal property, liability, or loss of use depending on the policy form.

• A. Coverage F - Medical Payments
• B. Coverage B - Other Structures
• C. Coverage C - Personal Property
• D. Coverage A - Dwelling

Correct answer: B. Coverage B - Other Structures

Explanation: Coverage B is commonly used for other structures on the residence premises, such as a detached garage, shed, or fence, subject to policy conditions and exclusions.

• A. To insure detached structures such as a garage or shed
• B. To insure the dwelling and structures attached to it
• C. To insure personal property owned or used by an insured
• D. To pay additional living expenses when the home is unfit to live in

Correct answer: C. To insure personal property owned or used by an insured

Explanation: Coverage C generally applies to personal property. Candidates should remember that special limits and exclusions may apply to certain categories of property.

• A. Damage to other structures on the premises
• B. Medical payments to injured guests
• C. Personal liability for injury to others
• D. Loss of use or additional living expense

Correct answer: D. Loss of use or additional living expense

Explanation: Coverage D is commonly associated with loss of use, including additional living expense when a covered loss makes the residence unfit to live in.

• A. Coverage E
• B. Coverage F
• C. Coverage B
• D. Coverage C

Correct answer: A. Coverage E

Explanation: Coverage E is commonly the personal liability coverage in a homeowners policy. It may respond when an insured is legally liable for covered bodily injury or property damage.