Rhode Island Property Producer Practice Exam

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• Which peril is included in the commercial property Broad Causes of Loss Form but NOT in the Basic Causes of Loss Form?
• What is considered a disadvantage in insurance terms that could lead to claims?
• What term describes a contract presented on a take-it-or-leave-it basis?
• What does the notice of privacy practices ensure for clients like Ellen?
• What defines an alien insurance company?
• The requirements related to lead liability insurance specifically apply to which type of buildings?
• If the Rhode Island Joint Reinsurance Association receives an application for insurance, what right does it have?
• What is the Commissioner's authority regarding hearings and investigations?
• Which of the following practices is considered a form of rebating?
• Which defense is NOT commonly used against a plaintiff's negligence suit?
• Which coverage or provision is NOT included in a businessowners policy?
• What is the general aggregate limit applied to injury or medical expenses under a businessowners policy?
• Under a homeowners policy, which type of motorized vehicle is specifically exempt from the vehicle exclusion?
• On what grounds could Happiness Bakery be held liable after Monty's accident?
• How does the Special Causes of Loss Form categorize claims due to utility service interruptions?
• Which property insurance policy clause ensures that a loss payee will be included in any claim payment related to the insured property?
• What type of value assesses the cost to replace property with equivalent property in quality?
• How does an unendorsed commercial property policy respond to a loss of inventory caused by a mechanical failure?
• How is property coverage in a boatowners policy generally written?
• What action can the Rhode Island Insurance Commissioner NOT take when serious violations are detected?
• Which homeowners coverage form is best designed for condominium owners?
• If a lawsuit against Ari is without merit, what duty does the insurer still owe him?
• What valuation basis is used when a contractor estimates the cost to repair damaged property to its original condition?
• Which dwelling policy form should Maria choose for the broadest coverage?
• What homeowners insurance form is appropriate for renters like Marilyn and Dan who need coverage for personal property and liability?
• For a driver who crashes into another parked vehicle, what usually constitutes the proximate cause of subsequent damage?
• What information is NOT included on the declarations page of a commercial property insurance policy?
• What must domestic insurers do if they wish to move their home office out of Rhode Island?
• Which type of insurance must be acquired by residents in participating communities?
• What type of coverage under Michael's dwelling policy compensates him for lost rental income while repairs are made?
• Where can Toby find information regarding coverage for his Aunt Bertha's medical expenses?
• Which of the following is NOT considered an insured location in a homeowners policy?
• A typical homeowners policy does NOT cover which of the following?
• Which type of coverage is considered goodwill coverage in a liability insurance policy?
• Who among the following is NOT protected by a property or casualty insurance policy without a special endorsement?
• What is the effective timing of an increased deductible if notice is given 15 business days prior to a policy renewal?
• How does Rhode Island law treat mechanical breakdowns under property insurance?
• In terms of liability for injury to a third party, what is a key consideration in the design of lead liability insurance?
• What distinguishes an HO 2 Broad Form homeowners policy from an HO 3 Special Form policy?
• Which of the following coverage types would not include a permanent swing set?
• In a commercial property policy, which of the following would be considered a hostile fire?
• Which clause within a property insurance policy specifies that payments made for claims do not benefit any party other than the insured?
• Why would a manufacturer need equipment breakdown insurance?
• Steam boiler explosions are covered under which type of insurance policy?
• What is the purpose of the "other insurance" clause in an insurance policy?
• Mr. and Mrs. Unger's decision to buy earthquake insurance after moving to California exemplifies which concept?
• Which type of coverage is NOT included in a dwelling policy?
• In the context of property insurance, what is a primary component of moral hazard?
• Which term do insurers sometimes use to refer to the insured person or property?
• What does the protective safeguards endorsement require?
• Which type of coverage protects against medical expenses of others without requiring legal liability?
• For which peril does the jewelry limit apply under homeowners insurance?
• If a company's sprinkler system malfunctioned, under what condition would fire loss likely not be covered by their businessowners policy?
• From a regulatory perspective, under what condition must insurance producers disclose their compensation?
• What does primary coverage do in relation to other applicable coverage?
• Which of the dwelling policy coverages would cover wall-to-wall carpeting that is damaged by a burst water pipe?
• What is the term for making false, maliciously critical or derogatory statements designed to harm another insurer?
• What describes a situation where a policyholder neglects safety measures due to their insurance coverage?
• Which endorsement might cover theft for a dwelling policy?
• Which situation does HIPAA NOT affect regarding the use of medical information in property and casualty insurance?
• How does an insurer typically respond to a loss of inventory from mechanical failure in a commercial policy without endorsements?
• What is the primary purpose of a temporary insurance agent's license?
• What term describes policies that do not have identical periods covering the same loss exposure?
• Why is Victor not eligible for flood insurance?
• What is the primary timeframe during which a homeowners policy provides coverage for bodily injury or property damage?
• Which type of insurance would cover business personal property located at a temporary location?
• What characteristic of a difference-in-conditions policy makes it significant for commercial property insurance?
• What is the criminal penalty for rebating in Rhode Island?
• What do you call a contract where one party may benefit significantly more than the other?
• When might lead liability coverage be specifically excluded?
• What is the total of the combined ratio made up of?
• Which coverage pays for the loss of rent due to a covered property loss?
• What type of insurance policy covers multiple insurances in a single document, such as property and liability?
• What coverage cannot be excluded from a dwelling policy in Rhode Island?
• What is the maximum date for which the farm liability coverage form will pay medical expenses due to an injury from an accident?
• In which situation would an auto insurance carrier be accused of unfair trade practices?
• Which type of loss would be excluded under standard property insurance?
• What type of home insurance policy would cover a tenant's improvements and alterations to the premises?
• Which of these statements about flood insurance is true?
• Which statements are true regarding the causes of loss in a commercial policy?
• Which of the following additional coverages is typically not included in a businessowners policy?
• Which scenario is eligible for coverage by the Insurers Insolvency Fund?
• Which homeowners form offers open perils coverage on the home?
• What is one of the main benefits of a broad causes of loss form in commercial property policies?
• What is the duration of reasonable medical expenses coverage under farm liability?
• Which type of exclusion might eliminate coverage for clean-up costs associated with a mice infestation?
• What type of coverage is limited to $2,500 for theft under a businessowners policy?
• Which coverage form would be least appropriate for a dwelling with a substantial replacement cost?
• What penalty is imposed if an insurance company refuses to insure property due to geographical location?
• Which coverage includes the costs associated with replacing lost or destroyed property as a result of equipment breakdown?
• Personal liability coverage in a dwelling fire policy can only be provided by what means?
• What type of hazard does a person face when abandoning their home to avoid mortgage collection attempts?
• What principle indicates that loss predictions become more accurate with increased exposure?
• Which of the following is considered an additional coverage under a businessowners policy?
• How many basic coverages are provided in a dwelling policy?
• Which type of insurance coverage covers lead liability for rental properties?
• Which of the following is NOT an eligibility requirement for the Home Business Insurance Coverage endorsement?
• Alcoholism and drug abuse are classified as what type of hazard?
• What legal concept reduces a claimant's recovery based on their own degree of negligence?
• In a lawsuit regarding ambiguous policy wording, in whose favor did the court rule?
• If a bulldozer valued at $25,000 suffers damage and the insurer pays for $10,000 in repairs, what amount of insurance applies to the bulldozer afterward?
• If Joe is injured in his delicatessen and files a claim for medical expenses, is coverage available under his businessowners policy?
• What coverage does the ordinance or law endorsement NOT provide?
• An unendorsed dwelling policy generally excludes coverage for which risk?
• What is the best option for someone seeking broader coverage on personal property than an unendorsed homeowners policy provides?
• What coverage might be needed if a company requires protection against claims from third parties for services rendered?
• What describes "residence premises" under a homeowners policy?
• A container of gasoline stored next to a furnace is considered a:
• Walt was assessed $2,500 for fire damage to a party room by his condo association. How much will his unendorsed homeowners policy pay for this assessment?
• What is the maximum amount a homeowners policy will pay for a liability loss assessment charged against the insured during the policy period?
• What is the maximum fine Harold faced for committing unfair trade practices?
• What is the host's best defense against negligence for Lynn's injury during the barbeque?
• What does membership in the Rhode Island Joint Reinsurance Association generally entail?
• Under what condition may Anne refrain from disclosing her compensation to a policy buyer?
• What is one feature of a contract of adhesion?
• Which exclusion would typically allow insurers to deny coverage for losses caused by pests?
• What kind of hazard is evidenced by someone disregarding the security of their property due to an over-reliance on insurance?
• What is required of all insurers writing basic property insurance in Rhode Island?
• What defines an insurance policy that pays primary before any other coverage does?
• In an insurance context, what is a key characteristic of 'morale hazard'?
• Which of the following is generally not eligible for a business owners policy (BOP)?
• If your client needs insurance through the nonadmitted market, which type of broker should you contact?
• Which item is NOT covered under an unendorsed businessowners policy (BOP) for business personal property?
• What are the sublimits for stolen cash and securities under a typical homeowners policy?
• Which section of a policy identifies its coverage limits, deductibles, and premium?
• What is one of the responsibilities of common carriers regarding cargo?
• According to Rhode Island insurance law, what is the maximum annual interest rate on premium financing agreements?
• All of the following are considered supplementary payments under the businessowners policy EXCEPT?
• What is the maximum extension period the Commissioner may grant for agents to fulfill continuing education requirements?
• What type of contract is characterized by parties needing to comply with certain conditions?
• Which type of insurance company raises capital by soliciting policy subscriptions from its members?
• Which provision describes the circumstances under which policy ownership may be transferred to another party?
• What form can binders legally take in terms of communication?
• What could potentially increase the cost of an insurance policy in relation to moral hazards?
• What is required for successful transfer of a homeowners insurance policy?
• Which aspect is NOT described in the notice of privacy practices received by Ellen?
• What does the term 'vicarious liability' primarily apply to?
• If a claim is not reported within a specified timeframe, what is typically the impact on the insurance policy?
• Which of the following correctly describes the type of property covered by inland marine insurance?
• What is the coverage status for theft in Charles' new dwelling policy?
• How many continuing education credits must a licensed insurance agent in Rhode Island complete every 2 years?
• Which of the following watercraft-related losses is NOT excluded by the liability coverage section of a homeowners policy?
• Which of the following personal properties is NOT generally covered by an unendorsed homeowners policy?
• Which coverage would apply to a permanent swing set in the backyard?
• Can Jack transfer his homeowners policy to Sue without the insurer's consent?
• Which statement accurately describes a package policy in insurance?
• What is the coverage limit for theft of firearms under a standard homeowners policy?
• Which policy form provides the broadest coverage for personal property in homeowners insurance?
• Wendy incurred a 5 percent deductible after her house was damaged post-hurricane. Why was this deductible applied?
• All of the following are considered unfair claims practices, EXCEPT:
• Common carriers are not liable for losses resulting from which of the following causes of loss?
• What type of vehicle would NOT be covered under a homeowners policy?
• If a dwelling under construction policy is in effect and the home is only 50% completed, what would the policy pay if the home was destroyed?
• How does an insured's bankruptcy or insolvency affect the insurer's obligations under a homeowners policy?
• Which homeowners form is most appropriate for an older home whose replacement cost exceeds its market value?
• Which rating system is typically used when insureds share similar characteristics in property insurance?
• Which of the following types of business personal property is excluded from coverage in an unendorsed businessowners policy (BOP)?
• What is the main difference in responsibility between a named perils policy and an open perils policy?
• What is a covered peril under the farm policy's Farm Livestock Coverage?
• How many hours of continuing education must Angelo complete if he earned 30 hours of credit, including 6 hours of ethics training, in the last licensing period?
• Tim improves his rented dwelling and installs new cabinets and flooring costing $11,000. If a flood damages these improvements, how much coverage would he have?
• If the Davis brothers are directing farming operations at a farm that is NOT insured, what are they engaged in?
• How does a homeowners policy limit coverage for jewelry and firearms?
• Which unfair claims settlement practice occurred when an insurer made Horace file a claim with his own insurer before paying a claim?
• How long does a dwelling policy cover property that is removed to protect it from a covered peril?
• Which motorized vehicle is covered under the personal liability section of a homeowners insurance policy?
• In the event of a car crash where damage is caused, what event is considered the proximate cause of damage to a fence?
• Which of the following is NOT a cause of loss form available on a commercial property policy?
• What type of homeowners policy is recommended for condominium owners?
• When two property policies are active for the same property, how is a claim payment applied under those policies?
• What happens if notice of a material change is given less than 30 days before the renewal date?
• Which individual would NOT be considered a "residence employee" under a homeowners policy?
• What is the outcome of Hart's claim for spoiled inventory due to a utility service interruption?
• What type of property does a personal articles floater expand coverage for?
• Funds received by a producer to remitted to policyholders or insurers must be held in what capacity?
• Which of the following represents a morale hazard?
• Which licensee is required to comply with continuing education requirements in Rhode Island?
• Which dwelling forms cover vandalism of a garage door?
• Which coverage does not require the insured to be legally liable for a loss?
• In an equipment breakdown policy, which coverage will cover the costs of making temporary repairs after an explosion?
• Which two types of coverage under a homeowners policy are considered goodwill coverage?
• If Hollis is injured by an uninsured jet ski operator, which coverage may apply under his boatowners policy?
• What basis does the property section of a businessowners policy (BOP) provide coverage on?
• Which of the following is NOT a requirement for obtaining a property and casualty insurance license?
• If two policies covering the same exposure are not concurrently effective, they are termed what?
• What did Morris receive from his insurer regarding changes in his policy?
• For comprehensive coverage of a valuable diamond ring, which option is best?
• What type of policy can Patrick obtain to insure against earthquake coverage if it is not covered by his current policy?
• Why were Jason's maintenance expenses denied under his equipment breakdown policy?
• Which BOP endorsement must Madelyn purchase for coverage of business income loss due to utility service interruption?
• What type of liability does a businessowners policy typically cover for third-party injuries on premises?
• An owner cited for non-compliance with the lead remediation program may lose all access to lead liability insurance if they fail to comply within how many days?
• Which of the following is NOT included in a standard flood insurance policy?
• What is a consequence of an insured's insolvency under a homeowners policy?
• A customer slips and falls on a wet floor in a store and incurs several types of damages. What are these types of damages called?
• What condition did Oscar face when applying for coverage through the Joint Reinsurance Association?
• In a homeowners policy, what is defined as an accident resulting in bodily injury or property damage?
• In a businessowners policy, when are medical expenses separate from the liability limit?
• Which policy does not provide coverage for loss of business income?
• If Amalgamated Manufacturing defaults on its premium financing agreement, what is likely to occur?
• Which situation is an example of adverse selection?
• What endorsement on a BOP will extend liability coverage for an accident involving a vehicle not owned by the insured?
• Which of the following would NOT be included in the meaning of "insured" in a homeowners policy?
• What determines an insurer's profitability according to the combined ratio?
• What dollar limit applies to stolen money under a homeowners policy?
• How much advance notice must the Rhode Island Commissioner of Insurance provide before holding an investigatory hearing?
• What type of businesses does the Permitted Incidental Occupancies endorsement cover?
• What do bold print or italics in a policy typically indicate?
• Who is eligible for a temporary insurance agent's license after the death of a producer?
• Which legislation prohibits a financial institution from disclosing a consumer's nonpublic personal information without notice?
• Which of the following would NOT be considered a "friendly" fire?
• Are a local college student's personal belongings covered under Jane's homeowners policy once she rents a room?
• Which of the following items is covered under the property section of an unendorsed businessowners policy (BOP)?
• How many years does an insured have to comply with the terms of the homeowners policy before a lawsuit can be brought?
• If a damage claim is paid for property under a commercial inland marine policy, what happens to the insurance limit for that property?
• Which party may also have an insurable interest in a property besides the owner?
• What type of coverage can boat owners acquire beyond their unendorsed homeowners policy?
• What type of farming is characterized by operations directed by an external farm owner?