Rhode Island Property & Casualty Insurance Exam 2026

Welcome to your FREE Rhode Island Property & Casualty (P&C) Insurance exam preparation guide. This comprehensive study resource covers Rhode Island-specific insurance laws, regulations, and requirements you need to pass your state licensing exam.

Note: This guide covers Rhode Island state-specific content. You should also study national Property & Casualty insurance concepts, as approximately 73% of the exam tests general insurance knowledge.

Why Get Licensed in Rhode Island?

Rhode Island offers unique opportunities for insurance professionals:

• Dense Population: Smallest state by area but 2nd-most densely populated (1,000+ people per square mile)
• Ocean State Market: Significant coastal property insurance needs along 400 miles of coastline
• Hurricane Risk: Coastal exposure requires specialized property insurance knowledge
• Historic Properties: Extensive historic home insurance market, especially in Newport and Providence
• High Property Values: Waterfront properties and historic estates command premium coverage
• Marine & Watercraft: Substantial boat and watercraft insurance market
• Reciprocity: Rhode Island license offers reciprocity with many other states
• Competitive Market: Less saturated than neighboring Massachusetts or Connecticut

What This Guide Covers

This FREE study guide includes:

✓ Rhode Island Insurance Regulation - Department of Business Regulation, Superintendent appointment, competitive rating system ✓ Producer Licensing Requirements - Pre-licensing education (40 hours), exam, fees, appointments ✓ Continuing Education - 24-hour biennial requirement (21 general + 3 ethics) ✓ Property Insurance - Coastal risks, hurricanes, historic properties, windstorm coverage ✓ Auto & Casualty Insurance - Rhode Island's 25/50/25 minimum limits, UM/UIM requirements ✓ Rhode Island-Specific Regulations - Prohibited practices, claims handling, penalties ✓ Practice Questions - Quiz questions in each chapter to test your knowledge

Exam Format & Requirements

Exam Structure

Exam Costs

• P&C Exam Fee: $53
• License Application Fee: $70 (resident producer)
• Fingerprinting/Background Check: $49.25 (Rhode Island Attorney General's office)
• Pre-License Education: Varies by provider ($200-500 for 40-hour course)

Pre-License Education

Rhode Island requires 40 hours of pre-licensing education for Property & Casualty insurance from a state-approved provider. The pre-license course must cover:

• General insurance concepts and principles
• Property insurance types and coverages
• Casualty and liability insurance
• Rhode Island insurance laws and regulations
• Ethics and professional conduct

Exam Tip: Complete your 40-hour pre-license course from a Rhode Island-approved provider before scheduling your exam. The course certificate is valid for 2 years from completion date.

Application Process

1. Complete Pre-License Education: 40-hour approved P&C course
2. Background Check: Submit to Rhode Island Attorney General's office ($49.25)
3. Wait for Results: Allow 3-5 business days for background check results to load into system
4. Schedule Exam: Book with PSI online or by phone after background check clears
5. Pass Exam: Score 70% or higher (105 out of 150 questions)
6. Submit Application: Apply through NIPR (National Insurance Producer Registry)
7. Company Appointment: Sponsoring company must appoint you within 15 days of hire
8. Receive License: Rhode Island Department of Business Regulation issues license

Important: Rhode Island requires a background check report from the Attorney General's office BEFORE you can apply for a license. This must be completed before exam registration.

Exam Content Areas

National Content (73% of exam - 110 questions)

The national portion covers general P&C insurance principles:

1. General Insurance Principles (15-20%)

   • Risk and insurance fundamentals
   • Policy structure and provisions
   • Insurable interest and indemnity
   • Insurance companies and operations

2. Property Insurance (25-30%)

   • Homeowners policies (HO-2, HO-3, HO-4, HO-6, HO-8)
   • Dwelling policies (DP-1, DP-2, DP-3)
   • Commercial property (BPP, BOP)
   • Inland marine and personal articles

3. Casualty Insurance (25-30%)

   • Auto insurance coverage types
   • General liability insurance
   • Commercial liability policies
   • Workers' compensation basics

4. Policy Provisions & Contract Law (10-15%)

   • Policy structure and interpretation
   • Endorsements and exclusions
   • Policy conditions and duties
   • Loss settlement provisions

5. Insurance Regulations (10-15%)

   • Federal and state regulatory structure
   • Consumer protections
   • Producer responsibilities
   • Ethical practices

Rhode Island State-Specific Content (27% of exam - 40 questions)

The Rhode Island portion focuses on state laws and regulations:

1. Rhode Island Department of Business Regulation - Insurance Division

   • Department structure and organization
   • Superintendent of Insurance appointment and powers
   • Rhode Island General Laws Title 27 (Insurance)
   • Producer licensing and appointment requirements
   • Competitive rating system (file-and-use)

2. Rhode Island Property Insurance

   • Coastal property insurance challenges
   • Hurricane and windstorm coverage
   • Historic property insurance considerations
   • Rhode Island Joint Reinsurance Association (RIJRA)
   • Flood insurance (NFIP) requirements
   • Dwelling fire insurance market

3. Rhode Island Auto Insurance Requirements

   • Minimum liability limits: 25/50/25
   • Mandatory Uninsured Motorist (UM) coverage
   • Mandatory Underinsured Motorist (UIM) coverage
   • Financial responsibility requirements
   • Compulsory insurance verification
   • Massachusetts/Rhode Island border considerations

4. Rhode Island Producer Licensing & Continuing Education

   • 40 hours of pre-licensing education required
   • Exam passing score: 70%
   • Biennial license renewal (expires last day of birth month)
   • Continuing education: 24 hours every 2 years (21 general + 3 ethics)
   • Special product training (flood insurance, annuities)
   • Company appointment requirements

5. Rhode Island-Specific Regulations

   • Prohibited practices and unfair trade practices
   • Unfair claims settlement practices
   • Cancellation and non-renewal restrictions
   • Record retention requirements (5 years)
   • Privacy and information security
   • Consumer complaint procedures

Rhode Island's Insurance Environment

Coastal Property Challenges

Rhode Island's extensive coastline creates unique property insurance considerations:

Hurricane Risk

• Category 3+ hurricanes threaten Rhode Island coastline
• Hurricane of 1938 devastated Rhode Island
• Hurricane Bob (1991) and Hurricane Sandy (2012) caused significant damage
• Hurricane deductibles up to 5% of Coverage A (dwelling value)
• Windstorm coverage may have separate deductibles
• Coastal properties face higher premiums

Coastal Exposure

• 400 miles of coastline (including bays and estuaries)
• Narragansett Bay penetrates deep into state
• Storm surge flooding risk
• Beach erosion and coastal property loss
• Mandatory flood insurance in FEMA Special Flood Hazard Areas (SFHAs)

Historic Properties

• Newport mansions and historic districts
• Providence historic neighborhoods
• Specialized coverage for historic structures
• Replacement cost challenges with historic materials
• Building code compliance for renovations

Rhode Island Joint Reinsurance Association (RIJRA)

The Rhode Island Joint Reinsurance Association (RIJRA) is a residual market mechanism that provides windstorm coverage for coastal properties that cannot obtain coverage in the voluntary market.

RIJRA Key Features:

• Established in 1994 after Hurricane Bob
• Provides windstorm and hurricane coverage for eligible properties
• Covers properties within 2 miles of Narragansett Bay and Atlantic Ocean
• Maximum coverage: $2 million for residential properties
• All admitted insurers in Rhode Island must participate
• Last resort option when voluntary market unavailable

Exam Tip: RIJRA is Rhode Island's residual market for coastal windstorm coverage. It's similar to beach and windstorm plans in other coastal states like Florida (Citizens) or Texas (TWIA).

Rhode Island Auto Insurance Market

Rhode Island has specific auto insurance requirements and market characteristics:

Compulsory Insurance

• Rhode Island has had compulsory auto insurance since 1954
• One of the earliest states to mandate auto coverage
• Strong enforcement through registration verification
• Financial responsibility required for all registered vehicles

Military Presence

• Naval Station Newport and other military facilities
• Military personnel insurance considerations
• Out-of-state military exemptions

Massachusetts Border Issues

• Many Rhode Island residents work in Massachusetts
• Some obtain Massachusetts insurance instead
• Interstate claims and coverage questions
• Reciprocity and jurisdictional issues

Rhode Island Department of Business Regulation

Rhode Island's insurance industry is regulated by the Department of Business Regulation (DBR), specifically the Insurance Division.

Department Structure

DBR Organization:

• Part of Rhode Island executive branch
• Director appointed by Governor
• Insurance Division is one of several regulated industries (banking, securities, commercial licensing, etc.)
• Superintendent of Insurance leads the Insurance Division

Superintendent of Insurance

The Superintendent of Insurance:

• Appointed by the DBR Director
• Chief insurance regulator for Rhode Island
• Authority to issue, suspend, and revoke licenses
• Conducts examinations of insurers and producers
• Adopts regulations implementing Rhode Island insurance law
• Handles consumer complaints and enforcement actions

Rhode Island's Competitive Rating System

Rhode Island uses a competitive rating system (file-and-use) for Property & Casualty insurance:

File-and-Use System:

• Insurers file rates with DBR Insurance Division
• Rates may be used immediately upon filing
• No prior approval required (unlike prior approval states)
• Superintendent reviews filed rates for compliance
• Rates must not be excessive, inadequate, or unfairly discriminatory
• Superintendent may disapprove rates after review

This system balances market competition with regulatory oversight.

Licensing & Continuing Education

Resident Producer License

Requirements:

1. Age: 18 years or older
2. Pre-License Education: 40 hours for P&C
3. Background Check: Rhode Island Attorney General report ($49.25)
4. Exam: Pass with 70% or higher
5. Application: Submit through NIPR with $70 fee
6. Appointment: Sponsoring company appoints within 15 days

Continuing Education (CE)

Rhode Island CE Requirements (2026 Updates):

• Total Hours: 24 hours every 2 years
• General Credits: 21 hours
• Ethics Credits: 3 hours
• Renewal Cycle: Biennial (every 2 years)
• Renewal Date: Last day of licensee's birth month
• Carryover: Maximum 24 hours may carry over to next renewal period
• Course Restrictions: Courses may not be taken more than once in a reporting period

NEW 2026 Requirements:

• Effective January 1, 2026, Rhode Island added CE requirements for adjusters (Company, Independent, and Public Adjusters)
• P&C producers have always had CE requirements
• Non-resident licensees with Rhode Island Designated Home State status must complete Rhode Island CE

Special Product Training:

1. NFIP Flood Insurance: 3-hour one-time certification required before selling flood insurance
2. Annuity Best Interest: 4-hour one-time certification required before selling annuities in Rhode Island

Exam Tip: Rhode Island CE is 24 hours every 2 years (21 general + 3 ethics). Licenses renew on the last day of the licensee's birth month, biennially.

Study Tips for Rhode Island Exam Success

Focus Areas for Rhode Island Questions (40 questions)

High-Priority Topics:

1. Producer Licensing (8-10 questions)

   • Pre-licensing education requirements (40 hours)
   • Background check process
   • Application and appointment procedures
   • Continuing education (24 hours every 2 years)

2. Auto Insurance Requirements (8-10 questions)

   • Minimum liability: 25/50/25
   • Mandatory UM and UIM coverage
   • Compulsory insurance verification
   • Financial responsibility requirements

3. Property Insurance (6-8 questions)

   • Coastal and hurricane risks
   • RIJRA (Rhode Island Joint Reinsurance Association)
   • Hurricane deductibles (maximum 5% of Coverage A)
   • Historic property considerations

4. Regulation & Enforcement (6-8 questions)

   • Department of Business Regulation structure
   • Superintendent of Insurance powers
   • Competitive rating system (file-and-use)
   • Prohibited practices and penalties

5. Claims & Ethics (4-6 questions)

   • Unfair claims settlement practices
   • Record retention (5 years)
   • Consumer protections
   • Producer responsibilities

Study Strategy

Week 1-2: National Content

• Focus on general P&C insurance principles
• Study property insurance (homeowners, dwelling policies)
• Master auto insurance coverage types
• Review policy provisions and contract law

Week 3: Rhode Island-Specific Content

• Study Rhode Island insurance laws (Title 27)
• Memorize Rhode Island minimum auto limits: 25/50/25
• Learn producer licensing requirements (40 hours pre-license, 24 hours CE)
• Understand RIJRA and coastal property insurance

Week 4: Practice & Review

• Take practice exams focusing on Rhode Island questions
• Review quiz questions in this guide
• Identify weak areas and review
• Focus on high-priority Rhode Island topics

Common Rhode Island Exam Mistakes

Mistake 1: Confusing Auto Limits

• Rhode Island: 25/50/25
• NOT 25/50/10 (like some states)
• NOT 30/60/25 (like other states)

Mistake 2: CE Requirements

• Rhode Island: 24 hours every 2 years (21 general + 3 ethics)
• NOT 24 hours every year
• Renewal on birth month, NOT calendar year

Mistake 3: Pre-License Education

• Rhode Island: 40 hours for P&C
• NOT 20 hours
• NOT 30 hours

Mistake 4: Background Check

• Required BEFORE exam
• Rhode Island Attorney General report
• Wait 3-5 days for results to load

Mistake 5: RIJRA vs. General Insurance

• RIJRA covers windstorm/hurricane on coastal properties
• NOT all property perils
• NOT available everywhere in Rhode Island

Next Steps

Ready to Begin?

This guide contains four main chapters:

Chapter 1: Rhode Island P&C Regulation & Licensing

• Department of Business Regulation structure
• Producer licensing requirements
• Continuing education
• Appointment and renewal procedures

Chapter 2: Rhode Island Property Insurance

• Coastal property insurance
• Hurricane and windstorm coverage
• RIJRA (Rhode Island Joint Reinsurance Association)
• Historic property insurance

Chapter 3: Rhode Island Auto & Casualty Insurance

• Minimum liability requirements (25/50/25)
• Mandatory UM/UIM coverage
• Compulsory insurance verification
• Financial responsibility

Chapter 4: Rhode Island Ethics & Professional Conduct

• Prohibited practices
• Unfair claims settlement practices
• Consumer protections
• Record retention and compliance

Additional Resources

Official Rhode Island Resources:

• Rhode Island Department of Business Regulation
• DBR Insurance Division
• Rhode Island General Laws - Title 27 (Insurance)
• NIPR (National Insurance Producer Registry)
• PSI Exam Information

National Resources:

• NAIC (National Association of Insurance Commissioners)
• Insurance Information Institute
• NFIP (National Flood Insurance Program)

Final Tip: Focus on Rhode Island-specific requirements. Many exam questions test knowledge of Rhode Island's minimum auto limits, CE requirements, and coastal insurance programs like RIJRA. Memorize these key facts!

Good luck with your Rhode Island Property & Casualty insurance exam!