Producer Licensing Requirements

Rhode Island has comprehensive producer licensing requirements designed to ensure that insurance producers are qualified, trustworthy, and competent.

Eligibility Requirements

Basic Qualifications

To obtain a Rhode Island resident producer license, applicants must:

1. Age: Be at least 18 years old
2. Residency: Be a Rhode Island resident (for resident license)
3. Education: Complete 40 hours of pre-licensing education for P&C
4. Background Check: Obtain background check from Rhode Island Attorney General
5. Exam: Pass the P&C exam with 70% or higher
6. Application: Submit application through NIPR
7. Appointment: Be appointed by an insurance company

Character Requirements

Rhode Island evaluates applicant trustworthiness:

Disqualifying Factors:

• Conviction of a felony
• Conviction of insurance-related misdemeanor
• License revocation in another state
• Dishonest or fraudulent acts
• Material misstatements on application
• Financial irresponsibility (in some cases)

Background Check Process:

1. Submit request to Rhode Island Attorney General's office
2. Provide fingerprints (electronic or card)
3. Pay fee: $49.25
4. Wait 3-5 business days for results
5. Results transmitted to DBR electronically

Exam Tip: Rhode Island requires a background check from the Attorney General's office BEFORE you apply for a license. This must be completed before exam registration, and results take 3-5 business days to reach DBR.

Pre-Licensing Education

Education Requirements

Rhode Island requires 40 hours of pre-licensing education for Property & Casualty insurance.

Course Content:

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

Approved Education Providers

Provider Approval:

• Education providers must be approved by Rhode Island DBR
• Courses must meet Rhode Island standards
• Providers must track student progress
• Completion certificates issued upon course completion

Course Delivery Methods:

• Classroom - Traditional in-person instruction
• Online - Self-paced or live virtual instruction
• Hybrid - Combination of classroom and online

Certificate Validity

Completion Certificate:

• Valid for 2 years from completion date
• Must be used to apply for license within 2-year window
• Cannot be transferred or reused
• Provider maintains records for 5 years

Exam Tip: Pre-license education certificate is valid for 2 years. If you don't pass the exam and apply within 2 years, you must retake the 40-hour course.

Examination Requirements

Exam Format

The Rhode Island Property & Casualty insurance exam is comprehensive:

Exam Content Breakdown

National Content (110 questions):

1. General Insurance Principles - 15-20%
2. Property Insurance - 25-30%
3. Casualty Insurance - 25-30%
4. Policy Provisions & Contract Law - 10-15%
5. Insurance Regulations - 10-15%

Rhode Island Content (40 questions):

1. Rhode Island insurance laws and regulations
2. Producer licensing and CE requirements
3. Rhode Island auto insurance requirements
4. Property insurance in Rhode Island
5. Unfair practices and consumer protections

Scheduling the Exam

Exam Registration:

1. Complete Pre-License Education: Obtain 40-hour certificate
2. Background Check: Complete Rhode Island Attorney General background check
3. Wait for Clearance: Allow 3-5 business days for background results
4. Schedule with PSI: Register online at psi-online.com or call (800) 733-9267
5. Pay Exam Fee: $53 (credit card, debit card, or voucher)
6. Select Testing Center: Choose Rhode Island location or online proctoring

Testing Center Locations: Rhode Island has PSI testing centers in:

• Cranston (near Providence)
• Online proctoring (from home with webcam)

What to Bring:

• Valid government-issued photo ID (driver's license, passport, military ID)
• Exam confirmation (email or printout)
• No study materials (prohibited in testing center)
• No electronic devices (phones, watches, calculators prohibited)

Exam Day Procedures

At the Testing Center:

1. Arrive 30 minutes early - Late arrivals forfeit exam fee
2. Check-in - Present ID and confirmation
3. Secure belongings - Locker provided for personal items
4. Tutorial - Computer-based exam tutorial (not timed)
5. Take Exam - 180 minutes (3 hours)
6. Results - Immediate pass/fail notification

Exam Rules:

• No talking or communication with others
• No notes, scratch paper, or reference materials
• No breaks (unless pre-approved for medical reasons)
• Bathroom breaks allowed but clock keeps running

Retaking the Exam

If You Fail:

• Wait Period: Must wait 30 days before retaking
• Retake Fee: $53 per attempt (no discounts for retakes)
• Maximum Attempts: No limit on number of attempts
• Pre-License Education: Does not need to be retaken (if within 2-year validity)

After 3rd Failure:

• Consider additional study or review course
• Analyze areas of weakness
• Focus on Rhode Island-specific content

License Application

Application Process

After passing the exam, apply for your Rhode Island producer license:

Application Steps:

1. Pass Exam: Score 70% or higher
2. Apply via NIPR: Use National Insurance Producer Registry (nipr.com)
3. Complete Application: Provide personal information, exam results, background check
4. Pay Fee: $70 resident producer license application fee
5. Submit: Electronic submission through NIPR
6. Company Appointment: Sponsoring company appoints you (required)
7. Receive License: DBR issues license electronically

Application Information Required

Personal Information:

• Full legal name
• Date of birth
• Social Security Number
• Current address and contact information
• Citizenship or immigration status

Licensing Information:

• Exam date and score
• Background check confirmation
• Pre-license education certificate
• Lines of authority (Property & Casualty)
• Other state licenses held

Disclosure Questions: Must disclose:

• Criminal convictions
• License actions in other states
• Pending investigations
• Civil judgments
• Bankruptcies

Exam Tip: Answer disclosure questions honestly. Failure to disclose can result in license denial or revocation even if the underlying issue would not have prevented licensure.

License Fees

Company Appointment

Appointment Requirement

Rhode Island requires producers to be appointed by the insurance companies they represent.

Appointment Purpose:

• Establishes agency relationship
• Authorizes producer to sell company's products
• Company assumes responsibility for producer's actions
• Required before producer can solicit insurance

Appointment Process

Insurer Responsibilities:

1. Hire Producer: Employ or contract with licensed producer
2. Verify License: Confirm producer has valid Rhode Island license
3. Submit Appointment: File appointment with DBR within 15 days of hire
4. Pay Fee: Pay appointment fee to DBR
5. Maintain Records: Keep records of all appointed producers

Appointment Fee:

• Per Company Appointment: $20 per company

Multiple Appointments:

• Producers may be appointed by multiple companies
• Each appointment requires separate filing and fee
• Producer must maintain list of all appointments

Termination of Appointment

When Appointment Ends:

• Producer resigns or is terminated
• Company withdraws from Rhode Island market
• Producer license revoked or suspended
• Producer requests termination

Company Notification Requirements: When terminating an appointment, the company must:

1. Notify DBR: File termination notice within 30 days
2. Reason for Termination: State reason (voluntary resignation, cause, etc.)
3. For Cause Termination: Explain reasons if terminated for policy violations or misconduct

Exam Tip: Companies must appoint producers within 15 days of hire and notify DBR within 30 days of termination. "For cause" terminations require explanation and may trigger DBR investigation.

Lines of Authority

Property & Casualty Lines

Rhode Island issues licenses for specific lines of authority (LOA):

P&C Lines of Authority:

Obtaining Multiple Lines:

• Producers may hold multiple lines on one license
• Each line requires demonstrating competency (exam or experience)
• Some lines require separate exams or courses

Special Lines and Products

Additional Certifications Required:

1. Flood Insurance

• NFIP Certification: 3-hour one-time course
• Required before selling National Flood Insurance Program policies
• Must be renewed every 3 years through FEMA FloodSmart
• Certification tracked separately from Rhode Island license

2. Annuities (if selling)

• Annuity Best Interest Training: 4-hour one-time course
• Required before soliciting, selling, or negotiating annuities
• Focuses on consumer protection and suitability
• Must be completed before first annuity sale

Exam Tip: Rhode Island requires special one-time training for flood insurance (3 hours) and annuities (4 hours) beyond the P&C license. These are separate from the 24-hour biennial CE requirement.

Resident vs. Non-Resident Licenses

Resident Producer License

A resident producer maintains their principal place of business in Rhode Island.

Resident Requirements:

• Primary residence in Rhode Island
• Principal place of business in Rhode Island
• Hold Rhode Island as home state
• Complete Rhode Island CE requirements

Benefits:

• Authority to sell in Rhode Island
• Eligibility for reciprocal non-resident licenses in other states
• Rhode Island-based company appointments

Non-Resident Producer License

A non-resident producer is licensed in another state but wants to sell insurance in Rhode Island.

Non-Resident Requirements:

• Hold active resident license in home state
• Home state must have reciprocity with Rhode Island
• Apply through NIPR
• Pay $70 non-resident license fee
• No Rhode Island exam required (if home state has reciprocity)

Reciprocity: Rhode Island has reciprocity agreements with all states under the National Association of Insurance Commissioners (NAIC) Producer Licensing Model Act.

Non-Resident CE:

• Non-residents follow home state CE requirements in most cases
• Exception: Non-residents with Rhode Island as Designated Home State must complete Rhode Island CE

Exam Tip: Non-residents typically don't need to take the Rhode Island exam if their home state has reciprocity. They apply through NIPR and receive a Rhode Island non-resident license based on their home state license.

Temporary Licensing

Temporary Producer License

Rhode Island may issue temporary licenses in specific circumstances:

Situations for Temporary License:

1. Death of Producer: Allow business continuity for deceased producer's clients
2. Disability: Cover for producer unable to work
3. Military Service: Maintain business during active duty deployment

Temporary License Terms:

• Duration: Up to 180 days
• Renewable: May be extended in certain circumstances
• Limited Authority: Only for servicing existing business
• No New Business: Cannot solicit new clients (generally)

Eligibility:

• Spouse, family member, or employee of producer
• Must meet basic character requirements
• No exam required for temporary license

Emergency Licensing

Catastrophic Events: In declared emergencies (hurricanes, floods, etc.), Rhode Island may:

• Expedite out-of-state adjuster licensing
• Waive certain requirements temporarily
• Allow emergency claim adjusters

License Maintenance

License Renewal

Rhode Island producer licenses must be renewed biennially (every 2 years).

Renewal Cycle:

• Renewal Date: Last day of licensee's birth month, biennially
• Renewal Period: Every 2 years
• Example: If born in June, license expires June 30 of even or odd year (depending on birth year)

Renewal Requirements:

1. Continuing Education: Complete 24 hours (21 general + 3 ethics)
2. Renewal Application: Submit through NIPR
3. Renewal Fee: $70
4. Maintain Appointments: Have at least one active company appointment
5. Update Information: Confirm address, contact info, and disclosures

Renewal Notification:

• DBR sends renewal notice approximately 60 days before expiration
• Notice sent to email and mailing address on file
• Producer responsible for renewal even if notice not received

Late Renewal and Reinstatement

Grace Period:

• Rhode Island allows a 30-day grace period after expiration
• Producer may renew during grace period without penalty
• May continue conducting business during grace period

Lapsed License (After Grace Period):

• License becomes inactive after 30-day grace period
• May not conduct insurance business
• Must apply for reinstatement
• Reinstatement fee: $70 + renewal fee

Reinstatement Requirements:

• Complete all CE requirements for lapsed period
• Pay reinstatement and renewal fees
• Update application information
• May require retaking exam if lapsed more than 2 years

Exam Tip: Rhode Island licenses renew every 2 years on the last day of the licensee's birth month. There's a 30-day grace period after expiration. After that, the license becomes inactive and requires reinstatement.