RI Adjuster Exam Practice Rhode Island State Exam 2026, Exams of Insurance Economics

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RI Adjuster Exam Practice Rhode Island State Exam 2026

“1 I I I I I I I I I I I I I I I I I I I I I I I I al RI Adjuster Exam Practice Rhode Island State Exam 2026 Which of the following phrases BEST defines a hazard? A. The uncertainty of a loss B, The cause of a loss C, An unexpected loss D. A condition that increases the chance of a loss - CORRECT ANSWER-D A family cakes their 50-horsepower outboard motor boat to the lake on a trailer towed behind their personal auto, The pleasure boat is appropriately covered for physical damage under which of the following policies? A. Dwelling B, Homeowners C. Boat owners D. Yechs-SORRECTANSIVERE < Which of the following perils is covered by Broad Form perils but not covered by the Basic Form? A, Vandalism B, Weight of ice and snow C. Riot D. Sinkhole collapse - CORRECT ANSWER -B G insures G's television repair shop under a Building and Personal Property Coverage Form with limits of $100,000 on the building and $50,000 on business personal property. A fire causes $10,000 in damage to the r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al building and $20,000 in losses to the contents. G also has to pay $1,000 for debris removal. If the policy has as deductible of $250, G will receive a MAXIMUM of which of the following amounts from the insurer? A. $29,750 B. $30,000 C. $30,750 D. $31,000 - SOR HANSSRERE-< Which of the following statements about a mortgagee's rights under the Dwelling Property Basic Form (DP- 1) is INCORRECT? A. No act by the insured will jeopardize the mortgagee's rights B, The mortgagee may file a Proof of Loss if the insured fails to do so C. The mortgagee is entitled to receive prior notice of a policy's cancellation D. The mortgagee may abandon the insured property co che insures, - SORRECINANSIVER-D A company’s promise to pay for damage caused by or resulting from any covered Cause of Loss would be found in which of the following sections of a Commercial Property policy? A, Declarations B. Insuring Agreement C. Conditions D. Exclusions - ROE 1, Which of the following businesses would be eligible for a Business owner's policy? A. Auto body shop B, Theater C, Branch bank D, Barber shop - SORREGIPANSIER!-D r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al Which of the following terms BEST describes continuous and repeated exposure to conditions that are neither expected nor intended by the insured? A. Negligence B. Liability C. Accident D. Occueence- SORRESHANSNPERE D In order to issue a written binder for a commercial property policy, what is che MINIMUM consideration a producer must secure from an applicant? A. A signature on a premium finance agreement B. Payment of six months’ premium C. Payment of ewelve months’ premium D. Promise to pay premium - SORREGHANSWER-D The National Flood Insurance Program provides coverage for losses caused by all of the following occurrences EXCEPT; A. Mudslides B. Runoff from heavy rain C, Overflow of tidal waters D, Water-main breakage - CORRECT ANSWER-D The Personal Liability section of a Homeowners policy covers which of the following options? A. Damage to an insured's property caused by a visitor B. Bodily injury to a resident caused by a neighbor's dog C, Property damage caused by war r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al D. Bodily injury caused by the personal activities of an insured - CORRECT ANSWER -D Which of the following statements is CORRECT about the Fair Credit Reporting Act? It requires an insurer to send to an applicant a copy of the applicant's credit report It requires an insurer to obtain a credit report on an applicant Tt allows an insurer to obtain a credit report without the applicant's permission It provides a method for an applicant to correct any incorrect information in the credit report - CORRECT Which of the following terms is defined as the uncertainty of future outcome? A. Risk B, Hazard C. Peril D. Cause A building adjacent to an insured's business is severely damaged by fire. Because of the nature of the damage to the adjoining property, the insured is denied access to the business by the fire department. If the insured's property is covered under a Business Income Coverage Form, the insurer will cover the loss of the earnings for a MAXIMUM oft A. Thirty days B. Sixty days C. Three weeks D. Six months - CORRECT ANSWER -A Asudden and unexpected event chat is normally identifiable as to time and place is best described as: A. An accident r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al A deer jumps through the window of an insured's home, damaging the interior and exterior walls. Which of the following Homeowners Forms listed below is the LEAST comprehensive form that will still provide coverage for this loss? A. HO-1 Form B, HO-2 Form C. HO-3 Form D. HO-5 Form- SRRECHANSSTERc Under a Personal Property Floater, a loss is covered when it occurs: A, In che insured's home only B, In the United States only C. In the United States or Canada only D. Anywhere in the world - @ORREGIANSWER!-D Which of the following statements is CORRECT regarding Proof of Loss? A, It is a sworn statement by the insured. B. It is always prepared by an attorney C. It is not necessary in cases of total Loss D. The adjuster on the loss may sign it- CORRECT ANSWER-A Which of the following coverages may be added by endorsement to a Boiler and Machinery policy: A, Silver and fine jewelry B. Extra Expense C. Temporary housing expense D. Car rental expense- CORRECT ANSWER-B r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al Actual cash value is most often defined as which of the following options? A, Replacement cost less depreciation B, Amount paid less depreciation C. Fair market value plus appreciation D. Appsaised value - SORRECHANSWER! Pro-rata cancellation occurs when: A.A policy is nonrenewed B. A mortgage has been satisfied C. An insured cancels a policy at inception D. An insuzer cancels « policy - SORRECIANSWER!-D An applicant's statement included in the insurance contract that the property to be insured has an operable sprinkler system is: A. Agency binding authority B. A warranty C. A representation D. An afdovc- RRERSTANISSIERE 5 The procedure for resolving a disagreement between an insured and insurer about a loss is described in which of the following parts of an insurance policy: A. Declarations B. Insuring Agreement C. Conditions D. Bichon - CORRECT < r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al B, Sprinkler leakage C. Sinkhole collapse D. Earth movement - CORRECT ANSWER -D N's next-door neighbor, S, dumps hot ashes in N's trash dumpster, starting a fire and causing severe damage to N's home. N's company pays the loss and then goes after S for payment. This is an example of: A, Pro rata liability B. Assignment C, Appraisal D. Subrogson- SORRECANSSERE Which of the following Homeowners coverages does NOT generally contain a deductible? A, Personal Property B. Other structures C, Liability D. Dwling- SORRETSHANSNPER-c In a Commercial Property form, if a building is left vacant, coverage for vandalism will continue for up to how many days? A. Thicty B. Forty-five C. Sixty D. Ninecy- SORRECHANSIVERE 1 The principle of indemnity is designed to avoid: A. Two policies sharing payment for a loss r I I I I I I I I I I I I I I I I I I I I I I I I L a | he es eee ee ee ee ee B. Overpayment of a claim C. The return of earned premiums D. A Coinsurance clause of less than 80 percent - CORRECT ANSWER B 1, An insured has an HO-3 Form. When using a snow blower borrowed from a neighbor, the insured strikes a large rock and causes $2,000 worth of damage to the snow blower. Under which section of the policy could payment be made on the insured’s behalf? A. Personal Property B, Building C. Personal Liability 0, Los of Use- SEIRECTANSITER Inland Marine insurance is commonly used to insure all of the following: A. Automobiles B. Stamps C. Camera equipment D. Jowsky - @ORRECHANSWER 42, A Commercial Package policy must include at least how many coverage parts? A. FOUR B. TWO Cc. THREE D. ONE - SORRECHANSWER: The owner-operator of a computer store often leaves expensive computers balanced negligently bua ee ee ee ee eee ee ee ee ee eee eee eee “1 I I I I I I I I I I I I I I I I I I I I I I I I al C. Notify the police if the Loss is che result of theft D. Protect the property from further loss - SORAECHANSIER During a tornado, a barn is destroyed when a section of its wall is blown down, knocking over a lantern, which sets the barn on fire. The proximate cause of loss is the: A, Fire B, Collapse of the wall C. Tornado D. Smoke - REESE Which of the following statements BEST describes the term “abandonment” as used in property insurance? A. An insurer's refusal to have damaged property appraised B. An insured's refusal to retain property after payment of a partial loss C. An insurer's demand for payment from a party who caused a loss An insurer's refusal to pay a claim D. Insurers refusal to pay - CORRECT ANSWER. B Under a HO-3 Form, if an insured and an insurer cannot agree on the amount of a loss, the company may take which of the following actions? A. Refer the dispute to an independent public adjuster B. Submit the dispute to a small claims court C. Demand an inquiry by the state Insurance Department D. Demand an appraisal of the loss - CORRECT ANSWER -D bua ee ee ee ee eee ee ee ee ee eee eee eee he es eee ee ee ee ee “1 I I I I I I I I I I I I I I I I I I I I I I I I al All of the following parties must be certified as appraisers except? A. Company CEO B, Partnership C. Association D. Corpoxion- SRRECHANSSTER 1 A fact that the insurer states in an application that last throughout the length of the policy can be considered. A, A warranty B. A representation C. Concealment D.A cine - SORRECANSIVSR In HO-3 coverage a burglar damages $3000 worth of property, steal $450 in cash and a $50 pet turtle, if the policy has a $250 deductible, how much will the insured collect? A. $3,000 B. $3,250 C, $3,450 D. $3,200- CORRECHSNSWTERE > Tn a case of loss what will an insurance company replace at full value? A, Golf clubs B. Silver C, Lawnmower D. Too! - SORRECHANSWER: 5 r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al A policy with a combined policy limit will cover: A, Bodily Injury only B, Bodily Injury and Property Damage C. Property Damage only D. All oss - SRRECIVANSWVER The limits of liability are found in what section of the policy: A. Insuring agreement B. Declaration C. Conditions D. Bsclsions- CORRECTING 5 If DEA breaks into a house and seizes drugs, we will cover what damages? A. Structure B. Contents C. Coverage will be excluded D. Personal property - CORRECT ANSWER-C What is not considered direct evidence that an insured was speeding? A. Radar gun B, Statement of skid marks on site C. Testimony from a witness D. Admission of guilt - CORRECT ANSWER-C What may be used to provide insurability info? r I I I I I I I I I I I I I I I I I I I I I I I I L “1 I I I I I I I I I I I I I I I I I I I I I I I I al A, Police report B, Insured statement C, Physical inspection D. Refeences- SORRECNSIERE 3 What statement best describes the principal of co-insurance? A. Multiple companies paying for a loss B, Insured paying part of a loss C, Insurance company paying for two losses D. Insured paying loss then collecting from insurer - CORRECT ANSWER-B 65. A wrongful civil act best describes a: A. Risk B. Tort C. Crime D. Accidene- SORRECTANSTER 5 51. Which of the following is not covered under comprehensive coverage: A. Hitting a bird B, Theft C. Collision with a tree D. Vandalsn - SRRESRSSIARE 51. When would a binder stop being in effect? r I I I I I I I I I I I I I I I I I I I I I I I I L a | issu: - SORRECHANSWER + 51, Ifafter a hearing the director finds that an insurer failed to cease and desist the insurer could be penalized as follows except: A Assumption of Risk B, Vicarious Liability C. Proximate Cause D. Lnervening Cavse- SORRESISNSSTERE 3 What are the four things included in every policy? A. Subrogation, loss, policy, exclusions B, Declaration, insuring agreement, conditions, exclusions C, Insuring agreement, conditions, definitions, loss D. Perils, hazards, definitions, conditions - CORRECT ANSWER. B 51. Ac what time does a policy become effective? A, 12:00am B. 12:01am C. 12:00pm. 51. Ifan insured passes information to an insurance agent, the insurance agent fails co pass all the information to the insurance company, at the time of loss A. Ins. company will be responsible for all info given to agent B, Ins. company will be liable for info passed from agent to Ins. company bua ee ee ee ee eee ee ee ee ee eee eee eee he es eee ee ee ee ee a | he es eee ee ee ee ee C. Agent will be responsible for partial loss D. Insured will be responsible for partial loss - GORRECIANSWER.A 51. If wo homeowner policies apply at the same time, which one will pay if property is damaged? A. The limic of liabiliry on both B. Equal payments from both parties C. The policy with the higher limits pays first, then the other policy applies D. They both pay what each policy is responsible for - SORRECIAINSIVERI-B 51. What is the insureds report of date, time, and facts of loss called? A. Loss notice B. Accident Report C. Claim Report D. Peon of ss - SRRECANSSTER 51. Damages awarded in court for pain and suffering are called: A. Compensatory B, General C, Punitive D. Selemene- SXRRESTANSWVER 51. When property is damaged to a homeowner's house it is valued at (not endorsed): A. ACV B. Replacement Cost basis C. Market Value bua ee ee ee ee eee ee ee ee ee eee eee eee