Rhode Island auto questions test the Motor Vehicle Reparations Act (R.I. Gen. Laws chapter 31-47), the financial responsibility law (chapter 31-32), uninsured motorist coverage (27-7-2.1), rental-vehicle rules (27-7-6), and the personal auto cancellation regulation (230-RICR-20-05-2). Rhode Island is a tort state with pure comparative negligence and no PIP requirement. The policy form itself (Parts A-F) is covered in the national Personal Auto Policy guide.

Fault system

• Rhode Island uses a tort system: the at-fault driver pays (31-47-1).
• Pure comparative negligence (9-20-4): a claimant's damages are reduced by their own share of fault, but recovery is never barred. A driver 70% at fault still recovers 30%.
• The Reparations Act's stated purpose is to make sure motorists can respond in damages for their negligence.

Required security

Minimum limits (31-47-2(13); 31-32-24)

• Instead of insurance, an owner may post a $75,000 financial security deposit per vehicle (31-47-2(7)).
• An "accident" includes property damage only when the damage exceeds $500.
• At registration, the owner signs a statement promising not to drive without security (31-47-3.1).

Proof of insurance (31-47-12)

• Drivers may show proof on paper or on a mobile device.
• Police may not stop a car solely to check for insurance.
• A driver cited only for failing to show proof has one business day to prove coverage existed, and the citation is withdrawn.

Driving uninsured (31-47-9)

• First offense: suspension of up to 3 months and a $100-$500 fine.
• Second offense: 6 months.
• Counterfeit evidence of insurance is a felony (31-47-9.1).

Uninsured motorist database (chapter 31-47.4)

• Insurers report in-force policies weekly to the DMV's designated agent. Failing to report costs up to $250 a day.
• An owner shown uninsured for four reporting periods has 15 days to prove coverage.
• Reinstating a revoked registration costs $250.
• Commercial auto is exempt.

Future proof of financial responsibility (chapter 31-32)

• Required after certain convictions or an unpaid judgment. Proof must show at least 25/50/25, or a $75,000 single limit (31-32-2).
• The insurer's certificate is filed with the Division of Motor Vehicles (31-32-21). A signed promise to pay isn't acceptable proof.
• A certified owner's policy covers use anywhere in the United States and Canada.
• An operator's policy covers the insured while driving cars the insured doesn't own.
• Once a covered loss occurs, the insurer's liability becomes absolute.
• A binder issued while the policy is pending counts as meeting the requirements (31-32-24).

Uninsured and underinsured motorist (27-7-2.1; 230-RICR-20-05-1)

Bodily injury UM

• Default amount: UM bodily injury equals the policy's BI liability limits unless the insured selects lower limits in writing.
• Reducing to zero: allowed only if the insured buys minimum limits and signs an advisory notice.
• After a lower selection: the insurer must remind the insured of UM availability at each renewal, reinstatement or change.
• "Uninsured motorist" also includes an underinsured motorist and a driver whose insurer became insolvent.

UM property damage

• Must be offered at a minimum of $25,000.
• A $200 per-claim deductible applies to collision damage, waived when the car was legally parked and unattended.
• An insured who carries collision coverage needn't carry UM property damage.

Stacking and claims

• An insured who paid separate UM premiums on two vehicles may collect up to the combined UM limits.
• The insured needn't sue the at-fault driver first.
• On subrogation, the insurer first repays the insured's deductible, less its share of expenses.

Rentals and repairs

Rental vehicles (27-7-6)

• Property damage liability extends to a rented vehicle under 10,000 pounds for up to 60 consecutive days.
• The at-fault driver's insurer provides a comparable rental.
• After a total loss, rental coverage continues until 7 days after the claimant receives the check.

Repairs (27-29-4(15); 31-47-12.1)

• Insurers may not require a particular body shop. Once a shop is chosen, the insurer may not recommend another.
• ID cards must state the right to choose the repair facility.

Claims rules (230-RICR-20-40-2)

• Written appraisals based on an inspection are required for claims above $2,500.
• On cars less than 48 months old, aftermarket or used parts need the claimant's written consent.
• A total-loss claim must be reopened if the insured can't buy a comparable car and notifies the insurer within 35 days.
• The written acknowledgment of a claim must say whether rental coverage exists.

Cancellation and nonrenewal (230-RICR-20-05-2)

Midterm cancellation

• After a policy has been in effect 60 days, the insurer may cancel only for listed reasons. Examples:
  • Nonpayment.
  • License suspension.
  • Three or more speeding or misdemeanor motor vehicle convictions in 18 months.
  • An OUI conviction within 36 months.
• Notice: 10 days for nonpayment; 30 days for any other reason (31-47-4).
• Coverage can't be rescinded back to inception for misrepresentation. It can only be canceled going forward.
• Adding a comprehensive deductible of up to $100 midterm isn't a cancellation.

Nonrenewal

• 30 days' notice with reasons.
• An insurer may not nonrenew solely because the insured is 65 or older.
• Loss-based nonrenewal requires a chargeable loss or more than two non-chargeable losses in the period.

What notices must say

• Every termination notice must warn, in 12-point type, that a lapse in security means mandatory suspension (31-47-4(c)).
• A cancellation or nonrenewal notice for a reason other than nonpayment must mention the Rhode Island Automobile Insurance Plan.

Credit

• An insurer may not decline a new customer based solely on an insurance score or lack of one.
• After a credit correction, it re-rates and refunds within 30 days.

Plan policies

• Policies issued through the Automobile Insurance Plan follow the Plan Manual.

Rhode Island Automobile Insurance Plan (31-33-8)

• Covers drivers who qualify but can't get insurance normally. All auto insurers participate.
• The plan must offer BI limits up to $250,000/$500,000.
• Appeals from the plan manager go to the Insurance Commissioner.
• Nonresident producers may submit applications if their home state reciprocates.

Common exam traps

• Pure comparative negligence. A 70%-at-fault driver still recovers 30%.
• 25/50/25, or a $75,000 single limit or deposit.
• UM equals BI limits unless the insured lowers it in writing. Zero UM is allowed only with minimum limits and a signed notice.
• UMPD: $200 deductible, waived for a parked car.
• Cancellation notice: 10 days for nonpayment, 30 otherwise; nonrenewal 30 days. No nonrenewal just for turning 65.