Rhode Island property and casualty basics questions draw on a set of statutes and rules:

• The standard fire policy printed in R.I. Gen. Laws 27-5-3.
• The binder laws (27-9.4, 27-5-6).
• Pure comparative negligence (9-20-4).
• The commercial cancellation regulation (230-RICR-20-20-1).
• The Certificates of Insurance Act (chapter 27-78).
• Premium finance rules (chapter 19-14.6).
• The P&C claims regulation (230-RICR-20-40-2).

General principles (contracts, indemnity, hazards, negligence, ACV vs. replacement cost) are in the national basics guides.

Negligence

• Rhode Island uses pure comparative negligence (9-20-4). A plaintiff's damages are reduced by their own share of fault, and recovery is never barred.
• A driver 70% at fault still recovers 30% of their damages.

Binders

• A binder is a written temporary contract authorized by the insurer (27-9.4-3). The insurer must provide coverage under it until the policy is issued or the binder is canceled (27-9.4-4).
• A temporary fire insurance binder may be oral or written, for no more than 30 days (27-5-6).
• At real estate closings, lenders must accept a producer's written binder that names them as loss payee and promises certified or registered mail notice of cancellation. They may require the policy within 30 days after closing.

The Rhode Island standard fire policy (27-5-3)

Coverage and conditions

• Vacancy: no liability while a building is vacant or unoccupied beyond 60 consecutive days.
• The mortgagee clause protects the lender's interest.
• Appraisal: each side picks an appraiser, with an umpire if they can't agree.

Cancellation

• The insurer may cancel for reasons other than nonpayment with 30 days' written notice. When the insurer cancels, unearned premium is returned pro rata.
• A mortgagee gets 10 days' notice.

Claims

• Proof of loss: a sworn proof is due within 60 days after the loss, unless extended in writing.
• Payment: a loss is payable 60 days after proof is received and the loss is ascertained.
• Suits: must start within 24 months after the loss begins.

Policy heading

• The head of a fire policy shows the insurer's name, home office, and whether it is a stock or mutual company (27-5-4).

Claims handling for property and casualty (230-RICR-20-40-2)

Deadlines

• Acknowledge a claim within 15 days, unless it is paid first.
• Answer the Department within 21 days.
• Accept or deny within 21 days after proof of loss, with status letters every 45 days if more time is needed.
• Warn third-party claimants 60 days before a statute of limitations expires.

Other rules

• A payment may be marked "final" or a release only when the limit was paid or a compromise was agreed.
• A polygraph may be required only if the policy and state law allow it.
• Matching: replacement must give a uniform appearance when replaced items won't match the rest.
• Actual cash value on a residential fire claim is replacement cost at the time of loss less depreciation.
• Unpaid premium may be deducted from a claim only if still unpaid 60 days after the effective date or billing, whichever is later.
• Workers' compensation claims aren't covered by this regulation.

Commercial cancellation and nonrenewal (230-RICR-20-20-1)

Scope

• Doesn't apply to workers' compensation and employers liability.

Cancellation

• After 60 days in force, a commercial policy may be canceled only for listed reasons, such as nonpayment or failing to follow loss control recommendations.
• Notice: 10 days for nonpayment.

Nonrenewal

• At least 60 days' notice. If notice is late, coverage continues until 60 days after notice is given.
• Moving the insured to another company in the same group isn't a nonrenewal.

Renewal changes

• 60 days' notice for a premium increase of more than 10%.
• 60 days' notice, separate from the renewal policy, for reduced coverage or a higher deductible.

Certificates of insurance (chapter 27-78)

• A certificate is a producer-issued document evidencing coverage. It doesn't amend or extend the policy.
• A producer may not issue a certificate that alters coverage, even if a contractor demands it.
• A certificate holder gets cancellation notice only if the policy or an endorsement gives that right.
• Certificates prepared or required in violation of the Act are null and void.

Premium finance (chapter 19-14.6)

Cancellation by the finance company

• Before canceling for default, the finance company mails 10 days' notice of intent.
• The insurer then cancels pro rata.
• The insurer returns gross unearned premium to the finance company within 60 days.

Charges

• Delinquency charge: up to 5% of an installment at least 5 days late.
• Service charge: a nonrefundable $15 per agreement.
• Interest is figured on the balance after the down payment, and early payoff earns a refund of unearned interest.

Form

• The printed portion is at least 8-point type.

Guaranty association

The Rhode Island Property and Casualty Insurance Guaranty Association (formerly the Insurers' Insolvency Fund) pays covered claims of insolvent members (chapter 27-34):

• Workers' comp claims in full.
• Unearned premium up to $10,000.
• Other claims up to $500,000 per claimant.
• A $1,000,000 per-occurrence first-party property limit for insolvencies after January 1, 2026.
• Title insurance and surety bonds aren't covered.

Common exam traps

• Pure comparative negligence: a plaintiff is never barred.
• Fire binders: 30 days.
• Standard fire policy: 60 days vacancy; 30 days' cancellation notice (10 to the mortgagee); 60 days for proof; 24 months to sue.
• Claims: acknowledge in 15 days; decide within 21 days of proof.
• Commercial lines: 60 days to nonrenew, 10 days for nonpayment cancellation, 60 days for renewal increases over 10%.
• Certificates of insurance can't change coverage.