RI Laws, Rules, and Regulations Common to Property & Casualty

Question 1

Cease and desist

Answer 1

to stop or discontinue

Question 2

Coercion

Answer 2

forceful act or threat aimed to influence a person to act against his or her will

Question 3

Commission

Answer 3

payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium

Question 4

Commissioner

Answer 4

the head of the state department of insurance

Question 5

Exempt

Answer 5

not subject to an obligation

Question 6

Home office

Answer 6

Insurer’s headquarters, principal place of business

Question 7

Inducement

Answer 7

an offer that attempts to influence the other party

Question 8

Insolvent

Answer 8

unable to meet financial obligations

Question 9

NAIC

Answer 9

National Association of Insurance Commissioners, an organization composed of insurance commissioners from all 50 states and territories, formed to resolve insurance regulatory issues

Question 10

Promulgate

Answer 10

to make public, to put into action (eg. laws, court decrees, and similar)

Question 11

Reciprocity

Answer 11

A mutual interchange of rights and privileges

Question 12

Statute

Answer 12

a formal written law enacted by the legislature, insurance statutes can be found in the state insurance code

Question 13

Subpoena

Answer 13

an order for someone to appear as a witness or submit testimony or evidence