Rhode Island Insurance Adjuster Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Rhode Island Insurance Adjuster Exam. Dive into multiple-choice questions with detailed answers and explanations. Enhance your knowledge and boost your confidence before the test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is one of the main purposes of liability insurance?

To cover all personal belongings in a home
To protect against legal liability for injury or damage
To guarantee payment for health care costs
To ensure compensation for income loss

The correct answer is: To protect against legal liability for injury or damage

One of the main purposes of liability insurance is to protect against legal liability for injury or damage. This type of insurance pays for the costs associated with legal claims made against the insured, including settlements or judgments resulting from lawsuits. If an individual or business is found legally responsible for harming someone or damaging their property, liability insurance helps cover the financial impact of those claims, reducing the risk of significant out-of-pocket expenses. It is particularly vital for individuals and businesses that may face lawsuits in the course of their normal activities, thereby providing peace of mind and financial security. In contrast, the other choices represent different types of coverage; for instance, covering personal belongings is typically associated with homeowner’s insurance, while guaranteeing payment for healthcare costs pertains to health insurance, and ensuring compensation for income loss is related to disability or income loss insurance. These coverages serve distinct purposes that do not align with the primary function of liability insurance.