Ace the Rhode Island Insurance Adjuster Exam 2025 – Unlock Your Claims Future with Confidence!

Question: 1 / 400

What does the term insurer's liability refer to?

The obligation to promote safety to policyholders

The legal obligation to pay claims covered under a policy

Insurer's liability specifically refers to the legal obligation that an insurance company has to pay claims that are covered under an insurance policy. This encompasses the promises made within the policy terms, which include coverage for specified risks and circumstances. When a loss occurs that falls within the parameters of the insurance policy, the insurer is required to fulfill its contractual duty and provide financial compensation or services to the insured party.

This concept is central to the operation of insurance as a whole, as it forms the foundation of trust between policyholders and insurers. Clients expect that when they purchase insurance, they will receive coverage for valid claims, and the insurer's liability directly addresses this essential aspect of the insurance contract.

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The responsibility for underwriting risks

The requirement to provide customer service

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