Which of the following statements is NOT TRUE regarding the "Extended Period of Indem-
nity" option of the Business Income form? - ANSWER The coverage applies for 120 days
following the period of restoration
When a Hawaii employee sustains an injury requiring medical treatment beyond first aid,
how long does the employer have to report the accident to the Director of Labor and Indus-
try relations? - ANSWER 7 working days
After paying a claim an insurance company may have the right to pursue legal action against
the negligent party. This is known as: - ANSWER Subrogation
What coverage under the BOP automatically applies if a customer slips and falls on the
named insured's premises, regardless of legal liability? - ANSWER Medical expense cover-
age
All of the following are examples of unfair claim practices, EXCEPT: - ANSWER Making
claim payments and stating the coverage under which payment is made
What is the bond requirement for a Surplus Lines broker license in Hawaii? - ANSWER
$100,000.
Which of the following would be covered under the personal property (contents) coverage
of an NFIP policy? - ANSWER The insured's riding lawn mower kept inside an attached
garage..
1
,The BOP has limitations on the square footage in regard to eligible retail and service risks.
What is the maximum square footage a building can contain and still be eligible for the pol-
icy? - ANSWER 35,000 square feet
What is the purpose of the Hawaii Property Insurance Association? - ANSWER To assure
the availability of basic property insurance.
The NAIC Model Unfair Claim Settlement Practices Act specifies that the insurance company
must provide the proper claim forms with a reasonable explanation of how to use them to
the claimant within: - ANSWER 15 calendar days of the request
If an agent offers an inducement to a perspective client in an attempt to write his or her in-
surance, this is called: - ANSWER Rebating.
St. Michael's Church is having their annual rigatoni dinner. Mary is volunteering to serve the
guests. Which of the following situations would be covered by the CGL for the church? - AN-
SWER Mary spills hot coffee on a guest
Bill may be negligent if he: - ANSWER Fails to do what a reasonably prudent person
would do in the same circumstance
Assume a Hawaii employee is injured in the course of work, and the employer later receives
a report from the treating physician indicating that the employee is a candidate for voca-
tional rehabilitation. In this instance, how many days from the date of injury must the em-
ployer provide information to the employee regarding his or her rights to vocational rehabili-
tation benefits? - ANSWER 120 days
The MCS-90 endorsement provides coverage for all of the following, EXCEPT: - ANSWER
Personal injury
No radio or television broadcast, nor published written communication in Hawaii may: - AN-
SWER Advertise for any insurer that is not authorized to transact insurance in Hawaii
2
,Which of the following is considered an Unfair Claim Settlement Practice? - ANSWER Re-
quiring a claimant to submit a preliminary claim report before moving forward on the claim
The Earthquake Endorsement to a Homeowners policy will provide coverage to the dwelling
and/or personal property with the deductible stated as: - ANSWER 5% of the limit that
applies to all Section I coverages
Personal Excess Liability policies provide coverage for all of the following, EXCEPT: - AN-
SWER Damage to an insured's property due to fire.
Under the Equipment Breakdown Protection form that covers boilers and machinery, what is
considered to be one loss event? - ANSWER The initial breakdown that causes other
breakdowns
Commercial inland marine policies require the insured to submit a signed, sworn statement
of loss: - ANSWER Within 60 days of the insurer requesting it
An insured purchases several different insurance policies that provide coverage in an amount
that would allow him to make a profit from a covered loss. This is known as: - ANSWER
Overinsurance
All of the following are situations where a Commercial Umbrella policy would be triggered to
provide coverage, EXCEPT: - ANSWER The underlying liability policy limits are sufficient to
pay the entire claim
A claim is brought against the named insured under a CGL policy. Before settlement is made
the insured files for bankruptcy. This action: - ANSWER Does not relieve the insurance
company from paying the claim
3
, When the Hawaii Commissioner deems that current rates may be excessive and mandates
that insurers submit new rate filings, when must the new filings be submitted? - ANSWER
Within 120 days of the mandate
Which of the following best describes how the peril of "theft" is covered under the 1943
New York Standard Fire policy? - ANSWER Theft is a covered peril under the removal cov-
erage
In situations where the insured and the insurer could disagree on the value of an item, it
would be best to insure that item on a(n) __________ basis - ANSWER Agreed Value
Gottfried, an insurance agent, has posted information online in an forum for insurance pro-
fessionals. This information stated that Greta's insurance agency has been engaging in rebat-
ing and her appointing insurer is about to file for bankruptcy. Gottfried knows this infor-
mation is untrue, but he is angry that some of his clients have recently left his agency to
place business with Greta. Which of the following statements is true of Gottfried's actions? -
ANSWER Gottfried has defamed both Greta and her appointing insurer, an unethical and
illegal action
An insured who had a $500,000 primary liability policy purchased a $1 million Umbrella lia-
bility policy with a $2,000 self-insured retention limit. Later, the insured allowed the re-
quired underlying primary policy with a limit of $500,000 to expire. A week after that, the
insured became liable for a $100,000 loss that is not excluded by the provisions of either the
primary underlying liability policy or the Umbrella policy. How will this loss likely be settled?
- ANSWER The insured will be liable for the full $100,000 loss
The 165 numbered lines on page 2 of the Standard Fire policy covers: - ANSWER The con-
ditions and exclusions of the policy.
All of the following "personal effects" would be covered by the Part D -- Additional Coverage
of the Personal Watercraft, EXCEPT: - ANSWER Jewelry.
4
nity" option of the Business Income form? - ANSWER The coverage applies for 120 days
following the period of restoration
When a Hawaii employee sustains an injury requiring medical treatment beyond first aid,
how long does the employer have to report the accident to the Director of Labor and Indus-
try relations? - ANSWER 7 working days
After paying a claim an insurance company may have the right to pursue legal action against
the negligent party. This is known as: - ANSWER Subrogation
What coverage under the BOP automatically applies if a customer slips and falls on the
named insured's premises, regardless of legal liability? - ANSWER Medical expense cover-
age
All of the following are examples of unfair claim practices, EXCEPT: - ANSWER Making
claim payments and stating the coverage under which payment is made
What is the bond requirement for a Surplus Lines broker license in Hawaii? - ANSWER
$100,000.
Which of the following would be covered under the personal property (contents) coverage
of an NFIP policy? - ANSWER The insured's riding lawn mower kept inside an attached
garage..
1
,The BOP has limitations on the square footage in regard to eligible retail and service risks.
What is the maximum square footage a building can contain and still be eligible for the pol-
icy? - ANSWER 35,000 square feet
What is the purpose of the Hawaii Property Insurance Association? - ANSWER To assure
the availability of basic property insurance.
The NAIC Model Unfair Claim Settlement Practices Act specifies that the insurance company
must provide the proper claim forms with a reasonable explanation of how to use them to
the claimant within: - ANSWER 15 calendar days of the request
If an agent offers an inducement to a perspective client in an attempt to write his or her in-
surance, this is called: - ANSWER Rebating.
St. Michael's Church is having their annual rigatoni dinner. Mary is volunteering to serve the
guests. Which of the following situations would be covered by the CGL for the church? - AN-
SWER Mary spills hot coffee on a guest
Bill may be negligent if he: - ANSWER Fails to do what a reasonably prudent person
would do in the same circumstance
Assume a Hawaii employee is injured in the course of work, and the employer later receives
a report from the treating physician indicating that the employee is a candidate for voca-
tional rehabilitation. In this instance, how many days from the date of injury must the em-
ployer provide information to the employee regarding his or her rights to vocational rehabili-
tation benefits? - ANSWER 120 days
The MCS-90 endorsement provides coverage for all of the following, EXCEPT: - ANSWER
Personal injury
No radio or television broadcast, nor published written communication in Hawaii may: - AN-
SWER Advertise for any insurer that is not authorized to transact insurance in Hawaii
2
,Which of the following is considered an Unfair Claim Settlement Practice? - ANSWER Re-
quiring a claimant to submit a preliminary claim report before moving forward on the claim
The Earthquake Endorsement to a Homeowners policy will provide coverage to the dwelling
and/or personal property with the deductible stated as: - ANSWER 5% of the limit that
applies to all Section I coverages
Personal Excess Liability policies provide coverage for all of the following, EXCEPT: - AN-
SWER Damage to an insured's property due to fire.
Under the Equipment Breakdown Protection form that covers boilers and machinery, what is
considered to be one loss event? - ANSWER The initial breakdown that causes other
breakdowns
Commercial inland marine policies require the insured to submit a signed, sworn statement
of loss: - ANSWER Within 60 days of the insurer requesting it
An insured purchases several different insurance policies that provide coverage in an amount
that would allow him to make a profit from a covered loss. This is known as: - ANSWER
Overinsurance
All of the following are situations where a Commercial Umbrella policy would be triggered to
provide coverage, EXCEPT: - ANSWER The underlying liability policy limits are sufficient to
pay the entire claim
A claim is brought against the named insured under a CGL policy. Before settlement is made
the insured files for bankruptcy. This action: - ANSWER Does not relieve the insurance
company from paying the claim
3
, When the Hawaii Commissioner deems that current rates may be excessive and mandates
that insurers submit new rate filings, when must the new filings be submitted? - ANSWER
Within 120 days of the mandate
Which of the following best describes how the peril of "theft" is covered under the 1943
New York Standard Fire policy? - ANSWER Theft is a covered peril under the removal cov-
erage
In situations where the insured and the insurer could disagree on the value of an item, it
would be best to insure that item on a(n) __________ basis - ANSWER Agreed Value
Gottfried, an insurance agent, has posted information online in an forum for insurance pro-
fessionals. This information stated that Greta's insurance agency has been engaging in rebat-
ing and her appointing insurer is about to file for bankruptcy. Gottfried knows this infor-
mation is untrue, but he is angry that some of his clients have recently left his agency to
place business with Greta. Which of the following statements is true of Gottfried's actions? -
ANSWER Gottfried has defamed both Greta and her appointing insurer, an unethical and
illegal action
An insured who had a $500,000 primary liability policy purchased a $1 million Umbrella lia-
bility policy with a $2,000 self-insured retention limit. Later, the insured allowed the re-
quired underlying primary policy with a limit of $500,000 to expire. A week after that, the
insured became liable for a $100,000 loss that is not excluded by the provisions of either the
primary underlying liability policy or the Umbrella policy. How will this loss likely be settled?
- ANSWER The insured will be liable for the full $100,000 loss
The 165 numbered lines on page 2 of the Standard Fire policy covers: - ANSWER The con-
ditions and exclusions of the policy.
All of the following "personal effects" would be covered by the Part D -- Additional Coverage
of the Personal Watercraft, EXCEPT: - ANSWER Jewelry.
4
