HAWAII ADJUSTER FINAL TEST 2026
QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ Peril.
Answer: Something that causes a loss.
◍ What type of insurance may be sold in Hawaii by unauthorized insurers?.
Answer: Surplus Lines insurance, Group life or health, Ocean Marine
◍ When selling a Surplus Lines policy, a Surplus Lines Broker must collect
how much in tax?.
Answer: 4.68%
◍ Hazard.
Answer: Something that increases the probability that a loss will occur.
◍ All fire insurance policies sold in Hawaii must conform to what?.
Answer: The 1943 New York Standard Fire policy or its equivalent.
◍ How must Underinsured/Uninsured motorist coverage be rejected?.
Answer: In writing by the client.
◍ Who would a customer hire to help them settle an insurance claim?.
Answer: A public adjuster.
◍ Warranty.
Answer: A policy condition, either based on information in the insureds
application or inserted by the insurer. It is a guarantee of a fact.
◍ In what situation would a temporary license be issued?.
Answer: If a producer dies/enters active military service
◍ Misrepresentation.
, Answer: An untrue statement by the insured, made in an application for
insurance but which does not become a part of the policy.
◍ Concealment.
Answer: The failure of the insured to reveal relevant facts known to the
insured in applying for insurance.
◍ Abandonment.
Answer: Property insurance policies usually contain an abandonment clause,
stating the insured cannot dump damaged property on the insurer and
demand its full value.
◍ Severability.
Answer: The insurance applies separately to each insured as if other insureds
did not exist.
◍ Proximate Cause.
Answer: The cause having the most significant impact in bringing about the
loss under a first-party property insurance policy, when two or more
independent perils operate at the same time (i.e., concurrently) to produce a
loss. Courts employ a set of rules to resolve causation disputes when a
property policy states that it covers or excludes losses "caused by" a peril
and there is more than one peril at work in a fact pattern. Under common
law, whether the policy provides coverage depends on which peril is chosen
as the proximate cause.
◍ What is controlled business?.
Answer: Any coverage written on a producer's own life, health or property,
and/or that of the producer's immediate family or business associates
◍ Direct Loss.
Answer: Physical harm to tangible property.
◍ Indirect Loss.
Answer: Economic loss which flows as a result of direct loss.
◍ Actual Cash Value(ACV).
, Answer: Replacement Cost minus Depreciation
◍ Any auto insurance policy issued in Hawaii must offer how much
coverage?.
Answer: 20/40/10 & $10,000 PIP
◍ A Producer is deemed to be engaging in controlled business if the aggregate
premiums on controlled business exceeds what percentage of total
premiums?.
Answer: 50%
◍ Coinsurance.
Answer: The amount, generally expressed as a fixed percentage, an insured
must pay against a claim after the deductible is satisfied. It's ultimately a
way for the insured and insurer to share responsibility for the risk. It can
also help reduce the cost of the insurance policy premium. Coinsurance can
be written on an 80/20, 90/100, or 100% rule.
◍ The Producer has used the policy premium to pay for necessary office
expenses. This is an example of what?.
Answer: Embezzlement
◍ Personal Contract.
Answer: Policies cover people who own and operate things, such as
automobiles.
◍ If the Commissioner believes that a Producer or Insurer is violating state
laws, what must the Commissioner do?.
Answer: Notify the party and schedule a hearing within 15 days.
◍ Conditional Contract.
Answer: Also called a hypothetical contract, is a contract agreement that
only requires performance once the delineated conditions are met. This legal
agreement requires prior performance of another agreement or clause in
order to be enforceable. If the other agreement or condition is performed,
then the conditional contract is enforceable and the parties are bound to
carry out the terms of the contract.
, ◍ Offering free stock with the purchase of a policy is an example of what?.
Answer: Rebating
◍ Contract of Indemnity.
Answer: Principle of insurance that provides that when a loss occurs, the
insured should be restored to the approximate financial condition he/she
occupied before the loss occurred, no better or no worse.
◍ Insurable Interest.
Answer: the reasonable concern of a person to obtain insurance for any
individual or property against unforeseen events such as death, losses, etc.
◍ Who does an independent adjuster represent?.
Answer: The Insurer.
◍ Waiver.
Answer: 1.) Implied voluntary relinquishment, abandoning a legal
advantage, need, claim or right. 2.) Agreement or added clause of a policy
that excludes some losses or limits the sum of a claim, or extends coverage
to add items not in a normal policy.
◍ Guaranty Association was created to do what?.
Answer: Take control of an insolvent insurance company and provides the
funds to pay for claims that the company is unable to pay.
◍ Making false statements about an insurer is called what?.
Answer: Defamation
◍ How many years of continuing education records are Producers required to
keep?.
Answer: 4 years
◍ Express Waiver.
Answer: Occurs when the insurer or its representative knowingly gives up a
known right under the insurance contract.
◍ A Producer must keep transaction records for how many years?.
Answer: 5 years
QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ Peril.
Answer: Something that causes a loss.
◍ What type of insurance may be sold in Hawaii by unauthorized insurers?.
Answer: Surplus Lines insurance, Group life or health, Ocean Marine
◍ When selling a Surplus Lines policy, a Surplus Lines Broker must collect
how much in tax?.
Answer: 4.68%
◍ Hazard.
Answer: Something that increases the probability that a loss will occur.
◍ All fire insurance policies sold in Hawaii must conform to what?.
Answer: The 1943 New York Standard Fire policy or its equivalent.
◍ How must Underinsured/Uninsured motorist coverage be rejected?.
Answer: In writing by the client.
◍ Who would a customer hire to help them settle an insurance claim?.
Answer: A public adjuster.
◍ Warranty.
Answer: A policy condition, either based on information in the insureds
application or inserted by the insurer. It is a guarantee of a fact.
◍ In what situation would a temporary license be issued?.
Answer: If a producer dies/enters active military service
◍ Misrepresentation.
, Answer: An untrue statement by the insured, made in an application for
insurance but which does not become a part of the policy.
◍ Concealment.
Answer: The failure of the insured to reveal relevant facts known to the
insured in applying for insurance.
◍ Abandonment.
Answer: Property insurance policies usually contain an abandonment clause,
stating the insured cannot dump damaged property on the insurer and
demand its full value.
◍ Severability.
Answer: The insurance applies separately to each insured as if other insureds
did not exist.
◍ Proximate Cause.
Answer: The cause having the most significant impact in bringing about the
loss under a first-party property insurance policy, when two or more
independent perils operate at the same time (i.e., concurrently) to produce a
loss. Courts employ a set of rules to resolve causation disputes when a
property policy states that it covers or excludes losses "caused by" a peril
and there is more than one peril at work in a fact pattern. Under common
law, whether the policy provides coverage depends on which peril is chosen
as the proximate cause.
◍ What is controlled business?.
Answer: Any coverage written on a producer's own life, health or property,
and/or that of the producer's immediate family or business associates
◍ Direct Loss.
Answer: Physical harm to tangible property.
◍ Indirect Loss.
Answer: Economic loss which flows as a result of direct loss.
◍ Actual Cash Value(ACV).
, Answer: Replacement Cost minus Depreciation
◍ Any auto insurance policy issued in Hawaii must offer how much
coverage?.
Answer: 20/40/10 & $10,000 PIP
◍ A Producer is deemed to be engaging in controlled business if the aggregate
premiums on controlled business exceeds what percentage of total
premiums?.
Answer: 50%
◍ Coinsurance.
Answer: The amount, generally expressed as a fixed percentage, an insured
must pay against a claim after the deductible is satisfied. It's ultimately a
way for the insured and insurer to share responsibility for the risk. It can
also help reduce the cost of the insurance policy premium. Coinsurance can
be written on an 80/20, 90/100, or 100% rule.
◍ The Producer has used the policy premium to pay for necessary office
expenses. This is an example of what?.
Answer: Embezzlement
◍ Personal Contract.
Answer: Policies cover people who own and operate things, such as
automobiles.
◍ If the Commissioner believes that a Producer or Insurer is violating state
laws, what must the Commissioner do?.
Answer: Notify the party and schedule a hearing within 15 days.
◍ Conditional Contract.
Answer: Also called a hypothetical contract, is a contract agreement that
only requires performance once the delineated conditions are met. This legal
agreement requires prior performance of another agreement or clause in
order to be enforceable. If the other agreement or condition is performed,
then the conditional contract is enforceable and the parties are bound to
carry out the terms of the contract.
, ◍ Offering free stock with the purchase of a policy is an example of what?.
Answer: Rebating
◍ Contract of Indemnity.
Answer: Principle of insurance that provides that when a loss occurs, the
insured should be restored to the approximate financial condition he/she
occupied before the loss occurred, no better or no worse.
◍ Insurable Interest.
Answer: the reasonable concern of a person to obtain insurance for any
individual or property against unforeseen events such as death, losses, etc.
◍ Who does an independent adjuster represent?.
Answer: The Insurer.
◍ Waiver.
Answer: 1.) Implied voluntary relinquishment, abandoning a legal
advantage, need, claim or right. 2.) Agreement or added clause of a policy
that excludes some losses or limits the sum of a claim, or extends coverage
to add items not in a normal policy.
◍ Guaranty Association was created to do what?.
Answer: Take control of an insolvent insurance company and provides the
funds to pay for claims that the company is unable to pay.
◍ Making false statements about an insurer is called what?.
Answer: Defamation
◍ How many years of continuing education records are Producers required to
keep?.
Answer: 4 years
◍ Express Waiver.
Answer: Occurs when the insurer or its representative knowingly gives up a
known right under the insurance contract.
◍ A Producer must keep transaction records for how many years?.
Answer: 5 years
