HAWAII LIFE AND HEALTH INSURANCE
EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS 2025 (VERIFIED
ANSWERS) PLUS RATIONALES
1. What type of policy pays a benefit only if the insured dies within the policy
term?
a) Whole life
b) Endowment
c) Term life
d) Universal life
Term life insurance provides coverage for a specific period and pays a
death benefit only if the insured dies during that period.
2. Which of the following is a non-forfeiture option in a whole life policy?
a) Paid-up additions
b) Cash surrender value
c) Increasing term
d) Extended term
, Cash surrender value is a non-forfeiture option that allows the
policyholder to receive the policy’s accumulated cash value if the policy is
surrendered.
3. What is the purpose of the incontestability clause in a life insurance policy?
a) To limit the insured's death benefit
b) To prevent the insurer from voiding the policy after two years
c) To allow the insurer to contest any claim
d) To extend the policy’s term
The incontestability clause prohibits the insurer from contesting the policy
after it has been in force for two years, except in cases of fraud.
4. Which type of health insurance policy covers hospital and medical expenses
due to illness or injury?
a) Disability income insurance
b) Long-term care insurance
c) Medical expense insurance
d) Accident-only insurance
Medical expense insurance covers the cost of hospital and medical
services for illness or injury.
5. Under Hawaii law, which entity regulates insurance companies?
a) Hawaii Department of Commerce and Consumer Affairs
b) Hawaii Insurance Division
c) Hawaii Insurance Commission
d) Hawaii State Insurance Board
, The Hawaii Insurance Division oversees the regulation of insurance
companies in the state.
6. Which of the following is NOT a characteristic of group insurance?
a) One master policy for all insureds
b) Individual underwriting for each member
c) Usually less expensive than individual insurance
d) Usually covers a large number of people
Group insurance typically uses experience or community rating rather
than individual underwriting for each member.
7. Which rider allows the policyholder to purchase additional insurance
without providing evidence of insurability?
a) Waiver of premium
b) Accidental death
c) Guaranteed insurability
d) Accelerated death benefit
The guaranteed insurability rider lets the insured buy more coverage at
specified times without proving health status.
8. What does a coinsurance clause in a health insurance policy require?
a) The insurer pays all expenses
b) The insured shares a percentage of the costs
c) The insurer pays after a deductible is met
d) The insured pays no out-of-pocket costs
Coinsurance requires the insured to pay a certain percentage of covered
expenses after the deductible.
EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS 2025 (VERIFIED
ANSWERS) PLUS RATIONALES
1. What type of policy pays a benefit only if the insured dies within the policy
term?
a) Whole life
b) Endowment
c) Term life
d) Universal life
Term life insurance provides coverage for a specific period and pays a
death benefit only if the insured dies during that period.
2. Which of the following is a non-forfeiture option in a whole life policy?
a) Paid-up additions
b) Cash surrender value
c) Increasing term
d) Extended term
, Cash surrender value is a non-forfeiture option that allows the
policyholder to receive the policy’s accumulated cash value if the policy is
surrendered.
3. What is the purpose of the incontestability clause in a life insurance policy?
a) To limit the insured's death benefit
b) To prevent the insurer from voiding the policy after two years
c) To allow the insurer to contest any claim
d) To extend the policy’s term
The incontestability clause prohibits the insurer from contesting the policy
after it has been in force for two years, except in cases of fraud.
4. Which type of health insurance policy covers hospital and medical expenses
due to illness or injury?
a) Disability income insurance
b) Long-term care insurance
c) Medical expense insurance
d) Accident-only insurance
Medical expense insurance covers the cost of hospital and medical
services for illness or injury.
5. Under Hawaii law, which entity regulates insurance companies?
a) Hawaii Department of Commerce and Consumer Affairs
b) Hawaii Insurance Division
c) Hawaii Insurance Commission
d) Hawaii State Insurance Board
, The Hawaii Insurance Division oversees the regulation of insurance
companies in the state.
6. Which of the following is NOT a characteristic of group insurance?
a) One master policy for all insureds
b) Individual underwriting for each member
c) Usually less expensive than individual insurance
d) Usually covers a large number of people
Group insurance typically uses experience or community rating rather
than individual underwriting for each member.
7. Which rider allows the policyholder to purchase additional insurance
without providing evidence of insurability?
a) Waiver of premium
b) Accidental death
c) Guaranteed insurability
d) Accelerated death benefit
The guaranteed insurability rider lets the insured buy more coverage at
specified times without proving health status.
8. What does a coinsurance clause in a health insurance policy require?
a) The insurer pays all expenses
b) The insured shares a percentage of the costs
c) The insurer pays after a deductible is met
d) The insured pays no out-of-pocket costs
Coinsurance requires the insured to pay a certain percentage of covered
expenses after the deductible.
