HAWAII ADJUSTER EXAM QUESTIONS AND CORRECT ANSWERS

HAWAII ADJUSTER EXAM QUESTIONS
AND CORRECT ANSWERS
WhichA2ofA2theA2followingA2statementsA2isA2NOTA2TRUEA2regardingA2theA2"ExtendedA2Per
iodA2ofA2Indemnity"A2optionA2ofA2theA2BusinessA2IncomeA2form?A2-A2Ans--
TheA2coverageA2appliesA2forA2120A2daysA2followingA2theA2periodA2ofA2restoration

WhenA2aA2HawaiiA2employeeA2sustainsA2anA2injuryA2requiringA2medicalA2treatmentA2beyo
ndA2firstA2aid,A2howA2longA2doesA2theA2employerA2haveA2toA2reportA2theA2accidentA2toA2the
A2DirectorA2ofA2LaborA2andA2IndustryA2relations?A2-A2Ans--7A2workingA2days


AfterA2payingA2aA2claimA2anA2insuranceA2companyA2mayA2haveA2theA2rightA2toA2pursueA2le
galA2actionA2againstA2theA2negligentA2party.A2ThisA2isA2knownA2as:A2-A2Ans--Subrogation

WhatA2coverageA2underA2theA2BOPA2automaticallyA2appliesA2ifA2aA2customerA2slipsA2andA2
fallsA2onA2theA2namedA2insured'sA2premises,A2regardlessA2ofA2legalA2liability?A2-A2Ans--
MedicalA2expenseA2coverage

AllA2ofA2theA2followingA2areA2examplesA2ofA2unfairA2claimA2practices,A2EXCEPT:A2-A2Ans--
MakingA2claimA2paymentsA2andA2statingA2theA2coverageA2underA2whichA2paymentA2isA2ma
de

WhatA2isA2theA2bondA2requirementA2forA2aA2SurplusA2LinesA2brokerA2licenseA2inA2Hawaii?
A2-A2Ans--$100,000.


WhichA2ofA2theA2followingA2wouldA2beA2coveredA2underA2theA2personalA2propertyA2(conten
ts)A2coverageA2ofA2anA2NFIPA2policy?A2-A2Ans--
TheA2insured'sA2ridingA2lawnA2mowerA2keptA2insideA2anA2attachedA2garage..

TheA2BOPA2hasA2limitationsA2onA2theA2squareA2footageA2inA2regardA2toA2eligibleA2retailA2an
dA2serviceA2risks.A2WhatA2isA2theA2maximumA2squareA2footageA2aA2buildingA2canA2contain
A2andA2stillA2beA2eligibleA2forA2theA2policy?A2-A2Ans--35,000A2squareA2feet


WhatA2isA2theA2purposeA2ofA2theA2HawaiiA2PropertyA2InsuranceA2Association?A2-A2Ans--
ToA2assureA2theA2availabilityA2ofA2basicA2propertyA2insurance.

TheA2NAICA2ModelA2UnfairA2ClaimA2SettlementA2PracticesA2ActA2specifiesA2thatA2theA2ins
uranceA2companyA2mustA2provideA2theA2properA2claimA2formsA2withA2aA2reasonableA2expl
anationA2ofA2howA2toA2useA2themA2toA2theA2claimantA2within:A2-A2Ans--
15A2calendarA2daysA2ofA2theA2request

IfA2anA2agentA2offersA2anA2inducementA2toA2aA2perspectiveA2clientA2inA2anA2attemptA2toA2wr
iteA2hisA2orA2herA2insurance,A2thisA2isA2called:A2-A2Ans--Rebating.

,St.A2Michael'sA2ChurchA2isA2havingA2theirA2annualA2rigatoniA2dinner.A2MaryA2isA2volunteeri
ngA2toA2serveA2theA2guests.A2WhichA2ofA2theA2followingA2situationsA2wouldA2beA2coveredA2
byA2theA2CGLA2forA2theA2church?A2-A2Ans--MaryA2spillsA2hotA2coffeeA2onA2aA2guest

BillA2mayA2beA2negligentA2ifA2he:A2-A2Ans--
FailsA2toA2doA2whatA2aA2reasonablyA2prudentA2personA2wouldA2doA2inA2theA2sameA2circum
stance

AssumeA2aA2HawaiiA2employeeA2isA2injuredA2inA2theA2courseA2ofA2work,A2andA2theA2emplo
yerA2laterA2receivesA2aA2reportA2fromA2theA2treatingA2physicianA2indicatingA2thatA2theA2emp
loyeeA2isA2aA2candidateA2forA2vocationalA2rehabilitation.A2InA2thisA2instance,A2howA2manyA2
daysA2fromA2theA2dateA2ofA2injuryA2mustA2theA2employerA2provideA2informationA2toA2theA2e
mployeeA2regardingA2hisA2orA2herA2rightsA2toA2vocationalA2rehabilitationA2benefits?A2-
A2Ans--120A2days


TheA2MCS-
90A2endorsementA2providesA2coverageA2forA2allA2ofA2theA2following,A2EXCEPT:A2-A2Ans--
PersonalA2injury

NoA2radioA2orA2televisionA2broadcast,A2norA2publishedA2writtenA2communicationA2inA2Haw
aiiA2may:A2-A2Ans--
AdvertiseA2forA2anyA2insurerA2thatA2isA2notA2authorizedA2toA2transactA2insuranceA2inA2Haw
aii

WhichA2ofA2theA2followingA2isA2consideredA2anA2UnfairA2ClaimA2SettlementA2Practice?A2-
A2Ans--
RequiringA2aA2claimantA2toA2submitA2aA2preliminaryA2claimA2reportA2beforeA2movingA2forw
ardA2onA2theA2claim

TheA2EarthquakeA2EndorsementA2toA2aA2HomeownersA2policyA2willA2provideA2coverageA2t
oA2theA2dwellingA2and/orA2personalA2propertyA2withA2theA2deductibleA2statedA2as:A2-A2Ans--
5%A2ofA2theA2limitA2thatA2appliesA2toA2allA2SectionA2IA2coverages

PersonalA2ExcessA2LiabilityA2policiesA2provideA2coverageA2forA2allA2ofA2theA2following,A2EX
CEPT:A2-A2Ans--DamageA2toA2anA2insured'sA2propertyA2dueA2toA2fire.

UnderA2theA2EquipmentA2BreakdownA2ProtectionA2formA2thatA2coversA2boilersA2andA2mac
hinery,A2whatA2isA2consideredA2toA2beA2oneA2lossA2event?A2-A2Ans--
TheA2initialA2breakdownA2thatA2causesA2otherA2breakdowns

CommercialA2inlandA2marineA2policiesA2requireA2theA2insuredA2toA2submitA2aA2signed,A2sw
ornA2statementA2ofA2loss:A2-A2Ans--WithinA260A2daysA2ofA2theA2insurerA2requestingA2it

AnA2insuredA2purchasesA2severalA2differentA2insuranceA2policiesA2thatA2provideA2coverag
eA2inA2anA2amountA2thatA2wouldA2allowA2himA2toA2makeA2aA2profitA2fromA2aA2coveredA2loss.
A2ThisA2isA2knownA2as:A2-A2Ans--Overinsurance

,AllA2ofA2theA2followingA2areA2situationsA2whereA2aA2CommercialA2UmbrellaA2policyA2wouldA
2beA2triggeredA2toA2provideA2coverage,A2EXCEPT:A2-A2Ans--
TheA2underlyingA2liabilityA2policyA2limitsA2areA2sufficientA2toA2payA2theA2entireA2claim

AA2claimA2isA2broughtA2againstA2theA2namedA2insuredA2underA2aA2CGLA2policy.A2BeforeA2s
ettlementA2isA2madeA2theA2insuredA2filesA2forA2bankruptcy.A2ThisA2action:A2-A2Ans--
DoesA2notA2relieveA2theA2insuranceA2companyA2fromA2payingA2theA2claim

WhenA2theA2HawaiiA2CommissionerA2deemsA2thatA2currentA2ratesA2mayA2beA2excessiveA2
andA2mandatesA2thatA2insurersA2submitA2newA2rateA2filings,A2whenA2mustA2theA2newA2filin
gsA2beA2submitted?A2-A2Ans--WithinA2120A2daysA2ofA2theA2mandate

WhichA2ofA2theA2followingA2bestA2describesA2howA2theA2perilA2ofA2"theft"A2isA2coveredA2und
erA2theA21943A2NewA2YorkA2StandardA2FireA2policy?A2-A2Ans--
TheftA2isA2aA2coveredA2perilA2underA2theA2removalA2coverage

InA2situationsA2whereA2theA2insuredA2andA2theA2insurerA2couldA2disagreeA2onA2theA2valueA2
ofA2anA2item,A2itA2wouldA2beA2bestA2toA2insureA2thatA2itemA2onA2a(n)A2__________A2basisA2
-A2Ans--AgreedA2Value

Gottfried,A2anA2insuranceA2agent,A2hasA2postedA2informationA2onlineA2inA2anA2forumA2forA2i
nsuranceA2professionals.A2ThisA2informationA2statedA2thatA2Greta'sA2insuranceA2agencyA2
hasA2beenA2engagingA2inA2rebatingA2andA2herA2appointingA2insurerA2isA2aboutA2toA2fileA2for
A2bankruptcy.A2GottfriedA2knowsA2thisA2informationA2isA2untrue,A2butA2heA2isA2angryA2thatA2
someA2ofA2hisA2clientsA2haveA2recentlyA2leftA2hisA2agencyA2toA2placeA2businessA2withA2Gre
ta.A2WhichA2ofA2theA2followingA2statementsA2isA2trueA2ofA2Gottfried'sA2actions?A2-A2Ans--
GottfriedA2hasA2defamedA2bothA2GretaA2andA2herA2appointingA2insurer,A2anA2unethicalA2an
dA2illegalA2action

AnA2insuredA2whoA2hadA2aA2$500,000A2primaryA2liabilityA2policyA2purchasedA2aA2$1A2millio
nA2UmbrellaA2liabilityA2policyA2withA2aA2$2,000A2self-
insuredA2retentionA2limit.A2Later,A2theA2insuredA2allowedA2theA2requiredA2underlyingA2prim
aryA2policyA2withA2aA2limitA2ofA2$500,000A2toA2expire.A2AA2weekA2afterA2that,A2theA2insuredA
2becameA2liableA2forA2aA2$100,000A2lossA2thatA2isA2notA2excludedA2byA2theA2provisionsA2of
A2eitherA2theA2primaryA2underlyingA2liabilityA2policyA2orA2theA2UmbrellaA2policy.A2HowA2willA
2thisA2lossA2likelyA2beA2settled?A2-A2Ans--
TheA2insuredA2willA2beA2liableA2forA2theA2fullA2$100,000A2loss

TheA2165A2numberedA2linesA2onA2pageA22A2ofA2theA2StandardA2FireA2policyA2covers:A2-
A2Ans--TheA2conditionsA2andA2exclusionsA2ofA2theA2policy.


AllA2ofA2theA2followingA2"personalA2effects"A2wouldA2beA2coveredA2byA2theA2PartA2DA2--
A2AdditionalA2CoverageA2ofA2theA2PersonalA2Watercraft,A2EXCEPT:A2-A2Ans--Jewelry.

, WhichA2ofA2theA2followingA2isA2trueA2regardingA2consultationsA2becauseA2theA2situationA2is
A2lifeA2threateningA2orA2couldA2causeA2seriousA2harm?
I.A2TheA2attendingA2physicianA2willA2notifyA2theA2employerA2asA2soonA2asA2possibleII.A2The
A2consultantA2willA2provideA2aA2copyA2ofA2theA2consultationA2reportA2toA2theA2attendingA2ph
ysicianIII.A2TheA2copyA2ofA2theA2consultationA2reportA2mustA2beA2givenA2toA2theA2employer
A2withinA214A2calendarA2daysA2ofA2theA2examinationA2-A2Ans--I,A2IIA2andA2III


TheA2timeA2periodA2afterA2theA2policyA2inceptionA2andA2beforeA2theA2policyA2expirationA2isA
2knownA2as:A2-A2Ans--TheA2policyA2period


NoA2creditA2willA2beA2givenA2toA2anyA2HawaiiA2producerA2forA2anyA2continuingA2educationA2
courseA2unlessA2thatA2courseA2hasA2receivedA2anA2approvalA2codeA2from:A2-A2Ans--
TheA2HawaiiA2InsuranceA2Commissioner.

WhichA2ofA2theA2followingA2statementsA2BESTA2describesA2theA2reasonA2itA2wasA2necessa
ryA2toA2createA2aA2federalA2floodA2insuranceA2programA2inA21968?A2-A2Ans--
BecauseA2otherA2propertyA2policiesA2routinelyA2excludeA2floodA2fromA2coverage

AnA2insuredA2isA2coveredA2underA2aA2CGLA2policyA2withA2aA2"perA2occurrence"A2limitA2ofA2
$4A2millionA2andA2anA2aggregateA2limitA2ofA2$8A2million.A2TheA2insuredA2alsoA2hasA2aA2Co
mmercialA2UmbrellaA2policyA2withA2aA2$5A2millionA2aggregateA2limitA2andA2aA2$100,000A2S
IR.A2TwoA2coveredA2claimsA2areA2submitted,A2oneA2forA2$4A2millionA2andA2oneA2forA2$5A2m
illion.A2WhatA2amountA2isA2theA2retainedA2limitA2thatA2willA2triggerA2theA2UmbrellaA2policyA2t
oA2payA2onA2theA2claim?A2-A2Ans--$8A2million

WhatA2coverageA2isA2usedA2toA2coverA2damageA2toA2aA2customer'sA2autoA2inA2theA2careA2
andA2custodyA2ofA2aA2repairA2garage?A2-A2Ans--Garagekeeper'sA2liability

AA2landlordA2hasA2wrongfullyA2evictedA2aA2tenant.A2AA2lawsuitA2isA2broughtA2byA2theA2tena
ntA2againstA2theA2landlord.A2TheA2landlordA2wouldA2need:A2-A2Ans--
PersonalA2injuryA2coverage

AnA2insuredA2hasA2purchasedA2CoverageA2AA2andA2CoverageA2BA2ofA2aA2standardA2Busin
essownersA2policyA2andA2theA2limitA2ofA2insuranceA2shownA2inA2theA2DeclarationsA2isA280
%A2ofA2theA2replacementA2costA2value,A2howA2willA2lossesA2beA2settled?A2-A2Ans--
BothA2CoverageA2AA2andA2CoverageA2BA2willA2beA2settledA2onA2aA2replacementA2costA2ba
sis

AnA2officeA2buildingA2isA2limitedA2inA2theA2numberA2ofA2storiesA2itA2mayA2containA2andA2still
A2beA2eligibleA2forA2coverageA2underA2aA2standardA2BusinessownersA2Policy.A2ThisA2numb
erA2is:A2-A2Ans--SixA2stories

IfA2anA2applicantA2forA2anA2insuranceA2licenseA2inA2HawaiiA2failsA2theA2sameA2licensingA2e
xaminationA2onA2twoA2occasions,A2beforeA2permittingA2thatA2applicantA2toA2takeA2theA2stat
eA2examA2again,A2theA2CommissionerA2mayA2requireA2aA2waitingA2periodA2ofA2upA2to:A2-
A2Ans--SixA2months