Hawaii Adjuster Exam EXAM (updated 2026) Questions & Answers | Latest
Already Graded A+ UPDATE 2025|2026
Alex sold an insurance policy before his license lapsed and earned a commission on the sale. If the policy
is renewed, which of the following statements is TRUE regarding his commission? - (ANSWER)He can
receive a commission because he was licensed when the policy was sold.
Ned just bought a homeowners policy from Main Street Insurance Company. However, he did not
disclose that he operated a lawn mower repair business in his garage and that he employed two
mechanics. On what grounds might the insurer deny coverage in the event of a claim? -
(ANSWER)concealment
Sam purchased a fire insurance policy on an old building with the intention of setting fire to the building
and collecting the insurance. For what reason did the insurance company decline to pay Sam's claim,
citing the policy was not a legal contract? - (ANSWER)Sam entered into the contract for an illegal
purpose.
Which of the following is an example of a risk avoidance technique for someone who wants to avoid the
risk of being sued because her dog bit someone? - (ANSWER)do not own a dog
Mr. Davidson does not own car insurance. If his car sustains a loss, he will pay for the damages and
injuries himself. What method of handling risk has he chosen? - (ANSWER)retention
Purchasing homeowners insurance to protect against the financial risks of home ownership is an
example of what risk management technique? - (ANSWER)transfer
The Gramm-Leach-Bliley Act, the Federal Trade Commission Act, and the Health Insurance Portability
and Accountability Act were enacted to: - (ANSWER)protect the privacy of consumers' information
To increase sales, Trudy offers potential clients a $250 gift card in exchange for buying an insurance
policy. Which unethical sales practice is Trudy committing? - (ANSWER)Rebating
How do a hazard and a peril differ? - (ANSWER)A hazard is a condition that increases the frequency and
severity of loss while a peril is a cause of loss.
,Hawaii Adjuster Exam EXAM (updated 2026) Questions & Answers | Latest
Already Graded A+ UPDATE 2025|2026
The Commissioner of Insurance can examine the business transactions, accounts, and records of insurers
as often as necessary, but must do so at least once every - (ANSWER)Five years
Which of the following is NOT a power granted to the Hawaii Commissioner of Insurance? -
(ANSWER)Prosecuting individuals for violating insurance laws
Anthony becomes a producer for Acme Insurance Company. Acme has not filed the notice of
appointment with the Hawaii Insurance Commissioner. It must do so within - (ANSWER)15 days
All of the following are elements of a legal contract EXCEPT: - (ANSWER)counteroffer
An insurer may be authorized to transact all of the following types of insurance EXCEPT: -
(ANSWER)Bankruptcy
Producers must keep records of insurance transactions for at least how many years - (ANSWER)Five
Erica, Connor, Shannon, and Manuel are licensed producers in Hawaii. The Commissioner would most
likely NOT suspend or revoke which producer's license for engaging in the following activities? -
(ANSWER)Connor, who was charged with a misdemeanor for a traffic accident
Needing the money, Ted burns down his house to collect the insurance proceeds. On what grounds
might the insurance company deny coverage if it can show that Ted intentionally burned the house
down? - (ANSWER)fraud
Holly routinely charges her clients a small fee in addition to the premium stated in the insurance policy
to cover her own personal administrative expenses. Holly's actions are - (ANSWER)Unlawful
, Hawaii Adjuster Exam EXAM (updated 2026) Questions & Answers | Latest
Already Graded A+ UPDATE 2025|2026
A producer will violate the prohibition against controlled business if she sells most of her insurance
policies to - (ANSWER)Employees of a business owned by her husband
Campbell Construction Company builds foundations for a variety of building structures. It uses heavy
equipment to move earth and mix and transport cement. Aside from commercial auto insurance, what
type of inland marine coverage would cover the equipment? - (ANSWER)contractors equipment floater
A standard workers compensation policy consists of all of the following parts EXCEPT: - (ANSWER)Part
Four - General Liability Insurance
The business auto policy (BAP) uses how many different numerical "symbols" to represent the different
types of autos that may be covered? - (ANSWER)10
With an ISO CP 00 90 policy, what does the "CP" stand for? - (ANSWER)commercial property
Regarding the business auto policy (BAP), in addition to symbol 1, what other auto coverage symbol
provides non-ownership liability coverage? - (ANSWER)symbol 9
A company that does not want to buy workers compensation insurance may comply with the state's
requirement to provide it to employees by depositing with the state securities in a specified amount. In
effect this means becoming a(n): - (ANSWER)self-insurer
The right of an employee to benefits under workers' compensation law does NOT exist if the injury -
(ANSWER)Was intentionally self-inflicted
Nelson Contracting is located in New York and has a commercial general liability (CGL) policy. It
undertakes a new project at location in Paris, France, and does not buy separate insurance for the new
location. Shortly after beginning the new project, the Paris location receives a completed operations
liability claim. How does the CGL policy respond? - (ANSWER)It denies the claim.
Already Graded A+ UPDATE 2025|2026
Alex sold an insurance policy before his license lapsed and earned a commission on the sale. If the policy
is renewed, which of the following statements is TRUE regarding his commission? - (ANSWER)He can
receive a commission because he was licensed when the policy was sold.
Ned just bought a homeowners policy from Main Street Insurance Company. However, he did not
disclose that he operated a lawn mower repair business in his garage and that he employed two
mechanics. On what grounds might the insurer deny coverage in the event of a claim? -
(ANSWER)concealment
Sam purchased a fire insurance policy on an old building with the intention of setting fire to the building
and collecting the insurance. For what reason did the insurance company decline to pay Sam's claim,
citing the policy was not a legal contract? - (ANSWER)Sam entered into the contract for an illegal
purpose.
Which of the following is an example of a risk avoidance technique for someone who wants to avoid the
risk of being sued because her dog bit someone? - (ANSWER)do not own a dog
Mr. Davidson does not own car insurance. If his car sustains a loss, he will pay for the damages and
injuries himself. What method of handling risk has he chosen? - (ANSWER)retention
Purchasing homeowners insurance to protect against the financial risks of home ownership is an
example of what risk management technique? - (ANSWER)transfer
The Gramm-Leach-Bliley Act, the Federal Trade Commission Act, and the Health Insurance Portability
and Accountability Act were enacted to: - (ANSWER)protect the privacy of consumers' information
To increase sales, Trudy offers potential clients a $250 gift card in exchange for buying an insurance
policy. Which unethical sales practice is Trudy committing? - (ANSWER)Rebating
How do a hazard and a peril differ? - (ANSWER)A hazard is a condition that increases the frequency and
severity of loss while a peril is a cause of loss.
,Hawaii Adjuster Exam EXAM (updated 2026) Questions & Answers | Latest
Already Graded A+ UPDATE 2025|2026
The Commissioner of Insurance can examine the business transactions, accounts, and records of insurers
as often as necessary, but must do so at least once every - (ANSWER)Five years
Which of the following is NOT a power granted to the Hawaii Commissioner of Insurance? -
(ANSWER)Prosecuting individuals for violating insurance laws
Anthony becomes a producer for Acme Insurance Company. Acme has not filed the notice of
appointment with the Hawaii Insurance Commissioner. It must do so within - (ANSWER)15 days
All of the following are elements of a legal contract EXCEPT: - (ANSWER)counteroffer
An insurer may be authorized to transact all of the following types of insurance EXCEPT: -
(ANSWER)Bankruptcy
Producers must keep records of insurance transactions for at least how many years - (ANSWER)Five
Erica, Connor, Shannon, and Manuel are licensed producers in Hawaii. The Commissioner would most
likely NOT suspend or revoke which producer's license for engaging in the following activities? -
(ANSWER)Connor, who was charged with a misdemeanor for a traffic accident
Needing the money, Ted burns down his house to collect the insurance proceeds. On what grounds
might the insurance company deny coverage if it can show that Ted intentionally burned the house
down? - (ANSWER)fraud
Holly routinely charges her clients a small fee in addition to the premium stated in the insurance policy
to cover her own personal administrative expenses. Holly's actions are - (ANSWER)Unlawful
, Hawaii Adjuster Exam EXAM (updated 2026) Questions & Answers | Latest
Already Graded A+ UPDATE 2025|2026
A producer will violate the prohibition against controlled business if she sells most of her insurance
policies to - (ANSWER)Employees of a business owned by her husband
Campbell Construction Company builds foundations for a variety of building structures. It uses heavy
equipment to move earth and mix and transport cement. Aside from commercial auto insurance, what
type of inland marine coverage would cover the equipment? - (ANSWER)contractors equipment floater
A standard workers compensation policy consists of all of the following parts EXCEPT: - (ANSWER)Part
Four - General Liability Insurance
The business auto policy (BAP) uses how many different numerical "symbols" to represent the different
types of autos that may be covered? - (ANSWER)10
With an ISO CP 00 90 policy, what does the "CP" stand for? - (ANSWER)commercial property
Regarding the business auto policy (BAP), in addition to symbol 1, what other auto coverage symbol
provides non-ownership liability coverage? - (ANSWER)symbol 9
A company that does not want to buy workers compensation insurance may comply with the state's
requirement to provide it to employees by depositing with the state securities in a specified amount. In
effect this means becoming a(n): - (ANSWER)self-insurer
The right of an employee to benefits under workers' compensation law does NOT exist if the injury -
(ANSWER)Was intentionally self-inflicted
Nelson Contracting is located in New York and has a commercial general liability (CGL) policy. It
undertakes a new project at location in Paris, France, and does not buy separate insurance for the new
location. Shortly after beginning the new project, the Paris location receives a completed operations
liability claim. How does the CGL policy respond? - (ANSWER)It denies the claim.
