Hawaii Adjuster Exam Hawaii Insurance Adjuster
License Training: Pass the Exam Fast
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?
✔✔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?
✔✔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? ✔✔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? ✔✔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? ✔✔retention
Purchasing homeowners insurance to protect against the financial risks of home ownership is an
example of what risk management technique? ✔✔transfer
The Gramm-Leach-Bliley Act, the Federal Trade Commission Act, and the Health Insurance
Portability and Accountability Act were enacted to: ✔✔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? ✔✔Rebating
How do a hazard and a peril differ? ✔✔A hazard is a condition that increases the frequency and
severity of loss while a peril is a cause of loss.
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 ✔✔Five years
Which of the following is NOT a power granted to the Hawaii Commissioner of Insurance?
✔✔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 ✔✔15 days
All of the following are elements of a legal contract EXCEPT: ✔✔counteroffer
An insurer may be authorized to transact all of the following types of insurance EXCEPT:
✔✔Bankruptcy
Producers must keep records of insurance transactions for at least how many years ✔✔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? ✔✔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? ✔✔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 ✔✔Unlawful
A producer will violate the prohibition against controlled business if she sells most of her
insurance policies to ✔✔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? ✔✔contractors
equipment floater
A standard workers compensation policy consists of all of the following parts EXCEPT: ✔✔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? ✔✔10
With an ISO CP 00 90 policy, what does the "CP" stand for? ✔✔commercial property
Regarding the business auto policy (BAP), in addition to symbol 1, what other auto coverage
symbol provides non-ownership liability coverage? ✔✔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): ✔✔self-insurer
License Training: Pass the Exam Fast
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?
✔✔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?
✔✔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? ✔✔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? ✔✔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? ✔✔retention
Purchasing homeowners insurance to protect against the financial risks of home ownership is an
example of what risk management technique? ✔✔transfer
The Gramm-Leach-Bliley Act, the Federal Trade Commission Act, and the Health Insurance
Portability and Accountability Act were enacted to: ✔✔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? ✔✔Rebating
How do a hazard and a peril differ? ✔✔A hazard is a condition that increases the frequency and
severity of loss while a peril is a cause of loss.
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 ✔✔Five years
Which of the following is NOT a power granted to the Hawaii Commissioner of Insurance?
✔✔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 ✔✔15 days
All of the following are elements of a legal contract EXCEPT: ✔✔counteroffer
An insurer may be authorized to transact all of the following types of insurance EXCEPT:
✔✔Bankruptcy
Producers must keep records of insurance transactions for at least how many years ✔✔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? ✔✔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? ✔✔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 ✔✔Unlawful
A producer will violate the prohibition against controlled business if she sells most of her
insurance policies to ✔✔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? ✔✔contractors
equipment floater
A standard workers compensation policy consists of all of the following parts EXCEPT: ✔✔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? ✔✔10
With an ISO CP 00 90 policy, what does the "CP" stand for? ✔✔commercial property
Regarding the business auto policy (BAP), in addition to symbol 1, what other auto coverage
symbol provides non-ownership liability coverage? ✔✔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): ✔✔self-insurer
