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2025,,Hawaii Adjuster Exam study guide
COMPLETE EXAM Questions and Answers
(Verified Answers) (Latest Update 2025)
UPDATE!!
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?
Ans: 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? Ans: 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?
Ans: 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? Ans: 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? Ans: retention
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Purchasing homeowners insurance to protect against the
financial risks of home ownership is an example of what risk
management technique? Ans: transfer
The Gramm-Leach-Bliley Act, the Federal Trade Commission
Act, and the Health Insurance Portability and Accountability Act
were enacted to: Ans: 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? Ans: Rebating
How do a hazard and a peril differ? Ans: 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 Ans: Five years
Which of the following is NOT a power granted to the Hawaii
Commissioner of Insurance? Ans: 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 Ans: 15 days
All of the following are elements of a legal contract EXCEPT:
Ans: counteroffer
An insurer may be authorized to transact all of the following
types of insurance EXCEPT: Ans: Bankruptcy
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Producers must keep records of insurance transactions for at
least how many years Ans: 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? Ans: 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? Ans: 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 Ans:
Unlawful
A producer will violate the prohibition against controlled
business if she sells most of her insurance policies to Ans:
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? Ans: contractors equipment floater
A standard workers compensation policy consists of all of the
following parts EXCEPT: Ans: Part Four - General Liability
Insurance
2025,,Hawaii Adjuster Exam study guide
COMPLETE EXAM Questions and Answers
(Verified Answers) (Latest Update 2025)
UPDATE!!
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?
Ans: 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? Ans: 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?
Ans: 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? Ans: 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? Ans: retention
, Page | 2
Purchasing homeowners insurance to protect against the
financial risks of home ownership is an example of what risk
management technique? Ans: transfer
The Gramm-Leach-Bliley Act, the Federal Trade Commission
Act, and the Health Insurance Portability and Accountability Act
were enacted to: Ans: 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? Ans: Rebating
How do a hazard and a peril differ? Ans: 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 Ans: Five years
Which of the following is NOT a power granted to the Hawaii
Commissioner of Insurance? Ans: 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 Ans: 15 days
All of the following are elements of a legal contract EXCEPT:
Ans: counteroffer
An insurer may be authorized to transact all of the following
types of insurance EXCEPT: Ans: Bankruptcy
, Page | 3
Producers must keep records of insurance transactions for at
least how many years Ans: 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? Ans: 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? Ans: 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 Ans:
Unlawful
A producer will violate the prohibition against controlled
business if she sells most of her insurance policies to Ans:
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? Ans: contractors equipment floater
A standard workers compensation policy consists of all of the
following parts EXCEPT: Ans: Part Four - General Liability
Insurance
