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Hawaii Casualty Practice Exam

20 exam-style questions drawn from the same bank as our full Hawaii Casualty course (Hawaii Insurance Producer - Casualty - Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. A client's policy was placed with an unauthorized insurer through a surplus lines broker, and that insurer has failed. What protection does the association give?
The full 300,000 dollars, as for any other claimProtection only if the broker held a valid licenceHalf the covered claim, as a partial memberNone, because unauthorized insurers are not members
2. Which is NOT eligible for a standard BOP?
A neighborhood clothing boutique occupying about 5,000 square feet of retail space.An auto repair garage specializing in engine rebuilds (auto service operation).A small apartment building with 20 units owned and managed by a local landlord.A small dental office located in a multi-tenant professional office building.
3. Under 431:13-201, what applies where the person knew or reasonably should have known of the violation?
10,000 dollars per violation, with no aggregate cap at all5,000 dollars per violation, capped at 10,000 in six months1,000 dollars per violation, capped at 50,000 in a year5,000 dollars per violation, capped at 50,000 in six months
4. A 'discovery' form in commercial crime covers:
Losses occurring only before the policy inception date and discovered during the policy periodLosses regardless of when they occurred, as long as they are discovered during the policy periodLosses occurring during a 90-day window after the policy expires, if reported within one yearLosses occurring during the policy period only, regardless of when they are discovered
5. An auditable policy is non-renewed. Which statement is MOST accurate about the final audit?
A final audit is still conducted to determine actual exposure; any additional premium is billed and any return premium is refunded.The final audit is waived on a nonrenewal, and the insurer refunds the full deposit premium to the insured.No final audit is conducted after nonrenewal, because the deposit premium becomes the final premium once the insurer decides not to renew the policy.A final audit is conducted only if the insured requests it in writing, and the insurer may bill additional premium but is never required to refund any.
6. By what test is an insurance advertisement judged under the unfair practices article?
Whether the advertiser positively intended to misleadWhether a consumer has actually complained of itIts net impression on an ordinary reader of itWhether each individual sentence is literally true
7. In casualty insurance, 'pure risk' is distinguished from 'speculative risk' because pure risk involves:
Only losses within the insured's direct control.The possibility of loss OR gain, such as stock investments.The possibility of loss or no loss, no chance of gain.Only losses caused by criminal acts.
8. Which chapter carries Hawaii's motor vehicle financial responsibility law?
HRS chapter 431 article 10C, inside the codeHRS chapter 386, the compensation chapterHRS chapter 287, outside the insurance codeHRS chapter 514B, the condominium chapter
9. Which kinds of insurance does the article the outline cites for rate regulation cover?
Life, annuities, accident and health insurance onlyTitle insurance and mortgage guaranty insurance onlyCasualty, surety, property, marine and transportationWorkers compensation and employers liability only
10. Which of the following BEST describes a MORAL hazard?
A legal environment in which courts tend to expand liability and award larger damages to plaintiffs.The insured's deliberate act or dishonesty that increases loss, such as arson for profit.An insured's carelessness or indifference toward loss because insurance will pay, such as leaving doors unlocked.A tangible physical condition that increases the chance of loss, such as faulty wiring in a building.
11. Under the Business Auto form, 'Trailers' attached to a covered power unit are:
Always excludedTreated as covered autos for liabilityInsured only if scheduled for $1 millionInsured only if owned by an employee
12. Under ISO CGL language, 'occurrence' is defined as:
An accident, including continuous or repeated exposure to substantially the same general harmful conditionsAny event during the policy period that results in a claim against the insured, whether intentional or accidentalThe date on which a claim is first made against the insured during the policy period, regardless of the injury dateA sudden and accidental event only, excluding any injury caused by continuous or repeated exposure over time
13. The Business Auto Coverage Form (CA 00 01) uses numeric symbols to designate covered autos. Symbol 1 means:
Owned autosHired autosAny autoNon-owned autos
14. A licensee sells in only ONE insurance group. How are the 24 hours allocated?
21 relating to the line of authority, plus 3 of ethics18 relating to the line of authority, plus 6 of ethics24 relating to the line of authority, with no ethics12 relating to the line of authority, plus 12 general
15. A crime policy's definition of 'money' typically includes:
Stocks, bonds, and other negotiable instruments held by the insured, but not currency or coins.Currency and coins only, while traveler's checks and money orders are always treated as securities.Any property of value, including inventory, equipment, and accounts receivable records.Currency, coins, bank notes, and bullion, including traveler's checks and money orders.
16. What are Hawaii's compulsory motor vehicle liability minimums since 1 January 2026?
20,000 / 40,000 / 10,00025,000 / 50,000 / 25,00040,000 / 80,000 / 20,00050,000 / 100,000 / 25,000
17. On the ISO commercial crime form, 'Computer Fraud' (Insuring Agreement A6) covers:
The use of a computer to fraudulently cause the transfer of money, securities, or other property from inside the premises to a person/place outside the premisesProperty damage caused by a sudden hardware crash or operating-system failure on the insured's office computers, an exposure covered under an EDP equipment policy and not under any crime form including A6Theft of insured laptops and portable computing hardware from the insured location, an exposure covered under the BPP commercial property or an EDP/computer floater rather than the A6 Computer Fraud insuring agreementPhishing of personal customer data from the insured's databases by external bad actors, an exposure addressed by a stand-alone cyber liability policy rather than the A6 Computer Fraud insuring agreement
18. An agency uses premium money for payroll and replaces it a week later. What is the position under 431:9A-123.5?
It is a bookkeeping error rather than a conduct matterIt was conversion when taken, and repayment is no defenceIt is a violation only where a client suffered a lossIt is acceptable because the money was fully replaced
19. A BID bond:
Guarantees the bidder will enter into the contract if awarded and furnish any required performance/payment bonds.Guarantees that the bidder's price is the lowest submitted and refunds the owner if a lower bid is later found.Guarantees that the contractor will complete the project according to its terms and pay all subcontractors on time.Protects the bidder against losses if the project owner cancels the contract after the bidding process has closed.
20. What is the aggregate personal injury protection limit under HRS 431:10C-103.5?
10,000 dollars per person, and more may be bought15,000 dollars per person and 30,000 per accident10,000 dollars per accident for all persons injured20,000 dollars per person, which cannot be increased

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