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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 crime policy's definition of 'money' typically includes:
Currency, coins, bank notes, and bullion, including traveler's checks and money orders.Only US currency in circulation — applies if the loss is partial; this question describes a constructive total lossBitcoin and other cryptocurrencies, under the broader consumer-protection construction sometimes applied hereAccounts receivable balances, consistent with the model regulation but inapplicable to this scenario
2. A customer slips on a wet floor inside a hardware store and breaks her wrist. The store's CGL pays her $8,400 ER bill without any dispute over fault, and also pays $62,000 in damages after she sues. Which CGL coverage parts responded to the $8,400 and the $62,000, respectively?
Coverage B for the $8,400; Coverage A for the $62,000Coverage A for both paymentsCoverage A for the $8,400; Coverage C for the $62,000Coverage C for the $8,400; Coverage A for the $62,000
3. A client lists their own car on a sharing platform. What is the first coverage problem?
Their policy is void from inception for misrepresentationTheir personal policy generally excludes use for a fee by othersTheir personal policy covers it but with a higher deductibleThe platform's coverage automatically replaces their policy
4. A personal umbrella typically provides 'Personal Injury' coverage (Coverage B-style). Which of the following is MOST likely included in that definition?
False arrest, libel, slander, and wrongful eviction by the insured.Bodily injury from a car accident caused by the insured.Pollution from the insured's lawn fertilizer.Intentional damage by the insured to a neighbor's fence.
5. Which of the following is a method of risk MANAGEMENT, not risk transfer?
Risk retention through self-insurance or a captiveBuying ordinary commercial insurance at the primary layerLloyd's of London marine cover at the syndicate levelA pro-rata or excess-of-loss reinsurance treaty
6. Which type of entity is NOT a permissible 'named insured' type on a CGL?
An unformed organization that exists only in a founder's business plan.Sole proprietorship — under the older rule that was superseded by the post-2018 model amendmentsPartnership — only when the contract was issued before the regulatory amendment described aboveCorporation — applies if the loss is partial; this question describes a constructive total loss
7. Hawaii legislates separately at 431:10C-801 through 807 for which activity?
Peer-to-peer car sharing by vehicle ownersLeasing of fleet vehicles to business customersSale of used vehicles by licensed motor dealersRental of vehicles by commercial rental companies
8. A claims-made CGL policy requires BOTH of the following for coverage to apply:
The injury may occur at any time, but the claim must be reported within 60 days of occurrence, consistent with the model regulation but inapplicable to this scenarioThe injury must occur on or after the retroactive date AND the claim must be first made against the insured during the policy period (or extended reporting period).The premium must be paid in advance for the entire policy period — applicable to commercial scenarios only, not the personal-lines contextThe injury must occur during the policy period and the claim must be reported during the policy period.
9. Under 431:9A-108, what is required of a producer licensed and in good standing in their home state?
Passing the Hawaii examination for each line of authorityCompleting Hawaii prelicensing education before applyingApplication and fee, without sitting the Hawaii examinationEstablishing a business office located within the State
10. Which of the following is typically required by a personal umbrella policy as an 'underlying limit'?
Specified minimum limits on auto liability, personal liability (HO), and sometimes watercraft/RV — often 250/500/100 for auto and $300K for HO.No underlying coverage — the umbrella stands alone.A minimum of $1,000,000 on every underlying policy.Minimum limits only if the insured has a swimming pool, per the safe-harbor exception that activates only for primary-state filings
11. How is this published area weighted on the two Hawaii producer papers?
Four items on each of the two producer papers equallyFour items on the property paper and three on the casualtyThree items on each of the two producer papers equallyThree items on the property paper and four on the casualty
12. A licensee wants to pay an unlicensed acquaintance a share of commission on each referred policy. Is that permitted?
No, that is sharing commission with an unlicensed personYes, if the acquaintance never discusses coverageYes, provided the share stays below twenty percentYes, if the appointing insurer approves the payment
13. What is the most common reason a category of loss is excluded from a commercial general liability form?
The loss is always intentional rather than accidentalThe exposure is illegal to insure in any jurisdictionThe loss belongs to a different policy designed to cover itThe insurer dislikes paying that particular kind of claim
14. The insured drives a friend's car with the friend's permission for a grocery run. She causes an accident and injures a third party. The friend's PAP has 50/100/25 liability; the insured's own PAP has 250/500/100 liability. Damages to the third party are $140,000. How does coverage typically coordinate?
Neither PAP responds because the insured was driving a non-owned auto — required under the federal preemption framework that yields here to the state-law ruleThe owner's PAP (the friend's) is primary up to its limits; the insured's PAP is excess over that, responding up to its own limits.Both policies share the loss proportionally based on limits — but only after the carrier exhausts the internal grievance process the question already presumes was completedThe insured's PAP is primary because she was driving; the friend's PAP pays nothing, consistent with the NAIC model treatment of separate-account products (not the general-account product here)
15. On a commercial crime policy, which insuring agreement responds when an employee steals $50,000 from the company?
Computer Fraud and Funds Transfer FraudForgery or AlterationEmployee TheftMoney and Securities — Inside the Premises
16. 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 onlyWorkers compensation and employers liability onlyCasualty, surety, property, marine and transportation
17. A customer at a hardware store is struck on the head by a falling display sign and is treated at the ER. He sends the $1,800 bill to the store and signs no release. The store wants the bill paid without a lawsuit being filed. Which CGL coverage applies?
Coverage A — Bodily Injury, after a determination of legal liabilityCoverage B — Personal and Advertising InjuryCoverage D — Supplementary Payments onlyCoverage C — Medical Payments, paid without regard to fault up to the sub-limit
18. Which statement correctly describes the key structural difference between a commercial umbrella policy and a pure follow-form excess liability policy?
A pure follow-form excess policy has its own broader terms; an umbrella must follow the underlying form exactly — applicable to commercial scenarios only, not the personal-lines contextAn umbrella can drop down (subject to a self-insured retention) to cover some losses the underlying excluded; a pure follow-form excess mirrors the underlying's exclusions and only provides higher limits.An umbrella and a pure follow-form excess are functionally identical; the names are just marketing, under the broader consumer-protection construction sometimes applied hereAn umbrella only provides higher limits; an excess policy can drop down to cover gaps in underlying coverage — only when the contract was issued before the regulatory amendment described above
19. A BOP has no coinsurance requirement on its property section. Instead, how does it address the insured's obligation to insure to value?
It includes an automatic ANNUAL INFLATION GUARD and requires insurance to replacement cost to keep the coverage in force at RC.It has a 100% coinsurance clause that replaces the normal property coinsurance.It requires a statement of values every 30 days — required if and only if the policy includes a co-insurance penalty endorsementIt uses actual cash value with a 90% coinsurance requirement.
20. Part Two (Employers Liability) of a WC policy covers:
Statutory WC benefits payable to employees, under the broader consumer-protection construction sometimes applied hereCommon-law liability of the employer for injuries not covered by WC (e.g., third-party-over actions, consequential injuries to family members, dual-capacity claims).Fines and penalties from OSHA — applicable to commercial scenarios only, not the personal-lines contextPunitive damages assessed against the employer — though only when the underlying contract contains an explicit waiver, which the scenario doesn't establish

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