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Hawaii Property Practice Exam

20 exam-style questions drawn from the same bank as our full Hawaii Property course (Hawaii Insurance Producer - Property - 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. Which of the following is NOT a standard peril on the DP-1 Basic Form?
LightningInternal explosionFireWindstorm
2. Concealment in an insurance application means:
Making an affirmative false statement on the application about a material fact.Failing to disclose a material fact that a reasonable applicant would have disclosed.Asking the agent to leave a question on the application blank rather than answer it.Hiding the policy document from claimants after a loss so they cannot read the coverage.
3. The doctrine of proximate cause requires that:
The covered loss exceed the per-occurrence deductible stated on the declarations page before any payment is madeThere be an unbroken chain of events between a covered peril and the resulting lossThe insurer have prior written notice of every peril the insured intends to claim against, which no standard form requiresThe cause of loss occur on the insured's premises and not at any off-premises location named on the dec page
4. Under a standard mortgagee clause, who is entitled to receive payment for a total loss on a dwelling with a remaining mortgage balance?
Only the mortgagee, which receives the full loss payment regardless of the remaining loan balance.Only the named insured, since the insurer has no direct contractual obligation to the mortgagee.Both, with the mortgagee paid up to the remaining balance and the insured receiving any surplus.The state insurance department, which holds the funds and then distributes them to the two parties.
5. Earthquake is excluded on the standard homeowners policy. To add earthquake coverage the insured typically:
Cannot obtain earthquake coverage in the private market and must self-insure the lossReceives earthquake coverage automatically at no charge once the HO policy is renewedAdds an earthquake endorsement (or purchases a separate earthquake DIC policy)Buys earthquake coverage only through the NFIP, which pairs it with federal flood coverage
6. A plaintiff in a negligence case is awarded $50,000 for pain and suffering, $30,000 for medical bills, and $10,000 in lost wages. Which category is GENERAL damages, and which are SPECIAL damages?
Pain and suffering is GENERAL; medical bills and lost wages are SPECIAL.Pain and suffering is SPECIAL; medical bills and lost wages are GENERAL.All are special damages.All are general damages.
7. On which published area does the guaranty association appear on the Hawaii papers?
The area common to property and casualty onlyThe general knowledge area of both papersThe all-lines area, on both producer papersThe property-only area of the state outline
8. Under a DP-1 Basic Form, how are losses settled by default?
Replacement cost with no coinsuranceAgreed valueActual cash valueReplacement cost subject to 80% coinsurance
9. Which three organisational forms does the Hawaii all-lines outline name?
Stock, mutual and fraternal insurersStock, mutual and captive insurersStock, reciprocal and fraternal insurersStock, reciprocal and mutual insurers
10. What identifies a reciprocal insurer?
Subscribers exchange indemnity through an attorney-in-factShareholders own it and elect a board of directorsPolicyholders own it and receive policyholder dividendsA parent company owns it to insure its own risks
11. An applicant tells the producer her roof was 'replaced about 6 years ago.' The actual replacement was 7 years ago. The carrier underwrites roofs up to 15 years old. After a hail claim, the carrier wants to rescind. Which is the correct analysis?
Statement is a warranty; any numerical deviation voids the contract under the strict-warranty ruleStatement is concealment; the policy is void from inception under the silence-on-roof-age doctrineStatement is fraud; both rescission and damages apply under the implied-fraudulent-intent inferenceStatement is a representation; the misstatement is immaterial, so the policy stands
12. Two homeowners policies happen to cover the same dwelling, the original owner's policy was never cancelled after sale, and the new owner bought his own policy. After a $60,000 fire loss, both policies apply. Under the 'pro-rata by limits' method, Company A (carrying $200K limit) and Company B (carrying $300K limit) each pay:
A: $60,000; B: $0, first policy pays in full.Neither, double coverage voids both policies.$30,000 each, an equal split.A: $24,000; B: $36,000, pro-rata by limits.
13. An NFIP policy is placed in connection with a new mortgage on a home in a Special Flood Hazard Area. When does coverage become effective?
30 days after application, because the standard NFIP waiting period applies even on a mortgaged property in a flood hazard areaMidnight of the loan closing date, with the 30-day waiting period running from closing rather than from applicationOn the first of the month following closing, once the lender confirms the policy has been delivered and premium receivedAt loan closing, with no waiting period, because placement was required for the mortgage
14. A peril is best defined as:
The financial consequence of a loss.The actual cause of loss.The uncertainty concerning the occurrence of loss.A condition that increases the chance of loss.
15. A homeowner with an HO-3 carrying 80% of replacement cost suffers a partial fire loss. The dwelling claim is paid on what basis?
Actual cash value, with depreciation deducted from the costFunctional replacement cost, using cheaper modern materialsReplacement cost without depreciation deductionMarket value of the dwelling on the date of the covered loss
16. Equipment breakdown (boiler & machinery) coverage is most likely needed by:
A business with refrigeration, HVAC, electrical transformers, computers, or pressure vesselsA homeowner with scheduled jewelry on a Personal Articles Floater and no other business property exposureA property owner whose only exposure is the building shell, with no machinery or electrical systems on siteAn auto-only insured under a stand-alone Personal Auto Policy with no building or equipment to insure
17. An insured carries $80,000 of property coverage with 80% coinsurance. The property is valued at $200,000 and a covered loss of $20,000 occurs. Loss payment (ignoring deductible)?
$20,000$10,000$16,000$8,000
18. Which Causes of Loss form adds breakage of glass, falling objects, weight of ice/snow/sleet, and water damage to the basic perils?
Causes of Loss, Earthquake FormCauses of Loss, Special Form (CP 10 30)Causes of Loss, Broad Form (CP 10 20)Causes of Loss, Basic Form (CP 10 10)
19. Section II of a homeowners policy provides coverage for:
Personal property and loss of useDwelling and other structuresPersonal liability and medical payments to othersAdditional living expense and fair rental value
20. How does HRS 431P-2 constitute the Hawaii Hurricane Relief Fund?
As a public body and body corporate within the DepartmentAs a private association of participating insurersAs a mutual insurance company owned by policyholdersAs a division of the state Department of Taxation

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