Hawaii Property & Casualty Insurance Practice Exam Free - 2026

• A. $750,000
• B. $250,000
• C. $500,000
• D. $1,000,000

Correct answer: A. $750,000

Explanation: HRS § 431P-10(a) provides that policies issued by the Hawaii Hurricane Relief Fund shall provide maximum aggregate coverage of up to $750,000 per risk on real property of one to four units used for residential purposes, with a mandatory deductible (the greater of $1,000 or one per cent, or $2,000 or two per cent, of insured value). Five hundred thousand dollars (C) is the fund's limit for business, commercial or industrial property; $250,000 and $1,000,000 are not fund limits. See HRS § 431P-10.

• A. Within 30 days; death reported within 7 days
• B. Within seven working days after knowledge of the injury; immediate death reported within forty-eight hours
• C. Within 24 hours; death reported within 24 hours
• D. Within 10 calendar days; death reported within 72 hours

Correct answer: B. Within seven working days after knowledge of the injury; immediate death reported within forty-eight hours

Explanation: HRS § 386-95 requires an employer, within seven working days after having knowledge of an injury causing absence from work for one day or more or requiring medical treatment beyond ordinary first aid, to report it to the director, and when an injury results in immediate death the employer must notify the department within forty-eight hours; wilful failure to file carries a fine of up to $5,000. Thirty-day, 24-hour and 10-day periods (A, C, D) are not the statutory reporting deadlines. See HRS § 386-95.

• A. Refer the applicant to the Hawaii Property Insurance Association; penalty of $5,000
• B. Nothing, because the insurer bears the duty; no penalty applies to producers
• C. Report the rejection to the commissioner within 15 days; penalty of $100
• D. Immediately offer to place the coverage with the Hawaii joint underwriting plan; civil penalty of up to $1,000 for each separate violation

Correct answer: D. Immediately offer to place the coverage with the Hawaii joint underwriting plan; civil penalty of up to $1,000 for each separate violation

Explanation: HRS § 431:10C-110 requires a producer, upon rejection of an application for a motor vehicle insurance policy or optional additional insurance, to immediately offer to place the requested coverages with the joint underwriting plan, and HRS § 431:10C-113(a) assesses a civil penalty not to exceed $1,000 for each separate violation on anyone who knowingly violates § 431:10C-110 or § 431:10C-111, with each policyholder or applicant counting as a separate violation. The Hawaii Property Insurance Association (A) is the residual market for basic property, not auto, insurance; the duty rests on the producer (B); and there is no 15-day report or $100 penalty (C). See HRS § 431:10C-110.

• A. $20,000 per person / $40,000 per accident
• B. $40,000 per person / $80,000 per accident
• C. $25,000 per person / $50,000 per accident
• D. $50,000 per person / $100,000 per accident

Correct answer: B. $40,000 per person / $80,000 per accident

Explanation: HRS § 431:10C-301(b)(1), in the version effective January 1, 2026 (Act 138, Session Laws 2024), requires liability coverage of not less than $40,000 per person with an aggregate of $80,000 per accident for accidental harm. The $20,000/$40,000 limits (A) applied only to policies before January 1, 2026; $25,000/$50,000 and $50,000/$100,000 (C, D) have never been Hawaii's minimums. See HRS § 431:10C-301.

• A. A deductible
• B. A covered auto only
• C. A written insurance application
• D. A breach of a legal duty

Correct answer: D. A breach of a legal duty

Explanation: Negligence usually requires duty, breach of duty, causation, and damages. A breach of duty is one of the key elements.

• A. Compensatory damages
• B. Symbolic damages only
• C. Punitive damages
• D. Speculative damages

Correct answer: A. Compensatory damages

Explanation: Compensatory damages are designed to compensate for actual covered loss, such as medical bills, property damage, lost wages, or pain and suffering.

• A. Reimburse the plaintiff's medical bills, lost wages, and repair costs
• B. Punish especially wrongful conduct and deter similar behavior
• C. Compensate the plaintiff for pain, suffering, and loss of enjoyment of life
• D. Reimburse the plaintiff's attorney fees and court costs after a verdict

Correct answer: B. Punish especially wrongful conduct and deter similar behavior

Explanation: Punitive damages are meant to punish and deter especially wrongful conduct. Whether insurance can cover them depends on policy language and applicable law.

• A. The maximum the policy will pay for any single covered occurrence during the policy period
• B. The maximum the policy will pay to any one injured person in a single covered accident
• C. The total maximum the policy will pay for all covered claims during a policy period
• D. The amount the insured must pay on each claim before the policy begins to pay

Correct answer: C. The total maximum the policy will pay for all covered claims during a policy period

Explanation: An aggregate limit is the total amount a policy will pay for specified covered claims during a policy period, subject to the policy wording.

• A. The total payable for all claims during the policy period
• B. The maximum payable to any one person injured in an event
• C. The amount the insured retains before the policy pays
• D. The maximum payable for one covered event or occurrence

Correct answer: D. The maximum payable for one covered event or occurrence

Explanation: An occurrence limit is the maximum amount payable for one covered occurrence, subject to other limits such as aggregate limits.

• A. Extra liability coverage above underlying policies
• B. Broader property coverage for high-value homes
• C. Primary liability coverage that replaces auto and home policies
• D. Excess medical payments coverage for household members

Correct answer: A. Extra liability coverage above underlying policies

Explanation: An umbrella policy can provide additional liability limits above required underlying policies and may provide broader liability coverage in some situations.

• A. The insured's computer is stolen from home
• B. The insured's guest slips on the insured's icy steps and is injured
• C. The insured's garage is damaged by wind
• D. The insured's roof is damaged by hail

Correct answer: B. The insured's guest slips on the insured's icy steps and is injured

Explanation: A guest injury may create a liability claim if the insured is alleged to be legally responsible. Damage to the insured's own property is usually a first-party property issue.

• A. The business's legal liability for injuries to customers on its premises
• B. Employees' medical bills and lost wages after injuries suffered on the job
• C. Business-owned buildings and business personal property against covered causes of loss
• D. Business-owned vehicles, trucks, and trailers against collision and other-than-collision losses

Correct answer: C. Business-owned buildings and business personal property against covered causes of loss

Explanation: Commercial property insurance generally covers business buildings, business personal property, and related property exposures against covered causes of loss.