Which of the following statements is NOT TRUE regarding the "Extended Period of Indemnity" option of the Business Income form? - ANSWER-The coverage applies for 120 days following the period of restoration
When a Hawaii employee sustains an injury requiring medical treatment beyond first aid, ho...
Which of the following statements is NOT TRUE regarding the "Extended Period of
Indemnity" option of the Business Income form? - ANSWER-The coverage applies for
120 days following the period of restoration
When a Hawaii employee sustains an injury requiring medical treatment beyond first
aid, how long does the employer have to report the accident to the Director of Labor and
Industry relations? - ANSWER-7 working days
After paying a claim an insurance company may have the right to pursue legal action
against the negligent party. This is known as: - ANSWER-Subrogation
What coverage under the BOP automatically applies if a customer slips and falls on the
named insured's premises, regardless of legal liability? - ANSWER-Medical expense
coverage
All of the following are examples of unfair claim practices, EXCEPT: - ANSWER-Making
claim payments and stating the coverage under which payment is made
What is the bond requirement for a Surplus Lines broker license in Hawaii? - ANSWER-
$100,000.
Which of the following would be covered under the personal property (contents)
coverage of an NFIP policy? - ANSWER-The insured's riding lawn mower kept inside an
attached garage..
The BOP has limitations on the square footage in regard to eligible retail and service
risks. What is the maximum square footage a building can contain and still be eligible
for the policy? - ANSWER-35,000 square feet
What is the purpose of the Hawaii Property Insurance Association? - ANSWER-To
assure the availability of basic property insurance.
The NAIC Model Unfair Claim Settlement Practices Act specifies that the insurance
company must provide the proper claim forms with a reasonable explanation of how to
use them to the claimant within: - ANSWER-15 calendar days of the request
If an agent offers an inducement to a perspective client in an attempt to write his or her
insurance, this is called: - ANSWER-Rebating.
,St. Michael's Church is having their annual rigatoni dinner. Mary is volunteering to serve
the guests. Which of the following situations would be covered by the CGL for the
church? - ANSWER-Mary spills hot coffee on a guest
Bill may be negligent if he: - ANSWER-Fails to do what a reasonably prudent person
would do in the same circumstance
Assume a Hawaii employee is injured in the course of work, and the employer later
receives a report from the treating physician indicating that the employee is a candidate
for vocational rehabilitation. In this instance, how many days from the date of injury
must the employer provide information to the employee regarding his or her rights to
vocational rehabilitation benefits? - ANSWER-120 days
The MCS-90 endorsement provides coverage for all of the following, EXCEPT: -
ANSWER-Personal injury
No radio or television broadcast, nor published written communication in Hawaii may: -
ANSWER-Advertise for any insurer that is not authorized to transact insurance in
Hawaii
Which of the following is considered an Unfair Claim Settlement Practice? - ANSWER-
Requiring a claimant to submit a preliminary claim report before moving forward on the
claim
The Earthquake Endorsement to a Homeowners policy will provide coverage to the
dwelling and/or personal property with the deductible stated as: - ANSWER-5% of the
limit that applies to all Section I coverages
Personal Excess Liability policies provide coverage for all of the following, EXCEPT: -
ANSWER-Damage to an insured's property due to fire.
Under the Equipment Breakdown Protection form that covers boilers and machinery,
what is considered to be one loss event? - ANSWER-The initial breakdown that causes
other breakdowns
Commercial inland marine policies require the insured to submit a signed, sworn
statement of loss: - ANSWER-Within 60 days of the insurer requesting it
An insured purchases several different insurance policies that provide coverage in an
amount that would allow him to make a profit from a covered loss. This is known as: -
ANSWER-Overinsurance
All of the following are situations where a Commercial Umbrella policy would be
triggered to provide coverage, EXCEPT: - ANSWER-The underlying liability policy limits
are sufficient to pay the entire claim
,A claim is brought against the named insured under a CGL policy. Before settlement is
made the insured files for bankruptcy. This action: - ANSWER-Does not relieve the
insurance company from paying the claim
When the Hawaii Commissioner deems that current rates may be excessive and
mandates that insurers submit new rate filings, when must the new filings be submitted?
- ANSWER-Within 120 days of the mandate
Which of the following best describes how the peril of "theft" is covered under the 1943
New York Standard Fire policy? - ANSWER-Theft is a covered peril under the removal
coverage
In situations where the insured and the insurer could disagree on the value of an item, it
would be best to insure that item on a(n) __________ basis - ANSWER-Agreed Value
Gottfried, an insurance agent, has posted information online in an forum for insurance
professionals. This information stated that Greta's insurance agency has been engaging
in rebating and her appointing insurer is about to file for bankruptcy. Gottfried knows this
information is untrue, but he is angry that some of his clients have recently left his
agency to place business with Greta. Which of the following statements is true of
Gottfried's actions? - ANSWER-Gottfried has defamed both Greta and her appointing
insurer, an unethical and illegal action
An insured who had a $500,000 primary liability policy purchased a $1 million Umbrella
liability policy with a $2,000 self-insured retention limit. Later, the insured allowed the
required underlying primary policy with a limit of $500,000 to expire. A week after that,
the insured became liable for a $100,000 loss that is not excluded by the provisions of
either the primary underlying liability policy or the Umbrella policy. How will this loss
likely be settled? - ANSWER-The insured will be liable for the full $100,000 loss
The 165 numbered lines on page 2 of the Standard Fire policy covers: - ANSWER-The
conditions and exclusions of the policy.
All of the following "personal effects" would be covered by the Part D -- Additional
Coverage of the Personal Watercraft, EXCEPT: - ANSWER-Jewelry.
Which of the following is true regarding consultations because the situation is life
threatening or could cause serious harm?I. The attending physician will notify the
employer as soon as possibleII. The consultant will provide a copy of the consultation
report to the attending physicianIII. The copy of the consultation report must be given to
the employer within 14 calendar days of the examination - ANSWER-I, II and III
The time period after the policy inception and before the policy expiration is known as: -
ANSWER-The policy period
, No credit will be given to any Hawaii producer for any continuing education course
unless that course has received an approval code from: - ANSWER-The Hawaii
Insurance Commissioner.
Which of the following statements BEST describes the reason it was necessary to
create a federal flood insurance program in 1968? - ANSWER-Because other property
policies routinely exclude flood from coverage
An insured is covered under a CGL policy with a "per occurrence" limit of $4 million and
an aggregate limit of $8 million. The insured also has a Commercial Umbrella policy
with a $5 million aggregate limit and a $100,000 SIR. Two covered claims are
submitted, one for $4 million and one for $5 million. What amount is the retained limit
that will trigger the Umbrella policy to pay on the claim? - ANSWER-$8 million
What coverage is used to cover damage to a customer's auto in the care and custody of
a repair garage? - ANSWER-Garagekeeper's liability
A landlord has wrongfully evicted a tenant. A lawsuit is brought by the tenant against the
landlord. The landlord would need: - ANSWER-Personal injury coverage
An insured has purchased Coverage A and Coverage B of a standard Businessowners
policy and the limit of insurance shown in the Declarations is 80% of the replacement
cost value, how will losses be settled? - ANSWER-Both Coverage A and Coverage B
will be settled on a replacement cost basis
An office building is limited in the number of stories it may contain and still be eligible for
coverage under a standard Businessowners Policy. This number is: - ANSWER-Six
stories
If an applicant for an insurance license in Hawaii fails the same licensing examination
on two occasions, before permitting that applicant to take the state exam again, the
Commissioner may require a waiting period of up to: - ANSWER-Six months
Which of the following is not a method of showing proof of financial responsibility in
Hawaii? - ANSWER-A Property Financial Bond
The estimated annual premium for a workers' compensation policy will be based on all
of the following, EXCEPT: - ANSWER-The average premium of insureds in the same
area working in the same industry
Which of the following methods is specified by the standard NCCI workers'
compensation policy to handle claims payments when other insurance, including self-
insurance, covers the workers' compensation risk? - ANSWER-Contribution by equal
shares
Which of the following would be covered under a Builders' Risk form? - ANSWER-The
foundation of the building under construction.
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