Hawaii Personal Lines Insurance License Exam — All Questions

How does Hawaii handle liability for auto accidents?

• a.It is a traditional at-fault (tort) state with no PIP
• b.It bars all lawsuits and routes claims through a state fund
• c.It is a no-fault state; a driver's own personal injury protection (PIP) pays their medical costs regardless of fault, though fault is still considered for other damages✓
• d.It requires only uninsured motorist coverage

Hawaii is a no-fault state. Each driver's own personal injury protection (PIP) automatically covers their injuries regardless of fault. Fault is still considered when determining who pays for other damages, so liability coverage remains necessary. Source: Hawaii Insurance Division and state motor-vehicle law. Confirm current rules with the Hawaii Insurance Division (https://cca.hawaii.gov/ins/).

What is the commonly cited minimum personal injury protection (PIP) limit a Hawaii personal auto policy must carry?

• a.$5,000 per person
• b.$10,000 per person✓
• c.$25,000 per person
• d.PIP is not required in Hawaii

Hawaii requires personal injury protection (PIP) with a commonly cited minimum of $10,000 per person, which pays the insured's medical expenses regardless of fault. Because these figures can change, verify the current PIP minimum with the Hawaii Insurance Division (https://cca.hawaii.gov/ins/).

What minimum auto liability limits must a Hawaii personal auto policy carry to meet the state's financial-responsibility law?

• a.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage
• b.$20,000 per person / $40,000 per accident bodily injury and $10,000 property damage✓
• c.$15,000 per person / $30,000 per accident bodily injury and $5,000 property damage
• d.$50,000 per person / $100,000 per accident bodily injury and $25,000 property damage

Hawaii sets minimum auto liability limits of 20/40/10 — $20,000 bodily injury per person, $40,000 bodily injury per accident, and $10,000 property damage — alongside required PIP. These are minimums; higher limits better protect the insured. Verify current figures with the Hawaii Insurance Division (https://cca.hawaii.gov/ins/).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Hawaii?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Hawaii Insurance Division✓

Hawaii restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current Hawaii notice periods with the Hawaii Insurance Division.

Which best describes the body that writes and enforces Hawaii's insurance regulations affecting personal lines policies?

• a.The Insurance Division of the Department of Commerce and Consumer Affairs, led by the Insurance Commissioner✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county clerk's office where the policy is issued

Insurance in Hawaii is regulated at the state level by the Insurance Division of the Department of Commerce and Consumer Affairs. There is no federal department of insurance; each state supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: Hawaii Insurance Division (https://cca.hawaii.gov/ins/).