Hawaii health insurance policy types practice questions
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The general part of the Hawaii Accident and Health exam has 50 scoreable questions, and section I, Types of Policies, has 16 of them. [1] The outline lists disability income (individual disability income, business overhead expense, business disability buyout, group disability income, key employee), accidental death and dismemberment, medical expense insurance (basic hospital, medical and surgical; major medical; HMOs; PPOs; point of service plans; FSAs; high deductible health plans and related HSAs; HRAs), Medicare supplement policies, group insurance (differences from individual contracts, general characteristics, COBRA), individual and group long term care (eligibility, levels of care), and other policies (dental, vision, cancer, critical illness or specified disease, worksite, hospital indemnity, short-term medical, accident). [1] This page explains them with Hawaii law, the Hawaii Insurance Division and federal sources, then gives 10 practice questions.
What Hawaii law calls accident and health insurance
Hawaii defines accident and health or sickness insurance, "also referred to as disability insurance," as insurance against bodily injury, disablement or death by accident, against disablement or expense from sickness, and every insurance connected with it, including health and medical insurance. [2]
Plan types (Hawaii Insurance Division glossary)
- HMO: an organization that both finances and delivers care through a closed network. Members usually need a primary care physician and can go out of network only with authorization or for emergency or urgent care on the mainland. [3]
- PPO: a network that offers discounted rates; using a provider outside it may mean paying the full actual charge. [3]
- POS: a plan that combines an HMO product with a PPO product. [3]
- Exclusive provider arrangement: a plan that covers only services from in-network providers. [3]
Tax-favored accounts (IRS Publication 969)
To contribute to an HSA you must be covered by a high deductible health plan, have no other health coverage except permitted kinds, not be enrolled in Medicare, and not be claimed as someone's dependent. The account stays with you if you change employers. [4] A health FSA is usually funded through voluntary salary reductions, and an HRA "must receive contributions from the employer only." [4]
Franchise plans (HRS 431:10A-117)
Hawaii allows accident and health insurance on a franchise plan for five or more employees of an employer, or ten or more members of a trade or professional association or labor union that has existed at least two years. The association must have been formed for purposes other than getting insurance, each person gets the same form of individual policy varying only in amounts and kinds of coverage, and premiums may be paid periodically by the employer or association. [5]
Long term care and Medicare supplement
The Insurance Division explains that long term care is needed when people with a chronic illness cannot perform activities of daily living such as eating, dressing and bathing, and that care settings include nursing homes, assisted living facilities and in-home caregivers. Standard health insurance and Medicare usually do not pay for long term care. [6] Medigap is extra insurance from a private company that helps pay Original Medicare costs such as copayments, coinsurance and deductibles, and you generally need Medicare Parts A and B to buy it. [7]
Practice questions
1. Hawaii law says accident and health or sickness insurance is also referred to as what?
A. Casualty insurance
B. Disability insurance
C. Life insurance
D. Indemnity insurance
Answer: B. (HRS 431:1-205) [2]
2. Which plan both finances and delivers care through a closed network?
Answer: An HMO. [3]
3. A plan combines an HMO product with a PPO product. What is it called?
Answer: A point of service (POS) plan. [3]
4. A plan covers only in-network providers. What does the Hawaii glossary call it?
Answer: An exclusive provider arrangement. [3]
5. Who may contribute to an HRA?
Answer: Only the employer. [4]
6. Which person is not eligible to contribute to an HSA?
Answer: Someone enrolled in Medicare (among others, such as someone with other non-permitted health coverage). [4]
7. What is the smallest employer group that can be insured on a Hawaii franchise plan?
Answer: Five employees. (HRS 431:10A-117(b)(1)) [5]
8. A trade association wants a franchise plan. How long must it have existed?
Answer: At least two years, with ten or more members covered. (431:10A-117(b)(2)) [5]
9. According to the Insurance Division, do Medicare and standard health insurance usually pay for long term care?
Answer: No. [6]
10. What must a person generally have before buying a Medigap policy?
Answer: Original Medicare Part A and Part B. [7]
Study tips for section I
- HMO: closed network, primary care physician. PPO: discounted network. POS: a mix of the two.
- Account funding: HSA needs a high deductible plan; FSA is mostly salary reduction; HRA is employer only.
- Hawaii franchise plan numbers: five employees, or ten association members after two years.
Practice more with the free Hawaii accident and health practice test.
Prep Retention is independent and is not affiliated with Pearson VUE or the state.
Sources
Laws and exam documents quoted as of October 2026.
- Pearson VUE, Hawaii content outlines 121201 (effective January 1, 2026): https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/121201.pdf
- HRS 431:1-205: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0001-0205.htm
- Hawaii Insurance Division, Health Insurance Glossary and Terms: https://cca.hawaii.gov/wp-content/uploads/2026/02/Health-Insurance-Glossary-and-Terms.pdf
- IRS Publication 969: https://www.irs.gov/publications/p969
- HRS 431:10A-117: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010A-0117.htm
- Hawaii Insurance Division, Long-Term Care Insurance Basics: https://cca.hawaii.gov/ins/long-term-care-insurance-basics/
- Hawaii Insurance Division, Medicare Supplement (Medigap) Insurance: https://cca.hawaii.gov/medigap/