Free Hawaii insurance law practice questions

Correct answer: B. Members of the U.S. armed forces

• A. Incorrect. The section is aimed at service members, not seniors.
• B. Correct. HRS §431:2-201.8 authorizes rules to protect service members of the United States armed forces from dishonest and predatory life insurance sales practices.
• C. Incorrect. The section concerns life insurance sales to service members, not group health applicants.
• D. Incorrect. Variable annuity owners are not the group the section names.

[§431:2-201.8] Sales to members of the armed forces. Pursuant to the Military Personnel Financial Services Protection Act, Pub. L. No. 109-290, the commissioner shall have the authority to adopt rules to protect service members of the United States armed forces from dishonest and predatory life insurance sales practices by declaring certain life insurance practices, identified in the rules, to be false, misleading, deceptive, or unfair.

Correct answer: B. From 1 to 50

• A. Incorrect. The range starts at one and goes up to fifty.
• B. Correct. HRS §431:2-201.5(b) defines a small employer as one that employed an average of at least one but no more than fifty employees in the preceding calendar year and employs at least one on the first day of the plan year.
• C. Incorrect. One hundred is above the statutory ceiling of fifty.
• D. Incorrect. Seventy-five is above the statutory ceiling of fifty.

(b) The following definitions shall be used when applying title 42 United States Code section 300gg, et seq.: [...] "Small employer" means, in connection with a group health plan with respect to a calendar year and a plan year, an employer who employed an average of at least one but no more than fifty employees on business days during the preceding calendar year and who employs at least one employee on the first day of the plan year.

Correct answer: D. Order the person to cease and desist

• A. Incorrect. The statute covers persons who are about to violate, not only completed violations.
• B. Incorrect. The Commissioner does not order arrests under this section.
• C. Incorrect. Seizing premises is not among the listed remedies.
• D. Correct. HRS §431:2-203(d) lets the Commissioner issue a cease and desist order, or seek an injunction in court, when a person is violating or about to violate the code, and may include a monetary penalty and restitution.

(d) If the commissioner has cause to believe that any person is violating or is about to violate any provision of this code or any order of the commissioner, the commissioner may issue a cease and desist order to enforce compliance with this code or any order of the commissioner, or bring an action in any court of competent jurisdiction to enjoin the person from continuing the violation or doing any act in furtherance thereof.

Correct answer: C. A reciprocal insurer

• A. Incorrect. A stock insurer is incorporated with capital stock.
• B. Incorrect. A mutual insurer is incorporated.
• C. Correct. HRS §431:3-108 defines a reciprocal insurer as an unincorporated aggregation of subscribers operating through an attorney-in-fact common to all to provide reciprocal insurance among themselves.
• D. Incorrect. Alien refers to formation outside the United States.

§431:3-108 Reciprocal insurer. A reciprocal insurer means an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact common to all such persons to provide reciprocal insurance among themselves.

Correct answer: C. Surety insurance

• A. Incorrect. Life insurance covers human lives.
• B. Incorrect. Property insurance covers loss of or damage to property.
• C. Correct. HRS §431:1-210(2) lists fidelity insurance, guaranteeing the fidelity of persons in positions of public or private trust, as surety insurance.
• D. Incorrect. Accident and health covers injury and sickness.

§431:1-210 Surety insurance defined. Surety insurance includes: [...] (2) Fidelity insurance, which is insurance guaranteeing the fidelity of persons holding positions of public or private trust.

Correct answer: C. Inform the Commissioner of the change within 30 days

• A. Incorrect. The change must be reported within thirty days, not held until renewal.
• B. Incorrect. The deadline is thirty days after the change, not ten.
• C. Correct. HRS 431:9A-107(f) requires a licensee to inform the Commissioner of any change of status within thirty days, and change of status includes home address.
• D. Incorrect. "Change of status" expressly includes a home address change.

(f) A licensee shall: (1) Inform the commissioner by any means acceptable to the commissioner of any change of status within thirty days of the change; and [...] As used in this subsection, "change of status" includes but shall not be limited to change of legal name, assumed name, trade name, business address, home address, mailing address, business phone number, business fax number, business electronic mail address, or business website address.

Correct answer: D. Within 30 days of receipt of the demand

• A. Incorrect. Ten days is the producer's deadline to make the demand, not the hearing deadline.
• B. Incorrect. The hearing must be held within thirty days, not sixty.
• C. Incorrect. The hearing must be held within thirty days, not ninety.
• D. Correct. HRS 431:9A-112(b) states the hearing shall be held within thirty days of receipt of the written demand.

The applicant or licensee may make written demand upon the commissioner within ten days of the date of receipt of the notice for a hearing before the commissioner to determine the reasonableness of the commissioner's action. The hearing shall be held within thirty days of receipt of the written demand and shall be held pursuant to chapter 91, and following that action, unless otherwise provided by law, the commissioner shall without further review or hearing renew, reinstate, or grant the license only upon receipt of an authorization from the administering entity.

Correct answer: B. A waiting period of up to six months

• A. Incorrect. The maximum waiting period is six months, not twelve.
• B. Correct. HRS 431:9A-120(b) allows a waiting period of not more than six months before a new examination for an applicant who failed two previous, similar examinations.
• C. Incorrect. The section provides for a waiting period, not a required course.
• D. Incorrect. The section provides for a waiting period, not a sponsor letter.

(b) The commissioner may require a waiting period of not more than six months before giving a new examination to an applicant who has failed to pass two previous, similar examinations.

Correct answer: D. 30 days

• A. Incorrect. The period is thirty days, not ten.
• B. Incorrect. The period is thirty days, not fifteen.
• C. Incorrect. The period is thirty days, not sixty.
• D. Correct. HRS 431:9A-123.5(b)(2) states return premiums shall be returned within thirty days, unless directed otherwise in writing by the person entitled to the funds.

Return premiums shall be returned within thirty days, unless directed otherwise in writing by the person entitled to the funds.

Correct answer: D. It is unfair discrimination

• A. Incorrect. The rule is not limited by line of insurance.
• B. Incorrect. Disclosure does not make the refusal lawful.
• C. Incorrect. The rule is not limited by type of plan.
• D. Correct. HRS 431:13-103(a)(7)(G) lists refusing to insure based solely on the individual's having taken an HIV test before applying as unfair discrimination.

§431:13-103 Unfair methods of competition and unfair or deceptive acts or practices defined. (a) The following are defined as unfair methods of competition and unfair or deceptive acts or practices in the business of insurance: [...] (7) Unfair discrimination. [...] (G) Refusing to insure, refusing to continue to insure, or limiting the amount of coverage available to an individual based solely upon the individual's having taken a human immunodeficiency virus (HIV) test prior to applying for insurance; or

Correct answer: A. As an existing policy

• A. Correct. The definition of existing policy or contract expressly includes one within an unconditional refund period.
• B. Incorrect. The statute places such a policy within the existing policy definition.
• C. Incorrect. The definition includes it during the refund period, not only after.
• D. Incorrect. A registered contract is a variable product subject to prospectus delivery, a different definition.

"Existing policy or contract" means an individual life insurance policy (policy) or annuity contract (contract) in force, including a policy under a binding or conditional receipt or a policy or contract that is within an unconditional refund period.

Correct answer: A. Five business days after the insurer gets it

• A. Correct. Paragraph (a)(2) requires sending them no later than five business days after the insurer receives the completed application.
• B. Incorrect. The statute sets five business days, not ten.
• C. Incorrect. The deadline runs from receipt of the application, and it is five business days.
• D. Incorrect. The deadline is five business days after receipt of the application.

(a) Where the application for an annuity contract is taken: [...] (2) By means other than in a personal meeting, both the buyer's guide and disclosure document shall be sent to the applicant no later than five business days after the completed application is received by the insurer;

Correct answer: D. It satisfies Hawaii's training rule

• A. Incorrect. The statute deems it to satisfy the requirement in full.
• B. Incorrect. No repeat is required.
• C. Incorrect. The statute does not limit the reciprocity to variable products.
• D. Correct. Substantially similar training in another state is deemed to satisfy Hawaii's requirement.

(h) The satisfaction of the training requirements of another state that are substantially similar to the provisions of this section shall be deemed to satisfy the training requirements of this section in this State.

Correct answer: A. An amount equal to the employee's coverage

• A. Correct. HRS 431:10D-212(a)(1) allows the spouse and dependent to be covered in amounts equivalent to the insured individual's coverage.
• B. Incorrect. The statute allows amounts equivalent to the insured individual's coverage, not half.
• C. Incorrect. No flat dollar amount appears in this section.
• D. Incorrect. The statute allows equivalent amounts, not double.

§431:10D-212 Spouses and dependents of insured individuals. (a) Except for a policy issued under sections 431:10D-203 and 431:10D-211, insurance under any group life insurance policy issued pursuant to this article may be extended to insure the employees or members of such groups against loss due to the death of their spouses and dependent children subject to the following: (1) The spouse and dependent of the individual insured may be covered in amounts of insurance equivalent to the amount of coverage of the insured individual;

Correct answer: C. By the close of policy year three

• A. Incorrect. The statute allows until the end of the third policy year.
• B. Incorrect. Five years is later than the statute allows.
• C. Correct. Apportionment must begin not later than the end of the third policy year.
• D. Incorrect. Seven years is later than the statute allows.

§431:10D-102 Standard provisions required. (a) No policy of life insurance shall be delivered or issued for delivery in this State unless it contains in substance all of the following provisions: [...] (6) Participation in surplus. (A) In participating policies, that beginning not later than the end of the third policy year, the insurer shall annually ascertain and apportion the divisible surplus, if any, accruing on the policy anniversary or other dividend date specified in the policy.

Correct answer: A. Nine

• A. Correct. Section 393-7(c)(5) requires maternity benefits at least if the employee has been covered for nine consecutive months prior to the delivery.
• B. Incorrect. The statute uses nine consecutive months, not six.
• C. Incorrect. The statute uses nine consecutive months, not ten.
• D. Incorrect. The statute uses nine consecutive months, not twelve.

a prepaid health care plan qualifying under this chapter shall include at least the following benefit types: [...] (5) Maternity benefits, at least if the employee has been covered by the prepaid health care plan for nine consecutive months prior to the delivery; and

Correct answer: D. Lost wages from a temporary non-work disability

• A. Incorrect. The law addresses wage loss, not medical bills.
• B. Incorrect. The law covers nonoccupational sickness or accident; job injuries fall under workers' compensation.
• C. Incorrect. The law addresses disability that is temporary in nature.
• D. Correct. Section 392-2 states the purpose is reasonable compensation for wage loss caused by disabling nonoccupational sickness or accident that is temporary and exceeds one workweek.

there is a need to fill the existing gaps in protection and to provide benefits to individuals in current employment that will afford to them reasonable compensation for wage loss caused by disabling nonoccupational sickness or accident where the disability is temporary in nature and exceeds the period of one workweek.

Correct answer: B. Submit a copy of the denial notice to the department

• A. Incorrect. The statute requires submitting the notice to the department, not employee consent.
• B. Correct. No employer or insurer may deny benefits without first submitting a copy of the notice of denial to the department, which reviews it within ten days.
• C. Incorrect. The notice goes to the department (of labor and industrial relations).
• D. Incorrect. The required step is submitting the denial notice to the department.

No employer or insurer shall deny disability benefits to an employee without first submitting a copy of the notice of denial to the department. The department shall review the denial within ten days of the receipt of the notice.

Correct answer: D. Provide a plan without that contraceptive coverage

• A. Incorrect. The religious employer exemption allows the request, and the insurer shall honor it.
• B. Incorrect. The quoted text requires the insurer to provide the plan on request; no approval step is stated.
• C. Incorrect. The quoted text requires no employee consent.
• D. Correct. If a religious employer so requests, the insurer shall provide a plan without coverage for contraceptive services and supplies.

(b) Notwithstanding any other provision of this chapter, any religious employer may request an accident and health or sickness insurance plan without coverage for contraceptive services and supplies that are contrary to the religious employer's religious tenets. If so requested, the accident and health or sickness insurer, mutual benefit society, or health maintenance organization shall provide a plan without coverage for contraceptive services and supplies.

Correct answer: D. No, it may not require benefits the plan lacks

• A. Incorrect. The order may not require benefits the plan does not otherwise provide.
• B. Incorrect. The order may not require such benefits at all.
• C. Incorrect. No such exception appears.
• D. Correct. A qualified medical child support order shall not require a plan to provide any type or form of benefit or option that the plan does not otherwise provide.

(b) A qualified medical child support order shall: [...] (5) Not require a plan to provide any type or form of benefit or option that the plan does not otherwise provide.