Hawaii life application, underwriting and delivery practice questions
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Section III of the Hawaii Life exam's general part, Completing the Application, Underwriting, and Delivering the Policy, has 12 of the 50 scoreable general questions. [1] The outline lists completing the application (required signatures, changes in the application, consequences of incomplete applications, warranties and representations, collecting the initial premium and issuing the receipt, replacement, disclosures at point of sale, USA PATRIOT Act and anti-money laundering, Gramm-Leach-Bliley Act privacy), underwriting (insurable interest, medical information and consumer reports, Fair Credit Reporting Act, risk classification, stranger/investor-owned life insurance), delivering the policy (when coverage begins; explaining the policy to the client) and contract law. [1] This page covers the Hawaii Revised Statutes and federal rules behind those topics, with 10 practice questions.
Who may buy and who must consent
- Competent parties (HRS 431:10-203): any person of competent legal capacity may contract for insurance. A minor fifteen or older, counted by nearest birthday, may buy life or accident and health insurance on their own life for their own benefit or for a parent, spouse, child, brother, sister or grandparent. [2]
- Consent (HRS 431:10-206): an individual life or accident and health contract needs the insured's application or written consent, except that a spouse may insure the other spouse, and a person with an insurable interest in a minor, or on whom the minor depends, may insure the minor. The rule does not apply to group life or group or blanket disability insurance. [3]
- Insurable interest (HRS 431:10-202): Hawaii recognizes a love and affection interest for people closely related by blood or by law, a lawful and substantial economic interest in the insured's life continuing for others, and an interest between parties to a contract to buy or sell a business partnership interest or close corporation stock, for that contract only. [4]
The application
- Changes: an application attached to the policy may be altered only by the applicant or with the applicant's written consent. The insurer may add administrative notes marked so they are not ascribed to the applicant, and no one may falsify an answer on an application. [5]
- As evidence: a life insurance application is not admissible in a lawsuit about the contract unless a true copy was attached to or made part of the policy when it was issued and delivered. [6]
- Representations: statements in an application are representations, not warranties. A misrepresentation defeats recovery only if made with actual intent to deceive or if it materially affects the acceptance of the risk or the hazard assumed. [7]
Delivering the policy
Every policy must be mailed or delivered to the insured within a reasonable time after issue, subject to the insurer's premium requirements. [8] Every individual life policy must carry a notice in ten point bold type that the buyer may return it within ten days of receipt for a refund of the premium if not satisfied for any reason. [9] A policy is construed according to all its terms, as changed by any rider, endorsement or application attached to it. [10]
Federal underwriting and privacy rules
The FTC explains that consumer report information may be given only to someone with a purpose the Fair Credit Reporting Act allows, and that users of reports for insurance must notify the consumer of an adverse action. [11] Under the Gramm-Leach-Bliley Act, financial institutions, including companies offering insurance, must tell customers about their information sharing practices and explain the right to opt out of certain sharing. [12]
Practice questions
1. What is the youngest age at which a Hawaii minor may buy life insurance on their own life?
A. 14
B. 15, by nearest birthday
C. 16
D. 18
Answer: B. (HRS 431:10-203(b)) [2]
2. A 16 year old buys a policy on her own life. Whom may she name as beneficiary under this rule?
Answer: Herself or a father, mother, spouse, child, brother, sister or grandparent. (431:10-203(b)(1)) [2]
3. A wife buys life insurance on her husband without his signature. Is that allowed?
Answer: Yes. A spouse may effect insurance on the other spouse without the insured's written consent. (HRS 431:10-206(1)) [3]
4. Does the consent rule apply to group life insurance?
Answer: No. (431:10-206) [3]
5. An agent changes an answer on an attached application without asking the applicant. Is that allowed?
Answer: No. Only the applicant, or someone with the applicant's written consent, may alter it. (HRS 431:10-207(a)) [5]
6. The insurer did not attach a copy of the life application to the policy. Can it use the application in court?
Answer: No. It is not admissible unless a true copy was attached to or made part of the policy when issued and delivered. (HRS 431:10-208(a)) [6]
7. An applicant made an honest mistake that did not affect the insurer's acceptance of the risk. Can the insurer deny the claim on that basis?
Answer: No. Only misstatements made with actual intent to deceive, or that materially affect the risk or hazard, defeat recovery. (HRS 431:10-209) [7]
8. How long does a buyer have to return an individual life policy for a refund?
Answer: Ten days from receipt. (HRS 431:10-214(a)) [9]
9. In what type size must the right to return notice be printed?
Answer: Ten point bold type. (431:10-214(a)) [9]
10. An insurer raises a premium because of a consumer report. What must it do under federal law?
Answer: Notify the consumer of the adverse action. [11]
Study tips for section III
- Hawaii's minor rule has two parts: age fifteen by nearest birthday, and a limited list of beneficiaries.
- Consent exceptions: spouse and minor; group policies are outside the rule.
- A misrepresentation must be intentional or material to defeat a claim.
Practice more with the free Hawaii life 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 431:10-203: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010-0203.htm
- HRS 431:10-206: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010-0206.htm
- HRS 431:10-202: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010-0202.htm
- HRS 431:10-207: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010-0207.htm
- HRS 431:10-208: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010-0208.htm
- HRS 431:10-209: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010-0209.htm
- HRS 431:10-225: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010-0225.htm
- HRS 431:10-214: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010-0214.htm
- HRS 431:10-237: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010-0237.htm
- Federal Trade Commission, Fair Credit Reporting Act: https://www.ftc.gov/legal-library/browse/statutes/fair-credit-reporting-act
- Federal Trade Commission, Gramm-Leach-Bliley Act: https://www.ftc.gov/business-guidance/privacy-security/gramm-leach-bliley-act