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Hawaii life insurance exam flashcards

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The Hawaii Life exam has 35 scored questions on Hawaii law, and 12 of them come from section II, Hawaii laws and rules pertinent to life insurance only. [1] That section lists replacement, annuity disclosure and suitability, variable contracts, policy clauses, group life, participation in surplus and credit life. [1] Our Hawaii life law questions page covers variable contracts, policy clauses and group life. These flashcards cover the rest of the Hawaii Revised Statutes behind this section, plus the standard provisions every individual life policy must contain. Each answer names its section.

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Individual life policy provisions (HRS 431:10D-102)

1. How long is the grace period on a Hawaii individual life policy?
Thirty days, during which the policy stays in full force. If a claim arises before the overdue premium is paid, the premium may be deducted from the proceeds. (431:10D-102(a)(1)) [2]

2. Are the statements in a life application warranties?
No. In the absence of fraud they are representations, not warranties. The application is part of the contract only if a copy is endorsed on or attached to the policy when issued. (431:10D-102(a)(2)) [2]

3. When does a Hawaii life policy become incontestable?
After it has been in force during the insured's lifetime for two years from its date of issue, except for nonpayment of premiums. Disability and accidental death provisions are left out. (431:10D-102(a)(3)) [2]

4. The insured's age was misstated. What is paid?
The amount the premium would have purchased at the correct age. (431:10D-102(a)(4)) [2]

5. How long after a premium default can a policy be reinstated?
Within three years, unless it was surrendered for its cash surrender value or the paid-up term insurance has expired. The owner needs a written application, evidence of insurability, all premiums in arrears and any policy debt, with interest of no more than six per cent a year. (431:10D-102(a)(5)) [2]

Annuity disclosure (HRS 431:10D-601 to 605)

6. In a face to face sale, when must the buyer's guide and disclosure document be given?
At or before the time of application. (431:10D-603(a)(1)) [3]

7. The application is taken other than in a personal meeting. What is the deadline?
No later than five business days after the insurer receives the completed application. (431:10D-603(a)(2)) [3]

8. If the documents were not given at or before application, what must the applicant get?
A free look period of no less than fifteen days to return the contract without penalty. (431:10D-603(c)) [3]

9. Name four things the disclosure document must include.
Examples: the generic name, the form number, the fact that the product is an annuity, the insurer's name and address, surrender and withdrawal value reductions, the death benefit, a summary of the federal tax status, and a list of charges and fees. (431:10D-603(d)) [3]

10. How often must a deferred annuity owner get a status report?
At least once a year, showing the period dates, accumulation and cash surrender values, amounts credited or charged, and any outstanding loans. (431:10D-604) [4]

11. What is a violation of the annuity disclosure part?
An unfair method of competition or unfair or deceptive act or practice under 431:13-102. (431:10D-605) [5]

Annuity best interest (HRS 431:10D-621 to 630)

12. What standard applies when a producer recommends an annuity?
The producer must act in the consumer's best interest, without putting the producer's or insurer's financial interest ahead of the consumer's, by meeting the care, disclosure, conflict of interest and documentation obligations. (431:10D-623(a)) [6]

13. Name three items of consumer profile information.
Examples: age, annual income, financial situation and needs, insurance needs, financial objectives, liquidity needs, liquid net worth, risk tolerance and tax status. (431:10D-622) [7]

14. A consumer buys an annuity without any recommendation from the producer. Does the care obligation apply?
No. The producer has no care obligation for that transaction, though the insurer's issuance must still be reasonable under the circumstances it actually knows. (431:10D-623(b)) [6]

15. Does Hawaii's care obligation make the producer a fiduciary?
No. It creates only a regulatory obligation. (431:10D-627(c)) [8]

16. When an annuity is replaced, what look-back must the producer consider?
Whether the consumer had another annuity exchange or replacement within the preceding sixty months, along with surrender charges, lost benefits and new fees. (431:10D-627(f)) [8]

17. How long must records of an annuity recommendation be kept?
Five years after the insurer completes the transaction. (431:10D-625) [9]

18. A producer who got the life line of authority after December 31, 2022 wants to sell annuities. What comes first?
Annuity training of at least four continuing education credits, approved by the commissioner. (431:10D-626(c), (d)) [10]

Credit life (HRS 431:10B)

19. What is credit life insurance?
Insurance on the life of a debtor in connection with a specific loan or other credit transaction. (431:10B-103) [11]

20. Which credit transactions are outside the credit insurance article?
Loans or other credit transactions of more than ten years' duration, and isolated transactions not tied to a plan for insuring the creditor's debtors. (431:10B-102) [11]

21. What is the most credit life insurance a debtor can have at the start?
No more than the total amount repayable under the debt. (431:10B-105(a)(1)) [12]

22. When does credit life coverage begin?
On the date the debtor becomes obligated to the creditor, subject to acceptance by the insurer. It may not run more than fifteen days past the scheduled maturity date unless extended at no extra cost. (431:10B-106) [13]

23. The debt is paid off early. What happens to the premium the debtor paid?
Any refund must be paid or credited promptly to the person entitled to it. (431:10B-109(b)) [14]

24. A lender requires credit life as security. What must it tell the borrower?
In writing, that the borrower may provide the coverage through existing policies they own or control, or through any insurer authorized in Hawaii. (431:10B-112) [15]

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Sources

Laws and exam documents quoted as of October 2026.

  1. Pearson VUE, Hawaii content outlines 121201 (effective January 1, 2026): https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/121201.pdf
  2. HRS 431:10D-102: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0102.htm
  3. HRS 431:10D-603: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0603.htm
  4. HRS 431:10D-604: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0604.htm
  5. HRS 431:10D-605: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0605.htm
  6. HRS 431:10D-623: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0623.htm
  7. HRS 431:10D-622: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0622.htm
  8. HRS 431:10D-627: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0627.htm
  9. HRS 431:10D-625: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0625.htm
  10. HRS 431:10D-626: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0626.htm
  11. HRS 431:10B-102 and 431:10B-103: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010B-0102.htm and https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010B-0103.htm
  12. HRS 431:10B-105: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010B-0105.htm
  13. HRS 431:10B-106: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010B-0106.htm
  14. HRS 431:10B-109: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010B-0109.htm
  15. HRS 431:10B-112: https://data.capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010B-0112.htm

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