10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The HI-PC exam has 93 questions and runs 2 hours.
These 10 free HI-PC questions are organized by exam domain, so you can see how each part of the Hawaii Property & Casualty Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
While moving furniture, a homeowner accidentally spills a bucket of paint. It permanently stains the built-in hardwood floor and a freestanding sofa. The home is insured on an unendorsed HO-3. Assume the spill is not excluded, but it is not one of the named perils applying to Coverage C. How should the two losses be analyzed?
Correct answer: C - The floor is covered under Coverage A, but the sofa is not covered under Coverage C.
After a covered fire closes a bakery, repairs made with reasonable speed and similar quality would take 40 days. The owner elects to add 20 days for a kitchen redesign. Under the standard business income period of restoration, which duration controls before applying any waiting period?
Correct answer: A - The 40 days reasonably required to repair the covered damage
When purchasing a building with a mortgage loan, a buyer applies for an NFIP flood policy and pays the full premium at closing. A flood occurs 10 days later. When can the coverage begin?
Correct answer: A - At the loan closing, under the loan-transaction exception to the usual waiting period.
Sudden accidental mechanical breakdown of a refrigerated warehouse's compressor damages the compressor and causes $80,000 of stock to spoil. The equipment breakdown policy includes both property damage and spoilage coverage. How should the two losses be classified?
Correct answer: A - Compressor damage is property damage; the ruined stock is a spoilage loss
At the time of a covered loss, a warehouse is valued at $750,000. The policy has an 80% coinsurance requirement, a $450,000 limit, and a $2,000 deductible. The loss totals $120,000, and no other limit or exclusion applies. How much should the insurer pay?
Correct answer: B - $88,000
Coverage for hail damage to a roof is undisputed. The insured's contractor estimates repairs at $71,000, while the insurer estimates $42,000. With only the amount of loss in dispute, which policy mechanism is designed specifically for this disagreement?
Correct answer: B - Appraisal
Under HRS 514B-143, a condominium association with more than five units must carry a fidelity bond equal to $500 per unit, subject to a $20,000 minimum and a $200,000 maximum. What minimum fidelity bond is required for a 30-unit association?
Correct answer: B - $20,000
During a company errand, an employee causes an accident while driving her own car. The employer's Business Auto Coverage Form shows Symbol 9 for liability and has no Employees as Insureds endorsement. Who is insured under the standard form?
Correct answer: C - The employer for its vicarious liability, but not the employee-owner
The app shows a Hawaii transportation network company driver as logged on and available, but no ride has been accepted. Under HRS 431:10C-703, what minimum primary liability limits apply during this period?
Correct answer: D - $50,000 per person and $100,000 per accident for bodily injury, plus $25,000 per accident for property damage
The agency collects a $12,000 premium through its Hawaii producer, deposits it into the ordinary operating account, and uses part of it for payroll before later remitting the full premium. The policy is ultimately issued. What is the most accurate regulatory conclusion?
Correct answer: D - Using premium funds for agency expenses violates the producer's trustee obligations and can support license discipline.
The HI-PC exam also covers these domains. Drill them in the full free practice test:
The full bank has 1,020 more HI-PC questions with explanations.
Continue in the free practice test →
View plans