Hawaii Insurance License Practice Exam

Question: 1 / 400

What information is provided to the insured when purchasing a surplus lines insurance policy?

The policy is valid in all states

The insurer is not licensed in the State of Hawaii

When purchasing a surplus lines insurance policy, one significant piece of information provided to the insured is that the insurer is not licensed in the State of Hawaii. This is crucial because surplus lines insurance is intended for situations where coverage cannot be obtained through traditional, licensed insurers within a state. Thus, the policy being offered is from a non-admitted carrier, which means the insurer does not hold a license to operate in the state.

This information helps the insured understand the nature and implications of their policy, including potential risks associated with using a non-licensed insurer, such as the absence of state-backed consumer protections that licensed insurers are required to provide. Hence, this transparency is vital for the insured to make informed decisions about their coverage options.

Get further explanation with Examzify DeepDiveBeta

The coverage is unlimited

The premium is guaranteed

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy