Hawaii Insurance License Practice Exam

The penalty amount for an insurance producer to reinstate an expired license is double the renewal fee. This penalty serves as both a deterrent and a means to encourage timely license renewals, ensuring that producers remain compliant with regulatory requirements.

When a license expires, the insurance producer is required to remit a reinstatement fee that is twice the standard renewal fee. This increased fee reflects the state's interest in maintaining an up-to-date registry of licensed producers and ensuring that individuals operating in the insurance market have current knowledge and competencies. The objective is to uphold the integrity of the insurance industry while providing a structured process for reinstatement.

Other options suggest different fee structures that do not align with the established guidelines for reinstatement following an expired license. Understanding this specific penalty structure is important for producers to ensure they remain compliant and can continue their business without interruptions.