Hawaii Insurance License Practice Exam

Question: 1 / 400

What is the maximum claim amount for the Guaranty Association related to unearned premiums?

$5,000

$10,000

The maximum claim amount for the Guaranty Association related to unearned premiums is set at $10,000. This means that if an insurer becomes insolvent, policyholders may file claims for unearned premium amounts up to this limit through the Guaranty Association.

Unearned premiums refer to the portion of the insurance premium that has been paid but not yet earned by the insurer, typically because the policy has not been in effect for the full term. This protection is crucial as it ensures that consumers are provided with coverage or financial compensation even in the event of an insurer's failure.

The specified limit is designed to balance the need for consumer protection with the financial sustainability of the Guaranty Association, which is funded by assessments on member insurers. Therefore, understanding this limit is important for anyone pursuing a career in insurance or preparing for the insurance licensing exam in Hawaii.

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$50,000

$100,000

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