Hawaii Insurance License Practice Exam

Which of the following is NOT a responsibility of the insurance holder?

1. Reporting claims promptly

2. Paying premiums

3. Determining claim approvals

4. Providing accurate information

The correct answer is: Determining claim approvals

The correct answer highlights a key distinction in the roles and responsibilities between the insurance holder and the insurance company. Determining claim approvals is primarily the responsibility of the insurance company, which conducts its own investigation based on the terms of the policy. The insurer assesses claims against policy stipulations and determines whether a claim is valid and how much compensation, if any, will be issued to the policyholder. On the other hand, the responsibilities of the insurance holder include reporting claims promptly, providing accurate information to assist in the claims process, and paying the required premiums to keep the policy active. These actions are essential for maintaining an effective insurance coverage. By reporting claims timely, the policyholder ensures that the insurer can begin the claims process efficiently. Providing accurate information is crucial for the insurer to evaluate the claim appropriately, and paying premiums is necessary for keeping the insurance policy in force. Thus, the insurance holder plays an active role in managing their policy, while the determination of claims approval lies with the insurer.