Hawaii Property & Casualty Insurance Exam 2026

Welcome to your FREE Hawaii Property & Casualty (P&C) Insurance exam preparation guide. This comprehensive study resource covers Hawaii-specific insurance laws, regulations, and requirements you need to pass your state licensing exam.

Note: This guide covers Hawaii state-specific content. You should also study national Property & Casualty insurance concepts, as approximately 73% of the exam tests general insurance knowledge.

Why Get Licensed in Hawaii?

Hawaii offers unique opportunities and challenges for insurance professionals:

• Island Market: Exclusive, isolated market with limited competition
• Tourism Economy: Major commercial insurance opportunities in hospitality, resorts, and recreation
• Unique Risks: Hurricane, volcanic eruption, tsunami, and lava flow coverage challenges
• High Property Values: Premium real estate market across the islands
• Military Presence: Significant insurance needs from military families and contractors
• Growing Population: Increasing demand for insurance professionals statewide
• Hawaii Hurricane Relief Fund: State-backed insurance program for high-value properties

What This Guide Covers

This FREE study guide includes:

✓ Hawaii Insurance Law & Regulations - Insurance Division, Commissioner appointment, rate filing ✓ Property Insurance - Hurricanes, volcanic risks, lava zones, HHRF coverage ✓ Auto & Casualty Insurance - Hawaii's 40/80/20 liability requirements (increased 2026), mandatory UM/UIM ✓ Hawaii-Specific Topics - Island risks, condo insurance crisis, state regulations ✓ Practice Questions - Quiz questions in each chapter to test your knowledge

Exam Format & Requirements

Exam Structure

Exam Costs

• P&C Exam Fee: $75
• License Application Fee: $36
• Fingerprinting/Background Check: Approximately $45-60
• Pre-License Education: Varies by provider ($150-400 for 20-hour course)

Pre-License Education

Hawaii does NOT require pre-licensing education for Property & Casualty insurance. However, completing an approved pre-license course is highly recommended to prepare for the exam. Recommended course topics include:

• General insurance concepts and principles
• Property insurance types and coverages
• Casualty and liability insurance
• Hawaii insurance laws and regulations
• Ethics and professional conduct

Exam Tip: While Hawaii doesn't mandate pre-licensing education, most successful candidates complete a preparatory course. Consider taking a 20-40 hour course to strengthen your chances of passing on the first attempt.

Application Process

1. Study and Prepare: Complete recommended pre-license course (not required but recommended)
2. Schedule Exam: Book with Pearson VUE online or by phone
3. Pass Exam: Score 70% or higher (105 out of 150 questions)
4. Submit Application: Apply through NIPR (National Insurance Producer Registry) or Hawaii Insurance Division
5. Fingerprinting: Complete background check at IdentoGO or approved location (if required)
6. Receive License: Hawaii Insurance Division issues license

Exam Content Areas

National Content (73% of exam - 110 questions)

The national portion covers general P&C insurance principles:

1. General Insurance Principles (15-20%)

   • Risk and insurance fundamentals
   • Policy structure and provisions
   • Insurable interest and indemnity
   • Insurance companies and operations

2. Property Insurance (25-30%)

   • Homeowners policies (HO-2, HO-3, HO-4, HO-6, HO-8)
   • Dwelling policies (DP-1, DP-2, DP-3)
   • Commercial property (BPP, BOP)
   • Inland marine and personal articles

3. Casualty Insurance (25-30%)

   • Auto insurance coverage types
   • General liability insurance
   • Commercial liability policies
   • Workers' compensation basics

4. Policy Provisions & Contract Law (10-15%)

   • Policy structure and interpretation
   • Endorsements and exclusions
   • Policy conditions and duties
   • Loss settlement provisions

5. Insurance Regulations (10-15%)

   • Federal and state regulatory structure
   • Consumer protections
   • Producer responsibilities
   • Ethical practices

Hawaii State-Specific Content (27% of exam - 40 questions)

The Hawaii portion focuses on state laws and unique risks:

1. Hawaii Insurance Division & Regulation

   • Department of Commerce and Consumer Affairs structure
   • Insurance Commissioner appointment and powers
   • Hawaii Revised Statutes Chapter 431 (Insurance Code)
   • Producer licensing and continuing education
   • Rate regulation and filing requirements

2. Hawaii Property Insurance Challenges

   • Hurricane insurance and HHRF (Hawaii Hurricane Relief Fund)
   • Volcanic hazards and lava zone classifications
   • Tsunami exposure and coastal risks
   • Earthquake insurance requirements
   • Flood insurance (NFIP) in Hawaii
   • Condo association insurance crisis (2024-2026 legislation)

3. Hawaii Auto Insurance Requirements

   • Increased minimum limits: 40/80/20 (effective January 1, 2026)
   • Mandatory Uninsured Motorist (UM) coverage: $40,000 per person (2026)
   • Underinsured Motorist (UIM) coverage: $40,000 per person (2026)
   • No-Fault Personal Injury Protection (PIP): $10,000 minimum
   • Financial responsibility requirements
   • Military personnel insurance considerations

4. Hawaii-Specific Regulations

   • Prohibited practices and unfair trade practices
   • Claims handling requirements
   • Cancellation and non-renewal rules
   • Record retention requirements
   • Continuing education (CE) requirements: 24 hours every 2 years
   • Ethics requirements: 3 hours of ethics CE every 2 years

Hawaii's Unique Insurance Environment

Natural Disaster Risks

Hawaii faces unique property insurance challenges due to its geographic location and geology:

Hurricane Risk

• Category 4-5 hurricanes threaten all islands
• Hurricane season: June 1 - November 30
• Limited private market coverage due to high risk
• Hawaii Hurricane Relief Fund (HHRF) provides excess coverage for high-value properties ($10M+)

Volcanic Hazards

• Active volcanoes on Big Island (Kilauea, Mauna Loa)
• Lava zone classifications affect insurability and premiums
• Zone 1 (highest risk): Often uninsurable or very expensive
• Zone 9 (lowest risk): Standard coverage available
• 2018 Kilauea eruption destroyed hundreds of homes

Tsunami Exposure

• All islands vulnerable to Pacific Basin tsunamis
• Coastal evacuation zones mapped statewide
• Earthquake-generated local tsunamis possible

Other Perils

• Earthquakes (active seismic zones)
• Flash flooding (tropical storms and heavy rainfall)
• Extreme heat and UV exposure
• Saltwater corrosion of structures

The Condo Insurance Crisis (2024-2026)

Hawaii experienced a severe condominium insurance crisis beginning in 2023:

The Problem

• Hurricane insurance premiums skyrocketed 500-1000% for high-rise condos
• Many insurers withdrew from the market entirely
• Condo associations faced $10M+ deductibles
• Some buildings could not obtain full coverage

Legislative Response (2024-2025)

• Senate Bill 1044 (2025): Authorized HHRF to provide excess hurricane coverage for condos
• Eligibility: Buildings with total insured value exceeding $10 million
• Coverage: Excess coverage above $10M (up to $140M maximum policy)
• Requirement: Must be denied by at least 2 private insurers
• Duration: 5-year temporary program while market stabilizes

Impact on Producers

• Must understand HHRF eligibility and application process
• Need to advise condo associations on layered coverage strategies
• Stay current on private market availability changes
• Navigate complex commercial property placements

Military Market Considerations

Hawaii has significant military presence:

• Multiple major military bases (Pearl Harbor, Schofield Barracks, Marine Corps Base Hawaii)
• Service members and families need auto and renters insurance
• Deployment-related policy adjustments common
• SCRA (Servicemembers Civil Relief Act) compliance required
• Military housing privatization insurance coordination

Study Strategy

Recommended Study Plan

Week 1-2: National P&C Fundamentals

• Insurance principles and terminology
• Property insurance coverages
• Liability insurance basics
• Policy structure and provisions

Week 3: Hawaii-Specific Content

• Hawaii Insurance Division and regulations
• Producer licensing and CE requirements
• Hawaii insurance statutes

Week 4: Hawaii Property & Auto Insurance

• Hurricane and volcanic risk coverage
• Hawaii Hurricane Relief Fund (HHRF)
• Auto insurance minimum limits (40/80/20)
• UM/UIM requirements

Week 5-6: Practice & Review

• Take practice exams
• Review missed questions
• Focus on weak areas
• Memorize key numbers and dates

Key Numbers to Memorize

Hawaii Auto Insurance (Effective January 1, 2026)

• Bodily Injury Liability: $40,000 per person / $80,000 per accident
• Property Damage Liability: $20,000 per occurrence
• Uninsured Motorist (UM): $40,000 per person (mandatory)
• Underinsured Motorist (UIM): $40,000 per person (mandatory)
• Personal Injury Protection (PIP): $10,000 minimum (no-fault)

Licensing Requirements

• Pre-License Education: Not required (recommended)
• Continuing Education: 24 hours every 2 years
• Ethics CE: 3 hours every 2 years
• Exam Passing Score: 70% (105 out of 150 questions)
• Exam Time: 180 minutes (3 hours)
• Exam Cost: $75

Hawaii Hurricane Relief Fund (HHRF)

• Minimum Property Value: $10 million total insured value
• Primary Coverage Requirement: Condo must have primary coverage up to $10M
• HHRF Coverage: Excess coverage above $10M
• Maximum HHRF Policy: $140 million
• Eligibility: Denied by at least 2 private insurers

Exam Structure

• Total Questions: 150
• National Questions: 110 (73%)
• Hawaii Questions: 40 (27%)
• Passing Score: 70% (105 correct)

Hawaii Insurance Resources

Official Resources

• Hawaii Insurance Division: cca.hawaii.gov/ins
• Hawaii Revised Statutes Chapter 431: Hawaii Insurance Code
• Pearson VUE Exam Information: pearsonvue.com
• NIPR Licensing Portal: nipr.com

Important Contacts

• Hawaii Insurance Division: (808) 586-2790
• Pearson VUE Testing: 1-800-274-2609
• NIPR Licensing: 1-816-783-8990

Getting Started

This study guide is organized into four main chapters:

Chapter 1: Hawaii P&C Regulation & Licensing

• Hawaii Insurance Division structure
• Producer licensing requirements
• Continuing education requirements
• Prohibited practices and ethics

Chapter 2: Hawaii Property Insurance

• Hurricane insurance and HHRF
• Volcanic hazards and lava zones
• Tsunami, earthquake, and flood coverage
• Condo insurance considerations

Chapter 3: Hawaii Auto & Casualty Insurance

• Hawaii auto insurance requirements (40/80/20)
• UM/UIM mandatory coverage
• No-fault PIP coverage
• Liability insurance principles

Chapter 4: Hawaii Ethics & Professional Conduct

• Producer duties to clients
• Unfair trade practices
• Claims handling requirements
• Record keeping and documentation

Ready to start? Begin with Chapter 1 to learn about Hawaii's regulatory structure and licensing requirements.

Disclaimer

This study guide is for educational purposes only and reflects Hawaii insurance laws and regulations as of January 2026. Insurance laws change frequently. Always verify current requirements with the Hawaii Insurance Division before relying on any information for licensing or business decisions.

While Hawaii doesn't require pre-licensing education, this guide works best when combined with a comprehensive study course for thorough exam preparation.

Good luck on your Hawaii Property & Casualty insurance exam!