1.2 Producer Licensing Requirements

Hawaii Producer Licensing Requirements

Hawaii regulates insurance producers under Article 9 of Chapter 431, Hawaii Revised Statutes. The licensing process ensures producers have adequate knowledge and meet character requirements.

Resident Producer License Requirements

To obtain a resident Property & Casualty producer license in Hawaii:

1. Age and Residency

• Minimum Age: 18 years old
• Residency: Legal resident of Hawaii
• Domicile: Principal place of residence in Hawaii

2. Pre-Licensing Education

Required: 20 hours of pre-licensing education from a Hawaii-approved provider

Course Content Must Include:

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

Approved Providers:

• Insurance Schools, Inc.
• Kaplan Financial Education
• ExamFX
• WebCE
• Other DCCA-approved education providers

Certificate Validity: Pre-license certificate valid for 2 years from completion

Exam Tip: Hawaii requires exactly 20 hours of pre-licensing education for P&C. You cannot take the exam without completing this requirement and receiving your certificate.

3. Pass the Licensing Exam

Exam Requirements:

• Questions: 150 (110 national, 40 Hawaii-specific)
• Passing Score: 70% (105 correct answers)
• Time Limit: 180 minutes (3 hours)
• Question Format: Multiple choice with 4 options
• Testing Provider: PSI Exams
• Exam Fee: $56 per attempt

Scheduling the Exam:

1. Complete pre-licensing education
2. Create account at candidate.psiexams.com
3. Schedule exam appointment online or by phone
4. Choose testing center or online proctored option
5. Take exam at scheduled time

Exam Results:

• Preliminary pass/fail notification immediately after exam
• Official score report provided by PSI
• Pass: Receive exam score report for license application
• Fail: Must wait 24 hours to retest (pay $56 again)

4. Submit License Application

Application Process:

1. Apply online through NIPR (National Insurance Producer Registry) at nipr.com
2. Or apply directly through Hawaii Insurance Division portal
3. Submit required documents and fees

Required Documents:

• Completed application form
• Pre-licensing education certificate (20 hours)
• Exam passing score report
• Proof of identity and residency
• Employer/appointing company information

Fees:

• License Application Fee: $36
• Background Check/Fingerprinting: $45-60 (IdentoGO or approved vendor)

5. Fingerprinting and Background Check

All applicants must complete:

• Electronic fingerprinting at IdentoGO location in Hawaii
• Criminal background check (FBI and Hawaii state)
• Background screening for regulatory actions and licensing issues

Disqualifying Factors:

• Felony convictions involving dishonesty, breach of trust, or money
• Insurance license revocations in other states (within past 10 years)
• Fraudulent conduct or misrepresentation
• Demonstrated financial irresponsibility (bankruptcies may be considered)

6. Company Appointment

Producers must be appointed by an insurer to transact insurance:

• Insurer submits appointment through NIPR or Hawaii Division
• Appointment links producer to insurance company for that line of authority
• Producer can have multiple appointments with different companies
• Appointment fee: $10 per company appointment

Without appointment: Producer is licensed but cannot sell insurance until appointed

Non-Resident Producer Licenses

Hawaii grants non-resident producer licenses to producers licensed in other states:

Reciprocity Requirements

Eligibility:

• Currently licensed as resident producer in home state
• Home state has similar reciprocal agreement with Hawaii
• Good standing in home state (no suspensions or violations)
• Home state requires equivalent education and testing

Application Process

1. Apply through NIPR (recommended) or Hawaii Division directly
2. Provide home state license verification
3. Pay non-resident license fee: $36
4. Submit to background check
5. Obtain company appointment from insurer authorized in Hawaii

No additional exam required if home state has reciprocal agreement

Non-Resident Waiver

If home state does not have equivalent requirements:

• May need to complete Hawaii pre-licensing education (20 hours)
• May need to pass Hawaii exam
• Insurance Division reviews on case-by-case basis

Exam Tip: Most states have reciprocal agreements with Hawaii. Non-resident producers can usually obtain Hawaii licenses without retaking the exam if they hold a resident license in good standing from their home state.

Lines of Authority

Hawaii producers are licensed for specific lines of authority:

P&C Lines of Authority

Most producers hold "Property & Casualty" authority covering all P&C lines

Adding Lines of Authority

To add additional lines (e.g., Life & Health):

• Complete pre-licensing education for new line
• Pass licensing exam for new line
• Submit application and fees
• Obtain appointment for new line

Temporary Licenses

Hawaii may issue temporary licenses in limited circumstances:

When Issued

1. Death of producer: Temporary license to surviving spouse or employee to wind down business (180 days maximum)
2. Disability of producer: Temporary license to designated representative (180 days maximum)
3. Military deployment: Extensions available for active duty military

Not issued for: General convenience or avoiding education/exam requirements

License Maintenance

License Term and Renewal

• Initial License: Valid until producer's birth date in second year
• Renewal: Every 2 years on producer's birth month
• Birth Month System: Producers born in even months renew in even years; odd months in odd years
• Renewal Fee: $36

Example: Producer born April 15, 1990 (even month)

• Obtains license August 2026
• First renewal: April 30, 2028 (next even year)
• Subsequent renewals: April 30, 2030, 2032, etc.

Requirements for Renewal

1. Complete continuing education: 24 hours every 2 years (including 3 hours ethics)
2. Maintain company appointment (at least one active appointment)
3. Pay renewal fee: $36
4. No disciplinary actions or suspensions

Late Renewal:

• Grace period: 30 days after birth month expiration
• Late fee: Additional $36
• After grace period: License lapses; must reapply and possibly retest

Notification Requirements

Producers must notify the Insurance Division within 30 days of:

Address Changes

• Residential address change
• Business address change
• Email address change
• Phone number change

Update through:

• NIPR portal (nipr.com)
• Hawaii Insurance Division portal
• Written notification to Division

Name Changes

• Legal name change (marriage, court order, etc.)
• Provide supporting documentation (marriage certificate, court order)
• Update through Division with fee

Felony Convictions or Regulatory Actions

Producers must report within 30 days:

• Felony convictions (any state)
• Administrative actions by insurance regulators (any state)
• License suspensions or revocations in other jurisdictions
• Criminal charges involving dishonesty or breach of trust

Failure to report: Grounds for license suspension or revocation

Employment or Appointment Changes

Producers must report:

• Termination of employment with insurance agency
• Change of appointing company
• Termination of company appointments

Companies must report: Terminations for cause within 30 days

License Denial, Suspension, or Revocation

The Insurance Commissioner may deny, suspend, or revoke producer licenses for:

Grounds for Disciplinary Action

Disciplinary Process

1. Investigation: Division investigates complaint or violation
2. Notice: Producer receives notice of charges and right to hearing
3. Hearing: Administrative hearing before Insurance Commissioner (if requested)
4. Decision: Commissioner issues written decision with findings
5. Penalties: May include license denial, suspension, revocation, fines, or probation
6. Appeal: Producer may appeal to Hawaii courts

Penalties

• License Denial: Application rejected; may reapply after addressing issues
• Suspension: License suspended for specified period (30 days to 1 year typical)
• Revocation: License permanently revoked; must wait years to reapply
• Fines: Civil penalties up to $10,000 per violation
• Cease and Desist: Order to stop specific conduct immediately

Exam Tip: Hawaii takes producer misconduct seriously. Misappropriation of premium funds, fraud, and criminal convictions almost always result in license revocation. Producers must maintain high ethical standards.