Hawaii Insurance Adjuster License Practice Exam

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Prepare for the Hawaii Insurance Adjuster Test with flashcards and multiple-choice questions. Each question includes hints and explanations. Equip yourself with the knowledge you need to succeed!

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For how long are losses covered under the discovery clause after policy expiration?

  1. 30 days

  2. 60 days

  3. 90 days

  4. 1 year

The correct answer is: 1 year

The correct choice indicates that losses are covered under the discovery clause for one year after a policy expires. This means that even if the policy has formally ended, any losses that are discovered within that one-year period can still be reported and addressed under the terms of the previous policy. This provision is particularly important for insurance policyholders because it provides a safety net, allowing them to file claims for incidents that may not have been immediately apparent at the time the policy was in force. In other words, if an insured event occurs just before the policy expires, but the policyholder does not discover it until after the expiration date, they still have a full year to notify the insurer and seek coverage for the loss. This helps ensure that policyholders are not left unprotected for sudden or unforeseen issues that arise shortly after their coverage ends. This provision allows for a smoother claims process and encourages policyholders to report incidents as soon as they are discovered, thereby reducing the risk of disputes between insurers and insured parties regarding claims that arise close to policy expirations.