Hawaii Insurance Adjuster License Practice Exam

How many years must a foreign insurer have transacted business elsewhere to operate in Hawaii?

1. 3 Years

2. 5 Years

3. 7 Years

4. 10 Years

The correct answer is: 5 Years

To operate in Hawaii, a foreign insurer must demonstrate that it has been actively transacting business for at least five years in other jurisdictions. This requirement is in place to ensure that the insurer is established, has a track record of financial stability, and possesses the necessary experience to effectively manage insurance risks. By mandating a five-year operational history, Hawaii seeks to protect policyholders by ensuring that foreign insurers have proven their reliability and competence in the insurance market before offering products in the state. Other potential durations may not provide sufficient evidence of an insurer's experience and stability, which is crucial for maintaining the integrity of the insurance market within Hawaii. This five-year requirement acts as a safeguard for consumers and helps the state regulate insurers effectively.