Hawaii Insurance Adjuster License Practice Exam

If a violation of the Hawaii Insurance Code continues, what is the financial impact per day?

1. No penalty

2. A flat fee

3. 100 dollars each day

4. 10,000 dollars each day

The correct answer is: 10,000 dollars each day

The financial impact of a continued violation of the Hawaii Insurance Code is established to be up to $10,000 per day. This substantial daily penalty serves as a strong deterrent against non-compliance with insurance regulations. It emphasizes the seriousness with which violations are treated, as the law aims to protect consumers and maintain integrity within the insurance industry. This daily penalty structure highlights the significant responsibility of insurers and other regulated entities to adhere strictly to the provisions of the insurance code. It ensures that ongoing violations incur substantial financial consequences, which can accumulate rapidly and ultimately incentivizes compliance. Understanding this financial penalty is vital for insurance professionals, as it underscores the importance of maintaining adherence to regulatory standards in Hawaii.