Hawaii Insurance Adjuster License Practice Exam

If an insurer violates Hawaii insurance laws, what daily penalty can the Attorney General seek?

1. 1,000 dollars

2. 5,000 dollars

3. 10,000 dollars

4. 15,000 dollars

The correct answer is: 10,000 dollars

The law stipulates that if an insurer is found to be in violation of Hawaii insurance laws, the Attorney General has the authority to seek a daily penalty of up to $10,000 for each violation. This provision serves as a deterrent against potential non-compliance with insurance regulations, ensuring that insurers adhere to established laws and maintain ethical practices in their operations. Understanding the implications of this penalty is crucial for those in the insurance industry, as it underscores the importance of compliance and the potential financial consequences of failing to operate within legal guidelines. This significant amount reflects the seriousness with which Hawaii treats violations of its insurance laws, emphasizing the commitment to protecting consumers and maintaining the integrity of the insurance market.