10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The HILH exam has 96 questions and runs 2 hours.
These 10 free HILH questions are organized by exam domain, so you can see how each part of the Hawaii Life Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
An indexed universal life policy places $100,000 in an index segment. The contract credits interest on that opening amount, then deducts annual charges. The index rises 12%, participation is 75%, the cap is 8%, the floor is 0%, and charges are $2,500. What is the year-end value?
Correct answer: D - $105,500; the 8% cap limits interest to $8,000, then charges are deducted
A 67-year-old retiree has no beneficiary objective and wants the greatest monthly income guaranteed for as long as she lives. She accepts that payments may end at her death, even after one payment. The appropriate payout option is:
Correct answer: B - Straight life, maximizing lifetime income while providing no minimum beneficiary guarantee at all
After a stroke, an insured needs substantial assistance with bathing and transferring. A licensed health care practitioner expects both limitations to last six months; the insured can perform the other four activities of daily living and has no severe cognitive impairment. Under the usual tax-qualified chronic-illness trigger, how should this be classified?
Correct answer: C - Eligible, because two activities are impaired for a period expected to exceed 90 days
A policy excludes death caused by piloting a private aircraft but otherwise remains in force. Two years later, the insured dies from metastatic cancer while no aviation activity is involved. Which claim decision is most defensible?
Correct answer: A - Pay because the excluded aviation hazard did not cause the death
An applicant pays the initial premium and receives an insurability-type conditional receipt stating that coverage applies only if the proposed insured was insurable as applied for on the application date. The applicant requested standard rates, dies before issue, and underwriting evidence shows the person qualified only at a table-rated premium. The receipt produces:
Correct answer: C - No conditional coverage because the applicant was not insurable as applied for
A household analysis identifies $120,000 of immediate cash needs, $500,000 as the present value of survivor-income needs, and $80,000 for education. Available liquid assets are $150,000 and existing usable life insurance is $200,000. The family intends to keep its home, so $300,000 of home equity is not available for the plan. The resulting additional life insurance need is:
Correct answer: A - $350,000
An unlicensed office employee works for a Hawaiʻi life producer. Which proposed task crosses from clerical support into an activity requiring a producer license?
Correct answer: B - Comparing two insurers' surrender-charge schedules and recommending the better contract to a prospect
A producer receives a return premium from an insurer for a former policyowner. The policyowner has given no written direction for another disposition. The producer places the money in the agency operating account and plans to apply it to a future policy six weeks later. Hawaiʻi law requires the producer to:
Correct answer: D - Handle the funds as fiduciary money and return them to the person entitled within 30 days
A policyowner borrows from an existing whole-life policy and uses the loan proceeds to pay part of the premium on a new annuity from the same insurer. The producer argues that no replacement is involved because the old policy remains in force and the insurer is unchanged. Under Hawaiʻi replacement rules, which conclusion is correct?
Correct answer: A - This is a financed-purchase replacement, and replacement duties can apply even within the same insurer
A consumer independently requests a fixed annuity but refuses to provide liquid-net-worth information. The producer makes no recommendation, documents the refusal, and obtains the required signed acknowledgment. What is the most accurate result under Hawaiʻi's annuity best-interest framework?
Correct answer: C - The insurer may still issue on a reasonable basis; documented refusal does not itself create a recommendation
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