A Hawaii insurance producer allows the producer's license to become inactive because the renewal fee...

C. 12 months is correct. Hawaiʻi revised its producer-license reinstatement period so that a producer whose license becomes inactive because the renewal fee was not paid may reinstate the license without retaking the written producer examination if the required reinstatement action occurs within twelve months after the inactivation date.

The producer must pay the applicable fee together with a statutory penalty equal to double the unpaid renewal fees and otherwise comply with the requirements of Chapter 431. The same statutory reforms provide that a licensee does not need to retake the producer examination when applicable renewal requirements are met or reactivation occurs within this twelve-month period.

This is important because older study materials may refer to a 24-month reinstatement period. Hawaiʻi changed that period to twelve months, so selecting D based on outdated material would be incorrect for the current examination framework.

Thirty days and six months are not the maximum reinstatement window established by the current rule. The license, however, remains inactive until properly reinstated; the producer may not treat the reinstatement period as continuing authority to conduct insurance business.

Reference topics: HRS §§431:9A-107 and 431:9A-124; Inactive Licenses; Reinstatement; Renewal Fees; Examination Requirements.

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