For the Hawaii Personal Lines exam, the Personal Auto Policy (PAP) is tested two ways: the national policy structure and the Hawaii auto laws layered on top of it. The headline you must carry into the exam is that Hawaii is a no-fault state—each driver's own personal injury protection pays first, regardless of fault. This standalone guide walks through the lettered parts every PAP uses, then focuses on the Hawaii rules an agent applies every day: mandatory PIP, the tort threshold, the 40/80/20 financial-responsibility minimums, and the uninsured/underinsured motorist requirement. Spend your study time on the Hawaii overlay; that is where the state questions live.

The national fundamentals (quick version)

The Personal Auto Policy insures individuals and families for the vehicles they own and drive. It is divided into clearly labeled parts:

• Part A — Liability Coverage: pays for bodily injury (BI) and property damage (PD) the insured is legally responsible for, with a duty to defend and defense costs paid on top of the limit.
• Part B — Medical Payments: pays medical and funeral expenses for the insured and passengers; in Hawaii, PIP is the primary first-party medical coverage.
• Part C — Uninsured/Underinsured Motorists (UM/UIM): pays your injuries when the at-fault driver has no insurance or too little.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, paid at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions set the rules.

An insured generally includes the named insured, the resident spouse, resident family members, and anyone using the covered auto with permission. Eligible vehicles are private passenger autos, pickups, and vans not used primarily for business. The declarations page identifies the named insured, covered autos, limits, and premium. That skeleton is the same nationwide; Hawaii changes the dollar limits and the legal environment around it.

Hawaii is a no-fault state

Hawaii follows a no-fault automobile system rather than a pure tort system. After an accident, an injured driver first collects from their own personal injury protection (PIP), which pays medical and rehabilitative costs regardless of who caused the crash, up to the PIP limit. Hawaii requires PIP on every motor vehicle policy—commonly cited as at least $10,000 per person, verify the current figure. Drivers may add optional wage-loss benefits to PIP to replace income lost while recovering.

This is the opposite of an at-fault state, where the injured party recovers from the other driver's liability coverage. Under no-fault, smaller injury claims are paid quickly through first-party PIP without fighting over fault.

The tort threshold and comparative negligence

No-fault limits—but does not eliminate—lawsuits. An injured person may leave the no-fault system and sue the at-fault driver for pain and suffering only when the injury meets a statutory tort threshold (a defined level of injury or expense). For lesser injuries, recovery comes through PIP, not a lawsuit.

When fault is litigated, Hawaii uses modified comparative negligence, commonly stated as a 51% bar: a claimant who is more than 50% at fault recovers nothing, and a claimant who is 50% or less at fault has the award reduced by their share of fault—verify the exact threshold.

Financial responsibility: the 40/80/20 minimums

Hawaii drivers must demonstrate financial responsibility, almost always by buying liability insurance that meets the state's minimum split limits. Note the recent increase the exam emphasizes:

• Effective January 1, 2026, the minimums rose to 40/80/20:
  • $40,000 bodily injury per person
  • $80,000 bodily injury per accident
  • $20,000 property damage per accident
• These replaced the older 20/40/10 limits ($20,000 / $40,000 / $10,000)—verify the current statute and effective date.

Agents should know both figures and which one is current. Drivers must carry and show proof of insurance when required; driving uninsured can bring fines and license suspension. A high-risk driver may have to file an SR-22 to certify coverage.

Mandatory offer of uninsured and underinsured motorist coverage

Here is a point Hawaii agents must get right: before issuing an auto policy, the insurer must offer uninsured motorist (UM) and underinsured motorist (UIM) coverage, and the insured can waive it only by rejecting in writing.

• Uninsured Motorist (UM) protects you and your passengers when the at-fault driver carries no insurance or flees the scene (hit-and-run).
• Underinsured Motorist (UIM) handles the case where the at-fault driver has insurance, just not enough—UIM pays the difference up to your UIM limit.
• The other driver must be legally at fault for UM/UIM to respond.

The recurring theme: UM/UIM is offered, not automatic, and a written rejection is required to decline it.

Physical damage and other coverages

• Collision and Comprehensive (Other Than Collision) are optional, though a lender will usually require them on a financed vehicle. Damage from hitting an animal is Comprehensive, not Collision.
• A total loss pays the vehicle's actual cash value; raising the deductible lowers premium. Gap coverage can pay the difference between ACV and a loan balance.
• A driver unable to buy coverage in the standard market can usually obtain it through the state's assigned-risk or joint underwriting plan—verify the current mechanism.

Required vs. optional coverages in Hawaii

Key Hawaii numbers to memorize

Common exam traps

• Treating Hawaii as an at-fault state. It is no-fault with mandatory PIP.
• Forgetting the tort threshold for pain-and-suffering lawsuits.
• Using 20/40/10 as the current minimum. As of January 1, 2026 it is 40/80/20—know both.
• Saying UM/UIM cannot be declined. It can—by written rejection after the required offer.
• Transposing the $20k property-damage figure into a BI slot.
• Assuming PIP depends on fault. It pays regardless of fault.
• Hitting an animal is Comprehensive, not Collision.

Quick recap

• The PAP keeps its national Parts A–F structure; Hawaii changes the limits and legal context.
• Hawaii is a no-fault state: PIP is mandatory (commonly $10,000/person, verify) and pays first regardless of fault, with optional wage-loss benefits.
• Pain-and-suffering suits require meeting a tort threshold; litigated fault uses modified comparative negligence (commonly a 51% bar).
• Financial-responsibility minimums are 40/80/20 effective January 1, 2026, up from 20/40/10.
• UM/UIM must be offered and can be rejected only in writing.
• Physical damage is optional; the assigned-risk/joint underwriting plan backstops hard-to-place drivers—verify any specific figure.