California property and casualty practice exam
Free property and casualty practice for the California producer exam: 367 general questions plus 19 California state law questions, each with an explanation.
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Getting your California property and casualty license
California's combined property and casualty exam has 150 questions in 3 hours, and you need 60 percent to pass. PSI runs the exams, and every new agent is fingerprinted.
- Exam provider
- PSI. Schedule online or by phone at (833) 518-7456.
- Exam length
- Combined property and casualty: 150 questions in 3 hours. Property or casualty alone: 75 questions in 1.5 hours each.
- Passing score
- 60 percent
- Exam fee
- $55
- PSI convenience fee
- $43, charged by PSI on top of the exam fee
- License filing fee
- $188 for a property and casualty broker-agent
- Pre-licensing education
- 12 Hours of Study on Ethics and the California Insurance Code, completed before the exam. You only take it once, even for more than one license type.
- Fingerprints
- Required. PSI sites can take them.
- Retakes
- Reschedule through PSI and pay the exam fee again
How to plan your retake
Retake rules by state - Continuing education
- 24 hours every 2-year license period, including at least 3 hours of ethics with 1 hour on insurance fraud
Official links
- California Department of Insurance - official state insurance department
- CDI, Examination Information - exam provider information
Licensing facts checked on , against official sources. Fees and rules change, so confirm with the California Department of Insurance and your exam's candidate handbook before you register.
California state law questions
Every California question with its answer, explanation, and the law it comes from.
Licensing and CE
2 questions
1. How much continuing education must a California property and casualty agent complete each two-year license period?
- 24 hours, including at least 3 hours of ethics with 1 hour on insurance fraud
- 20 hours, including 2 hours of ethics
- 30 hours, including 5 hours of ethics
- 24 hours, with no ethics requirement
Show answer
Cal. Ins. Code 1749.3. The 3 ethics hours must include one hour of study on insurance fraud.
2. Which prelicensing course does California require of a property and casualty broker-agent applicant?
- A 40-hour property and casualty principles course
- 12 Hours of Study on Ethics and the California Insurance Code
- A 20-hour course on property insurance only
- No prelicensing study is required
Show answer
Cal. Ins. Code 1749. The 12-hour ethics and Insurance Code course is completed to prepare for the license exam.
Auto Insurance
3 questions
1. Beginning January 1, 2025, the minimum auto liability limits in California are:
- $15,000 per person, $30,000 per accident, and $5,000 property damage
- $25,000 per person, $50,000 per accident, and $25,000 property damage
- $30,000 per person, $60,000 per accident, and $15,000 property damage
- $30,000 per person, $60,000 per accident, and $25,000 property damage
Show answer
SB 1107 raised the minimums from 15/30/5 to 30/60/15, applying as policies renew in 2025.
2. Under Proposition 103, a California Good Driver must be offered a rate at least how much lower than the insurer's rate for non-Good Drivers?
- 10 percent
- 15 percent
- 25 percent
- 20 percent
Show answer
Cal. Ins. Code 1861.02. A Good Driver has been licensed at least 3 consecutive years with no more than one point on the record.
3. To qualify as a Good Driver in California, a person must have been licensed for at least:
- 3 consecutive years
- 1 year
- 5 consecutive years
- 10 years
Show answer
The driver also may have no more than one point on the driving record.
Cancellation and Nonrenewal
4 questions
1. Once a California auto policy is issued, the insurer may cancel it only for:
- Any reason, with 30 days notice
- Nonpayment of premium, fraud or material misrepresentation, or a substantial increase in the hazard insured against
- A single at-fault accident
- The insured moving to another county
Show answer
Cal. Ins. Code 1861.03(c) limits auto cancellation and nonrenewal to these three reasons.
2. For a California residential property policy, the insurer must deliver a notice of nonrenewal at least how many days before the policy expires?
- 30 days
- 45 days
- 75 days
- 60 days
Show answer
Cal. Ins. Code 678(c)(1). The 75-day notice applies to policies expiring on or after July 1, 2020.
3. A California insurer cancels a homeowners policy for nonpayment of premium. The notice must be given at least:
- 5 calendar days before
- 20 calendar days before
- 30 calendar days before
- 10 calendar days before the cancellation takes effect
Show answer
Cal. Ins. Code 677.4. Cancellation for nonpayment or fraud needs 10 days notice; other permitted reasons need 20.
4. When a California homeowners policy is canceled for a permitted reason other than nonpayment or fraud, notice must be delivered at least:
- 20 calendar days before the cancellation takes effect
- 10 calendar days before
- 45 calendar days before
- 75 calendar days before
Show answer
Cal. Ins. Code 677.4 requires at least 20 calendar days notice before canceling a homeowners policy for a permitted reason other than nonpayment or fraud. Nonpayment carries a shorter notice period.
Guaranty Association
3 questions
1. Apart from workers compensation and dwelling structure claims, the California Insurance Guarantee Association (CIGA) will not pay a covered claim in excess of:
- $100,000
- $500,000
- $300,000
- $1,000,000
Show answer
CIGA pays covered claims up to $500,000 under Cal. Ins. Code 1063.1(c)(7), apart from workers compensation and dwelling structure claims. The $300,000 figure is the cap in many other states, not California's.
2. For a dwelling structure claim under a residential property policy, CIGA pays up to:
- $300,000
- $500,000
- $1,000,000 or the amount recoverable under the policy, whichever is less
- The full policy limit, with no cap
Show answer
For a dwelling structure claim under a residential property policy, CIGA pays up to $1,000,000 or the amount recoverable under the policy, whichever is less, under 1063.1(c)(7)(C). It is not capped at the standard $500,000.
3. Which type of claim is NOT subject to CIGA's $500,000 per-claim cap?
- Auto bodily injury liability
- Commercial general liability
- Homeowners personal property
- Workers compensation benefits
Show answer
Cal. Ins. Code 1063.1(c)(7)(A) excludes workers compensation benefits from the cap.
Residual Markets
2 questions
1. The California FAIR Plan exists to:
- Insure qualified property when basic property insurance is not available in the normal market
- Pay claims of insolvent property insurers
- Sell flood coverage on behalf of FEMA
- Provide auto insurance to high-risk drivers
Show answer
The Department calls the FAIR Plan the insurer of last resort for basic property insurance (Cal. Ins. Code 10091).
2. A California driver who cannot buy auto insurance in the voluntary market can get coverage through:
- The California FAIR Plan
- The California Automobile Assigned Risk Plan (CAARP)
- The California Insurance Guarantee Association
- The California Earthquake Authority
Show answer
A California driver who cannot buy auto insurance in the voluntary market gets coverage through the California Automobile Assigned Risk Plan (CAARP). The FAIR Plan covers property risks, not auto, and the Guarantee Association pays claims of insolvent insurers rather than writing policies.
Coverage Mandates
1 question
1. Before issuing a residential property policy, a California insurer must:
- Include flood coverage in the policy
- Require the insured to buy earthquake coverage
- Offer the named insured coverage for earthquake
- Offer a separate wildfire policy
Show answer
Cal. Ins. Code 10081. The coverage may be an endorsement or a separate policy.
Claims Practices
2 questions
1. Under California's Fair Claims Settlement Practices Regulations, an insurer must acknowledge a notice of claim within:
- 7 calendar days
- 10 calendar days
- 30 calendar days
- 15 calendar days
Show answer
Under 10 CCR 2695.5(e), a California insurer must acknowledge a notice of claim within 15 calendar days. The 30-day figure belongs to other claim-handling deadlines.
2. Under California's Fair Claims Settlement Practices Regulations, after receiving proof of claim an insurer must accept or deny the claim within no more than:
- 40 calendar days
- 15 calendar days
- 30 calendar days
- 60 calendar days
Show answer
10 CCR 2695.7(b). If more time is needed, the insurer must send the insured written notice every 30 days.
Workers Compensation
2 questions
1. Which California employers must carry workers compensation insurance?
- Employers with 3 or more employees
- Every employer, even one with only one employee
- Employers with 5 or more employees
- Only construction employers
Show answer
Cal. Labor Code 3700. Roofers must carry it even with no employees.
2. Under California workers compensation, temporary disability is not paid for:
- The first 7 days, unless the disability lasts more than 21 days
- The first day only
- The first 3 days, unless the disability lasts more than 14 days or the worker is hospitalized as an inpatient
- Any period; it is paid from the first day in all cases
Show answer
Cal. Labor Code 4652. If the disability exceeds 14 days or there is an inpatient stay, payment runs from the date of disability.
Key California terms
19 plain-English cards on California insurance law, from the California flashcard deck.
Licensing and CE
- California P&C prelicensing course
- 12 Hours of Study on Ethics and the California Insurance Code, taken once before the exam even for more than one license type.
- California P&C CE requirement
- 24 hours every 2-year license period, including at least 3 hours of ethics, one of them on insurance fraud.
- California P&C exam format
- Combined exam is 150 questions in 3 hours; property or casualty alone is 75 questions in 1.5 hours. Passing score is 60 percent.
Auto Insurance
- California auto liability minimums
- 30/60/15 since January 1, 2025: $30,000 per person and $60,000 per accident bodily injury, $15,000 property damage. Was 15/30/5.
- Proposition 103
- The 1988 ballot law that governs California auto rating, including the Good Driver discount and limits on auto cancellation.
- California Good Driver discount
- A rate at least 20 percent below the insurer's rate for non-Good Drivers, required by Proposition 103.
- California Good Driver
- A driver licensed at least 3 consecutive years with no more than one point on the driving record.
Cancellation and Nonrenewal
- California auto cancellation reasons
- After issue, an auto policy may be canceled only for nonpayment, fraud or material misrepresentation, or a substantial increase in the hazard.
- California residential nonrenewal notice
- At least 75 days before expiration for residential property policies.
- California homeowners cancellation notice
- 10 days for nonpayment or fraud; 20 days for any other permitted reason.
Guaranty Association
- California Insurance Guarantee Association
- Pays covered claims of insolvent P&C insurers, generally up to $500,000 per claim. Workers compensation benefits are not capped.
- CIGA dwelling structure limit
- For a dwelling structure claim under a residential property policy, the lesser of $1,000,000 or the amount recoverable under the policy.
Residual Markets
- California FAIR Plan
- The insurer of last resort for basic property insurance when coverage is not available in the normal market.
- California Automobile Assigned Risk Plan
- Provides auto insurance to drivers who cannot buy it in the voluntary market.
Coverage Mandates
- California earthquake offer
- Before issuing a residential property policy, the insurer must offer earthquake coverage, by endorsement or separate policy.
Claims Practices
- California claim acknowledgment deadline
- Under the Fair Claims Settlement Practices Regulations, an insurer must acknowledge a notice of claim within 15 calendar days.
- California claim decision deadline
- 40 calendar days after proof of claim to accept or deny; if more time is needed, written notice every 30 days.
Workers Compensation
- California workers comp requirement
- Every employer with even one employee must carry workers compensation. Roofers must carry it even with no employees.
- California temporary disability waiting period
- No payment for the first 3 days unless the disability lasts more than 14 days or the worker is hospitalized as an inpatient.
Keep studying
The general topics make up most of the exam.
California exam questions
What score do I need to pass the California property and casualty exam?
60 percent. The combined exam has 150 questions and a 3-hour time limit.Source: CDI, Examinations: Time Limit and Number of Questions
How much does it cost to get a California property and casualty license?
Plan on about $286 in state and testing fees: the $55 exam fee, PSI's $43 convenience fee, and the $188 license filing fee. Fingerprinting and any course cost extra.Source: CDI, Licensing Fees
Can I take property and casualty as separate exams in California?
Yes. Property and casualty are each 75 questions in 1.5 hours, or you can take the combined 150-question exam in 3 hours.Source: CDI, Examinations: Time Limit and Number of Questions
How much of the California property and casualty exam is state law?
State law is usually around 20 to 30 percent of a state's producer exam. Check the California candidate handbook from your testing provider for the exact content outline.
What does the California state law section cover?
Common areas include licensing and continuing education, auto liability minimums, cancellation and nonrenewal notice rules, and the guaranty fund. This page covers: Licensing and CE, Auto Insurance, Cancellation and Nonrenewal, Guaranty Association, Residual Markets, Coverage Mandates, Claims Practices, Workers Compensation.
Where do these state questions come from?
Each state question is written from the state's statutes, regulations, or insurance department guidance, and the source is linked under the answer so you can read it yourself.
Do I still need the general questions?
Yes. Most of the exam is general property and casualty knowledge. The full exam option here mixes 367 general questions with the California state law questions.