California Insurance Exam Guides
Pick the license you're studying for. Each guide covers California-specific requirements, fees, and official links — plus a free practice exam. Then scroll down to explore the California exam's state-law material, mapped.
Free study resource
What's actually tested on the California exam — the state regulations, mapped
Every California insurance exam reserves a block of questions for California-specific law — the fees, deadlines, limits, and rules that generic national study guides gloss over. This is that material: 98 facts from the TESTivity California regulations curriculum, organized the way we teach them. Open a branch, explore, and let the structure do some of the remembering for you.
Every fact below carries its source citation and the date we last verified it (most recently July 2026) — and is re-checked on a schedule. Facts marked tested are ones you should expect to see on the exam.
Life 11 facts
The life insurance rules that differ by state — free look, grace, reinstatement.
- Incontestability period testedIncontestable after the policy has been in force during the insured's lifetime for **not more than 2 years** from issue (except for nonpayment of premium)
- Grace period for individual life tested**Not less than 60 days.** California requires a long grace period tied to its pending-lapse notice protections — the policy stays in force during the 60 days.
- Free look for individual life tested**Not less than 10 days** for individual life and annuity (policies specify 10 to 30)
- Free look for annuities tested**10 days** for an individual annuity — but **30 days if the owner is a SENIOR (age 60 or older)**
- Free look when a policy is being replaced tested**30 days** where a policy or annuity replaces existing coverage (and 30 days for seniors regardless)
- Free look for long-term care tested**30 days** for long-term care (Cal. Ins. Code § 10232.7); **30 days** for Medicare supplement (§ 10192.13)
- Required nonforfeiture options testedCash surrender value, reduced paid-up insurance, extended term insurance
- Registrations required to sell variable products testedA California Life-Only or Life & Disability license plus FINRA securities registration for variable products
- Does the state regulate viatical/life settlements? tested**Yes — California has a life settlement act** (Cal. Ins. Code §§ 10113.1–10113.3)
- Viator's rescission window tested**30 days from execution of the contract, OR 15 days from receipt of the proceeds, whichever is SOONER**
- Has the state adopted the NAIC best interest standard? tested**YES — adopted by SB 263 (Ch. 3, Stats. 2024), effective January 1, 2025.** The producer must act in the best interest of the consumer. Producer training: an **8-hour initial** course plus **4 hours each renewal**.
Health 15 facts
Health coverage rules — continuation, prompt pay, mandates, public programs.
- Has the state expanded Medicaid under the ACA? tested**YES — expanded effective January 1, 2014, to 138% of the federal poverty level.** California's Medicaid program is called **Medi-Cal**.
- Effective date of expansion, if expanded tested1 January 2014
- Agency administering Medicaid tested**Medi-Cal**, administered by the Department of Health Care Services (DHCS)
- Federal marketplace or state-based exchange tested**A STATE-BASED exchange — Covered California.** California runs its own full exchange, not the federal marketplace.
- Name of the state CHIP program testedCalifornia's CHIP is **integrated into Medi-Cal** (the former Healthy Families program was folded into Medi-Cal in 2013)
- Clean-claim payment deadline, electronic tested**30 days** (the current § 10123.13 text, operative 1 January 2026, uses 30 CALENDAR days; the prior version said 30 working days). Electronic claims are separately governed by § 10123.147.
- Clean-claim payment deadline, paper tested**30 days** after receipt
- Does the state distinguish electronic vs paper claims? testedUniform 30 days, though electronic claims have their own governing section (§ 10123.147)
- Interest / penalty on late claim payment tested**15% per year** on a late, uncontested claim (raised from 10% in the current text)
- Is the IRO's external review decision binding on the plan? tested**YES — Independent Medical Review (IMR).** For CDI-regulated health/disability insurers, the Commissioner adopts the IRO's determination and it is **BINDING on the insurer**. (HMOs run their IMR through the Department of Managed Health Care.)
- Employer size at which federal COBRA applies testedFederal COBRA applies at 20+ employees; California's **Cal-COBRA fills the gap BELOW that** (see continuation)
- Employer size range covered by state continuation tested**Cal-COBRA applies to small employers with 2 to 19 eligible employees** — those NOT covered by federal COBRA
- Duration of state continuation coverage tested**Up to 36 months** of continuation coverage
- Election period for state continuation testedThe election period follows the COBRA framework (generally 60 days)
- Max premium as % of group rate tested**Up to 110% of the group rate** (higher than federal COBRA's 102%)
Auto 10 facts
Auto insurance — minimum limits, fault system, required coverages.
- Fault-based (tort) or no-fault tested**Fault-based (tort). California is NOT a no-fault state.** It also runs a **California Low Cost Automobile Insurance Program (CLCA)** for income-eligible drivers.
- Minimum bodily injury liability per person tested$30,000
- Minimum bodily injury liability per occurrence tested$60,000
- Minimum property damage liability tested$15,000
- The memorizable shorthand (e.g. 30/60/25) tested**30/60/15** — for policies issued or renewed on or after 1 January 2025
- Uninsured motorist: mandatory / must be offered & rejectable / not required tested**Must be OFFERED; the insured may reject or waive it in writing.** Not mandatory if rejected in writing.
- Underinsured motorist status testedOffered, rejectable in writing (part of the UM/UIM coverage under § 11580.2)
- Personal injury protection status testedNot required — California has no PIP and no no-fault regime
- Contributory / pure comparative / modified comparative negligence tested**PURE COMPARATIVE FAULT** — the doctrine California established in the landmark case **Li v. Yellow Cab Co. (1975)**. A claimant's recovery is reduced in proportion to their fault, with no percentage bar; a claimant 99% at fault still recovers 1%.
- Assigned risk / residual market plan for auto testedThe **California Automobile Assigned Risk Plan (CAARP)** — which also administers the Low Cost Automobile program
CE & Renewal 8 facts
Continuing education and renewal rules — the numbers the exam loves.
- How long a license lasts before renewal tested**Two years**, expiring on the last day of the calendar month two years after issuance
- What the renewal date keys off (flat term / birthday / birth year) testedBiennial — a fixed two-year term from the issue date, not birthday-based
- CE hours per renewal period, standard case tested**24 hours per two-year license term**
- CE hours if holding multiple license types (if different) testedStill 24 — the requirement does not multiply with additional lines
- Ethics hours required per period tested**3 hours of ethics** per two-year term — and since 1 March 2023 the 3-hour ethics course must include **1 hour of insurance fraud**
- Initial long-term care training requirement tested**8-hour one-time course before selling long-term care, plus 8 hours in EACH of the first four 12-month periods, then 8 hours each renewal thereafter.** This is far more demanding than the ongoing LTC training in other states.
- What happens if CE is not completed (fine / expiry / cancellation) testedA license may not be renewed until CE is satisfied. A license that is not renewed expires; California allows reinstatement for a period after expiration on payment of fees and completion of CE.
- Any CE exemption (e.g. long-service agents) tested**Nonresidents who comply with their home state's CE are exempt** from California CE (and from the ethics CE). Annuity and long-term care product training are still required to sell those products.
Property 8 facts
Property insurance — rate regulation, residual markets, catastrophe exposure.
- Rate regulation system (file-and-use / prior approval / use-and-file) tested**PRIOR APPROVAL — the landmark regime of PROPOSITION 103 (1988).** An insurer may not use a new property/casualty rate until the Commissioner approves it. A rate application is deemed approved 60 days after public notice unless a hearing is requested and granted; a **mandatory hearing** is triggered by a rate increase over **7% for personal lines** or **15% for commercial**.
- Is insurance credit scoring permitted in personal lines? tested**BARRED for auto.** Proposition 103 requires automobile rates to be based, in decreasing order of importance, on (1) the driver's safety record, (2) annual miles driven, and (3) years of driving experience — plus only optional factors the Commissioner adopts. **Credit-based insurance scoring is NOT a permitted auto rating factor in California.**
- Does the state have a FAIR Plan? tested**Yes — the California FAIR Plan**, the insurer of last resort providing basic property/fire coverage to those unable to obtain it in the standard market
- Name of the FAIR Plan, if any testedCalifornia FAIR Plan Association
- Coastal windstorm pool, if any (e.g. TWIA) testedThe **California Earthquake Authority (CEA)** — a publicly managed, privately funded provider of residential EARTHQUAKE insurance (established 1996). Not a windstorm pool, but California's signature catastrophe mechanism.
- Dominant catastrophe perils in the state tested**Wildfire and earthquake above all** — the two perils that define California's insurance market. Also flood (excluded from homeowners; NFIP required) and post-wildfire mudslide/debris flow.
- What license you must already hold to write surplus lines testedA California surplus line broker license (a separate license under the Insurance Code)
- Is a diligent-effort search of the admitted market required first? testedYes — a diligent search of the admitted market is required first
Guaranty 10 facts
The safety nets when an insurer fails — and their limits.
- Name of the life & health guaranty association testedCalifornia Life and Health Insurance Guarantee Association (CLHIGA)
- Life death benefit limit tested**The LESSER of 80% of the contractual obligation OR $300,000** — California expresses its limits as a PERCENTAGE with a dollar cap, not a flat dollar amount
- Life cash surrender / withdrawal value limit testedThe lesser of 80% or **$100,000** net cash surrender / withdrawal value
- Annuity benefit limit testedThe lesser of 80% or **$250,000** present value (including cash values); structured settlement annuity $250,000
- Health benefit limit testedThe lesser of 80% or **$200,000** (CPI-indexed from 1 January 1991) — LOWER than the $500,000 several states now use
- Aggregate per-individual cap, if any tested**$300,000 aggregate for any one life** (life and annuity combined); a $5,000,000 cap for one owner of multiple non-group life policies
- Does the state follow the standard NAIC model limits? tested**No — California is a notable departure.** Its limits are the lesser of 80% of the obligation or the cap, and its health cap ($200,000) is lower than the NAIC-standard states
- Name of the P&C guaranty association testedCalifornia Insurance Guarantee Association (CIGA)
- Per-claim cap tested**$500,000** per covered claim (workers' compensation claims are UNCAPPED; a residential dwelling structure claim is covered up to $1,000,000). A **$100 deductible** applies — claims of $100 or less are excluded, and the first $100 of every covered claim is not paid.
- Is using the guaranty association as a sales inducement prohibited? tested**Yes — and California is emphatic about it.** It is prohibited to use the existence of either guaranty association in any advertising or in the sale, solicitation, or inducement to purchase insurance.
Workers Comp 7 facts
Who must carry workers' compensation and what it pays.
- Is workers' compensation mandatory for private employers? tested**Yes — every employer must secure the payment of compensation.** In California this is effectively universal: coverage is required for **even a single employee**.
- Employee count at which coverage is required tested**One employee** — coverage is required for essentially any employer with an employee
- Agency administering workers' compensation testedThe **Division of Workers' Compensation (DWC)**, within the Department of Industrial Relations (DIR)
- Temporary total disability wage replacement rate tested**Two-thirds (66⅔%) of average weekly earnings**, subject to statutory minimum and maximum
- Maximum TTD duration tested**Capped at 104 compensable weeks within 5 years** of the date of injury (for most post-2008 injuries); certain severe conditions extend to 240 weeks
- Deadline to file a claim tested**1 year** from the date of injury (or from the last date benefits were furnished) to commence a proceeding
- Ways an employer may comply (insure / self-insure / group) testedInsure with a licensed carrier, qualify as an approved self-insurer, or obtain coverage from the **State Compensation Insurance Fund** (a California public insurer of last resort for workers' comp)
Regulator 5 facts
Who regulates insurance here and what powers the office holds.
- Name of the state insurance regulator testedThe **California Department of Insurance (CDI)**
- Title of the person who heads it testedInsurance Commissioner
- How the commissioner is chosen: elected / appointed by governor / appointed by other body tested**ELECTED by the voters statewide** — a structural difference that sets California apart from most states. The office was made **elective by Proposition 103 (1988)**; before that the Commissioner was appointed by the Governor. Elected at the same time and in the same manner as the Governor, to a maximum of two four-year terms.
- Where the state's insurance law is codified testedThe **California Insurance Code**, with regulations in **Title 10 of the California Code of Regulations (10 CCR)**
- Does the regulator sit somewhere unusual (e.g. inside a constitutional commission)? testedYes — the Commissioner is a **statewide elected official**, independent of the Governor, which few other states replicate
Cancellation 7 facts
When and how policies can be canceled or nonrenewed — heavily tested.
- Initial window during which an insurer may cancel more freely tested**60 days.** During roughly the first 60 days a new policy is in force, the insurer has broader cancellation rights; after 60 days cancellation is limited to enumerated grounds.
- Notice days to cancel a personal auto policy inside the initial window tested**At least 20 days'** notice — or **10 days** if the policy has been in effect less than 60 days
- Notice days for cancellation for nonpayment tested**10 days** for nonpayment
- Notice days for cancellation for other permitted causes tested**20 days** for other permitted causes (auto)
- Notice days required for nonrenewal tested**Auto: at least 30 days** before expiration (reason furnished on request, § 666). **Residential property: at least 60 days, and not more than 120 days, before expiration, WITH the reasons stated** (§ 678).
- Must the reason be stated proactively, on request, or not at all? tested**Residential property: YES — the reasons must be stated** in the nonrenewal notice (§ 678). **Auto:** the reason is furnished on the insured's request (§ 666).
- Restrictions on nonrenewing because of claims (e.g. weather claims excluded) tested**California's signature protection: a mandatory ONE-YEAR MORATORIUM.** After a declared wildfire disaster, an insurer may **not cancel or nonrenew** residential property insurance for one year for policyholders living within or adjacent to the fire perimeter (SB 824, 2018).
Licensing 17 facts
How you get and keep the license — exams, fees, applications, background checks.
- Is there a standalone life license/exam? testedYes — Life (75 questions, 1.5 hours)
- Is there a standalone health license/exam? testedYes — Accident & Health or Sickness (75 questions)
- Is there a combined life+health license/exam? testedYes — a genuine combined Life, Accident & Health or Sickness exam (150 questions, 3 hours)
- Is there a personal lines license/exam? testedYes — Personal Lines (90 questions, 2 hours)
- Is P&C one combined license, or split into Property and Casualty? tested**BOTH** — California offers a combined **Property and Casualty** exam (150 questions) AND separate **Property** (75) and **Casualty** (75) exams, plus a **Personal Lines** (90) exam and a distinct **Commercial** (60) exam
- Does the life license cover annuities? testedYes — annuities are sold under the Life line
- Does the P&C license already include personal lines authority? testedNo — Personal Lines is a separate line; California also has a distinct Commercial line
- Full list of exam-based agent license types testedLife-Only Agent · Accident & Health or Sickness · Property Broker-Agent · Casualty Broker-Agent · Personal Lines · plus specialty lines (Life & Disability Analyst, Limited Lines Automobile, Bail)
- Exam administrator (Prometric / PSI / Pearson VUE) tested**PSI Services**, with remote (PSI Bridge) online proctoring, plus the CDI examination site in Los Angeles and 20+ PSI sites statewide
- Exam fee testedThe CDI examination fee, plus a **$43 convenience fee** at PSI sites or for the remote test
- Passing score tested**60% for PRODUCER exams** (adjuster and bail exams require 70%)
- Minimum age to be licensed tested18
- Is pre-licensing education required? tested**Yes — but the requirement CHANGED on January 1, 2026.** California now requires a **12-hour course on ethics and the California Insurance Code** (including 1 hour of insurance fraud). It must be completed **before the license is issued** — not, as in most states, before you sit the exam.
- Pre-licensing hours and any exceptions (e.g. Title, adjusters) tested**12 hours on ethics and the California Insurance Code**, the same for all producer lines — Life, Accident & Health, Property, Casualty, Personal Lines, and Commercial. There are no longer any line-specific pre-licensing hours.
- Fingerprints, state police report, or none tested**Fingerprints, taken at the exam site.** PSI locations take the required fingerprints at the time of the examination; results go to the California DOJ and FBI.
- Who takes the prints / issues the report testedFingerprints are captured at PSI examination sites (California Live Scan)
- Where you apply (Sircon / NIPR / state portal) testedApply online through the CDI's licensing system (Sircon/NIPR)