Evergreen Insurance Prep

California Property & Casualty Insurance License, Practice Exams

California Property Broker-Agent and Casualty Broker-Agent licensing. National P&C insurance knowledge plus California insurance law (auto, property and homeowners, workers' compensation), authored from public-domain statutes.
Content last updated 2 July 2026

Revision Mode

Revise with instant feedback: the moment you pick an answer you see whether it was right, with the written, source-cited explanation. Untimed — ideal before you sit a mock exam. Questions you miss keep coming back until you know them.

Modules to include
Number of questions

Exam Mode

Exam-day conditions: no feedback until you submit, each module scored separately like the real test, with a full question-by-question review at the end.

Modules to include
Exam length
Timer (optional)

Each module is scored separately here so you know exactly where you stand. To pass the real California exam you need 60%.

Modules & your progress

Unlock the full question bank

The free sample gives you about 20 questions per module. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.

✓ One purchase, use it on up to 3 of your devices · no subscription · no account needed

Score history

Frequently asked questions

How is the California producer licensing exam structured?

California licenses Property Broker-Agent and Casualty Broker-Agent as separate PSI exams (60% to pass), and many candidates hold both. This bank covers the national property & casualty material plus California law - auto, property and homeowners, and workers' compensation.

What score do I need to pass?

You need 60%. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

Are these real exam questions?

No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the California Insurance Code, Vehicle Code and Labor Code for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full California bank contains 996 questions (general insurance plus California law), with written, source-cited explanations. The free sample gives you about 20 questions per module.

What does access cost?

$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.

Can I use it on more than one device?

Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.

Do I need to create an account?

No. The practice tests run in your browser with no signup. Your score history is saved on your own device.

Sample California Property & Casualty Insurance License practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

The 'other insurance' condition in a property policy generally provides that the policy will pay:

  1. The full loss regardless of other coverage according to the insurer's rules
  2. Its pro-rata share when other valid insurance exists on the same property ✓
  3. Nothing if any other policy exists
  4. Double the loss

Why: When more than one policy covers the same loss, the other insurance condition typically calls for pro-rata sharing based on each policy's limits.

Under Section 4700, when an injured employee dies, what happens to accrued and unpaid compensation?

  1. It is paid to the dependents, or if none, to the personal representative or heirs, without administration ✓
  2. It reverts to the employer's insurer
  3. It is forfeited to the State Compensation Insurance Fund unless an exception clearly applies for the coverage that is in force
  4. It continues as temporary disability to the estate

Why: Section 4700 provides accrued and unpaid compensation is paid to the dependents, or if there are none, to the personal representative or heirs, without administration. No further TD/PD is paid after death.

Which of the following risks would be considered an ideally insurable risk?

  1. An investor's stock market losses
  2. Expected gradual wear and tear on a roof in most situations
  3. Losses from a nationwide war
  4. A homeowner's loss from a sudden, accidental kitchen fire ✓

Why: A sudden, accidental fire is fortuitous, definite, measurable, and not catastrophic to the insurer, meeting the criteria for an insurable risk.

Show more sample questions with answers & explanations

A business with predictable, frequent small losses decides to fund those losses internally rather than buy first-dollar insurance. This strategy is:

  1. Risk transfer to an insurer
  2. Joining an assigned-risk plan
  3. Risk avoidance
  4. Self-insurance (risk retention) ✓

Why: Funding one's own predictable losses internally is self-insurance, a form of planned risk retention.

What is the minimum age and licensing history required to purchase a California Low Cost Automobile (CLCA) policy at the base rate?

  1. 18 years old and licensed for 3 years in that particular circumstance
  2. 16 years old and continuously licensed for the previous 3 years ✓
  3. 21 years old and licensed for 5 years
  4. 18 years old and licensed for 1 year

Why: Ins. Code §11629.73(b) requires the applicant to be at least 16 years of age and continuously licensed to drive for the previous three years (a surcharge applies to those with less experience).

Under Section 1731, a person licensed as a broker-agent is deemed to be acting as an INSURANCE AGENT when transacting insurance placed with which insurers?

  1. Only insurers domiciled in California that hold an unrestricted certificate of authority
  2. Every insurer with which the broker-agent has placed at least one policy during the current license term
  3. Any nonadmitted surplus line insurer that has been determined eligible to accept surplus line business in this state as of the date the particular insurance was actually placed
  4. Those insurers for which a notice of appointment has been filed with the commissioner and is then in force ✓

Why: Sec. 1731 deems a broker-agent to be acting as an insurance agent for business placed with insurers for whom a notice of appointment is on file and in force.

Most workers' compensation laws impose a 'waiting period' before income (indemnity) benefits begin. The purpose is to:

  1. Allow time to verify medical bills
  2. Calculate the experience modification
  3. Give the insurer time to deny the claim under the policy's terms
  4. Avoid paying wage benefits for very short, minor absences ✓

Why: The waiting period (commonly a few days) means no wage-loss benefits are paid for minor, brief absences; medical benefits, however, usually begin immediately.

Which of the following best describes fraud in an insurance context?

  1. A clerical error by the insurer
  2. An ambiguous policy provision
  3. An honest mistake on the application unless an exception clearly applies for the coverage that is in force
  4. An intentional act of deception to induce the other party to part with something of value ✓

Why: Fraud is an intentional deception or misrepresentation made to gain an unfair or unlawful advantage.

Every license issued under this chapter must state on it all of the following EXCEPT:

  1. The name of the licensee and the capacity of the license, plus any attached organizational name list
  2. The effective date and the expiration date of the license
  3. The total dollar amount of commissions the licensee earned in the prior license term ✓
  4. The conditions, if any, subject to which the license is issued

Why: Sec. 1650 requires the license to state the licensee's name, capacity, conditions, effective and expiration dates, and (for organizations) qualified natural persons; commissions earned are not required.

Which statement about no-fault auto insurance CONCEPTS is generally correct?

  1. No-fault systems let injured parties recover certain economic losses from their own insurer regardless of fault ✓
  2. No-fault means no one ever pays for accidents
  3. No-fault eliminates the need for liability coverage entirely unless an exception clearly applies for the coverage that is in force
  4. No-fault applies only to property damage

Why: Under no-fault concepts, an injured person's own insurer pays specified personal injury/economic losses regardless of who caused the accident, with limits on lawsuits.

An Installation floater covers:

  1. Employee dishonesty
  2. Property/materials being installed by a contractor until installation is complete and accepted ✓
  3. The contractor's office building
  4. Equipment after it is sold to the public unless an exception clearly applies for the coverage that is in force

Why: An Installation floater covers materials and equipment during transit, storage, and installation until the work is accepted, common for HVAC or fixture installers.

Under §2051.5, when a loss relates to a declared 'state of emergency,' no time limit shorter than what period (from the first ACV payment) may be placed on the insured to collect the full replacement cost?

  1. 48 months
  2. 24 months
  3. 36 months ✓
  4. 12 months

Why: Section 2051.5(b)(1)(B) provides that for a loss relating to a state of emergency, a time limit of less than 36 months from the first ACV payment may not be imposed to collect full replacement cost.

For an injury to be compensable under workers' compensation, it generally must arise:

  1. Solely from the employer's negligence
  2. From a single sudden accident only
  3. During regularly scheduled hours only
  4. Out of and in the course of employment ✓

Why: The basic compensability test is that the injury must 'arise out of and in the course of employment' — connected to the work and occurring within the scope of the job.

When an applicant submits a completed application with the initial premium, the applicant is generally making the:

  1. Consideration only
  2. Counteroffer by the insurer
  3. Offer ✓
  4. Acceptance

Why: In insurance, the applicant typically makes the offer by submitting the application and premium; the insurer accepts by issuing the policy.

Under the unendorsed PAP, towing and labor (Part D) coverage is:

  1. An optional coverage that must be added, with a stated per-disablement limit ✓
  2. Part of liability coverage
  3. Automatically included at full cost unless an exception clearly applies for the coverage that is in force
  4. Only for rental cars

Why: Towing and labor costs coverage is an optional add-on with a small per-disablement limit (e.g., $25–$75), not automatically included.

A customer slips on a wet floor in the insured's store and is hurt. This is most clearly a claim under:

  1. Employee Benefits Liability
  2. Coverage A — Premises and Operations ✓
  3. Coverage B — Personal and Advertising Injury
  4. A surety bond

Why: A slip-and-fall on the insured's premises is a Coverage A bodily injury (premises and operations) claim.

Under Section 791.06, a disclosure authorization form used to collect information for a life, health, or disability insurance application may remain valid for no longer than what period from the date it is signed?

  1. Twenty-four months
  2. Sixty months
  3. Thirty months ✓
  4. Twelve months

Why: Section 791.06(g)(1)(A) limits an authorization signed to collect information for a life, health, or disability insurance application, reinstatement, or change in benefits to no longer than thirty months from the date signed (one year for property or casualty).

An insurer knowingly accepts a late premium payment without objection on several occasions, then later tries to deny a claim because a payment was late. The insurer is most likely prevented from doing so by:

  1. Waiver and estoppel ✓
  2. Insurable interest
  3. Indemnity
  4. Subrogation

Why: By repeatedly accepting late payments (waiver), the insurer may be estopped from later denying coverage based on the very right it gave up.

A worker loses the use of both hands and is permanently unable to engage in any gainful employment. This is classified as:

  1. Permanent partial disability
  2. Permanent total disability ✓
  3. Temporary partial disability
  4. Temporary total disability

Why: Permanent total disability (PTD) applies when the worker is permanently and completely unable to return to any gainful employment.

For an injury occurring on or after January 1, 2008, what is the general aggregate cap on temporary disability payments for a single injury under Section 4656?

  1. There is no cap on temporary disability
  2. 104 compensable weeks within a period of five years from the date of injury ✓
  3. 240 compensable weeks within five years for all injuries under the policy's terms
  4. 52 compensable weeks within one year

Why: Section 4656(c)(2) caps temporary disability for injuries on or after Jan. 1, 2008 at 104 compensable weeks within five years from the date of injury.

Under Section 1725.5, what must a licensed agent or broker include on business cards, written price quotations, and California print advertisements for insurance products?

  1. The complete legal name and the home-office street address of every admitted insurer that the licensee is currently appointed by and authorized to represent in this state
  2. A toll-free consumer hotline number maintained by the California Department of Insurance for complaints
  3. The licensee's license number, in a type size at least as large as any telephone number, address, or fax number shown ✓
  4. A statement that coverage is subject to underwriting approval and may be declined at the insurer's discretion

Why: Sec. 1725.5(a) requires the license number on business cards, written price quotations, and print ads in a type size at least as large as any telephone number, address, or fax number (or 12-point/8-point as specified).

A claims handler knowingly presents a false written statement in support of a workers' compensation claim. Under Section 1871.4, the maximum fine for this offense is set at what amount, or double the value of the fraud, whichever is greater?

  1. Fifty thousand dollars ($50,000)
  2. Two hundred fifty thousand dollars ($250,000)
  3. One hundred thousand dollars ($100,000)
  4. One hundred fifty thousand dollars ($150,000) ✓

Why: Section 1871.4(b) punishes a violation by imprisonment plus a fine not exceeding one hundred fifty thousand dollars ($150,000) or double the value of the fraud, whichever is greater. Restitution must also be ordered.

Which statement about MPCI and the role of private insurers is correct?

  1. Private insurers are barred from MPCI unless an exception clearly applies for the coverage that is in force
  2. Private insurers sell and service MPCI policies under federal reinsurance through the RMA/FCIC ✓
  3. MPCI is sold only by banks
  4. FEMA sells all MPCI policies

Why: MPCI is delivered by private insurers who sell and service the policies, with federal reinsurance and oversight provided through the RMA and the Federal Crop Insurance Corporation.

Under the Dwelling Policy, if no liability supplement is attached, an injured visitor's medical bills are:

  1. Paid under Coverage E
  2. Not covered, because the Dwelling Policy has no liability or med pay by default ✓
  3. Paid under Coverage M automatically unless an exception clearly applies for the coverage that is in force
  4. Paid under Coverage A

Why: The basic Dwelling Policy contains no liability or medical payments coverage; these must be added via the personal liability supplement.

A key distinction between the Jones Act and the LHWCA is that:

  1. Both require proof of employer negligence
  2. The Jones Act covers seamen on a fault (negligence) basis, while LHWCA covers maritime/dock workers on a no-fault basis ✓
  3. Both are no-fault programs
  4. The Jones Act is no-fault while LHWCA requires proof of negligence unless an exception clearly applies for the coverage that is in force

Why: The Jones Act lets seamen sue for negligence (fault-based), whereas the LHWCA is a no-fault compensation system for longshore and harbor workers who are not seamen.

When there is a disagreement between the insured and insurer over the insured's entitlement to and amount of UM damages, how does §11580.2 require the matter be resolved?

  1. By mandatory mediation only
  2. By arbitration conducted by a single neutral arbitrator ✓
  3. By a jury trial
  4. By the Insurance Commissioner in that particular circumstance

Why: Ins. Code §11580.2(f) provides that in the event of disagreement, the determination shall be made by arbitration conducted by a single neutral arbitrator.

The 'nationwide marine definition' establishes:

  1. Which auto policies are valid nationwide unless an exception clearly applies for the coverage that is in force
  2. The types of risks that may properly be written as inland and ocean marine insurance ✓
  3. Federal flood boundaries
  4. The minimum premium for marine policies

Why: The Nationwide Marine Definition outlines classes of risks that may properly be insured under marine (inland and ocean) policies, including imports, exports, domestic shipments, instrumentalities of transportation, and certain floaters.

If an applicant neither fully qualifies for a permanent license nor is denied within one year of the commissioner's receipt of the application (or issuance of a certificate of convenience), what happens under Section 1670?

  1. The applicant is granted a one-year extension as a matter of right
  2. The certificate of convenience previously issued to the applicant is automatically converted into a permanent license for the lines originally requested
  3. The application is automatically denied without prejudice to filing a new application, absent a good-cause determination by the commissioner ✓
  4. The application remains pending indefinitely until acted upon

Why: Sec. 1670 provides that, absent a good-cause determination, the application is automatically denied without prejudice to filing a new application if not resolved within one year.

In the Dwelling Policy program, which form provides ONLY basic named perils such as fire, lightning, and extended coverage perils?

  1. HO-3
  2. DP-2
  3. DP-1 ✓
  4. DP-3

Why: DP-1 is the Basic Form, providing the narrowest set of named perils. DP-2 broadens the list and DP-3 is open-peril.

The Unfair Practices Article expressly applies to which of the following?

  1. Only the appointed examiners and analysts employed directly by the commissioner in that particular circumstance
  2. Only domestic stock insurers admitted in California
  3. Life agents, broker-agents, and surplus line brokers, among others engaged in the business of insurance ✓
  4. Only out-of-state reinsurers that cede risk to California insurers

Why: Section 790.01 makes the article apply to life agents, broker-agents, surplus line brokers, and all other persons engaged in the business of insurance.