An insured backs out of her driveway and strikes her neighbor's parked car. Under the Personal Auto Policy, the damage to the INSURED'S OWN vehicle is paid under:

Other Than Collision (Comprehensive)

It is not covered under the PAP

An insurer reports to law enforcement information about a homeowners claim it reasonably believes is fraudulent. Under §1879.5, the insurer is:

Immune from civil liability for the disclosure if made in good faith and without malice

Required to obtain the insured's written consent before making the report

Required to wait until criminal charges are filed before sharing the file

Liable for defamation if the suspect is not eventually convicted

Under a standard DP-3 without additional endorsements, how is a covered loss to the named insured's Coverage C personal property settled?

Actual cash value (replacement cost minus depreciation)

Replacement cost without depreciation

Guaranteed replacement cost up to 125% of the limit

Coverage F medical payments to others on a homeowners policy is BEST described as:

A no-fault coverage with a low limit (typically $1,000-$5,000) that pays reasonable medical expenses for non-insured persons injured on the premises or by the insured's activities

A coverage that pays medical bills of the insured and resident relatives only

A property coverage that pays for damage to a visitor's belongings

A liability coverage that pays only if the insured is found legally at fault

Under an open-perils (special form) policy, who has the burden of proof when a loss occurs?

The insurer must prove that an exclusion applies

The state insurance commissioner determines coverage

The insured must prove that a listed peril caused the loss

The insured must prove the loss was not the result of negligence

Which of the following is a PURE risk and therefore potentially insurable?

The chance that a kitchen grease fire damages a home

Opening a new restaurant with uncertain profits

Betting on the outcome of a college basketball game

Buying shares of a technology company hoping the price rises

Personal Lines Insurance Practice Test

Frequently asked questions

How many California Personal Lines practice questions?+

158 original practice questions covering all 8 topics of the California Department of Insurance Personal Lines Broker-Agent license exam.

Is the Personal Lines practice test free?+

Yes, completely free. No signup, no credit card. Unlimited practice rounds and a 100-question timed mock exam included.

What's the difference between Personal Lines and the full P&C license?+

Personal Lines is restricted to personal auto + residential property (no commercial property, no workers' comp). It's the entry-level P&C license: a ~100-question / 2.5-hour exam (vs ~150q / 3 hours for full P&C). As of 2026 (AB 943), both require only the 12-hour ethics course for prelicensing.

Are these real CDI exam questions?+

No. All questions are original prose authored from the California Insurance Code, Title 10 CCR, Civil Code, Vehicle Code, and standard ISO Personal Lines form concepts. We never copy from real exams or paid prep providers.

What's the passing score for the Personal Lines exam?+

60% on the real CDI exam. Approximately 100 questions over 2.5 hours at a PSI testing center.

Is the California Personal Lines exam offered in Spanish, Chinese, or Vietnamese?+

Yes — AB 451 (2018) legally requires CDI to offer producer license exams in English, Spanish, Vietnamese, Chinese (Mandarin), and Korean.

Can I upgrade from Personal Lines to the full P&C license later?+

Yes. As of 2026 (AB 943) no additional prelicensing hours are required — you simply add the line of authority and sit for the full P&C exam at any time.

Sample practice questions

A few real questions from this free bank, with full explanations. Use the practice tool above for the whole set.

1. Personal Auto Insurance
What are California's compulsory minimum personal auto liability split limits?
- a.$50,000 / $100,000 / $25,000
- b.$30,000 / $60,000 / $15,000
- c.$25,000 / $50,000 / $25,000
- d.$10,000 / $20,000 / $3,000
Answer: b
Explanation: Effective January 1, 2025, SB 1107 (the Protect California Drivers Act) set California's compulsory minimum personal auto liability split limits at 30/60/15 — $30,000 per person bodily injury, $60,000 per accident bodily injury, and $15,000 per accident property damage — amending Vehicle Code §16056 and replacing the 15/30/5 limits used from 1967 to 2024. These are floor amounts only; carriers and producers may write higher limits and typically recommend doing so.
Source: Cal. Veh. Code §16056; Cal. Ins. Code §11580.1b
2. Personal Auto Insurance
An insured backs out of her driveway and strikes her neighbor's parked car. Under the Personal Auto Policy, the damage to the INSURED'S OWN vehicle is paid under:
- a.Liability (Part A)
- b.Other Than Collision (Comprehensive)
- c.It is not covered under the PAP
- d.Collision
Answer: d
Explanation: Damage to the insured's own vehicle from impact with another vehicle or object is paid under Collision coverage in Part D, subject to the collision deductible. The damage to the NEIGHBOR'S vehicle (third-party property) is paid by the insured's Part A liability coverage.
Source: ISO PAP Part D
3. California Insurance Code & Ethics
Once the insurer and the insured reach written agreement on the amount payable for a homeowners loss, payment must be issued within how many calendar days?
- a.40 days
- b.30 days
- c.45 days
- d.60 days
Answer: b
Explanation: Title 10 CCR §2695.7(h) requires that, no later than 30 calendar days from the date the parties agree in writing on the amount of the claim, the insurer must tender payment. Failure to do so may trigger 10% statutory interest under Civil Code §3287.
Source: CCR Title 10 §2695.7(h)
4. California Insurance Code & Ethics
An insurer reports to law enforcement information about a homeowners claim it reasonably believes is fraudulent. Under §1879.5, the insurer is:
- a.Immune from civil liability for the disclosure if made in good faith and without malice
- b.Required to obtain the insured's written consent before making the report
- c.Required to wait until criminal charges are filed before sharing the file
- d.Liable for defamation if the suspect is not eventually convicted
Answer: a
Explanation: Insurance Code §1879.5 grants insurers, their employees, and authorized agents immunity from civil liability for furnishing information about suspected insurance fraud to the Department of Insurance or law enforcement, provided the disclosure is made in good faith and without fraudulent intent or actual malice.
Source: Cal. Ins. Code §1879.5
5. California-Specific Rules
For a personal auto policy, how much advance written notice of non-renewal must a California insurer provide?
- a.75 days
- b.60 days
- c.90 days
- d.30 days
Answer: b
Explanation: Under Insurance Code §663.5, an insurer must give at least 60 days' written notice of non-renewal of a personal auto policy and must state the specific reason. Non-renewal grounds are limited to those listed in §661, such as fraud, certain driving convictions, or a substantial increase in the hazard insured against. The 75-day rule belongs to residential property non-renewal under §678.
Source: Cal. Ins. Code §663.5
6. Dwelling Policy
Under a standard DP-3 without additional endorsements, how is a covered loss to the named insured's Coverage C personal property settled?
- a.Actual cash value (replacement cost minus depreciation)
- b.Replacement cost without depreciation
- c.Functional replacement cost
- d.Guaranteed replacement cost up to 125% of the limit
Answer: a
Explanation: Under every Dwelling Property form, personal property is settled at actual cash value (ACV) by default. To upgrade Coverage C to replacement cost the insured must add the Personal Property Replacement Cost Endorsement. Guaranteed replacement cost and functional replacement cost are not the standard settlement methods for DP Coverage C.
Source: ISO Dwelling forms — Coverage C personal property settlement
7. Endorsements & Liability
Coverage F medical payments to others on a homeowners policy is BEST described as:
- a.A coverage that pays medical bills of the insured and resident relatives only
- b.A property coverage that pays for damage to a visitor's belongings
- c.A liability coverage that pays only if the insured is found legally at fault
- d.A no-fault coverage with a low limit (typically $1,000-$5,000) that pays reasonable medical expenses for non-insured persons injured on the premises or by the insured's activities
Answer: d
Explanation: Coverage F is a goodwill, no-fault coverage. It pays reasonable medical expenses, usually limited to $1,000-$5,000 per person, incurred by guests or others (not insureds or regular residents of the household) who are injured on the premises or by the insured's activities off the premises. It pays without proof of legal liability, helping to head off small claims from becoming lawsuits.
Source: ISO HO Coverage F medical payments to others
8. Homeowners Insurance
Under an open-perils (special form) policy, who has the burden of proof when a loss occurs?
- a.The state insurance commissioner determines coverage
- b.The insurer must prove that an exclusion applies
- c.The insured must prove that a listed peril caused the loss
- d.The insured must prove the loss was not the result of negligence
Answer: b
Explanation: Open-perils coverage reverses the presumption. All direct physical loss is covered unless the policy specifically excludes it, so the insurer carries the burden of proving an exclusion applies. This is why HO-3 and HO-5 provide broader coverage than HO-2.
Source: ISO HO form open-perils policies
9. General Insurance Principles
Which of the following is a PURE risk and therefore potentially insurable?
- a.The chance that a kitchen grease fire damages a home
- b.Opening a new restaurant with uncertain profits
- c.Betting on the outcome of a college basketball game
- d.Buying shares of a technology company hoping the price rises
Answer: a
Explanation: Pure risk produces either loss or no loss, never gain, and is the only type insurance addresses. A kitchen fire fits that definition. Buying stock, gambling, and opening a business all carry a chance of GAIN, which makes them speculative and uninsurable.
Source: Cal. Ins. Code §22
10. Property Insurance Fundamentals
All of the following are classic 'basic form' perils EXCEPT:
- a.Windstorm and hail
- b.Smoke
- c.Fire and lightning
- d.Earthquake
Answer: d
Explanation: The basic peril list (FELLW + extended) includes fire, explosion, lightning, wind/hail, smoke, vehicles, aircraft, vandalism, riot, sinkhole collapse, and volcanic action. EARTHQUAKE is excluded under all standard homeowners and dwelling forms; California requires insurers to OFFER earthquake coverage separately (CEA or stand-alone) under §10081/§10089.
Source: ISO DP-1 / HO basic peril list