Personal Auto InsuranceQuestion 10 of 158
Which statement about the California Low Cost Automobile Insurance Program (CLCA) is TRUE?
a.Eligibility is based only on age, not income
b.CLCA pays for collision and comprehensive damage to the insured's vehicle
c.CLCA provides liability-only coverage and is statutorily deemed to meet financial responsibility despite lower limits than 30/60/15
d.Drivers under age 21 are the primary intended market for CLCA
Explanation
CLCA, created under Insurance Code §11629.7 et seq., is an income-eligible, good-driver, liability-only program administered through the California Automobile Assigned Risk Plan (CAARP). Its dollar limits are lower than the standard 30/60/15 but it is statutorily deemed to satisfy the financial responsibility requirement. Drivers must be at least 19. CLCA does not cover collision or comprehensive losses.
Law Reference: Cal. Ins. Code §11629.7 et seq.Practice all 158 questions free — no signup required.
Related questions on this topic
- California Vehicle Code §16028 requires a driver to do which of the following with proof of financial responsibility?
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- Who is automatically included as a named insured on a Personal Auto Policy by definition, even if not separately listed on the declarations page?
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