Which statement about the California Low Cost Automobile Insurance Program (CLCA) is TRUE?
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.This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 474 questions free — no signup required.
Own the complete Personal Lines Insurance Producer guide — PDF + EPUB, $19.99 →
Related questions on this topic
- California Vehicle Code §16028 requires a driver to do which of the following with proof of financial responsibility?
- An insured uses her personal vehicle on weekends to deliver pizza for a third-party app, with no endorsement on her Personal Auto Policy. While carrying a paid delivery she rear-ends another car. The PAP carrier most likely:
- Under California's Transportation Network Company (TNC) framework, which best describes 'Period 1'?
- An insured carrying $100,000/$300,000 UIM limits is injured by an at-fault driver carrying only $30,000/$60,000 in liability. The insured's own medical and wage loss exceeds $80,000. Under California UIM, what must occur before the insured can collect from her own UIM?
- Which coverage in the Personal Auto Policy is a first-party, no-fault coverage that pays reasonable medical expenses for the insured and occupants regardless of who caused the accident?
- Who is automatically included as a named insured on a Personal Auto Policy by definition, even if not separately listed on the declarations page?
Last reviewed: · editorial process