California-Specific RulesQuestion 62 of 158
Under §1861.02, in what priority order must a California auto insurer apply the three mandatory rating factors?
a.Credit score, ZIP code, occupation
b.Annual mileage, driving safety record, years of experience
c.Driving safety record, annual mileage, years of driving experience
d.Years of experience, gender, vehicle type
Explanation
Section 1861.02 lists the three mandatory factors in priority order: (1) the insured's driving safety record, (2) the number of miles driven annually, and (3) the number of years of driving experience. Optional factors such as territory or vehicle type may be used only with Commissioner approval and never ahead of the three mandatory factors; credit-based insurance scoring is not allowed on California personal auto policies.
Law Reference: Cal. Ins. Code §1861.02Practice all 158 questions free — no signup required.
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