Property & Casualty Insurance Practice Test
Frequently asked questions
How many California Property & Casualty practice questions?+
215 original practice questions covering all 10 topics of the California Department of Insurance Property & Casualty Broker-Agent license exam.
Is the P&C practice test free?+
Yes, completely free. No signup, no credit card. Unlimited practice rounds and a 150-question timed mock exam included.
Are these real CDI P&C exam questions?+
No. All questions are original prose authored from the California Insurance Code, Title 10 CCR, Civil Code, Labor Code, Vehicle Code, and standard ISO insurance form concepts. We never copy from real exams or paid prep providers.
What's the passing score for the California P&C Broker-Agent exam?+
60% with sectional cuts. The real CDI exam is approximately 150 multiple-choice questions over 3 hours at a PSI testing center.
What does the P&C Broker-Agent license let me sell?+
Auto insurance (personal + commercial), homeowners, dwelling, commercial property, casualty/liability (CGL), and workers' compensation insurance — to California residents and businesses.
Is the California P&C exam offered in Vietnamese or Chinese?+
Yes — AB 451 (2018) legally requires CDI to offer producer license exams in English, Spanish, Vietnamese, Chinese (Mandarin), and Korean.
Should I take the P&C license or Personal Lines license first?+
P&C is broader (commercial + personal). Personal Lines is narrower (residential + personal auto only) and has a shorter exam (~100q vs ~150q). As of 2026 (AB 943) both require only the 12-hour ethics course for prelicensing. Many agents start with whichever matches the business they want to write first; many upgrade Personal Lines → P&C later.
Sample practice questions
A few real questions from this free bank, with full explanations. Use the practice tool above for the whole set.
- 1. Auto Insurance
An applicant asks her broker for the minimum bodily injury and property damage liability limits that satisfy California's financial responsibility law for a private passenger auto. Which combination meets the statutory minimum?
- a.$30,000 / $60,000 / $15,000
- b.$10,000 / $20,000 / $3,000
- c.$25,000 / $50,000 / $10,000
- d.$15,000 / $30,000 / $5,000
Answer: a
Explanation: Effective January 1, 2025, Senate Bill 1107 (the Protect California Drivers Act) raised California's compulsory auto liability minimum to 30/60/15 — $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $15,000 for property damage — amending Vehicle Code §16056. The former 15/30/5 limits (in effect 1967–2024) no longer satisfy the financial-responsibility law. The other options are below the current minimum, so they do not satisfy the law.
Source: Cal. Veh. Code §16056; Cal. Ins. Code §11580.1b
- 2. Auto Insurance
California law requires drivers to carry which item in the vehicle as evidence of financial responsibility, ready to present on demand?
- a.Original copy of the policy declarations only
- b.An automobile insurance identification card showing the insurer's name and policy number
- c.Notarized letter from the insurer
- d.A Department of Motor Vehicles SR-22 in every case
Answer: b
Explanation: Vehicle Code §16020 requires drivers to carry written evidence of financial responsibility. The standard evidence is the auto insurance ID card the insurer is required to issue under Insurance Code §1872.85. The card must be in the vehicle and presented to law enforcement on demand. An SR-22 is only required for high-risk drivers after specific violations; a notarized letter is not the standard.
Source: Cal. Veh. Code §16020; Cal. Ins. Code §1872.85
- 3. California Insurance Code & Ethics
An insurer that decides not to renew a personal lines property policy must mail the named insured written notice of non-renewal at least how many days before expiration?
- a.30 days
- b.45 days
- c.60 days
- d.10 days
Answer: b
Explanation: Section 678 requires at least 45 days' written notice before expiration of a personal lines property policy if the insurer elects not to renew. Ten and 30 days are not sufficient. Sixty days is not the statutory minimum for non-renewal of a personal property policy.
Source: Cal. Ins. Code §678
- 4. California-Specific Rules
Under California's Fair Claims Settlement Practices Regulations, within how many calendar days after receiving proof of claim must an insurer accept or deny the claim in whole or in part (absent an extension for good cause)?
- a.15 calendar days
- b.30 calendar days
- c.20 calendar days
- d.40 calendar days
Answer: d
Explanation: 10 CCR §2695.7(b) gives the insurer 40 calendar days from receipt of proof of claim to accept or deny in whole or in part. The deadline may be extended in writing for good cause, but the default rule is 40 days. After acceptance and agreement, payment must be tendered within 30 days.
Source: 10 CCR §2695.7
- 5. Casualty & Liability
A California retailer suffers a ransomware attack that exposes the personal data of 50,000 customers. The retailer's CGL policy excludes 'damages arising from access to or disclosure of confidential information.' Which separate policy is most likely intended to respond?
- a.Commercial Auto
- b.Cyber Liability
- c.Employment Practices Liability
- d.Liquor Liability
Answer: b
Explanation: Cyber Liability policies cover both first-party costs (forensic investigation, notification under California Civil Code §1798.82, credit monitoring, ransomware payments, business interruption) and third-party liability (regulatory fines, customer lawsuits). Modern CGL forms now include a 'data breach' exclusion (ISO CG 21 06 or similar), making stand-alone cyber coverage essential.
Source: Cyber Liability practice (CCPA implications)
- 6. Commercial Property
An owner of a new commercial building under construction wants to insure the structure as it is being built, including materials, equipment, and supplies that will become part of the project. Which form is MOST appropriate?
- a.Equipment Breakdown Protection Coverage Form
- b.Building and Personal Property Coverage Form (CP 00 10)
- c.Builders Risk Coverage Form (CP 00 20)
- d.Commercial Crime Coverage Form
Answer: c
Explanation: The Builders Risk Coverage Form is specifically designed for buildings or structures under construction. It covers the building itself during construction and may include materials, supplies, equipment, machinery, and fixtures that will become a permanent part of the project, while the property is at the site, in transit, or temporarily at another location.
Source: ISO Builders Risk Coverage Form (CP 00 20)
- 7. Dwelling Policy
Which endorsement would an agent recommend so an insured can schedule a $25,000 diamond ring and a $10,000 fine art collection with broader coverage and no theft sublimit?
- a.Scheduled Personal Property Endorsement
- b.Personal Property Replacement Cost Endorsement
- c.Ordinance or Law Endorsement
- d.Earthquake Endorsement
Answer: a
Explanation: The Scheduled Personal Property Endorsement (also known as a personal articles schedule or inland marine floater) lists specific high-value items by description and limit, providing broader, often open-perils coverage and avoiding the Coverage C sublimits on jewelry, fine art, firearms, and similar property. Ordinance or law covers building code costs, RC endorsement upgrades the settlement basis, and the earthquake endorsement covers earthquake.
Source: ISO Dwelling Property forms — endorsements
- 8. Homeowners Insurance
Six months after the insured's HO-3 takes effect, the insurer files a broadened policy form with the state that adds coverage for an additional peril at no extra premium. How does the liberalization clause apply to the insured's existing policy?
- a.The new coverage applies only if the insured pays an additional premium
- b.The insured must request an endorsement to obtain the new coverage
- c.The new coverage applies only at the next renewal
- d.The broader coverage applies automatically to the existing policy
Answer: d
Explanation: The liberalization clause provides that if the insurer broadens a form during the policy period (or within a stated window before the policy started) without an additional premium, the broader coverage applies automatically to the existing policy. This protects the insured from having to wait for renewal to enjoy the improvement and avoids cumbersome endorsement procedures.
Source: ISO Homeowners — Liberalization clause
- 9. General Insurance Principles
An insurer pays its insured $40,000 for collision damage caused entirely by a negligent third-party driver. The insurer then sues the at-fault driver to recover the $40,000. This action is BEST described as:
- a.A coinsurance claim
- b.An apportionment under an excess clause
- c.Subrogation against the responsible third party
- d.A reinsurance recovery
Answer: c
Explanation: Subrogation is the right of the insurer, after paying its insured, to step into the insured's shoes and pursue any third party legally responsible for the loss. Subrogation enforces the indemnity principle by preventing the insured from collecting twice and shifting the loss back to the at-fault party. Coinsurance and reinsurance address different problems.
Source: Indemnity / subrogation principles
- 10. Property Insurance Fundamentals
A neighbor negligently starts a fire that damages the insured's garage. The insurer pays the insured for the loss and then sues the neighbor to recover what it paid. This step is BEST described as which of the following?
- a.Subrogation
- b.Salvage
- c.Liberalization
- d.Coinsurance
Answer: a
Explanation: Subrogation is the insurer's right to step into the insured's legal shoes and pursue a third party whose conduct caused the loss, up to the amount the insurer paid. The insured cannot impair this right (for example, by releasing the wrongdoer before settlement), and the insured must not recover twice for the same loss.
Source: Subrogation principle; Cal. Ins. Code §22