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California · Limited Lines Automobile

California Limited Lines Automobile Insurance Agent Exam Prep

The examination this course is built to

Limited Lines Automobile Insurance Agent, 60 scored questions, 105 minutes, administered by California Department of Insurance (examinations delivered by PSI at CDI exam sites)

Before you buy: California also requires pre-licensing education

California requires 12 hours of state-approved pre-licensing education before your license is issued. It is not required before the exam, so you can sit for the exam first. This course is exam preparation built to the state's published content outline. It is not that pre-licensing course and does not satisfy the requirement on its own. Check the California Department of Insurance for the current approved-provider list before you apply for your license.

3
Sections
38
Lessons
450+
Practice questions
60%
Passing score

What you'll learn

Every section below is aligned with the California content outline.

Section 1
I. General Insurance
19 lessons
+
  • Insurance, risk, peril, hazard and loss exposure: Cal. Ins. Code sections 22 and 250
  • Insurable interest, indemnity, utmost good faith, the ideally insurable risk, deductibles, and the benefits and costs of insurance
  • Risk management techniques, reinsurance under Cal. Ins. Code section 620, and the classes of insurance in sections 100 through 120 and 124
  • Underwriting: why insurers underwrite, the steps in the process, adverse selection, spread of risk and the profitable distribution of exposures
  • Contract law and tort law, the four elements of a contract, the special characteristics of an insurance contract, and the policy under Cal. Ins. Code sections 380 and 381
  • Concealment, materiality and fraud: Cal. Ins. Code sections 330 through 339 and 1871.2
  • Representations, warranties, waiver and estoppel, and rescission: Cal. Ins. Code sections 350 through 361 and 440 through 449
  • The insurance marketplace: insurer operating divisions, distribution systems, agency law and authority, field underwriting, and errors and omissions insurance
  • License types and specialty licensees: property and casualty broker-agents, solicitors, personal lines and limited lines automobile agents, surplus line brokers, life and accident and health agents, analysts, life settlement brokers and administrators
  • Transacting insurance, unlicensed activity, prohibited persons under federal law, nonadmitted insurers and the surplus lines market
  • Licensee obligations: free insurance, agency names, change of address, background changes, renewal, license numbers, internet advertising, effective date disclosure, records and illustrations
  • Application investigation, denial, suspension and revocation, notices of appointment, the inactive license, surrender, and termination of a license
  • Fiduciary duties over premium, continuing education by license type, annuity and long-term care training, and accelerated death benefits compared with long-term care insurance
  • Ethical mandates and dilemmas, senior citizen protections, disability application alterations, pretext interviews, and the privacy laws that bind licensees
  • Market regulation: McCarran-Ferguson, the Code and the regulations, the Commissioner, the Unfair Practices Act, rate regulation, discrimination rules, group discontinuance and notice
  • Insurers: admitted and nonadmitted, domestic, foreign and alien, forms of organization, reinsurance, risk retention groups, insolvency, conservation and the guarantee associations
  • Insurance fraud and the agent's duties, and fair claims settlement practices: the sixteen prohibited claims practices, definitions, files, communications and settlement standards
  • Tort law: intentional torts, negligence and its four elements, proximate cause, gross negligence, vicarious liability, and absolute and strict liability
  • Defenses to negligence, California's pure comparative negligence rule, assumption of risk, and compensatory and punitive damages under Civ. Code section 3294
Section 2
II. Property Insurance
5 lessons
+
  • Property insurance basics: advisory and rating organizations, risk management, direct and indirect loss, insurer ratios, rating methods, reserves and the classes of insurance
  • Policy forms, premium and cancellation terms, claim parties, assignment, insurable interest under sections 280 through 287, and concurrent causation
  • Anatomy of the property policy: components, common provisions, valuation methods and loss computation, valued policies under sections 2052 through 2054, the mortgage clause and concurrent coverage
  • The California standard fire policy under sections 2070 and 2071, and cancellation and nonrenewal of property and automobile policies under sections 675 through 679.6 and 660 through 670
  • California residential property statutes: the disclosure statement, building code upgrade coverage, replacement cost under section 2051.5, disaster provisions, renewal after a total loss, and automobile repair rights
Section 3
III. Personal Auto Insurance
14 lessons
+
  • The Personal Auto Policy: eligibility, structure, the defined terms, who is an insured, newly acquired autos and trailers
  • Part A Liability Coverage: insuring agreement, supplementary payments, exclusions, split and single limits, out-of-state coverage and other insurance
  • California's Financial Responsibility Law: Veh. Code section 16056 minimum limits, ways to establish responsibility, evidence in the vehicle, accident reporting and proof after a suspension
  • Part B Medical Payments Coverage: who is insured, what is paid, the exclusions, the per-person limit and how it interacts with Parts A and C
  • Part C Uninsured and Underinsured Motorists Coverage under Cal. Ins. Code section 11580.2: the mandatory offer, written rejection, limits, hit-and-run rules, underinsured offsets, arbitration, and the section 11580.26 property damage and collision deductible waiver offer
  • Part D Coverage for Damage to Your Auto: collision and other than collision, non-owned autos, transportation expenses, exclusions, actual cash value, the insurer's settlement options and appraisal
  • Parts E and F: duties after an accident or loss, the general provisions, policy period and territory, and California cancellation and nonrenewal under Cal. Ins. Code sections 660 through 669
  • Personal auto endorsements, transportation network company coverage under Pub. Util. Code section 5433, and personal vehicle sharing under Cal. Ins. Code section 11580.24
  • California auto rating and underwriting: the Cal. Ins. Code section 1861.02 rating factors, the Good Driver Discount, credit reports and MVRs, the California Automobile Assigned Risk Plan and the Low-Cost Automobile Insurance Program
  • California auto claims standards: total loss and partial loss settlement under 10 Cal. Code Regs. section 2695.8, aftermarket parts, choice of repair shop under Cal. Ins. Code sections 753 and 758.5, and the Auto Body Repair Consumer Bill of Rights
  • Other personal auto exposures: rented and borrowed autos, recreational vehicles under Veh. Code sections 260 and 362, motorcycles and other vehicles with fewer than four wheels, and antique and classic autos
  • Applying the Personal Auto Policy to described losses: a coverage analysis method and worked scenarios for liability, medical payments, uninsured motorists, physical damage and exclusions
  • Personal umbrella and excess liability: purpose, underlying limits, the self-insured retention, drop-down and who is insured
  • Commercial umbrella and excess liability: following-form and stand-alone excess, the underlying schedule, aggregate erosion, defense and claims handling

How it works

1

Enroll

One-time payment of $49.99. Secure checkout powered by Stripe.

2

Study on your schedule

Read the lesson library, take section quizzes, and work through the practice-question bank as many times as you need.

3

Pass the real exam

Take the official California exam with confidence. Check the California Department of Insurance for the exam and application steps.

FAQ

How long is the California Limited Lines Automobile licensing exam?+
California administers this as the Limited Lines Automobile Insurance Agent, through California Department of Insurance (examinations delivered by PSI at CDI exam sites). It carries 60 scored questions with a 105-minute time limit. The published passing score is 60%.
Does California require state-approved pre-licensing education?+
California requires 12 hours of state-approved pre-licensing education before your license is issued, not before the exam, so you can sit for the exam first. This course is exam prep and does not count toward those hours; they must come from a pre-licensing course approved by the California Department of Insurance.
How much does the California Limited Lines Automobile exam cost and who administers it?+
California contracts the examination to California Department of Insurance (examinations delivered by PSI at CDI exam sites), and you register and pay through them rather than through this course. You are allotted 105 minutes. Fingerprinting, the licence application fee and any state pre-licensing requirement are separate from the exam fee; the California Department of Insurance publishes the current schedule.
How many practice questions does this course include?+
This course includes 450+ practice questions across section quizzes and a full-length 60-question final exam simulator that mirrors the real California Limited Lines Automobile exam format. You can retake every quiz as many times as you want -- there is no cap.
Are the practice questions similar to the real California exam?+
The practice questions are written to mirror the real California Limited Lines Automobile exam: the same four-option multiple-choice format, difficulty mix, and topic weighting taken from the state's published content outline, plus a full-length timed simulator matching the real question count. No legitimate provider sells the actual exam questions -- those are confidential -- but studying the same topics at the same weights in the same format is exactly what the exam vendors recommend.
Are the practice questions updated regularly?+
Yes. Question banks and lessons are maintained against each state's current law and the state's published exam content outline -- when a state changes a rule (minimum auto limits, notice periods, education requirements), the affected lessons and practice questions are updated at the source, and because the course is delivered online you always study the current version. Practice-test weighting follows the state's published outline rather than an even spread.
Can I study on my phone?+
Yes. The course works on any phone, tablet, or computer with a browser -- no installs or downloads required -- and your progress, quiz scores, and seat time sync automatically across devices. Materials stay online rather than as downloadable files so that every study session reflects the current version of the content; there is nothing stale sitting in a folder after a state changes its rules.
Can I fit this course around a full-time job?+
It is built for that. The course is fully self-paced with no schedules, live sessions, or deadlines: study in short sessions from your phone during a commute or lunch break, and pick up exactly where you left off on any device. The AI tutor points you to the sections your quiz results show you need most, so limited study time goes where it counts.
Does the course include AI tutoring?+
Yes -- every lesson page has a built-in AI tutor, included with the course at no extra cost. It can explain the current lesson in simpler terms, quiz you one question at a time, and tell you what to study next based on your actual quiz results. If you already use Claude or ChatGPT, you can also connect your own AI assistant to your course from your account page, so it can coach you using your real progress and practice questions.
How long do I have access to the course?+
Lifetime. After purchase you are enrolled immediately and can log in from any device -- laptop, tablet, or phone. Your progress syncs automatically and access never expires.
What if I fail the real California exam?+
You can reschedule and retake the real exam through your state's testing vendor (typically Pearson VUE or PSI) -- you will pay the exam fee again. Your course access stays with you the whole time, so you can review the sections you missed and try again.
Can I retake the California licensing exam if I fail?+
Every state lets you retake the licensing exam if you fail -- you re-register with the testing vendor (typically Pearson VUE or PSI) and pay the exam fee again. Most states allow unlimited attempts, though some impose a short waiting period between tries or after several failed attempts; the California candidate handbook lists the exact rule. Inside the course, practice quizzes and the exam simulator are always unlimited.
Can I add another license line later?+
Yes. Insurance licenses are issued per line of authority, so you add a line -- for example adding Life to a Property and Casualty license -- by passing that line's exam through your state; your existing license is unaffected. Courses here are sold per line to match, so you can prepare for each new line the same way you prepared for the first.
Can I get a refund?+
Yes. Within 7 days of purchase and before you have completed more than 25% of the course or started the final exam, you can request a full refund. Email support@theelitecompany.com with your order number; refunds process to the original payment method within 5-10 business days.

Ready to start studying?

Enroll once, keep access forever, pass your exam with confidence.

$49.99 · 7-day money-back · Lifetime access