California Department of Insurance

What this document is

California Department of Insurance - Automobile Insurance Text Version (Form 101 Revised February 5, 2025) is a reference published by California Department of Insurance (www.insurance.ca.gov). It is one of the California documents that insurance license exam questions are written from, including california property & casualty, california personal lines, california claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• California Department of Insurance, Automobile Insurance guide (Form 101), Know Your Rights (Cancellation/Nonrenewal Provisions)

  “There are only three reasons an automobile policy can be canceled/non-renewed once it is issued: Fraud/material misrepresentation; Non-payment of premium; or Substantial increase in the hazard insured against.”

• California Department of Insurance, Automobile Insurance guide (Form 101), Liability Coverage and California Law

  “Liability coverage does not pay for injuries to you or the people in your household . You can buy medical payments coverage for you and your household members”

• California Department of Insurance, Automobile Insurance guide (Form 101), Other Kinds of Coverage (Uninsured motorist property damage)

  “This only pays if the uninsured driver is identified. You may not need it if you have collision coverage.”

• California Department of Insurance, Automobile Insurance guide (Form 101), Other Kinds of Coverage (Uninsured Motorist Coverage /Underinsured Motorist Coverage)

  “The insurance company must offer you this coverage. If you choose not to buy it, you must sign a form, called a waiver. The form says you were offered the coverage and turned it down.”

• California Department of Insurance, Automobile Insurance guide (Form 101), Glossary (Deductible)

  “The amount of the loss that you must pay before your insurance company pays anything. Only comprehensive and collision coverage have deductibles.”

• California Department of Insurance, Automobile Insurance guide (Form 101), Other Kinds of Coverage (Physical Damage Coverages)

  “Comprehensive covers damage to your car caused by something other than a collision. For example, comprehensive can cover damage from fire, theft, vandalism, windstorm, flood, falling objects, etc. It does not cover mechanical breakdown, normal wear and tear, or maintenance.”

• California Department of Insurance, Automobile Insurance guide (Form 101), If You Have an Accident (subrogation)

  “Usually, your health insurance pays for your immediate medical care. Then your health insurance company will typically try to get back money from your auto insurance or the other person's auto insurance. When one insurance company tries to get money back from another insurance company, it is called subrogation.”

• California Department of Insurance, Automobile Insurance (Form 101, revised February 5, 2025), If You Have an Accident

  “Report accidents immediately to law enforcement and to your insurance company.”

• California Department of Insurance, Automobile Insurance guide (Form 101, revised February 5, 2025), Liability Coverage and California Law

  “What if I cause an accident that costs more than my liability limit? You will be responsible for any damage you cause beyond the limits purchased.”

• California Department of Insurance, Automobile Insurance guide (Form 101, revised February 5, 2025), Auto Insurance Costs (Limits)

  “Example: Let’s say that your auto liability coverage has a $50,000/$100,000 limit on bodily injury for one accident. In this case, your insurance will not pay more than $50,000 for one person. It will not pay more than $100,000 for one accident.”

• California Department of Insurance, Automobile Insurance guide (Form 101, revised February 5, 2025), Liability Coverage and California Law (What happens if I do not have liability coverage?)

  “What happens if I do not have liability coverage? If you do not show proof of insurance when asked, you will get a ticket. If you do not have any insurance, your license may be suspended and your vehicle could be impounded.”

• California Department of Insurance, Automobile Insurance guide (Form 101, revised February 5, 2025), California's Low Cost Automobile Insurance Program (CLCA)

  “The liability limits for this program are lower than the limits usually required by the state. However, these limits do satisfy state financial responsibility laws. The limits are: $10,000 bodily injury or death per person. $20,000 bodily injury or death per accident. $3,000 property damage per accident.”

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More California sources

• California Accident and Health Agent Examination Educational ObjectivesCandidate handbook or exam outline
• California Casualty License Examination ObjectivesCandidate handbook or exam outline
• California Life-Only Agent Examination Educational ObjectivesCandidate handbook or exam outline
• California Personal Lines License Examination ObjectivesCandidate handbook or exam outline
• California Property License Examination ObjectivesCandidate handbook or exam outline
• Cal. Ins. Code s. 790.03: Unfair methods of competition and unfair or deceptive acts definedState statute
• Cal. Ins. Code s. 1668: Grounds for license denial, suspension, or revocationState statute
• Cal. Ins. Code ss. 10350.2-10350.3: Individual disability policy required provisionsState statute