California Property & Casualty Licensing Exam and
Practice Exam Newest 2026 Test Bank| Complete 600
Real Exam Questions and Correct Verified Answers/
Already Graded A+| California P & C Licensing Test
Bank 2026 (Brand New!!)
1. The California Insurance Code (CIC) is:
A) A federal law governing all US insurers
B) Written by the state legislature and enforced by the
California Department of Insurance
C) Created by the NAIC and adopted by California
D) A voluntary set of guidelines for insurers
Correct Answer: B
Rationale: The CIC is enacted by the California Legislature. The
California Department of Insurance (CDI) enforces it. The NAIC
creates model acts, but states must adopt them to become law .
1
,2. The California Insurance Commissioner is:
A) Appointed by the Governor
B) Elected by the people of California
C) Appointed by the NAIC
D) Selected by the state legislature
Correct Answer: B
Rationale: California is one of the few states where the Insurance
Commissioner is elected. The term is four years, with a two-term
limit .
3. An "admitted" insurer is one that:
A) Has a Certificate of Authority from the CDI to transact
insurance in California
2
, B) Is admitted to a hospital network
C) Has been in business for more than 10 years
D) Only writes life insurance
Correct Answer: A
Rationale: An admitted insurer has obtained a Certificate of
Authority from the CDI, allowing it to transact business in
California. Non-admitted insurers (surplus lines) do not have this
authorization .
4. A "non-admitted" insurer:
A) Is illegal in California
B) May only sell health insurance
C) Is not authorized by the CDI but may sell through a
surplus lines broker when coverage is unavailable from
admitted insurers
3
, D) Must be a stock company
Correct Answer: C
Rationale: Non-admitted (surplus lines) insurers are not licensed
by California but may place business through a surplus lines
broker if coverage cannot be obtained from admitted insurers .
5. A "domestic" insurer is one that is:
A) Incorporated in California and conducts business in
California
B) Incorporated in another state but does business in
California
C) Incorporated in another country
D) Owned by the state government
Correct Answer: A
Rationale: Domicile classification: Domestic = incorporated in CA
4
Practice Exam Newest 2026 Test Bank| Complete 600
Real Exam Questions and Correct Verified Answers/
Already Graded A+| California P & C Licensing Test
Bank 2026 (Brand New!!)
1. The California Insurance Code (CIC) is:
A) A federal law governing all US insurers
B) Written by the state legislature and enforced by the
California Department of Insurance
C) Created by the NAIC and adopted by California
D) A voluntary set of guidelines for insurers
Correct Answer: B
Rationale: The CIC is enacted by the California Legislature. The
California Department of Insurance (CDI) enforces it. The NAIC
creates model acts, but states must adopt them to become law .
1
,2. The California Insurance Commissioner is:
A) Appointed by the Governor
B) Elected by the people of California
C) Appointed by the NAIC
D) Selected by the state legislature
Correct Answer: B
Rationale: California is one of the few states where the Insurance
Commissioner is elected. The term is four years, with a two-term
limit .
3. An "admitted" insurer is one that:
A) Has a Certificate of Authority from the CDI to transact
insurance in California
2
, B) Is admitted to a hospital network
C) Has been in business for more than 10 years
D) Only writes life insurance
Correct Answer: A
Rationale: An admitted insurer has obtained a Certificate of
Authority from the CDI, allowing it to transact business in
California. Non-admitted insurers (surplus lines) do not have this
authorization .
4. A "non-admitted" insurer:
A) Is illegal in California
B) May only sell health insurance
C) Is not authorized by the CDI but may sell through a
surplus lines broker when coverage is unavailable from
admitted insurers
3
, D) Must be a stock company
Correct Answer: C
Rationale: Non-admitted (surplus lines) insurers are not licensed
by California but may place business through a surplus lines
broker if coverage cannot be obtained from admitted insurers .
5. A "domestic" insurer is one that is:
A) Incorporated in California and conducts business in
California
B) Incorporated in another state but does business in
California
C) Incorporated in another country
D) Owned by the state government
Correct Answer: A
Rationale: Domicile classification: Domestic = incorporated in CA
4
