CDI + Licensing
25%of exam
CDIPSIAB 943Ethics CourseFingerprintsCE
California Property
25%of exam
California Casualty
25%of exam
Ethics + Practices
25%of exam
Quick Facts
- Exam
- Property and Casualty
- License
- Property/Casualty Broker-Agent
- Regulator
- CDI
- Provider
- PSI
- Questions
- 150
- Time
- 3 hours
- Pass
- 60%
- Prelicense
- 12-hour ethics/code
- Fingerprint
- Capital Live Scan
- Auto minimum
- 30/60/15
License Sequence
Exam, ethics, fingerprints, application, issuance.
Pass exam12-hour courseLive ScanCDI license
License Picker
- Need both lines→P&C combined(One exam)
- Only property→Property broker-agent
- Only liability→Casualty broker-agent
- Personal auto only→Limited lines auto
- Business package focus→Commercial lines
- Client shopping→Broker authority
- Carrier appointment→Agent authority
- Adjust claims→Adjuster license
Exam Map
- P&C combined
- 150 questions
- Property only
- 75 questions
- Casualty only
- 75 questions
- Time
- 3 hours
- Passing
- 60 percent
- Delivery
- PSI computer exam
- Remote
- PSI proctored option
- Result
- Immediate screen report
License Path
- Age
- 18 or older
- Exam
- Pass within year
- Ethics/code
- 12 hours required
- Fraud study
- Included hour
- Certificate
- Three-year validity
- Application
- Submit to CDI
- Fingerprints
- After application
- Background
- DOJ/FBI review
CDI Rules
- Commissioner
- Elected official
- Term
- Four years
- CDI
- Insurance regulator
- Rate review
- Prior approval
- Market conduct
- Insurer practices
- Licensing
- Producer authority
- Complaints
- Consumer protection
- Fraud
- Investigate/prosecute
CE + Renewal
- License term
- Two years
- CE total
- 24 hours
- Ethics CE
- 3 hours
- Home valuation
- One-time training
- Address change
- Report promptly
- Background change
- 30 days
- Nonresident CE
- Home-state compliance
- Late renewal
- Penalty risk
Property Gaps
Fire standard; quake and flood separate.
Homeowners fireCEA quakeNFIP flood
FAIR vs Standard
FAIR Plan
- Last resort
- Basic property
- Coverage gaps
Standard policy
- Voluntary market
- Broader package
- Normal underwriting
FAIR after diligent shopping
Property Market Picker
- Standard home available→Voluntary insurer
- Declined for wildfire→FAIR Plan
- Need broader package→Wraparound policy
- Need earthquake→CEA partner
- Need flood→NFIP/private flood
- Commercial high risk→FAIR commercial
- Moveable business property→Inland marine
- Under construction→Builders risk
Property Forms
- HO-3
- Open dwelling
- HO-4
- Renters contents
- HO-5
- Open property
- HO-6
- Condo unit
- DP-1
- Basic named perils
- DP-3
- Open dwelling
- CPP
- Commercial package
- BOP
- Small business package
CEA vs Homeowners
CEA
- Earthquake shaking
- Separate policy
- Partner sold
Homeowners
- Fire/wind/theft
- Earth movement excluded
- Companion policy
Earthquake needs separate coverage
FAIR Plan
- Purpose
- Basic property access
- Role
- Insurer of last resort
- Eligible
- Cannot obtain coverage
- Association
- Insurer-run plan
- Residential limit
- $3 million
- Commercial limit
- $20 million
- Wildfire discount
- Mitigation credit
- Companion policy
- Wraparound coverage
RC vs ACV
Replacement cost
- New-for-old
- No depreciation
- Higher premium
ACV
- RC minus depreciation
- Lower settlement
- Older property issue
Depreciation is the divider
CEA Earthquake
- CEA
- Residential earthquake insurer
- Partner insurers
- Sell/service policies
- Standalone
- Not available
- Dwelling
- Home structure
- Personal property
- Contents coverage
- Loss of use
- No deductible
- Deductible
- Percentage based
- Purchase timing
- Before earthquake
Disaster Property
- Earth movement
- Usually excluded
- Flood
- Separate policy
- Smoke damage
- Covered fire loss
- Wildfire
- Fire peril issue
- Moratorium
- Cancel/nonrenew pause
- ALE
- Extra living expense
- Debris removal
- Policy limit issue
- Replacement cost
- No depreciation
Auto Rating Order
Safe miles experience drive California auto rates.
Safety recordAnnual milesDriving experience
UM vs UIM
UM
- No insurance
- Hit-and-run
- Your policy responds
UIM
- Too little insurance
- Damages exceed limits
- Gap coverage
None versus not enough
Auto Picker
- Legal minimum→30/60/15
- Low-income driver→CLCA(10/20/3)
- Other driver uninsured→UM
- Other limits too low→UIM
- Hit vehicle/object→Collision
- Theft/fire/glass→Comprehensive
- Business vehicle→Commercial auto
- Rideshare period→TNC coverage
Prop 103
- Prior approval
- Rates approved first
- Rate standard
- Not excessive
- Commissioner
- Elected by voters
- Intervention
- Consumer participation
- Good driver
- Mandatory discount
- Discount
- At least 20%
- Take-all-comers
- Qualified good drivers
- Primary use
- Auto rating rules
Prior Approval vs File-Use
Prior approval
- CDI approves first
- Prop 103 system
- Consumer intervention
File-use
- File then use
- Not California default
- Less restrictive
California tests prior approval
Auto Rating
- First factor
- Driving safety record
- Second factor
- Annual miles
- Third factor
- Driving experience
- Optional factors
- Commissioner approved
- Credit score
- Not primary factor
- Occupation
- Restricted rating use
- Education
- Restricted rating use
- ZIP code
- Limited territory role
Auto Coverage
- BI person
- $30,000 minimum
- BI accident
- $60,000 minimum
- PD
- $15,000 minimum
- 30/60/15
- Standard 2025 limits
- CLCA
- Low-cost program
- CLCA limits
- 10/20/3
- UM
- Uninsured driver
- UIM
- Underinsured driver
Workers Comp
- One employee
- Coverage required
- Family labor
- Still employee
- Medical
- Work injury care
- Temporary disability
- Wage replacement
- Permanent disability
- Impairment benefit
- Death benefits
- Dependents paid
- State Fund
- Public insurer
- Uninsured employer
- Criminal offense
Claims Clock
Fifteen starts, forty decides, thirty pays.
15 acknowledge40 accept/deny30 pay
Agent vs Broker
Agent
- Represents insurer
- Appointment authority
- May bind coverage
Broker
- Represents insured
- Client fiduciary
- Shops markets
Authority follows representation
Claims Picker
- Claim received→Acknowledge(15 days)
- Need documents→Forms/help(15 days)
- Proof received→Accept/deny(40 days)
- More time needed→Status notice(30 days)
- Settlement reached→Pay claim(30 days)
- Denial issued→Written basis
- Insurer insolvent→CIGA
- Surplus policy→No CIGA
Claims Timelines
- Acknowledge claim
- 15 days
- Send forms
- 15 days
- Accept/deny
- 40 days
- Status notice
- Every 30 days
- Pay settlement
- 30 days
- Auto repairs
- 10 days
- Denial
- Written reason
- CDI response
- 21 days
CIGA Memory
Admitted insolvent insurer, not sales pitch.
Admitted onlyInsolvency$500,000No advertising
Admitted vs Surplus
Admitted
- CDI authorized
- CIGA applies
- Filed rates
Surplus
- Nonadmitted carrier
- No CIGA
- Disclosure required
Protection differs sharply
CIGA
- Purpose
- Insolvent insurer claims
- Trigger
- Court liquidation
- Member
- Admitted P&C insurer
- Most claims
- $500,000 cap
- Policy limit
- Also caps claim
- Workers comp
- No statutory cap
- Surplus lines
- Not covered
- Sales use
- Do not advertise
CIGA vs CEA
CIGA
- Insolvency backstop
- Admitted insurers
- Claim caps
CEA
- Earthquake insurer
- Residential risks
- Partner serviced
Backstop versus insurer
Producer Conduct
- Agent
- Represents insurer
- Broker
- Represents insured
- Fiduciary
- Broker duty
- Misrepresentation
- False policy statement
- Rebating
- Illegal inducement
- Twisting
- Misleading replacement
- Commingling
- Mixing premium funds
- Records
- Keep five years
Surplus Lines
- Admitted
- CDI authorized
- Nonadmitted
- Surplus market
- Diligent search
- Admitted declinations
- Broker
- Special license
- Disclosure
- Nonadmitted notice
- CIGA
- No protection
- Taxes
- Broker remits
- Use case
- Hard-to-place risk
Common Traps
Old Auto Limits
15/30/5 obsolete ≠ 30/60/15 current
Prelicensing Timing
Exam allowed first ≠ License needs 12 hours
FAIR Plan Scope
Basic property only ≠ Not full homeowners
Earthquake Coverage
Homeowners excludes earth movement ≠ CEA policy separate
CIGA Sales
Protection exists ≠ Advertising prohibited
Claim Denial
Oral denial insufficient ≠ Written basis required
Worker Classification
Family can be employee ≠ Contractor label insufficient
Broker Duty
Agent serves insurer ≠ Broker serves insured
Last Minute
- 1.P&C: 150 questions, 3 hours
- 2.Producer pass score is 60%
- 3.AB 943 keeps 12 hours
- 4.Ethics/code before license issuance
- 5.Auto minimum is 30/60/15
- 6.Prop 103 = prior approval
- 7.Rating order: safety, miles, experience
- 8.Good driver discount: 20%
- 9.FAIR Plan is last resort
- 10.CEA sells through partners
- 11.Claims: 15, 40, 30
- 12.CIGA: admitted insolvency backstop
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