What Are the Biggest Myths About the California Insurance Exam?

Misinformation about the California insurance licensing exam causes more failed attempts than difficult questions. Before you schedule your exam through PSI Services for the California Department of Insurance (CDI), make sure you're basing your preparation on facts — not assumptions.

Myth 1: "60% Is Easy"

California's 60% passing score for producer exams is lower than the 70% most states require. But the exam itself is longer and broader. The combined Property and Casualty exam includes 150 questions over 3 hours covering both general insurance concepts and California-specific regulations. A 60% threshold on 150 complex multiple-choice questions requires solid understanding — not casual familiarity. Candidates who prepare strategicallyPre License How To Study Insurance Licensing Exam Resources pass at much higher rates than those who coast in expecting an easy test.

Myth 2: "The Pre-Licensing Course Is Enough Preparation"

Since January 2026, California requires only a 12-hour course covering Ethics and the California Insurance Code per Assembly Bill 943Faces BillNavClient.xhtml?bill_id=202320240AB943 Leginfo.legislature.ca.gov. That course satisfies the education requirement, but the exam tests far more — policy types, coverage details, underwriting principles, and claims procedures. The CDI explicitly encourages candidates to study the published Educational Objectives0010 Producer Online Services 0200 Exam Info 0200 Industry for their license type. Dedicated exam prep is strongly recommended.

Myth 3: "You Have to Drive to a Testing Center"

PSI Services offers remote online proctored exams through its Bridge platform. You can take your California licensing exam from home on a computer with a moveable webcam, microphone, and internet connection. In-person testing is still available at the CDI's Los Angeles center and over 20 PSI locations statewide, but remote testing gives you scheduling flexibility without a commute.

Myth 4: "If You Fail, You Have to Wait Months to Retake"

California has no mandatory waiting period between exam attempts. If you fail, you can reschedule with PSI immediately. Each retake requires a new exam fee, and you'll receive a diagnostic report showing which areas need more study. The only limit: failing 10 times within 12 months bars you from that specific exam for one year. Most candidates who use their diagnostic report to target weak areasPre License What Could Your Insurance License Be Worth Resources pass on their second attempt.

Myth 5: "California's Exam Is the Same as Every Other State"

Every state exam reflects that state's unique insurance code and regulatory framework. California's exam emphasizes the CDI's authority, Proposition 103 rate regulations, the FAIR Plan, earthquake coverage provisions, and wildfire-related policies — topics you won't encounter on a Texas or Florida exam. Studying with generic national materials and skipping California-specific content is a common reason otherwise-prepared candidates fail the state portion.