PLCaliforniamedium
A California producer is screening a household of four for the California Low Cost Auto Insurance Program (CLCA). Which of the following describes the program's policy limits AND the household income eligibility cap?
ALimits 15/30/5; income cap 200% of the Federal Poverty Level (FPL)
Limits 10/20/3; income cap 250% of the Federal Poverty Level (FPL)
CLimits 30/60/15; income cap 400% of the Federal Poverty Level (FPL)
DLimits 25/50/10; no household income cap, but driver must hold a Good Driver Discount
Why this is the answer
Ins. Code §§ 11629.7-11629.84 created the California Low Cost Auto Insurance Program (administered by CAARP) to provide an affordable liability policy for income-eligible drivers. The program's policy limits — 10,000 / 20,000 / 3,000 — are below the statutory FR floor; the program operates as a statutory exception to Veh. Code § 16056. To qualify, the household income must be at or below 250% of the Federal Poverty Level, and the driver must be at least 19, have continuous driving experience, and meet the Good Driver-style record criteria.
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