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California Alarm Company Operator (Qualified
Manager) Exam Questions and Correct Answers
with EXPLANATIONS LATEST THIS YEAR
Summarized Exam Coverage – California Alarm Company Operator Licensing
The Alarm Company Operator (ACO) license, regulated by the Bureau of Security and Investigative
Services (BSIS) within the Department of Consumer Affairs, is required for businesses that sell, install,
monitor, maintain, service, or respond to alarm systems at a customer's home or business . Key exam
topics include:
• Licensing & Regulatory Framework (BSIS): Roles of BSIS, PSI Services, and the Alarm Company
Act .
• Qualified Manager Requirements: Minimum age of 18, 4,000 hours of paid experience,
background check (DOJ/FBI), and passing the two-hour multiple-choice exam .
• Application & Fees: Initial company license fee (~$600-$660), renewal fee (~$750-$825), and
Qualified Manager application & exam fee (~$350-$385) .
• Alarm Agent Registration: Individuals installing or servicing alarms must be registered,
fingerprinted, and carry a registration card at all times .
• Contracts, Ethics & Consumer Protection: Disclosure requirements, limitation of liability
clauses, and prohibition of misrepresentation.
• False Alarm Reduction: Verification protocols (Enhanced Call Verification), customer education,
and compliance with local ordinances (Business and Professions Code) .
• Alarm System Technology: Intrusion detection (PIR motion detectors, door contacts, glass break
sensors), fire alarms (NFPA standards), system integration, and control panels .
• Safety, Power & Communication Pathways: Battery backups, dual-path communication
(cellular/IP/POTS), electrical safety, and cybersecurity measures (encryption) .
• Operations & Recordkeeping: 30-day change of address notification, maintaining records for 2
years, and employee supervision responsibilities .
California Alarm Company Operator (Qualified Manager) Exam
1. A new business wants to start installing residential burglar alarms in Sacramento. Which California
agency is directly responsible for issuing their Alarm Company Operator license?
A) Department of Consumer Affairs (DCA)
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B) Bureau of Security and Investigative Services (BSIS)
C) California Department of Insurance (CDI)
D) Occupational Safety and Health Administration (OSHA)
Answer: B — The Bureau of Security and Investigative Services (BSIS), a division of the Department of
Consumer Affairs, has direct oversight for alarm company operator licensing and regulation .
2. A technician was hired to install a control panel and motion detectors. Before working alone in the
field, what specific BSIS registration must this individual possess?
A) Qualified Manager certificate
B) Alarm Agent registration
C) Private Patrol Operator license
D) Firearm permit only
Answer: B — Section 7599.70 requires that any employee installing, servicing, or responding to alarms be
registered as an alarm agent, which requires fingerprinting and a background check .
3. A corporation is applying for an Alarm Company Operator license. According to BSIS regulations, who
must personally pass the Qualified Manager examination?
A) Every employee who installs systems
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B) The individual designated to manage the day-to-day business operations (owner, partner, or hired
manager)
C) Only the Chief Financial Officer
D) The local fire marshal
Answer: B — The license belongs to the business entity, but it must be qualified by a specific individual
(Qualified Manager) who has passed the exam and is responsible for daily compliance .
4. An applicant is 19 years old and has 3,500 hours of paid alarm installation experience. Are they
eligible to sit for the Qualified Manager exam?
A) Yes, because they are over 18 and have some experience
B) No, they must be at least 21 years old
C) No, they must complete 4,000 hours (2 years) of compensated alarm experience
D) Yes, if they have a college degree
Answer: C — BPC 7599 requires applicants to be at least 18 years of age AND possess two years (4,000
hours) of paid experience in alarm company work .
5. An alarm company moves its main office from Los Angeles to San Diego. Under BSIS regulations, how
many days does the company have to notify the Bureau of this address change?
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A) 10 days
B) 15 days
C) 30 days
D) 60 days
Answer: C — Licensees are required to notify the Bureau of any change of address within 30 days to
maintain accurate records and avoid administrative penalties .
6. A sole proprietor passes the Qualified Manager exam and submits their company license application.
What fee structure applies to the original company license issuance according to recent updates?
A) $35 application fee only
B) $600 to $660 for the original license
C) $1,000 flat fee
D) No fee if the owner takes the exam
Answer: B — Business and Professions Code 7599.70 specifies an original license fee for an alarm
company operator of at least $600, which may be increased up to $660 .
7. A company hires a salesperson who only sells alarm systems over the phone and by email, without
entering homes or installing equipment. Does this salesperson need an Alarm Agent registration?
California Alarm Company Operator (Qualified
Manager) Exam Questions and Correct Answers
with EXPLANATIONS LATEST THIS YEAR
Summarized Exam Coverage – California Alarm Company Operator Licensing
The Alarm Company Operator (ACO) license, regulated by the Bureau of Security and Investigative
Services (BSIS) within the Department of Consumer Affairs, is required for businesses that sell, install,
monitor, maintain, service, or respond to alarm systems at a customer's home or business . Key exam
topics include:
• Licensing & Regulatory Framework (BSIS): Roles of BSIS, PSI Services, and the Alarm Company
Act .
• Qualified Manager Requirements: Minimum age of 18, 4,000 hours of paid experience,
background check (DOJ/FBI), and passing the two-hour multiple-choice exam .
• Application & Fees: Initial company license fee (~$600-$660), renewal fee (~$750-$825), and
Qualified Manager application & exam fee (~$350-$385) .
• Alarm Agent Registration: Individuals installing or servicing alarms must be registered,
fingerprinted, and carry a registration card at all times .
• Contracts, Ethics & Consumer Protection: Disclosure requirements, limitation of liability
clauses, and prohibition of misrepresentation.
• False Alarm Reduction: Verification protocols (Enhanced Call Verification), customer education,
and compliance with local ordinances (Business and Professions Code) .
• Alarm System Technology: Intrusion detection (PIR motion detectors, door contacts, glass break
sensors), fire alarms (NFPA standards), system integration, and control panels .
• Safety, Power & Communication Pathways: Battery backups, dual-path communication
(cellular/IP/POTS), electrical safety, and cybersecurity measures (encryption) .
• Operations & Recordkeeping: 30-day change of address notification, maintaining records for 2
years, and employee supervision responsibilities .
California Alarm Company Operator (Qualified Manager) Exam
1. A new business wants to start installing residential burglar alarms in Sacramento. Which California
agency is directly responsible for issuing their Alarm Company Operator license?
A) Department of Consumer Affairs (DCA)
, Page 2 of 136
B) Bureau of Security and Investigative Services (BSIS)
C) California Department of Insurance (CDI)
D) Occupational Safety and Health Administration (OSHA)
Answer: B — The Bureau of Security and Investigative Services (BSIS), a division of the Department of
Consumer Affairs, has direct oversight for alarm company operator licensing and regulation .
2. A technician was hired to install a control panel and motion detectors. Before working alone in the
field, what specific BSIS registration must this individual possess?
A) Qualified Manager certificate
B) Alarm Agent registration
C) Private Patrol Operator license
D) Firearm permit only
Answer: B — Section 7599.70 requires that any employee installing, servicing, or responding to alarms be
registered as an alarm agent, which requires fingerprinting and a background check .
3. A corporation is applying for an Alarm Company Operator license. According to BSIS regulations, who
must personally pass the Qualified Manager examination?
A) Every employee who installs systems
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B) The individual designated to manage the day-to-day business operations (owner, partner, or hired
manager)
C) Only the Chief Financial Officer
D) The local fire marshal
Answer: B — The license belongs to the business entity, but it must be qualified by a specific individual
(Qualified Manager) who has passed the exam and is responsible for daily compliance .
4. An applicant is 19 years old and has 3,500 hours of paid alarm installation experience. Are they
eligible to sit for the Qualified Manager exam?
A) Yes, because they are over 18 and have some experience
B) No, they must be at least 21 years old
C) No, they must complete 4,000 hours (2 years) of compensated alarm experience
D) Yes, if they have a college degree
Answer: C — BPC 7599 requires applicants to be at least 18 years of age AND possess two years (4,000
hours) of paid experience in alarm company work .
5. An alarm company moves its main office from Los Angeles to San Diego. Under BSIS regulations, how
many days does the company have to notify the Bureau of this address change?
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A) 10 days
B) 15 days
C) 30 days
D) 60 days
Answer: C — Licensees are required to notify the Bureau of any change of address within 30 days to
maintain accurate records and avoid administrative penalties .
6. A sole proprietor passes the Qualified Manager exam and submits their company license application.
What fee structure applies to the original company license issuance according to recent updates?
A) $35 application fee only
B) $600 to $660 for the original license
C) $1,000 flat fee
D) No fee if the owner takes the exam
Answer: B — Business and Professions Code 7599.70 specifies an original license fee for an alarm
company operator of at least $600, which may be increased up to $660 .
7. A company hires a salesperson who only sells alarm systems over the phone and by email, without
entering homes or installing equipment. Does this salesperson need an Alarm Agent registration?
