Page 1 of 69
California Alarm Company Operator (Qualified
Manager) Exam ACTUAL QUESTIONS AND
ANSWERS LATEST UPDATE THIS YEAR
Summarized Exam Coverage – California Alarm Company Operator (Qualified Manager)
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 : Roles of BSIS, PSI Services, and the Alarm Company Act
(Business & Professions Code Division 3, Chapter 11.6) .
• Qualified Manager Requirements : Minimum age of 18, two years (4,000 hours) of paid
experience as an alarm agent or equivalent, background check (DOJ/FBI), and passing the two-
hour multiple-choice exam .
• Application & Fees : Initial company license fee (~600−600−660), renewal fee (~750−750−825),
and Qualified Manager application & exam fee (~350−350−385) .
• Alarm Agent Registration : Individuals installing or servicing alarms must be registered,
fingerprinted, and carry a registration card at all times; they must be registered before starting
work .
• Continuing Education : License renewal requires continuing education to stay updated on
technology and regulations .
• Contracts, Ethics & Consumer Protection : Disclosure requirements, limitation of liability
clauses, prohibition of misrepresentation; maintaining honesty, fairness, and integrity .
• False Alarm Reduction : Verification protocols (Enhanced Call Verification – ECV), customer
education, and compliance with local ordinances .
• Alarm System Technology : Intrusion detection (PIR motion detectors, door contacts, glass
break sensors), fire alarms (NFPA standards), system integration, control panels, wiring
organization .
• Safety, Power & Communication Pathways : Battery backups, dual-path communication
(cellular/IP/POTS), electrical safety, cybersecurity measures (strong encryption) .
• Operations & Recordkeeping : 30-day change of address notification, maintaining records, and
employee supervision responsibilities .
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)
B) Bureau of Security and Investigative Services (BSIS)
C) California Department of Insurance (CDI)
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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 — Business and Professions Code 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. An applicant for the Qualified Manager certificate is 19 years old and has 3,500 hours of paid alarm
installation experience. Are they eligible to sit for the exam?
A) Yes, because they are over 18 and have some experience
B) No, they must be at least 21 years old
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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 .
4. If an ACO hires a new alarm agent, how soon must they be registered with BSIS?
A) Within 90 days
B) Within 60 days
C) Before the employee starts
D) After the probation period is complete
Answer: C — Agents must be registered with BSIS before they begin any alarm-related work .
5. 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) 35applicationfeeonlyB)35applicationfeeonlyB)600
to 660fortheoriginallicenseC)660fortheoriginallicenseC)1,000 flat fee
D) No fee if the owner takes the exam
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Answer: B — Business and Professions Code specifies an original license fee for an alarm company
operator of at least 600,whichmaybeincreasedupto600,whichmaybeincreasedupto660 .
6. 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?
A) Yes, because they work for an alarm company
B) No, retail store sales are exempt; if sales occur only from a store and no on-site functions are
performed, registration may not be required
C) Yes, only if they drive a company vehicle
D) No, because they did not pass a chemistry test
Answer: B — Retail stores that sell systems only at the store and do NOT perform alarm company
functions (installation, monitoring, responding) are generally exempt from licensing requirements .
7. An applicant previously submitted fingerprints for a Guard Card through BSIS. For the ACO Qualified
Manager application, are they exempt from fingerprinting again?
A) Yes, fingerprint records are automatically transferred
B) No, a new criminal history background check (DOJ/FBI) is required even if prints were submitted for
another license
California Alarm Company Operator (Qualified
Manager) Exam ACTUAL QUESTIONS AND
ANSWERS LATEST UPDATE THIS YEAR
Summarized Exam Coverage – California Alarm Company Operator (Qualified Manager)
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 : Roles of BSIS, PSI Services, and the Alarm Company Act
(Business & Professions Code Division 3, Chapter 11.6) .
• Qualified Manager Requirements : Minimum age of 18, two years (4,000 hours) of paid
experience as an alarm agent or equivalent, background check (DOJ/FBI), and passing the two-
hour multiple-choice exam .
• Application & Fees : Initial company license fee (~600−600−660), renewal fee (~750−750−825),
and Qualified Manager application & exam fee (~350−350−385) .
• Alarm Agent Registration : Individuals installing or servicing alarms must be registered,
fingerprinted, and carry a registration card at all times; they must be registered before starting
work .
• Continuing Education : License renewal requires continuing education to stay updated on
technology and regulations .
• Contracts, Ethics & Consumer Protection : Disclosure requirements, limitation of liability
clauses, prohibition of misrepresentation; maintaining honesty, fairness, and integrity .
• False Alarm Reduction : Verification protocols (Enhanced Call Verification – ECV), customer
education, and compliance with local ordinances .
• Alarm System Technology : Intrusion detection (PIR motion detectors, door contacts, glass
break sensors), fire alarms (NFPA standards), system integration, control panels, wiring
organization .
• Safety, Power & Communication Pathways : Battery backups, dual-path communication
(cellular/IP/POTS), electrical safety, cybersecurity measures (strong encryption) .
• Operations & Recordkeeping : 30-day change of address notification, maintaining records, and
employee supervision responsibilities .
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)
B) Bureau of Security and Investigative Services (BSIS)
C) California Department of Insurance (CDI)
, Page 2 of 69
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 — Business and Professions Code 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. An applicant for the Qualified Manager certificate is 19 years old and has 3,500 hours of paid alarm
installation experience. Are they eligible to sit for the exam?
A) Yes, because they are over 18 and have some experience
B) No, they must be at least 21 years old
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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 .
4. If an ACO hires a new alarm agent, how soon must they be registered with BSIS?
A) Within 90 days
B) Within 60 days
C) Before the employee starts
D) After the probation period is complete
Answer: C — Agents must be registered with BSIS before they begin any alarm-related work .
5. 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) 35applicationfeeonlyB)35applicationfeeonlyB)600
to 660fortheoriginallicenseC)660fortheoriginallicenseC)1,000 flat fee
D) No fee if the owner takes the exam
, Page 4 of 69
Answer: B — Business and Professions Code specifies an original license fee for an alarm company
operator of at least 600,whichmaybeincreasedupto600,whichmaybeincreasedupto660 .
6. 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?
A) Yes, because they work for an alarm company
B) No, retail store sales are exempt; if sales occur only from a store and no on-site functions are
performed, registration may not be required
C) Yes, only if they drive a company vehicle
D) No, because they did not pass a chemistry test
Answer: B — Retail stores that sell systems only at the store and do NOT perform alarm company
functions (installation, monitoring, responding) are generally exempt from licensing requirements .
7. An applicant previously submitted fingerprints for a Guard Card through BSIS. For the ACO Qualified
Manager application, are they exempt from fingerprinting again?
A) Yes, fingerprint records are automatically transferred
B) No, a new criminal history background check (DOJ/FBI) is required even if prints were submitted for
another license
