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California Household Movers’ Exam (Bureau of Household
Goods and Services - BHGS exam ACTUAL EXAM COMPLETE
QUESTIONS AND CORRECT ANSWERS LATEST UPDATE THIS
YEAR
California Household Movers’ Exam (Bureau of Household Goods and Services - BHGS)
SUMMARIZED EXAM TOPICS COVERED (POINT FORM)
• BHGS Regulatory Authority: Bureau of Household Goods and Services (formerly CHP – California
Highway Patrol, now BHGS within the Department of Consumer Affairs). Enforces the Household
Goods Carriers Act (Public Utilities Code Section 5101 et seq., 13 CCR 1700). Movers must have a
valid Motor Carrier Permit (MCP) and a BHGS Household Goods Carrier Permit.
• Mover Permit & Licensing: Types of permits (household goods carrier, limited, broker, tow
truck), permit application requirements (insurance, bond, tariff), permit renewal (annual),
display of permit number on vehicles and advertising, prohibited unlicensed activity.
• Insurance & Bonding: Public liability and property damage insurance
(minimum 750,000combinedsinglelimitforhouseholdgoodscarriers),cargoinsurance(750,000com
binedsinglelimitforhouseholdgoodscarriers),cargoinsurance(10,000 minimum per
vehicle/occurrence for released value), surety bond ($10,000 for broker permit). Required
documentation, cancellation notice, replacement of insurance.
• Tariffs & Rates: Carriers must have a tariff on file with BHGS (or may use released rate system
under certain conditions). Rates include minimum charges, hourly rates, mileage charges,
weight-based rates, fuel surcharge, accessorial charges (stairs, long carry, shuttle, waiting time,
storage in transit, extra stops). Tariff must be provided to shipper upon request.
• Estimates & Written Contracts: Written estimate required (binding, non-binding,
not-to-exceed). Binding estimate fixes final charges; non-binding estimate gives approximate
but final based on actual weight or service; not-to-exceed guarantees estimate or actual
whichever lower. Estimate must include all accessorial charges. Order for Service (contract)
signed by shipper before moving, describes pick-up and delivery dates, items to be moved,
estimate type, insurance options.
• Inventory & Condition Report: Carrier must perform a written inventory (list of items) and
condition report (pre-existing damage). Shipper has right to witness inventory. Any damage
discovered at delivery noted on inventory and signed by shipper and mover.
• Claims for Loss or Damage: Shipper must file claim within 90 days of delivery. Carrier has 30
days to acknowledge, 120 days to accept/reject or settle. Liability for released value (minimum
60 cents per pound per article) unless higher declared value or third-party insurance purchased.
• Prohibited Practices: Unauthorized subcontracting (co-brokering) without BHGS approval,
misrepresentation of services, quoting less than tariff rates, holding goods hostage for payment
of disputed charges, charging for services not performed, failure to deliver timely, abandonment
of goods.
• Delivery & Storage: Delivery must be within 48 hours of agreed date or shipper may cancel and
request return. Storage in transit (SIT) – when shipment cannot be delivered, mover may place
in storage but must notify shipper. Storage charges per tariff.
• Complaints & Enforcement: BHGS investigates complaints (misrepresentation, damage,
overcharge, hostage loads). Penalties include fines (up to $5,000 per violation), license
suspension/revocation, criminal prosecution for unlicensed activity.
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• Broker Regulations: Brokers arrange moves but do not provide transportation; must have
broker permit, bond, written contract with shipper, and provide list of carriers; cannot collect
full payment before move completion (except deposit as per regulation).
• Hours of Service (if applicable): Not a primary mover exam topic, but basic understanding of
driver logs per State/Federal may be mentioned.
• Consumer Protection: 48-hour cancellation right for interstate? Not for intrastate but BHGS has
similar protections. Right to witness weighing, right to copy of estimate and order for service.
1. A household mover in California must obtain a permit from which agency?
A) California Public Utilities Commission (CPUC)
B) Bureau of Household Goods and Services (BHGS)
C) Department of Motor Vehicles (DMV)
D) Federal Motor Carrier Safety Administration (FMCSA)
Answer: B
Rationale: The BHGS (formerly within CHP) issues household goods carrier permits and enforces
regulations under the Household Goods Carriers Act.
2. The minimum public liability insurance coverage required for a California household goods carrier is:
A) 300,000combinedsinglelimitB)300,000combinedsinglelimitB)750,000 combined single limit
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C) $1,000,000 combined single limit
D) No specific requirement
Answer: B
Rationale: BHGS requires $750,000 combined single limit (CSL) for household goods carriers.
3. A mover provides a written estimate that guarantees the final charges will not exceed the estimated
amount. This is called a:
A) Non-binding estimate
B) Binding estimate
C) Not-to-exceed estimate
D) Verbal estimate
Answer: C
Rationale: Not-to-exceed estimate means final charge is the lower of the estimate or actual charges.
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4. A shipper signs an Order for Service (contract) based on a non-binding estimate. The actual weight is
10% higher than estimated. The mover may charge:
A) The estimated amount only
B) The actual weight-based amount (non-binding)
C) 110% of the estimate (typical rule for non-binding) – but in CA, non-binding means actual
weight/service, but must provide estimate in writing; the final is actual.
D) The same as binding estimate
Answer: B
Rationale: Non-binding estimate is not a price guarantee; final charges are based on actual weight or
services performed.
5. A mover is required to maintain cargo insurance with a minimum coverage of:
A) 5,000pervehicleB)5,000pervehicleB)10,000 per vehicle/occurrence for released value
C) 25,000pervehicleD)25,000pervehicleD)100,000 per vehicle
California Household Movers’ Exam (Bureau of Household
Goods and Services - BHGS exam ACTUAL EXAM COMPLETE
QUESTIONS AND CORRECT ANSWERS LATEST UPDATE THIS
YEAR
California Household Movers’ Exam (Bureau of Household Goods and Services - BHGS)
SUMMARIZED EXAM TOPICS COVERED (POINT FORM)
• BHGS Regulatory Authority: Bureau of Household Goods and Services (formerly CHP – California
Highway Patrol, now BHGS within the Department of Consumer Affairs). Enforces the Household
Goods Carriers Act (Public Utilities Code Section 5101 et seq., 13 CCR 1700). Movers must have a
valid Motor Carrier Permit (MCP) and a BHGS Household Goods Carrier Permit.
• Mover Permit & Licensing: Types of permits (household goods carrier, limited, broker, tow
truck), permit application requirements (insurance, bond, tariff), permit renewal (annual),
display of permit number on vehicles and advertising, prohibited unlicensed activity.
• Insurance & Bonding: Public liability and property damage insurance
(minimum 750,000combinedsinglelimitforhouseholdgoodscarriers),cargoinsurance(750,000com
binedsinglelimitforhouseholdgoodscarriers),cargoinsurance(10,000 minimum per
vehicle/occurrence for released value), surety bond ($10,000 for broker permit). Required
documentation, cancellation notice, replacement of insurance.
• Tariffs & Rates: Carriers must have a tariff on file with BHGS (or may use released rate system
under certain conditions). Rates include minimum charges, hourly rates, mileage charges,
weight-based rates, fuel surcharge, accessorial charges (stairs, long carry, shuttle, waiting time,
storage in transit, extra stops). Tariff must be provided to shipper upon request.
• Estimates & Written Contracts: Written estimate required (binding, non-binding,
not-to-exceed). Binding estimate fixes final charges; non-binding estimate gives approximate
but final based on actual weight or service; not-to-exceed guarantees estimate or actual
whichever lower. Estimate must include all accessorial charges. Order for Service (contract)
signed by shipper before moving, describes pick-up and delivery dates, items to be moved,
estimate type, insurance options.
• Inventory & Condition Report: Carrier must perform a written inventory (list of items) and
condition report (pre-existing damage). Shipper has right to witness inventory. Any damage
discovered at delivery noted on inventory and signed by shipper and mover.
• Claims for Loss or Damage: Shipper must file claim within 90 days of delivery. Carrier has 30
days to acknowledge, 120 days to accept/reject or settle. Liability for released value (minimum
60 cents per pound per article) unless higher declared value or third-party insurance purchased.
• Prohibited Practices: Unauthorized subcontracting (co-brokering) without BHGS approval,
misrepresentation of services, quoting less than tariff rates, holding goods hostage for payment
of disputed charges, charging for services not performed, failure to deliver timely, abandonment
of goods.
• Delivery & Storage: Delivery must be within 48 hours of agreed date or shipper may cancel and
request return. Storage in transit (SIT) – when shipment cannot be delivered, mover may place
in storage but must notify shipper. Storage charges per tariff.
• Complaints & Enforcement: BHGS investigates complaints (misrepresentation, damage,
overcharge, hostage loads). Penalties include fines (up to $5,000 per violation), license
suspension/revocation, criminal prosecution for unlicensed activity.
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• Broker Regulations: Brokers arrange moves but do not provide transportation; must have
broker permit, bond, written contract with shipper, and provide list of carriers; cannot collect
full payment before move completion (except deposit as per regulation).
• Hours of Service (if applicable): Not a primary mover exam topic, but basic understanding of
driver logs per State/Federal may be mentioned.
• Consumer Protection: 48-hour cancellation right for interstate? Not for intrastate but BHGS has
similar protections. Right to witness weighing, right to copy of estimate and order for service.
1. A household mover in California must obtain a permit from which agency?
A) California Public Utilities Commission (CPUC)
B) Bureau of Household Goods and Services (BHGS)
C) Department of Motor Vehicles (DMV)
D) Federal Motor Carrier Safety Administration (FMCSA)
Answer: B
Rationale: The BHGS (formerly within CHP) issues household goods carrier permits and enforces
regulations under the Household Goods Carriers Act.
2. The minimum public liability insurance coverage required for a California household goods carrier is:
A) 300,000combinedsinglelimitB)300,000combinedsinglelimitB)750,000 combined single limit
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C) $1,000,000 combined single limit
D) No specific requirement
Answer: B
Rationale: BHGS requires $750,000 combined single limit (CSL) for household goods carriers.
3. A mover provides a written estimate that guarantees the final charges will not exceed the estimated
amount. This is called a:
A) Non-binding estimate
B) Binding estimate
C) Not-to-exceed estimate
D) Verbal estimate
Answer: C
Rationale: Not-to-exceed estimate means final charge is the lower of the estimate or actual charges.
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4. A shipper signs an Order for Service (contract) based on a non-binding estimate. The actual weight is
10% higher than estimated. The mover may charge:
A) The estimated amount only
B) The actual weight-based amount (non-binding)
C) 110% of the estimate (typical rule for non-binding) – but in CA, non-binding means actual
weight/service, but must provide estimate in writing; the final is actual.
D) The same as binding estimate
Answer: B
Rationale: Non-binding estimate is not a price guarantee; final charges are based on actual weight or
services performed.
5. A mover is required to maintain cargo insurance with a minimum coverage of:
A) 5,000pervehicleB)5,000pervehicleB)10,000 per vehicle/occurrence for released value
C) 25,000pervehicleD)25,000pervehicleD)100,000 per vehicle
