The DA is partially correct; when there are multiple violations in a single incident, you only get points for the offense with the highest number of points. However, while failure to provide proof of insurance carries a hefty fine, and your license can be suspended if you're in an accident and don't have insurance, it doesn't carry points on your license.
(Tehama County sometimes uses certified law students, who are in their second or third year of law school, to prosecute traffic infractions.)
You can see the list of points for common violations here:
If you can prove you had insurance at the time of the accident and simply didn't have proof with you, it should have been dismissed. Officers often write "fix-it tickets" for this offense; if you provide proof of insurance to a peace officer, they can sign off on the correction, then you only need to send the court a small correction fee with the signed ticket.
Mr. Matshall is correct. If you show that you had insurance at the time of the accident the judge will usually dismiss that infraction.