Alabama property and casualty practice exam
Free property and casualty practice for the Alabama producer exam: 367 general questions plus 11 Alabama state law questions, each with an explanation.
Licensing facts checked on
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Getting your Alabama property and casualty license
Alabama's combined property and casualty exam has 150 questions in 180 minutes, and you need 105 correct to pass. The University of Alabama gives the exams, and pre-licensing is no longer required.
- Exam provider
- University of Alabama, as exam administrator for the Department of Insurance
- Exam fee
- Single-line exam: $50. Combined property and casualty: $75.
- Exam length
- Combined property and casualty: 150 questions, 180 minutes. Property only: 100 questions, 120 minutes. Casualty only: 125 questions, 150 minutes.
- Passing score
- Combined: 105 correct. Property only: 70 correct. Casualty only: 87 correct.
- Pre-licensing education
- No longer required as of January 1, 2024
- Retakes
- No wait after a first or third failed attempt. Wait 90 days after a second, and 180 days after a fourth.
How to plan your retake
Retake rules by state - Continuing education
- 24 hours every 2 years, including 3 hours of ethics
Official links
- Alabama Department of Insurance - official state insurance department
- Alabama DOI, 2025 Alabama Insurance Examination Report - exam provider information
Licensing facts checked on , against official sources. Fees and rules change, so confirm with the Alabama Department of Insurance and your exam's candidate handbook before you register.
Alabama state law questions
Every Alabama question with its answer, explanation, and the law it comes from.
Licensing and CE
3 questions
1. How much continuing education must an Alabama insurance producer complete every two years, according to the Department of Insurance?
- 24 hours, including 3 hours of ethics
- 12 hours, including 2 hours of ethics
- 24 hours, with no ethics requirement
- 30 hours, including 5 hours of ethics
Show answer
The Alabama Department of Insurance lists 24 hours every two years for producers, including 3 ethics hours. Service representatives need 12 hours with 2 in ethics.
2. May an Alabama producer carry excess continuing education hours into the next period?
- Yes, up to 12 hours
- Yes, up to 6 ethics hours only
- No, excess hours cannot be carried over
- Yes, if the hours were earned in the last 90 days
Show answer
Under the Department's rule effective January 1, 2013, licensees can no longer carry over excess hours earned.
3. By when must an Alabama producer renew an expiring license?
- June 30 of the renewal year
- December 31 of the renewal year
- The anniversary of the original license date
- The last day of the licensee's birth month
Show answer
The Department states that licensees must renew by the last day of their birth month with the applicable fees. Renewal notices go out by email 45 days before that month.
Auto Insurance
2 questions
1. What are the minimum motor vehicle liability limits required in Alabama?
- $25,000 per person, $50,000 per accident, $25,000 property damage
- $20,000 per person, $40,000 per accident, $15,000 property damage
- $30,000 per person, $60,000 per accident, $25,000 property damage
- $15,000 per person, $30,000 per accident, $10,000 property damage
Show answer
The Alabama Department of Revenue lists $25,000 for one person, $50,000 for all bodily injury per accident, and $25,000 for property damage.
2. When an Alabama vehicle registration is suspended for no liability insurance, what reinstatement fee applies to a first violation?
- $50
- $100
- $400
- $200
Show answer
The Department of Revenue charges $200 for a first violation and $400 for later violations, and the owner must also show proof of current liability insurance.
Residual Market
1 question
1. What is the Alabama Insurance Underwriting Association, known as the Beach Pool?
- A residual market pool for beach-area property owners who cannot get coverage from standard insurers
- A fund that pays claims for insolvent auto insurers
- A workers compensation assigned risk plan
- A state-run flood insurance program for all counties
Show answer
The Department of Insurance describes the Beach Pool as offering coverage in beach areas of Baldwin and Mobile counties to owners who cannot get standard coverage. It later added a policy covering windstorm and hail only.
Workers Compensation
3 questions
1. What is the waiting period for Alabama workers compensation income benefits?
- No waiting period
- Three days
- Seven days
- Fourteen days
Show answer
Alabama allows no compensation for the first three days after disability, so benefits start on the fourth day.
2. In Alabama, the three-day waiting period is paid to the injured worker if disability lasts at least how many days?
- 7 days
- 14 days
- 21 days
- 28 days
Show answer
If disability lasts as much as 21 days, the first three days are paid with the first installment due after that period.
3. What weekly benefit rate does Alabama use for temporary disability compensation, based on average weekly earnings?
- 50 percent of average weekly earnings
- 60 percent of average weekly earnings
- 66 2/3 percent of average weekly earnings, subject to the statutory maximum and minimum
- 80 percent of average weekly earnings
Show answer
The Department of Labor says to multiply average weekly earnings for the 52 weeks before injury by 66 2/3 percent. The result cannot exceed the maximum in effect on the date of injury.
Claims Practices
2 questions
1. Under Alabama Administrative Code 482-1-125-.06, within how many days must an insurer acknowledge notice of a first-party claim, unless payment is made?
- 5 days
- 10 days
- 15 days
- 30 days
Show answer
Rule 482-1-125-.06(1) requires acknowledgment within fifteen days unless payment is made in that period. Replies to written communications are also due in fifteen days.
2. Under Alabama Administrative Code 482-1-125-.07, when an insurer needs more time to investigate a first-party claim, how often must it send follow-up notices of the reasons?
- Every 45 days
- Every 15 days
- Every 30 days
- Every 90 days
Show answer
Rule 482-1-125-.07(2) requires notice within 30 days of proofs of loss and again every 45 days if the investigation is incomplete. Acceptance or denial is due within 30 days of proofs of loss.
Key Alabama terms
15 plain-English cards on Alabama insurance law, from the Alabama flashcard deck.
Licensing and CE
- Alabama CE requirement
- 24 hours every two years, including 3 hours of ethics.
- Alabama CE carryover
- Excess CE hours cannot be carried over to the next period.
- Alabama license renewal
- Renew an expiring license by the last day of the licensee's birth month.
- Alabama prelicensing change
- Prelicensing education is no longer required as of January 1, 2024.
- Alabama exam administrator
- The University of Alabama administers the exam for the Department of Insurance.
- Alabama exam fee and retakes
- $50 for a single line, $75 combined. No wait after a first or third failed attempt; 90 days after a second, 180 after a fourth.
- Alabama P&C exam length
- Combined takes 150 questions in 180 minutes; property only 100 in 120; casualty only 125 in 150.
Auto Insurance
- Alabama minimum liability limits
- 25/50/25: $25,000 per person, $50,000 per accident, $25,000 property damage.
- Alabama no-insurance reinstatement fee
- $200 for a first violation when a registration is suspended for no liability insurance.
Residual Market
- Alabama Beach Pool
- The Alabama Insurance Underwriting Association, a residual market for beach-area property owners who cannot get standard coverage.
Workers Compensation
- Alabama workers comp waiting period
- Three days for income benefits.
- Alabama waiting period payback
- The three-day waiting period is paid if disability lasts at least 21 days.
- Alabama temporary disability rate
- 66 2/3 percent of average weekly earnings, subject to the statutory maximum and minimum.
Claims Practices
- Alabama first-party claim acknowledgment
- An insurer must acknowledge notice of a first-party claim within 15 days, unless payment is made.
- Alabama claim follow-up notices
- When more time is needed to investigate, the insurer must send follow-up notices of the reasons every 45 days.
Keep studying
The general topics make up most of the exam.
Alabama exam questions
How many questions do I need right to pass the Alabama property and casualty exam?
105 out of 150 on the combined exam. Property alone needs 70 of 100, and casualty alone needs 87 of 125.Source: Alabama DOI, Property and Casualty Producer Examination Content Outline
Do I need a pre-licensing course in Alabama?
No. As of January 1, 2024, Alabama no longer requires a pre-licensing certificate.Source: University of Alabama, Insurance Testing (exam administrator for the Alabama DOI)
How long do I wait to retake the Alabama exam?
No wait after a first or third failed attempt, 90 days after a second, and 180 days after a fourth.Source: University of Alabama, Insurance Testing (exam administrator for the Alabama DOI)
How much of the Alabama property and casualty exam is state law?
State law is usually around 20 to 30 percent of a state's producer exam. Check the Alabama candidate handbook from your testing provider for the exact content outline.
What does the Alabama state law section cover?
Common areas include licensing and continuing education, auto liability minimums, cancellation and nonrenewal notice rules, and the guaranty fund. This page covers: Licensing and CE, Auto Insurance, Residual Market, Workers Compensation, Claims Practices.
Where do these state questions come from?
Each state question is written from the state's statutes, regulations, or insurance department guidance, and the source is linked under the answer so you can read it yourself.
Do I still need the general questions?
Yes. Most of the exam is general property and casualty knowledge. The full exam option here mixes 367 general questions with the Alabama state law questions.