Alabama Title Insurance Agent Exam Practice Questions and Verified Answers.

Alabama

Alabama Title Insurance Agent
Exam 2026/27:
100 Practice Questions and Verified
Answers with Rationales | Instant
PDF Download


**1. The primary purpose of title insurance is to:**
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A) Guarantee property value
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B) g **Protect against defects in title**
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C) g Insure personal property
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D) g Provide mortgage financing
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*Rationale: Title insurance protects property owners
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and lenders
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against financial loss resulting from defects, liens, or
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encumbrances in the title that exist as of the policy
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date* .
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**2. Under the Alabama Title Insurance Act (ATIA), the
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Commissioner shall require a __________ on each initial
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applicant
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for title insurance agent licensure.**
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Alabama Title Insurance Agent Exam 2026-2027 100 Practice Questions and Verified Answers

,*Rationale:

A) College degree
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B) g **Criminal history record check** g g g




C) g Credit score report g g




D) g Character reference letter g g




gThe Alabama Title Insurance Act mandates a criminal
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history record check for all initial applicants for title
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g insurance agent licensure* . g g g




**3. How many classroom hours of prelicensing
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education are
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required before taking the Alabama title
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g insurance agent examination?** A) 15 hours
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B) g **20 hours** g




C) g 30 hours g




D) g 40 hours g




*Rationale: Code of Ala. §27-25-4.3 requires g g g g g



completion of a 20-
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hour prelicensing course covering title insurance
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principles, agent
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duties, and state laws/regulations, completed within 12
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months
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before the exam* .
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,Alabama



**4. What is the minimum age requirement for an
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individual title
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insurance agent license in Alabama?**
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A) 18 years
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B) g **19 years** g




C) g 21 yearsg




D) g 25 yearsg




*Rationale: Alabama Administrative Code 482-1- g g g g




148-.07 requires individual title insurance agent
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g applicants to be at least g g g g




19 years of age* .
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**5. A title search is conducted to:**
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A) Appraise property value
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B) g Determine zoning restrictions g g




C) g **Examine public records affecting ownership** g g g g




D) g Inspect structural integrity g g




*Rationale: A title search reviews recorded documents g g g g g g



to verify
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ownership history and identify any liens, claims, or
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Alabama Title Insurance Agent Exam 2026-2027 100 Practice Questions and Verified Answers

, *Rationale:

encumbrances affecting the property* .
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**6. Which entity is exempt from title insurance agent
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licensing
g




requirements in Alabama?**
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A) Real estate brokers
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B) g Mortgage lenders g




C) g **Attorneys licensed by the Alabama State Bar**
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D) g Certified public accountants g g




g Pursuant to Code of Ala. §27-25-3, attorneys licensed
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by the Alabama State Bar are exempt from title
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insurance agent
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licensing requirements* .
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**7. What is the passing score for the Alabama title
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g insurance agent examination?**g g




A) 60%
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B) g 70%

C) g **75%** (105 out of 150 questions)
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D) g 80%