Alabama Property & Casualty Exam Overview

Welcome to OpenExamPrep's FREE Alabama Property & Casualty Insurance exam prep guide. This comprehensive resource covers Alabama-specific regulations, licensing requirements, and state insurance laws you need to know to pass your exam and begin your career as a licensed P&C producer in the Heart of Dixie.

About the Alabama P&C Exam

The Alabama Property & Casualty insurance examination is administered by Pearson VUE on behalf of the Alabama Department of Insurance (ALDOI). The exam tests your knowledge of:

• Alabama insurance law and regulations
• Property insurance principles and coverages
• Casualty insurance including auto and liability
• Policy provisions and endorsements
• Ethics and professional conduct
• Claims handling and consumer protection

Exam Structure

Important: Alabama requires you to pass both the national P&C content and Alabama state law sections. Study both thoroughly to achieve the 70% passing score.

Pre-Licensing Education Requirements

Before scheduling your Alabama P&C exam, you must complete:

Required Education

Education Topics Covered

1. Property Insurance (included in 20 hours)

   • Homeowners insurance
   • Commercial property
   • Inland marine
   • Fire and allied lines

2. Casualty Insurance (included in 20 hours)

   • Auto insurance
   • General liability
   • Workers' compensation
   • Professional liability

3. Alabama Insurance Law (integrated)

   • State regulations
   • Consumer protection
   • Licensing requirements
   • Ethical standards

Exam Tip: Alabama requires only 20 hours of pre-licensing education—less than many states. However, most successful candidates spend an additional 40-60 hours on self-study and practice exams to achieve the 70% passing score.

License Application Process

Step-by-Step Process

1. Complete Pre-Licensing Education

   • Finish 20 hours from ALDOI-approved provider
   • Receive completion certificate
   • Keep certificate for application

2. Submit License Application

   • Apply through NIPR (National Insurance Producer Registry)
   • Complete background check and fingerprinting
   • Pay application fee
   • Receive approval and Authorization to Test (ATT)

3. Schedule Your Exam

   • Register with Pearson VUE
   • Choose testing center location
   • Schedule at your convenience
   • Multiple testing centers across Alabama

4. Take the Exam

   • Arrive 30 minutes early
   • Bring two forms of valid identification
   • Pass with 70%+ score
   • Receive immediate results

5. Receive License

   • License issued upon passing exam
   • Valid for 2 years
   • Complete CE requirements for renewal

Total Costs

What This Guide Covers

This FREE study guide focuses on Alabama state-specific content:

Chapter 1: Alabama P&C Regulation & Licensing

• Alabama Department of Insurance (ALDOI) structure and authority
• Producer licensing requirements and continuing education
• Ethics and professional responsibilities
• Prohibited practices and disciplinary actions

Chapter 2: Alabama Property Insurance

• Homeowners insurance regulations
• Commercial property coverage
• Alabama Insurance Underwriting Association (AIUA) for high-risk properties
• Claims handling requirements

Chapter 3: Alabama Casualty & Auto Insurance

• Alabama auto insurance minimum requirements (25/50/25)
• Mandatory uninsured motorist coverage (can reject in writing)
• Contributory negligence rules (unique to only 4 states + DC)
• Workers' compensation regulations (5+ employees)

Chapter 4: Alabama Ethics & Professional Conduct

• Fiduciary duties to clients and insurers
• Disclosure requirements
• Consumer protection laws
• Professional standards

Note: This guide covers ONLY Alabama state law. You must also study national P&C insurance principles to fully prepare for the exam.

Alabama-Specific Insurance Rules

Alabama has several distinctive insurance regulations you must know:

Pure Contributory Negligence

Alabama is one of only 4 states (plus DC) that uses pure contributory negligence. This means:

• If a plaintiff is ANY percentage at fault, they cannot recover damages
• Even 1% fault bars the plaintiff from recovery
• This is much stricter than comparative negligence used in most states

Auto Insurance Minimums (25/50/25)

Uninsured Motorist Coverage

• Mandatory in Alabama
• Can be rejected in writing by the insured
• If not rejected, limits must equal liability limits

Workers' Compensation

• Required for employers with 5 or more employees
• Sole proprietors and partners may exempt themselves
• Agricultural employers have different rules

Exam Content Distribution

The Alabama P&C exam emphasizes:

Alabama Department of Insurance Contact

Important Resources

Testing Center Information

Pearson VUE

• Website: pearsonvue.com
• Phone: (800) 274-2609
• Online scheduling available 24/7
• Multiple testing centers throughout Alabama (Birmingham, Montgomery, Huntsville, Mobile)

How to Use This Guide

Study Strategy

1. Complete Pre-License Education First (20 hours required)
2. Read Each Chapter Thoroughly - Focus on Alabama-specific regulations
3. Test Your Knowledge - Complete all quiz questions
4. Review Key Takeaways - Create flashcards from bullet points
5. Study National P&C Content - Use separate national study materials
6. Take Practice Exams - Aim for 85%+ before scheduling real exam

Recommended Study Timeline

Success Tip: Alabama's 20-hour pre-licensing requirement is lighter than many states, but don't underestimate the exam. Give yourself 4-5 weeks of dedicated study time to thoroughly prepare for the 70% passing score.

Continuing Education Requirements

After obtaining your license, you must complete CE to maintain it:

Next Steps

Ready to begin? Start with Chapter 1: Alabama P&C Regulation & Licensing to learn about the Alabama Department of Insurance, licensing requirements, and professional responsibilities.

Good luck on your exam!