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

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) **Protect against defects in title**
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C) Insure personal property
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D) Provide mortgage financing
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*Rationale: Title insurance protects property owners 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 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 applicant
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for title insurance agent licensure.**
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A) College degree
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B) **Criminal history record check**
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C) Credit score report
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D) Character reference letter
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,*Rationale: The Alabama Title Insurance Act mandates a criminal
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history record check for all initial applicants for title insurance
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agent licensure* .
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**3. How many classroom hours of prelicensing education are
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required before taking the Alabama title insurance agent
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examination?**
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A) 15 hours
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B) **20 hours**
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C) 30 hours
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D) 40 hours
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*Rationale: Code of Ala. §27-25-4.3 requires completion of a 20-
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hour prelicensing course covering title insurance principles, agent
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duties, and state laws/regulations, completed within 12 months
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before the exam* .
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**4. What is the minimum age requirement for an individual title
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insurance agent license in Alabama?**
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A) 18 years
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B) **19 years**
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C) 21 years
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,D) 25 years
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*Rationale: Alabama Administrative Code 482-1-148-.07
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requires individual title insurance agent applicants to be at least
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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) Determine zoning restrictions
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C) **Examine public records affecting ownership**
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D) Inspect structural integrity
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*Rationale: A title search reviews recorded documents to verify
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ownership history and identify any liens, claims, or
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encumbrances affecting the property* .
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**6. Which entity is exempt from title insurance agent licensing
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requirements in Alabama?**
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A) Real estate brokers
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B) Mortgage lenders
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C) **Attorneys licensed by the Alabama State Bar**
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D) Certified public accountants
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, *Rationale: Pursuant to Code of Ala. §27-25-3, attorneys licensed
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by the Alabama State Bar are exempt from title insurance agent
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licensing requirements* .
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**7. What is the passing score for the Alabama title insurance
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agent examination?**
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A) 60%
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B) 70%
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C) **75%** (105 out of 150 questions)
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D) 80%
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*Rationale: The title agent exam consists of 150 questions;
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candidates must answer 105 correctly to achieve a 70% passing
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score* .
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**8. An individual who fails to pass the title insurance agent
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examination twice must wait how long before taking the exam
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again?**
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A) 30 days
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B) **90 days (3 months)**
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C) 6 months
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D) 1 year
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