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