Free Alabama Claims Adjuster Practice Exam Online

Correct answer: A. Ascertain and determine the amount of a covered claim, loss, or damage, or effect settlement of such claim

Correct. Ala. Code § 27-9A-3 defines an independent adjuster as one who ascertains/determines claim amounts or effects settlement on behalf of an insurer for compensation.

• B: This describes an insurance producer/agent, a separate license category governed by a different chapter of Title 27, not an adjuster.
• C: This describes a public adjuster role, which represents the insured rather than the insurer; Alabama does not license or recognize public adjusters.
• D: Underwriting and rate-setting are actuarial/underwriting functions, not adjusting, and are not part of the statutory definition of an adjuster.

Correct answer: B. Public adjuster

Correct. Alabama is among the states that do not license or recognize public adjusters, who represent policyholders rather than insurers, as a distinct license category.

• A: Incorrect - Alabama does license individual independent adjusters under Ala. Code Title 27, Chapter 9A.
• C: Incorrect - Alabama offers an apprentice independent adjuster license for applicants who are otherwise qualified but have not yet passed the written exam.
• D: Incorrect - a business entity may be licensed as an independent adjuster provided it designates at least one individually licensed adjuster responsible for compliance.

Correct answer: C. No more than 25 such employees under the supervision of a single licensed individual

Correct. Ala. Code § 27-9A-3 caps this employee exemption at no more than 25 individuals under a single supervising licensed independent adjuster or exempt producer.

• A: Incorrect number - the statute sets the cap at 25, not 10.
• B: Incorrect - the exemption depends on the supervisory headcount cap, not on how the employee is compensated.
• D: Incorrect - there is no 90-day time limit attached to this supervisory exemption; the limiting factor is the headcount.

Correct answer: D. Alabama no longer requires a pre-licensing education certificate as of January 1, 2024, though the applicant must still pass the state exam

Correct. ALDOI removed the pre-licensing certificate requirement effective January 1, 2024, but the applicant must still take and pass the required state licensing exam.

• A: Incorrect - the change was a general elimination of the certificate requirement, not one conditioned on already holding a producer license.
• B: Incorrect - as of January 1, 2024 Alabama no longer requires this certificate; requiring it for every application is outdated guidance.
• C: Incorrect - no mandatory supervised apprenticeship period was substituted; the apprentice independent adjuster license is a separate, optional pathway for those who have not yet passed the exam.

Correct answer: A. An apprentice independent adjuster license

Correct. Alabama allows an individual who is qualified except for the exam to apply for an apprentice independent adjuster license while working toward passing the written exam.

• B: Incorrect - nonresident reciprocal licensing applies to applicants already licensed as adjusters in good standing in their home state, not to first-time applicants who haven't tested.
• C: Incorrect - Alabama's independent adjuster licensing structure does not use a "limited lines adjuster permit" category for this situation.
• D: Incorrect - the emergency/catastrophe adjuster registration is a separate, short-term pathway tied to declared disaster events, not to pending exam status.