- The ALIA exam has 150 questions, a 3-hour limit, and requires 105 correct (70%) to pass.
- Basic Insurance Principles and Terms (24.67%) and Additional Coverages (21.33%) carry the most weight.
- Alabama dropped the prelicensing certificate requirement effective January 1, 2024.
- The exam costs $75; the initial license runs $110 after you pass.
Exam Snapshot: The Numbers That Matter
If you only have five minutes before your exam appointment, these are the numbers to burn into memory. The Alabama Independent Adjuster Exam (ALIA) is administered under the Alabama Department of Insurance in coordination with The University of Alabama Insurance Testing program. It's a computer-generated exam consisting of 150 four-option multiple-choice questions, delivered under a strict 3-hour time limit. To pass, you need 105 correct answers (70%).
This site focuses on the broad Property and Casualty version of the exam, which folds in Workers' Compensation and Crop content alongside the core property and casualty domains. That breadth is exactly why candidates who skim a single textbook chapter tend to get surprised on test day - the question pool draws from six distinct content areas, not just one.
For a deeper dive into how these numbers compare to what test-takers actually experience, see ALIA Pass Rate 2026: What the Data Shows and How Hard Is the ALIA Exam? Complete Difficulty Guide 2026.
Domain Breakdown at a Glance
The official content outline was last revised on December 18, 2014, and domain percentages are calculated directly from that outline's section question counts. Nothing about the weighting is guesswork - it's arithmetic based on how many questions each section contributes to the 150-question pool. Here's the full breakdown:
| Domain | Weight | Approx. Questions |
|---|---|---|
| Basic Insurance Principles and Terms | 24.67% | 37 |
| Additional Coverages | 21.33% | 32 |
| Personal Property | 18.67% | 28 |
| Commercial Property | 14.67% | 22 |
| Adjuster Regulation and Law | 12.67% | 19 |
| Adjusting Practices, Roles and Responsibilities | 8.00% | 12 |
Basic Insurance Principles and Terms is the single largest section at 37 questions, and Additional Coverages is the runner-up at 32. Together, those two domains account for nearly half your exam. If your study time is limited, this table tells you exactly where to spend it. For a section-by-section walkthrough of what each domain actually tests, read ALIA Exam Domains 2026: Complete Guide to All 6 Content Areas.
Key Takeaway
Nearly 46% of your exam comes from just two domains: Basic Insurance Principles and Terms, and Additional Coverages. Master those first.
Registration and Fee Mechanics
Unlike many licensing exams, ALIA no longer requires a prelicensing certificate - that requirement was removed effective January 1, 2024. This means you can go straight from self-study to scheduling your exam without proving completion of a formal course. It also means the burden of preparation shifts entirely onto you and whatever resources you choose, which is why a structured plan matters more than ever. See ALIA Requirements 2026: Eligibility, Prerequisites & How to Qualify for the full eligibility rundown.
Here's the sequence resident applicants follow:
- Schedule and pay the $75 exam fee.
- Sit for the 150-question, 3-hour exam at an Alabama testing site or online via ProctorU.
- Pass with 105+ correct answers.
- Complete fingerprinting and a background check (this happens after passing, before you formally apply for licensure).
- Submit your license application with the $110 initial fee.
For a full cost accounting across every stage - exam fee, license fee, renewal fee, and continuing education - check ALIA Certification Cost 2026: Complete Pricing Breakdown.
Test Day Rules and Prohibited Items
Whether you test in person at an Alabama site or remotely through ProctorU, the rules are the same: no books, no notes, no calculators, no paper, no scratch paper, and no personal electronic devices. Any scratch work you need will be provided digitally or by the proctor - you cannot bring your own.
- In-person testing: Available at designated Alabama testing sites.
- Remote testing: Available online through ProctorU, with the same content and time limit.
- Devices: Phones, smartwatches, tablets, and calculators are all prohibited - insurance math on this exam is designed to be done without one.
Key Takeaway
If you're used to using a calculator for premium or loss calculations, practice doing those computations by hand before test day - you won't have one in the testing room.
Must-Know Topics by Domain
Generic advice to "study insurance terms" won't get you to 105 correct answers. Here's what each domain actually demands.
Basic Insurance Principles and Terms (37 questions)
This is the foundation domain and the largest single section on the exam. It covers the vocabulary and concepts every other domain assumes you already know.
- Insurable interest, indemnity, and subrogation
- Policy structure: declarations, insuring agreements, exclusions, conditions
- Types of losses and how insurers classify them
Additional Coverages (32 questions)
The second-largest domain covers endorsements, extensions, and supplemental coverages that modify a standard policy.
- Common endorsements and how they alter base coverage
- Additional living expense and business interruption concepts
- Scheduled vs. unscheduled coverage extensions
Personal Property (18.67%)
Focuses on homeowners and personal lines claims - the bread-and-butter work of many independent adjusters.
- Dwelling and personal property valuation methods
- Named perils vs. open perils policy forms
- Loss settlement provisions specific to personal lines
Commercial Property (14.67%)
Tests your understanding of business-side property exposures and how they differ from personal lines.
- Building and business personal property coverage forms
- Coinsurance and its effect on claim payouts
- Commercial valuation approaches (ACV vs. replacement cost)
Adjuster Regulation and Law (12.67%)
Covers the legal and regulatory framework adjusters must operate within in Alabama.
- Licensing rules and continuing education obligations
- Unfair claims practices and fiduciary duties
- Alabama-specific regulatory requirements for independent adjusters
Adjusting Practices, Roles and Responsibilities (8%)
The smallest domain but still worth mastering - it covers the practical mechanics of claim handling.
- Claim investigation steps and documentation standards
- Roles of adjusters vs. appraisers vs. examiners
- Ethical obligations during the adjustment process
Every one of these topics is fair game across all 150 questions, and question style favors scenario-based application over pure definition recall. If you want a topic-by-topic study sequence rather than just a list, ALIA Study Guide 2026: How to Pass on Your First Attempt lays out a full plan.
Licensing After You Pass
Passing the exam is a milestone, not the end of the process. Once you clear the background check and pay the $110 initial license fee, your license becomes active - but it doesn't stay active on its own.
Plan your CE hours the way you planned your exam prep: spread across the two-year cycle rather than crammed into the final month. Ethics hours especially should be knocked out early, since ethics content ties directly back to the Adjuster Regulation and Law domain you already studied for the exam.
Curious who actually hires independent adjusters with this license and what the job market looks like? Check ALIA Jobs and ALIA Salary Guide 2026: Complete Earnings Analysis. If you're still weighing whether to pursue licensure at all, Is the ALIA Certification Worth It? Complete ROI Analysis 2026 walks through the tradeoffs.
Final Review Week Plan
In the final stretch before your exam, resist the urge to re-read every chapter. Instead, allocate review time proportional to domain weight - the same logic that governs the exam itself.
Basic Insurance Principles and Terms + Additional Coverages
- Drill terminology flashcards for insurable interest, indemnity, subrogation
- Run practice questions on endorsements and coverage extensions
Personal Property + Commercial Property
- Compare named perils vs. open perils forms side by side
- Work coinsurance calculations by hand, no calculator
Adjuster Regulation and Law + Adjusting Practices
- Review Alabama-specific licensing and unfair claims practices rules
- Practice scenario questions on claim investigation steps
Full Timed Practice
- Simulate a full 150-question, 3-hour session with our practice test platform
- Review every missed question by domain, not just overall score
This ordering isn't arbitrary - it mirrors the exam's own weighting so your last hours of review target the material most likely to appear. For a more detailed version of this approach, see the full ALIA Study Guide 2026: How to Pass on Your First Attempt.
Frequently Asked Questions
The exam has 150 four-option multiple-choice questions with a 3-hour time limit.
You need 70%, which means 105 correct answers out of 150. See ALIA Passing Score 2026: Exactly What You Need to Pass for more detail.
No. Alabama removed the prelicensing certificate requirement effective January 1, 2024, so you can register and test without one.
No. Books, notes, calculators, paper, scratch paper, and personal electronic devices are all prohibited, whether you test in person or online via ProctorU.
The exam itself costs $75. After passing and completing fingerprinting and a background check, the initial license fee is $110. Renewal is biennial at $80 with 24 CE hours, including 3 in ethics.
Keep this page bookmarked as your quick-reference sheet, but don't rely on it alone - pair it with full domain review and timed practice on our ALIA practice test platform to make sure the numbers above translate into real exam performance.