10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The ALIA exam has 150 questions and runs 3 hours.
These 10 free ALIA questions are organized by exam domain, so you can see how each part of the Alabama Independent Adjuster Exam blueprint is tested. Reveal the answer and explanation under each question.
A commercial building is valued at $500,000 and carries a $300,000 limit with an 80% coinsurance requirement. A covered loss totals $120,000, and the deductible is $2,000. No other limit applies. What amount is payable?
Correct answer: A - $88,000
At a storm-damaged residence, an adjuster smells a strong natural-gas odor and sees an exterior wall pulling away from the structure. Occupants are gathering on the porch. What takes priority?
Correct answer: B - Keep people away and obtain emergency utility or fire-department clearance before entering
The insurer accepts that wind caused covered roof damage. The only dispute is whether the reasonable replacement cost is $38,000 or $54,000, and the policy contains an appraisal condition. Which mechanism fits this disagreement?
Correct answer: C - Invoke appraisal under the policy's amount-of-loss condition
Inspection reveals weathered hail dents documented before policy inception and fresh fractured shingles caused by the current hailstorm. How should the adjuster frame the damage determination?
Correct answer: D - Separate the documented prior damage from the new covered damage, then scope and pay the current loss accordingly
An owner-occupant wants open-peril coverage on both the dwelling and household contents, subject to the policy's exclusions. Which homeowners form most directly provides that structure?
Correct answer: B - HO-5 Comprehensive
A named insured intentionally sets fire to a mortgaged dwelling. The mortgagee neither knew of nor participated in the act and satisfies the notice, premium, proof-of-loss, and cooperation requirements in the standard mortgage clause. What is the mortgagee's position?
Correct answer: A - The mortgagee may retain separate coverage despite the insured's act
An Alabama auto policy insures four vehicles, each with $25,000 of uninsured-motorist bodily injury coverage. The named insured did not reject UM coverage, and the proven damages exceed all available limits. What is the maximum that may be stacked within this one contract?
Correct answer: C - $75,000
A driver swerves to avoid a deer but never strikes it; the insured car then hits a guardrail. For Personal Auto Policy physical-damage coverage, how is the loss classified?
Correct answer: D - Collision, because the covered auto struck the guardrail
A commercial building has met the stated ISO vacancy definition for 75 consecutive days when a covered windstorm damages its roof. The vacancy condition says losses from other covered causes are reduced by 15%. What settlement treatment follows?
Correct answer: B - Apply a 15% reduction to the otherwise covered wind loss
A commercial property form states that Business Income coverage begins 72 hours after direct physical loss, while Extra Expense has no waiting period. On the first day after a covered fire, the insured rents a temporary kitchen to reduce the shutdown. How should that cost be evaluated?
Correct answer: C - Evaluate it as Extra Expense immediately; the 72-hour delay applies only to Business Income
The ALIA exam also covers these domains. Drill them in the full free practice test:
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