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 AL-PC exam has 150 questions and runs 3 hours.
These 10 free AL-PC questions are organized by exam domain, so you can see how each part of the Alabama Property and Casualty Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
An insurer reports a 106% combined ratio on an earned-premium basis and positive overall net income after investment results. Which interpretation is supported?
Correct answer: D - An underwriting loss occurred despite the company's overall profit.
A windstorm tears open a warehouse roof. The building has been declared safe, but more rain is approaching and undamaged stock is exposed. The insurer has been notified; its adjuster cannot arrive until tomorrow. Which immediate response fulfills the insured's duties after a loss?
Correct answer: A - Photograph the damage, arrange temporary protection, and retain receipts.
A homeowner knocks an antique vase off a shelf, breaking the vase and a permanently installed ceramic floor tile. The home is insured under an unendorsed HO-3 policy, and no exclusion applies to the floor damage. Before considering the deductible, how does the policy treat these two losses?
Correct answer: B - The tile is covered; the vase has no applicable named peril.
Dana swerves to miss a deer and hits a guardrail without touching the animal. Her personal auto policy includes both collision and other-than-collision coverage. How is the damage to her car classified?
Correct answer: C - Collision, because Dana's car collided with the guardrail.
A dinner guest trips over her own untied shoelace in the insured's home and promptly incurs $1,800 in necessary medical bills. No negligence by the homeowner is alleged. The homeowners policy provides $5,000 per person under Coverage F, and no exclusion applies. How should the producer handle the guest's request for help with the bills?
Correct answer: A - Submit the expenses under Medical Payments to Others without requiring proof of negligence.
A defective toaster starts a fire in a customer's kitchen, destroying the toaster, damaging cabinets, and burning the customer. The manufacturer is legally liable and has an unmodified commercial general liability policy covering products-completed operations. Which expense falls within the damage-to-your-product exclusion?
Correct answer: B - Replacing the defective toaster destroyed in the fire.
A commercial building has a replacement cost of $500,000 at the time of loss. It is insured for $300,000 on a replacement-cost basis with an 80% coinsurance requirement and a $1,000 deductible. A covered fire causes $80,000 of damage, and repairs are completed. The deductible applies after any coinsurance penalty, and no agreed-value provision applies. What is the insurer's payment?
Correct answer: B - $59,000
During a renewal review, a florist mentions that employees sometimes deliver orders in their own cars. The florist's business auto policy lists only Symbols 7 and 8 beside liability coverage; the employees' cars are not scheduled. Which change addresses the florist's liability exposure from these deliveries?
Correct answer: D - Add Symbol 9 to cover the florist's nonowned-auto liability.
An electrician completed an installation in November 2024 while insured by Carrier A's occurrence CGL policy, which expired December 31, 2024. Carrier B's claims-made CGL policy covers calendar year 2025 and has a January 1, 2025 retroactive date applying to when bodily injury or property damage occurs. The installation first causes fire damage in July 2025; the claim is first made and promptly reported in August 2025. Both policies include completed operations, and all requirements other than timing are satisfied. Which carrier's coverage trigger is met?
Correct answer: C - Carrier B, because the damage and claim occurred within its coverage dates.
An Alabama applicant selects 25/50/25 automobile liability limits and, after the producer explains uninsured motorist protection, signs a valid written rejection of that coverage. The applicant asks whether the policy can still satisfy Alabama's mandatory liability insurance requirement. What is the accurate response?
Correct answer: A - Yes; 25/50/25 meets the liability minimum, and UM may be rejected in writing.
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