Alabama Private Investigator Practice Exam 2026 - Free Private Investigator Practice Questions and Study Guide

In the context of physical surveillance for insurance fraud, the correct answer is that the individual is not exempt from licensure, even if the surveillance is conducted from public property. The rationale behind this requirement is rooted in the legal and regulatory framework governing private investigations.

Private investigators are required to hold a proper license to ensure they adhere to ethical standards, legal boundaries, and to protect the rights of individuals. Conducting surveillance, regardless of the location—public or private—can involve sensitive matters and potentially infringe on privacy rights. Therefore, licensure serves as a safeguard to ensure that only qualified individuals engage in such activities, thereby upholding the integrity of the investigative process.

The incorrect options highlight different scenarios that do not align with the established licensure requirements. For instance, being a witness or being on a company's payroll does not provide an exemption from the need for licensure; the role and activities conducted are what govern the necessity for a license, not the relationship with the insurance entity.