Alabama Seal

Alabama

state commissioner

Jim Ridling (retiring June 30, Mark Fowler to serve as acting commissioner)

STATE phone
(334) 241-4126
STATE LICENSE DIVISION ADDRESS

Alabama Department of Insurance Attn: Licensing Division

Appointments & Terminations

Required to report appointments?

Yes

Permits Just-in-time (JIT) appointments?

Yes

Initial appointment deadlines

Within 15 days of contract execution of first business submission; whichever is earlier

Initial appointment deadline rule

Appointments must be submitted within 15 days of the date the agent/agency contract is executed or the first piece of business is submitted to the carrier. The appointment submission deadline is the earlier of the two dates

Can be processed via nipr?

Yes

Fees for appointing a resident agency or individual?

$40

Fees for appointing a non resident agency or individual?

$40

Appoint agencies?

Yes

Agency appointment covers affiliated producers?

No

Adjuster appointments via NIPR?

No

Appointment effective date can be specified?

No

Appointment effective date rule

Date processed through the gateway.

State requires appointment renewal?

Yes

Appointment renewals via

Via NIPR

When is the state renewal period?

Jan. 5, 2022 until March 1, 2023

Appointment renewal fee

Insurance Producer: $25 Service Representative: $40 Title Insurance Agent: $10 Portable Electronics Insurance Small: $25 Portable Electronics Insurance Large: $25

Fees are retaliatory?

No

Appointment Terminated if license expires?

Yes

Terminations processed via NIPR?

Yes

Termination reasons

Voluntary termination; inadequate production; death; company defunct or liquidation; company indebtedness; poor policyholder service; agent moved; appointed in error; request regulatory review

Termination date can be specified by carrier?

No

Termination Effective date rule

Date is the day processed through the gateway

Termination notes

There is a 30-day grace period following expiration, during which time the producer can renew with a $50 late fee plus the renewal fee. If the license is not renewed at this time, the license expires, and all company appointments are canceled. Per the Alabama Department of Insurance (482-1-147 (b)), when a producer license expires, all lines of authority between the company and the individual must be terminated

Termination fee

No fee

Licensing

Initial individual new license fee

Resident New License Insurance Producer: $80 Resident New License Surplus Lines Broker: $230 Non Resident New License Insurance Producer: $80 Non Resident New License Surplus Lines Broker: $230

License renewal fee

Resident Renewal Insurance Producer: $70 Resident Renewal Surplus Lines Broker: $200 Non Resident Renewal Insurance Producer: $70 Non Resident Renewal Surplus Lines Broker: $200

When does the resident individual producer license renewal period begin?

90 days before expiration

What is the resident individual producer license renewal date?

Last day of birth month every 2 years based on year of birth

Late renewal or reinstatement period for resident individual producer license?

Late renewal allowed for 30 days after expiration; reinstatement allowed up to one year after expiration

When does the nonresident individual producer license renewal period begin?

90 days before expiration

What is the nonresident individual producer license renewal date?

Last day of birth month every 2 years based on year of birth

Late renewal or reinstatement period for nonresident individual producer license?

Late renewal allowed for 30 days after expiration; reinstatement allowed up to one year after expiration

Can a producer use a P.O. Box in their resident or business address?

For individual's business address only

Are individuals required to list their county as part of the address?

No

What addresses are required for individual license maintenance?

Residence, Business, and Mailing

State individual licenses include

Title Insurance Agent, Captive, Property & Casualty, Insurance Producer, PreNeed Sales Agent, Adjuster, Apprentice Adjuster, Surplus Line Broker, Life & Health, Temporary Producer, Service Representative, Reinsurance Intermediary, Portable Electronics Insurance Small, Portable Electronics Insurance Large, Temporary Title Insurance Agent, Pharmacy Benefit Manager

Appointment Terminated if license expires?

Yes

State broker license rule

Included in Producer License Class. Insurers are not required to appoint Brokers per NAIC PLMA

Broker license notes

A producer who is not acting on behalf of an insurer is not required to become appointed. For purposes of this section, a producer who refers business to an appointed producer pursuant to Section 27-7-34 shall not be deemed to be acting on behalf of the insurer with whom the business is placed, regardless of whether commissions on this business are shared

Requires pre licensing courses?

Yes

Study method requirements

The pre licensing course must consist of 20 classroom hours per line of authority, or equivalent individual instruction, on the general principles of insurance for that line of authority. Pre licensing education courses are taken in a classroom setting or online during which a minimum of five hours must be dedicated to the discussion of Alabama Law. Instructors must be knowledgeable of the insurance industry and all aspects of the insurance law.

Submission of completion certificate rule

Certificate of completion must be in hand before registering for state exam and will be submitted at the exam site

How long is the pre licensing certification valid?

Once the pre licensing course is completed and a certificate is awarded, the insurance licensing examination can be taken within one year from the date of the certificate.

Exemptions to pre licensing requirements

Holders of the professional designations CLU, CEBS, ChFC, CIC, CFP, FLMI, and LUTCF are exempt from completing a pre licensing course for the life line of authority. Holders of the professional designations CLU, CEBS, ChFC, CIC, CFP, FLMI, and LUTCF are exempt from completing a pre licensing course for the life line of authority. Holders of the professional designations CPCU, CIC, AAI, and ARM are exempt from completing a pre licensing course for the personal lines, property and casualty lines of authority. An individual who has been awarded a bachelor’s or advanced degree in insurance or major in insurance, from an accredited college or university is exempt from having to complete a pre licensing course for all lines of authority. The individual shall submit a certified copy of the college transcript to the Commissioner for verification of the exemption and will receive a certificate of exemption to provide to the examination administrator. An individual licensed as an insurance producer in another state is exempt from completing a pre licensing course in order to apply for an Alabama producer license with the same lines of authority if, at the time of application, the individual’s out-of-state license is current or was cancelled within ninety (90) days before the application and the individual is in good standing in that state or in the state’s producer database records as maintained by the NAIC. An individual currently licensed as an insurance producer or service representative (or their equivalents) in another state is exempt from completing a pre licensing course of study in order to apply for a nonresident producer or service representative license in Alabama with the same line(s) of authority if the individual is in good standing in that state or in the state’s producer database records as maintained by the NAIC. Unless exempt, an individual is required to present a certificate of completion of the appropriate pre licensing course(s), together with photographic identification, as a condition for taking insurance producer examinations.

Agency

Can a sole proprietor be licensed as an entity?

No

DRLP must have active state license

Yes

DRLPs must cumulatively cover all LOAs in application

Yes

Agency Licensing renewals

October 1st until December 31st during Even Years. Late Renewal period ends 30 days after the expiration date.

Agency License required?

Yes

Affiliations: Indicates if producers selling on behalf of/through an entity must be formally affiliated with that entity and if the entity must notify the department of changes

No

Branch office

Branch office must be licensed

Adjuster

Requires adjuster license?

Yes

Offers designated home state?

Yes

DHS exam required?

Yes

Reciprocity states

AK, AR, AZ, CT, DE, FL, GA, ID, IN, KY, LA, ME, MI, MN, MS, MT, NC, NH, NM, NV, OK, OR, RI, SC, TX, UT, VT, WA, WV, WY

Which states require an exam for reciprocity?

CA, HI, NY, PR

Independent adjuster LOAS

Property and Casualty (excluding Workers' Compensation and Crop), Property & Casualty (including Workers' Compensation and Crop), Crop, Workers' Compensation

Independent adjuster fees

Initial Licensing Cost: $110 Renewal Cost: $80 Late Fee: $40 Reissue Fee (within 365 days): $160

Independent adjuster exam required?

Yes

Speciality adjuster renewal date

Biennially. If the individual is born in an even numbered year, the license will expire at the end of the birth month in an odd numbered year. The same pattern goes for even numbered years.

Apprentice adjuster license LOAS

Property and Casualty (excluding Workers' Compensation and Crop), Property & Casualty (including Workers' Compensation and Crop), Crop, Workers' Compensation

Apprentice adjuster license fees

$110

Apprentice adjuster license exam required?

No Exam Required

Apprentice adjuster license duration

1 Year

Apprentice adjuster license details

This license type can only be issued once. A supervisor holding an active independent license is required. This individual can supervise up to 5 apprentices once.

Emergency adjuster details

This license allows adjusters who are not licensed in the state and acting on behalf of an insurer to do business in the event of a catastrophe. Emergency adjusters can register online via the TEARS system and pay a fee of $50.

Continuing Education

Total hours per renewal period

24

Renewal period

2 years

License renewal date is

Last day of birth month

License renewal year based on...

Year of birth

When is the CE due?

Prior to license expiration.

How long before expiration does state send CE reminder?

90 days prior to month of birth

Exemptions to CE

Individuals licensed less than 1 year at the time of the first CE compliance dates are exempt for the first reporting period. Individuals licensed only for credit insurance, industrial fire (debit fire) insurance, rental vehicle, motor club, dental services or legal services are also exempt from CE requirements. Producers or service representatives who are employed by another producer or insurer to work only in the office of the employer, and who do not hold a non-resident license in any other state, must complete 50% the total required hours. Individuals who are at least 60 years of age and have been licensed continuously in Alabama for at least 15 years (both of these criteria must be satisfied) are exempt from CE requirements. Individuals who hold an active Chartered Life Underwriter (CLU), Charter Property & Casualty Underwriter (CPCU), Certified Insurance Counselor (CIC), Chartered Financial Consultant (ChFC), CERTIFIED FINANCIAL PLANNER (CFP), Registered Health Underwriter (RHU), Registered Employee Benefits Consultant (REBC), Certified Health Consultant (CHC), or Associate Risk Manager (ARM) designation are exempt from CE requirements.

What if a producer missed the renewal date?

There's a 30 day grace period in which you can reapply and pay a $50 late fee (on top of the typical renewal fee) to keep your license current. Of course, you must also have completed your required CE.

CE instructors get credit for teaching courses?

Yes, only credit for one of each kind of course per renewal period

Ethics requirements

3

Flood-specific CE requirements

3 hours of NFIP course

LTC-specific CE requirements

8-hour initial certification, with 4 hours of LTC-specific training each renewal cycle thereafter

Annuity-specific CE requirements

One-time, 4 hour course

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