Insurance licensing inAlabama
Insurance licensing in Alabama
Interested in learning how to get an insurance license in Alabama? Below, you'll find prelicensing and exam information to help you get started. Get a head start on your insurance career by reviewing rules and regulations, education requirements, and exam offerings.
Find your state's license requirements
Contact your state insurance department
Alabama Department of Insurance 201 Monroe Street, Suite 502 Montgomery, AL 36104 Phone: 334-241-4126 Website: https://aldoi.gov/ Email: ProducerLicensing@insurance.alabama.gov
Does Alabama require prelicensing education?
No, Alabama does not require any insurance pre-licensing education. We highly recommend taking a course on your own to prepare for the state's licensing exam.
How do I get my insurance license?
- Step 1: (optional) Complete a prelicensing course that helps prepare you to take your insurance licensing exam.
- Step 2: Schedule your exam with your state’s testing provider. The Alabama Department of Insurance has partnered with the University of Alabama to facilitate this testing. To register, visit the website. Make sure your name exactly matches the government-issued ID you will be using to register for and take the test. Testing sites are located in Birmingham, Montgomery, Huntsville, Mobile, and Tuscaloosa. Once you are registered, you cannot cancel your testing appointment. The exam registration fee is nonrefundable and nontransferable. If you want to take the test another day, you must go back online and re-register for the exam. Online and remote testing may be available for certain exams. Online and remote exams can be taken anytime at your convenience once your registration has been completed and your government-issued ID has been uploaded and approved. After registering, please wait 1-2 business days to receive an email from alabamasupport@adjusterpro.com inviting you to start the online testing process.
- Step 3: Take and pass your state's insurance licensing exam. Bring your government-issued ID (driver’s license, passport, military I.D., etc.), which must contain your name (exactly as you registered with it online) and photograph. Once you complete your exam, results could take up to three days to appear on the Alabama Department of Insurance’s website. If you passed, you can proceed to Step 4.
- Step 4: Now that you've passed, you can apply for your license! Alabama residents must apply via the online application service at www.nipr.com. Look for more information on how to apply on the NIPR website. As part of the licensing process, the state of Alabama requires fingerprinting through FieldPrint. AIm to get fingerprinted after you've passed your exam and one day before applying for the license. You can schedule your reservation at the website.
Insurance exam information
Alabama Life-Only Agent Examination
Alabama Accident and Health Agent Examination
Alabama Life, Accident, and Health Agent Insurance Examination
Alabama Property Insurance Examination
Alabama Casualty Insurance Examination
Alabama Personal Lines Insurance Examination
Licensing fees
- Initial resident producer license: 80 dollars
- Resident producer renewal: 50 dollars
- Late renewal: allowed 30 days after expiration; 50 dollar late fee
- Reinstatement: up to one year after expiration
Citizenship requirements
Proof of citizenship required under the Beason-Hammon Act; applicants must submit documentation through https://aldoi.gov/LicenseeCZ/Initial.aspx
Where to apply for a resident license?
Carrier appointments and terminations
- Required to report appointments
- Permits just-in-time appointments
- Travel insurance does not require carrier appointment for P&C producers
- Appointment must be filed within 15 days of contract execution or first business submission, whichever is earlier
- Appointment processed via NIPR
- Appointment fees: 40 dollars for resident or nonresident, individual or agency
- Agencies can be appointed
- Affiliated producers are not covered by agency appointment
- Appointment effective date is date processed
- Annual renewal required via NIPR; renewal window January 6 to March 1
- Appointment renewal fee for individual or agency: 25 dollars
Termination details
- Terminations processed via NIPR
- Termination reasons include voluntary termination, inadequate production, death, company defunct, indebtedness, poor service, agent moved, appointed in error, regulatory review request
- Termination date is date processed; carrier cannot specify date
- Email termination notices allowed if sent as PDF attachment
- No termination fee
- If license expires, state automatically terminates all appointments after the 30-day grace period
Renewals
License valid 2 years; renewal date is last day of birth month every 2 years; renewal opens 90 days before expiration; late renewal available for 30 days; reinstatement allowed up to one year
Continuing education
- 24 hours CE every 2 years; 3 hours ethics required; CE due before license renewal date; flood 3 hours; LTC 8-hour initial and 4 hours per renewal; annuity 4-hour one-time course
How to get an insurance license
Pursuing a career as an insurance agent is an excellent opportunity for anyone seeking a client-facing, flexible, and rewarding professional path. As an agent, you'll help clients establish a financial safety net and safeguard what matters most to them.
Before you can begin working with clients and selling policies, there are certain actions you must take to become licensed in your area of practice. We've outlined the basic steps below:
General requirements
As mentioned, insurance license requirements vary from state to state, but the general process includes:
- Completing an approved prelicensing course (usually 20 - 40 hours) to prepare for your insurance license exam
- Registering for the appropriate licensing assessment online and paying the required fee
- Passing the state-administered exam with a minimum score of 70% or higher
- Undergoing a background check as part of your application process
- Submitting your application for an insurance license in your state
While not mandatory for licensing, having a college degree can be beneficial for your career, as many roles will require one to apply. A degree in business, finance, or marketing provides a strong foundation for exam and professional success. Though not a requirement in all states, taking an approved course on insurance fundamentals prior to the exam is also an important part of the licensing process.
Education requirements
In many states, completing an insurance prelicensing course is necessary to apply for a license. Pre-exam courses are often mandated because they equip agents with the vital regulatory, industry, and compliance knowledge required of the profession. A certificate of completion from an approved course must be submitted to the state's board of insurance to move your application forward.
The states that do require a certificate of completion are:
- Arkansas
- California
- Colorado
- Connecticut
- Florida
- Georgia
- Illinois
- Indiana
- Kentucky
- Michigan
- Minnesota
- Mississippi
- New Jersey
- New York
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- West Virginia
- Wisconsin
States that do not require a certificate of completion for an insurance license course include:
- Alabama
- Alaska
- Arizona
- Delaware
- District of Columbia
- Hawaii
- Idaho
- Iowa
- Kansas
- Louisiana
- Maine
- Maryland
- Massachusetts
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Mexico
- North Dakota
- Oklahoma
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Wyoming
State-approved training courses ensure that candidates are prepared for their specific assessment, as the structure and content of each test vary by state and license type, and provide the insights needed to achieve a passing score. Even if your state does not require pre-exam coursework, enrolling in a test prep program is highly recommended.
Insurance licensing exams
Passing an insurance exam demonstrates a foundational understanding of insurance regulations, ethics, and product types. All exams include general content on insurance products, contract annuities, the underwriting processes, and the fundamentals of insurance transactions, which are fairly consistent across jurisdictions. A smaller portion of the test will cover state rules and regulations. The total number of questions and the time allotted for each exam will differ based on insurance line and the state administering the test.
Insurance licensing exams for all lines are notoriously tricky, with pass rates of just over 60% for many state exams. Prelicensing education helps develop a strong knowledge base, and intentional self-studying can further strengthen your preparation. If you plan on taking a prep course, ensure that you invest in a program that covers state-specific regulations and includes high-quality study materials.
Continuing education
After completing all the steps above and registering as an agent in your state, your license will remain valid for approximately two years. To maintain your certification, you must comply with state-specific continuing education (CE) requirements and renewal statutes. If you do not adhere to state rules regarding renewals, you will become ineligible to sell insurance products. Services like the National Insurance Product Registry (NIPR) make the process of applying to and renewing insurance licenses more streamlined, helping you keep track of each requirement no matter where you're located.
Before applying for an insurance license, it's a good idea to review your state's policies and prepare yourself for the application process. You should always verify requirements with your jurisdiction's registering authority as you progress through each step.
Frequently asked questions (FAQs)
What does an insurance agent do?
An insurance agent works with both commercial and non-commercial clients to select and purchase insurance products tailored to their specific needs. They provide expert advice on coverage options and strategies for minimizing financial risk. Agents consider clients' unique situations, financial goals, and risk tolerances to inform policy recommendations.
A standard day for an agent may involve meeting with clients, following up with leads, performing administrative tasks, and preparing insurance quotes. Agents may specialize in areas such as health, life, property, or auto insurance and assist with policy renewals, claims processes, and updating plans. A role in insurance remains a fantastic option for self-starters and those with keen analytical and communication skills. Whether agents work directly for a company, as part of an agency, or independently, they serve as reliable intermediaries between carriers and policyholders.
Captive insurance agents vs. independent insurance agents
Captive agents work for specific companies, such as Allstate or Geico, and receive a salary and bonuses. Independent agents are either self-employed or contracted by an organization, earning money solely through commissions. Independent agents are permitted to have agreements with multiple insurance companies, allowing them to offer an extensive suite of products. While captive agents are limited to selling their company's offerings, they benefit from more stable work conditions, training opportunities, and consistent clientele and income. The independent route is the less structured and riskier option, but it affords agents more autonomy and a greater earning potential for those highly adept at sales.
What are the different types of insurance?
Insurance coverage enables policyholders to shelter themselves and their dependents from financial uncertainty. Covered events can range from major illness to property damage to liability claims, all of which can be costly without proper protection. While insurance is often associated with unforeseen incidents, such as accidents or weather-related emergencies, coverage can also help individuals pay for routine expenses, including expected medical costs.
Agents may be certified in one or more insurance lines and can help guide clients through various policies to determine the most suitable options for their needs. Common types of insurance and their respective licensing exams include:
- Life-only insurance exam: Required to obtain a life insurance license, this exam qualifies agents to sell plans that allow policyholders to designate financial dependents as beneficiaries after their death.
- Health-only insurance exam: This exam is necessary to obtain a health insurance license and sell medical coverage. Agents often work directly with businesses to select group health plans, but may also enroll individuals in private insurance policies or public programs.
- Life and Health (L&H) insurance exam: Some states offer a combined life and health insurance exam, which entitles agents the right to transact products from both lines.
- Property-only insurance exam: This exam grants the ability to sell policies that provide financial protection against loss or damage to significant assets. Homeowners and renters insurance fall under this category.
- Casualty-only insurance exam: This exam certifies agents to vend casualty insurance policies, which cover financial losses from liability claims and property damage. Auto insurance is a well-known product within this category.
- Property and Casualty (P&C) insurance exam: Candidates who pass the P&C insurance exam can earn a combined property and casualty insurance license, which authorizes them to sell both product lines.
- Personal Lines insurance exam: Passing the personal lines insurance exam enables agents to advise non-commercial clients, protecting them from losses resulting from property damage, injury, or death.
- General Lines insurance exam: Earning a general lines insurance license allows agents to offer a wide variety of insurance products. General lines include homeowners, auto, pet, creditor, and other types of insurance.
Note that this list represents the broad classifications of insurance most commonly used by individuals and corporations. Within each category are several subforms of insurance and product types, from jewelry to boat to long-term care insurance. Agents can choose to specialize in specific products, insurance areas, or customer segments, or offer a more general range of services.
What's covered on insurance licensing exams?
All exams cover the fundamentals of insurance, including key terms, policy details, line-specific information, and state laws and regulations. Each exam requires a thorough understanding of both insurance basics and the specific type of insurance being tested, as well as policies distinct to the state in which the license will be granted.
Can insurance agents be licensed in multiple states?
Yes, agents can register in more than one state and hold multiple licenses for various types of insurance. Some states share reciprocity agreements that make it easy for agents to expand their credentials across state lines. Please be aware that the application for non-resident licenses may require additional exams and courses, in addition to the standard application and fee.
The directory above allows you to access information on the format, length, and passing scores of insurance exams across the country, so you can review requirements for all states you're interested in.
What is the difference between an insurance agent, an insurance broker, and an insurance adjuster?
An insurance agent works for a particular carrier, or with several carriers, and sells policies directly to their customers. They primarily focus on presenting customers with different policy options, providing recommendations, and closing sales, although they can also assist clients in filing insurance claims and advocate on their behalf.
Insurance brokers directly represent clients, helping them compare insurance options and rates and shop around for the best policy. Their role is similar to that of a financial advisor or consultant, as they do not sell insurance themselves but rather guide consumers through their choices. Once a policy is chosen, brokers will direct the account to an agent, who can finalize the transaction.
An insurance adjuster's responsibilities are quite different from those of an agent or broker. Claim adjusters use the information provided in an insurance claim to calculate the insurance company's liability, taking into account supporting details like damage repair estimates, hospital records, or witness statements. When evaluating claims, an adjuster must determine the benefit owed to the insured based on the terms of their policy.
Adjusters are either hired directly by companies or work independently, and are typically salaried employees who may collect a fee based on the value of a claim. Agents and brokers are paid commissions by insurance companies based on their sales activity, in addition to receiving a salary if they are not independently employed. Brokers also charge clients an additional cost for their services, known as a broker's fee. Agents, brokers, and adjusters must all hold a valid license to practice in their respective states. Both brokers and agents are considered "insurance producers" and must first pass their state's insurance licensing exam to qualify for their roles.
Conclusion
Insurance agents play a crucial role in helping individuals and businesses protect their assets, plan for the future, and navigate life's uncertainties. They provide key advice to ensure clients are as protected as possible against accidents, health issues, and property damage, helping them make smart financial decisions along the way. By earning your license, you can begin building your client base and establishing yourself as a trusted insurance professional in your area.
If you're ready to start your journey toward becoming a licensed insurance agent in Alabama, consider enrolling in Achievable's Life & Health Insurance course. Our comprehensive study materials and practice exams are designed to help you pass your licensing exam on the first attempt.
Interested in insurance licensing in other states?
