The Alabama Dept. of Insurance requires its insurance professionals to obtain a producer’s license before conducting business in a broker or agent capacity.
Before applying for an insurance license in the state of Alabama, decide which type of license you would like to obtain. Alabama offers the following types of licenses administered by Alabama department of insurance:
- accident and health or sickness (disability)
- combination of life, accident and health or sickness
- variable life and variable annuity
- automobile full coverage
- combined property and casualty
- personal lines
- bail bonds
Pre-Licensing Education Requirements
No matter what type of insurance license you are seeking, each license requires a set number of pre-licensing education credits. Without the appropriate education credits, you will not be able to sit for the state licensing exam.
The number of credits required varies depending on the type of license. For example, a life agent must take 20 hours in life insurance or 40 hours in life and health insurance courses. A property/casualty broker must take 40 hours of property and casualty insurance courses. It’s best to visit the Department of insurance website to find out the license specific pre-licensing requirements.
The Alabama Department of Insurance only accepts credits obtained through state approved education providers.
Insurance Education/Examination Exemptions
Licensing candidates that hold certain designations are not required to take the pre-licensing courses and can skip taking the state licensing exam. The exemptions are as follows:
- Chartered Property Casualty Underwriter (CPCU) or Certified Insurance Counselor (CIC) qualifies for exemption for candidates seeking a property, casualty, automobile or personal lines license.
- Chartered Life Underwriter (CLU) designation exempts candidates seeking a life, accident & health or sickness and variable life or variable annuity license.
Completing the Producer Application
You must complete the resident license application online through the National Insurance Producer Registry (nipr.com). NIPR also provides a state specific checklist for Alabama residents. It serves as a checklist to ensure each applicant attaches the necessary paperwork with the application.
Alabama State Licensing Exam
Once you have registered with NIPR and have successfully taken the necessary pre-licensing courses it’s time to register to take the state exam. You are strongly encouraged to register for the exam online through the website provided as a collaborative effort between the Alabama College of Continuing Studies and the Department of Insurance. Register at least 7 days prior to the date on which you wish to take the test.
Keep in mind that you are not registered until you receive a confirmation email. On occasion the University of Alabama online registration system will display test dates as available when in actuality all available spots have been taken (there is a minor delay between the closing of a test date and updating the website). As a result, do not assume that you are registered until you receive the confirmation email.
When you go to take the Alabama insurance licensing exam, bring a valid photo ID and the original certificate of completion from the pre-licensing courses taken. The exam proctor can only accept an original certificate of completion or a notarized copy.
Insurance Licensing Fees
Since fees are subject to change, visit the Insurance Producer Licensing and Renewal Fees page of the Alabama Department of Insurance for the most up to date licensing fee schedule.
After you have successfully passed the state exam, the Department of Insurance will issue your insurance license. Once you become a licensed broker in Alabama, you are required to take at least 24 hours of continuing education credits during the two-year term of your license. Failure to do so will prevent you from renewing your license.