Alabama Insurance License Requirements
Do you want to become an insurance agent and get your Alabama insurance license? XCEL has taught thousands of aspiring insurance professionals in Alabama and we make it easy for you to get up to speed on the Alabama insurance requirements.
How to Obtain Your Insurance License in Alabama
XCEL Solutions Catalog
Click here to view the XCEL Solutions Alabama Course Catalog. This catalog will also be available to print upon enrollment.
Effective 01/01/2024 – The state of Alabama has no formal pre-licensing education requirement. However, it is recommended as the prelicensing course is designed to prepare candidates for the State Licensing Examination.
1. Complete the Pre-Licensing Course
- Life Only
- Accident & Health Only
- Life, Accident and Health
- Casualty Insurance
- Property Insurance
- Property and Casualty
- Personal lines
Course Requirements
- This is a forced progression (locked) state that requires the student to review each lesson and pass each chapter quiz before moving onto the next section/chapter.
- Assessments on key topics throughout the course must successfully be passed with a minimum score of 70% before moving onto the next chapter.
2. Schedule the Alabama State Examination
- Registration must be completed online on the University of Alabama website: www.training.ua.edu/insurance-testing/insurance-testing-registration/
- Single Line exam fee - $50
- Combined exams fee - $75
- There is a 7-day waiting period to take the exam.
Online Proctored Exams
- After submitting your registration, you will receive an email within two (2) business days from “Alabama Support” with exam process.
Limitation on Repeat Examinations
- After the second failure of an examination, an examinee cannot take the examination for that line of authority after the 90-day waiting period. After an examinee has failed an examination four times, the examinee thereafter has a 180-day waiting period for each subsequent examination for that line of authority. The waiting period starts over in 24 months from the last failure.
3. Pass the State Exam
- Be sure to take advantage of XCEL’s 3-Part training program, including Part 2 (Prep Review Course) and Part 3 (Exam Simulator). These are the two sections we hear from students value the most during the exam waiting period.
- Prep Review Course: This part of the training scales down content to focus solely on the most important material with weighted sections identical to the state exam. Chapters have only a few pages of material, but the content must be mastered to pass. Instructionally designed to teach individuals how to pass, most study effort should be invested here. Chapter exams are substantially larger (50+ questions), providing exposure to the types of questions seen on the state exam.
- Exam Simulator: These special exams are designed to gauge content retention levels. Important: Only take the Exam Simulators after the Prep Review Course has been successfully completed. It ensures these questions will be “fresh in the mind.”
- On the day of testing, you must present a valid government issued photo id.
4. Submit Fingerprints
- The state of Alabama requires fingerprinting. Schedule your reservation after passing the state exam and one day before you apply for your license at https://fieldprintalabama.com/individuals
- Fingerprint Fee $49.00
5. Apply for License
- Submit license application online www.nipr.com
- Application fee - $80.00
- Submit proof of citizen https://aldoi.gov/LicenseeCZ/Initial.aspx
- In accordance with the Beason-Hammon Taxpayer and Citizen Protection Act., Alabama requires all applicants to verify proof of citizenship. You can find a list of valid documents here.
Exam Outlines
| DESCRIPTION | Question Count | % of Exam Questions | ||||
| L&H | Life | Health | L&H | Life | Life and Health | |
| Part 1 – General – Life and Health Insurance | ||||||
| Purpose of Insurance | 8 | 8 | 6 | 5% | 5% | 6% |
| Contract Law | 11 | 10 | 7 | 7% | 8% | 7% |
| Underwriting and the Application | 11 | 9 | 8 | 7% | 7% | 8% |
| Part II – Life Insurance | ||||||
| Traditional Life Policies | 11 | 18 | 0 | 7% | 14% | 0% |
| Flexible Feature Life Policies | 3 | 5 | 0 | 2% | 4% | 0% |
| Policy Provisions | 15 | 22 | 0 | 10% | 18% | 0% |
| Policy Options | 10 | 13 | 0 | 7% | 10% | 0% |
| Policy Riders | 5 | 8 | 0 | 3% | 6% | 0% |
| Annuities and Retirement Plans | 5 | 6 | 0 | 3% | 5% | 0% |
| Business and Group Life | 4 | 6 | 0 | 3% | 5% | 0% |
| Social Security | 2 | 2 | 0 | 1% | 2% | 0% |
| Part III – Health Insurance | ||||||
| Health Foundations | 10 | 0 | 12 | 7% | 0% | 12% |
| Medical Expense Policies | 7 | 0 | 9 | 5% | 0% | 9% |
| Disability Income Policies | 6 | 0 | 10 | 4% | 0% | 10% |
| Uniform Individual Health Policy Provision Law | 7 | 0 | 11 | 5% | 0% | 11% |
| Optional Provisions | 3 | 0 | 5 | 2% | 0% | 5% |
| Group Health | 5 | 0 | 7 | 3% | 0% | 7% |
| Medicare and Medicaid | 3 | 0 | 4 | 2% | 0% | 4% |
| Limited Health Insurance Policies | 7 | 0 | 10 | 5% | 0% | 10% |
| Part IV – Alabama Insurance Law | ||||||
| All Licensing Candidates | 8 | 9 | 9 | 5% | 7% | 9% |
| Life Insurance Candidates | 7 | 9 | 0 | 5% | 7% | 0% |
| Accident and Health (Disability) Insurance Candidates | 5 | 0 | 7 | 3% | 0% | 7% |
| Total for All Parts | ||||||
| Total Scored Questions on Exam | 150 | 125 | 100 | |||
| Maximum Time allowed to complete exam in minutes | 180 | 150 | 120 | |||
| Minimum Correct for Passing Score | 105 | 87 | 70 | |||
| DESCRIPTION | Questions on Exam | % of Exam Questions | ||||||
| P&C | Property | Casualty | Personal Lines | P&C | Property | Casualty | Personal Lines | |
| Part I – Property & Casualty Fundamentals | ||||||||
| Property & Casualty Vocabulary | 9 | 12 | 12 | 10 | 6% | 12% | 10% | 10% |
| Contract Law | 7 | 8 | 8 | 8 | 5% | 8% | 6% | 8% |
| Basics of Property Insurance | 9 | 10 | 0 | 9 | 6% | 10% | 0% | 9% |
| Basics of Liability Insurance | 5 | 0 | 8 | 7 | 3% | 0% | 6% | 7% |
| Part II – Personal Lines | ||||||||
| Homeowners & Dwelling Policies | 16 | 28 | 0 | 27 | 11% | 28% | 0% | 27% |
| Personal Auto Policy | 14 | 0 | 13 | 13 | 9% | 0% | 10% | 13% |
| Watercraft and Flood Policies | 4 | 2 | 2 | 4 | 3% | 2% | 2% | 4% |
| Part III – Commercial Lines | ||||||||
| The Commercial Package Policy | 4 | 8 | 8 | 0 | 3% | 8% | 6% | 0% |
| Commercial Property | 10 | 16 | 0 | 0 | 7% | 16% | 0% | 0% |
| Commercial General Liability | 15 | 0 | 19 | 0 | 10% | 0% | 15% | 0% |
| Crime and Fidelity Bonds | 8 | 0 | 8 | 0 | 5% | 0% | 6% | 0% |
| Equipment Breakdown Coverage | 4 | 0 | 4 | 0 | 3% | 0% | 3% | 0% |
| Other Commercial Policies | 17 | 0 | 19 | 0 | 11% | 0% | 15% | 0% |
| Businessowners Policy | 4 | 0 | 4 | 0 | 3% | 0% | 3% | 0% |
| Workers Comp and Employers Liability | 4 | 0 | 4 | 0 | 3% | 0% | 3% | 0% |
| Part IV – Alabama Law | ||||||||
| All Licensing Candidates | 9 | 11 | 10 | 11 | 6% | 11% | 8% | 11% |
| Property & Casualty Candidates | 5 | 5 | 3 | 5 | 3% | 5% | 2% | 5% |
| Total for Part IV – Alabama Law | 20 | 16 | 16 | 22 | 13% | 16% | 13% | 22% |
| Total for All Parts | ||||||||
| Total Scored Questions on Exam | 150 | 100 | 125 | 100 | ||||
| Maximum Time allowed to complete exam in minutes | 180 | 120 | 150 | 120 | ||||
| Minimum Correct for Passing Score | 105 | 70 | 87 | 70 | ||||
Producer Licensing Checklist:
| Task: | Date Completed |
| 1. Complete prelicensing course | |
| 2. Print certificate | |
| 3. Register for exam | |
| 4. Pass exam | |
| 5. Submit Fingerprints | |
| 6. Apply for license | |
| 7. Submit proof of citizenship |
Governing Agency
Name:
Alabama Dept of Insurance Phone: 334-269-3550
Fax: 334-241-4192
Website: http://www.aldoi.gov/
Address: 201 Monroe Street Suite 502 Montgomery, AL 36104
Alabama Insurance License Renewal and Compliance Requirements
XCEL Solutions provides this information as a courtesy to licensees subject to insurance continuing education requirements. Although every effort is made to maintain the accuracy of this course, recent changes in laws and procedures may not yet be reflected in the content. All information is subject to change without notice.
License Renewal Timelines
Agents holding a Major Lines license (Property, Casualty, Personal Lines, Accident & Health, Life or Variable Products) are required to renew their license by the last day of their birth month every two years.
- On-going renewal periods are the last day of the agent’s birth month, and odd/even year of birth every two (2) years thereafter.
Continuing education requirements must be met before submitting the license renewal application.
Complete Required Continuing Education
Requirements per License
Licensees renewing a Property, Casualty, Personal Lines, Accident & Health, Life or Variable Products license are required to complete 24 hours of approved continuing education, 3 of which must be approved as ethics, before submitting their renewal application.
Specific Product Training Requirements
The Alabama Department of Insurance requires specific training requirements for individual agents selling, soliciting, or negotiating Long-Term Care products (LTC), Flood Insurance products (NFIP), and Annuity products (Annuity). Failing to complete the required training may jeopardize the agent’s authority to sell the related insurance products.
Long-Term Care Training Requirements
- Life or Accident & Health licensees must complete an approved 8-hour Long-term Care course before selling, soliciting, or negotiating long-term care insurance.
- Agents must also complete an approved 4-hour LTC refresher course every renewal period to continue selling, soliciting, or negotiating long-term care insurance.
- The initial and refresher LTC course credits count towards the agent's 24-hour CE requirement.
- Resident agents may complete these training requirements in any state provided the department has approved the course for long-term care credit prior to the agent taking the course.
- Non-resident agents may complete these training requirements in any state.
Annuity Best Interest Training Requirements
- Life or Variably Annuity licensees must complete an approved one-time 4-hour Annuity Best Interest course before selling, soliciting, or negotiating annuity products.
- Annuity Best Interest course credits count towards the agent's 24-hour CE requirement.
- Resident and non-resident agents may complete these training requirements in any state with laws substantially similar to Alabama.
Flood Insurance (NFIP) Training Requirements
- Property and Casualty or Personal Lines licensees must complete an approved one-time 3-hour National Flood Insurance Program (NFIP) course by the end of their first renewal period if they plan to sell, solicit, or negotiate Flood insurance.
- The National Flood Insurance Program course credits count towards the agent's 24-hour CE requirement.
Course Requirements
- Licensees can use independent self-study courses to meet all requirements.
- Licensees may take courses in any line of authority.
- Self-study exams are closed book and require a monitor/proctor.
- Duplicate courses completed in the same renewal period are not allowed and cannot be carried over to future renewal cycles.
- Excess credit hours earned in the previous biennial renewal period cannot be carried over to the next reporting period. Any excess is lost.
Reporting to your State
- Students must provide their National Producer Number (NPN) to report on course completion.
- $1.00 per credit hour is required to report course completions to your state.
- Course completions are reported within one business day.
Renew your License
Resident and nonresident license renewal applications are processed through NIPR. A $70 renewal fee is required. Agents with a continuing education requirement must obtain all required credits prior to their license expiration date. An agent will not be eligible to renew their insurance license(s) until they have satisfied their continuing education requirement.
Helpful Resources
Alabama Department of Insurance - Licensing Division
https://www.aldoi.gov
334-241-4126
ProducerLicensing@insurance.alabama.gov
P.O. Box 303351, Montgomery, AL 36130-3351