Alabama Insurance License Requirements
Ready to earn your insurance license? We're sharing a step-by-step guide to meeting the requirements to earn and maintain your license!
How to Obtain Your Insurance License in Alabama
This license information is provided as a convenience only and is subject to change at any time. It is ultimately the responsibility of the licensee to ensure compliance with all requirements for each license.
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
Alabama does not require candidates complete pre-licensing education. However, we recommend all candidates complete a course in order to gain the foundational knowledge necessary to pass the required insurance licensing exam. Alabama offers licensing in the following lines of authority:
- Life Only
- Accident & Health Only
- Life, Accident and Health
- Casualty Insurance
- Property Insurance
- Property and Casualty
- Personal lines
2. Schedule the Alabama State Examination
Register for your insurance exam through the University of Alabama Website. Exam fees for single lines of authority (such as life, health, or property) are $50 while exam fees for combined exams (Life & Health or Property & Casualty) are $75. You may choose your in-person testing site or choose an online proctored exam, and after submitting your registration, you will receive an email within two days with details of the process.
Limitation on Repeat Examinations
After the second failure of an examination, a candidate cannot take the examination for that line of authority within 90 days. After failing four times, the candidate must wait 180 days 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
Make sure you're fully prepared to sit for the insurance licensing exam with XCEL's proven 3-Part Training Program.
- Build a strong foundation of knowledge with our pre-licensing education.
- Focus on highly tested topics and exam-aligned content with XCEL's exam prep course.
- Test your knowledge and exam readiness with our exam simulators that mimic the real exam.
On the day of testing, you must present a valid, government-issued photo id.
- The Life & Health and Property & Casualty exams are each 150 questions and you have three hours to complete the exam.
- Life only and casualty only exams have 125 questions each and you have 150 minutes to complete them.
- Health only, Property only, and Personal Lines exams are all 100 questions each and you have two hours to complete them.
No matter which exam you take, you must score a 70% of answers correct to pass.
4. Submit Fingerprints
The state of Alabama requires you submit fingerprints. You can schedule fingerprinting at Fieldprint anytime after passing the state exam and at least one day before you apply for your license. The fee for fingerprinting is $49.20.
5. Apply for License
You are now ready to apply for your license. To do this, you can submit your license application online through NIPR. You must pay an $80.00 application fee and also submit proof of citizenship in accordance with the Beason-Hammon Taxpayer and Citizen Protection Act.
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% |
| 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: https://www.aldoi.gov/
Address: 201 Monroe Street Suite 502 Montgomery, AL 36104
Alabama Insurance License Renewal and Compliance Requirements
This license renewal information is provided as a convenience only and is subject to change at any time. It is ultimately the responsibility of the licensee to ensure compliance with all requirements for each license and corresponding renewal period.
When to Renew Your Alabama Insurance License
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. For example, if you were born in January 2001 and applied for your license in February 2026, you would next renew your license the next odd year, which would be January 2027, and then every two years after that.
Continuing education requirements must be met before submitting the license renewal application.
Complete Required Continuing Education
Licensed insurance producers renewing a Property, Casualty, Personal Lines, Accident & Health, Life or Variable Products license are required to complete 24 hours of approved continuing education each biennial cycle. Three of those hours must be approved as ethics before submitting their renewal application. Also, 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 initial 8-hour Long-term Care course before selling, soliciting, or negotiating long-term care insurance. They must then complete a 4-hour refresher during every renewal period. Both 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. The 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.
- Any person teaching an approved course of instruction or lecturing at an approved seminar or program shall qualify for the same number of hours that a person taking the course would earn.
Reporting to Your State
XCEL does report completed CE courses to your state agency.
- Students must provide their National Producer Number (NPN) to report on course completion.
- $1.50 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
[email protected]
P.O. Box 303351, Montgomery, AL 36130-3351