Appointments and Cancellations
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| Any producer acting on behalf of an insurer must
be appointed by the insurer. Any insurer accepting business directly from a
person not licensed for that line of authority and not appointed by the insurer
is liable to a fine of up to three times the premium received from the person. |
| Each insurer appointing a producer in this state
shall file a notice of the appointment with the DOI within 15 days of the date
the agency contract is executed or the first insurance application is
submitted, whichever occurs first. The insurer must submit a Notice of Producer
Appointment, using either Form AL-2A
for one insurer appointing multiple producers or
Form AL-2B for one producer appointed with multiple insurers. |
| The initial appointment fee for each producer is
$30.00. Payment must be in the form of a company check and should be made
payable to the Alabama Department of Insurance. Personal checks and
money orders will not be accepted. |
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Insurers may terminate a producer's appointment at any time, subject to the
producer's rights, if any. The preferred methods for submitting
terminations are online at www.aldoi.gov or
Electronic Appointment Termination by email or diskette or through the
NAIC. (Instructions are given below for submitting electronic appointment
terminations.) The insurer may also give notice of termination to the
department by submitting Form AL-3A
(for an insurer terminating multiple producers) or Form
AL-3B (for a producer being terminated by multiple insurers) within 30
days following the effective date of the termination; however, during peak
renewal time (October 1 - December 31), terminations must be submitted either
online or by Electronic Appointment
Termination. At any time, if the cause for the
termination is "Producer Misrepresented Policy", "Company Indebtedness", or
"Other Producer Misconduct", the insurer must file within ten days a statement
of the facts relative to the termination and the cause thereof, together with
any documentation. There is no fee required for appointment
termination(s).
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Appointment renewal occurs effective January 1 each year. All insurance
producers, service representatives, and title insurance agents appointed with
an insurer on December 31 each year will be renewed for the next year, and an
invoice for the appointment renewal fees will be issued on or about
January 4. |
The renewal appointment fee for each
producer/agent is as follows:
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Insurance Producers - $10.00
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Service Representatives - $30.00
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Title Insurance Agents - $50.00
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| Insurers may review their current list of
appointed producers/agents at any time at www.aldoi.gov.
Under the "Search For" title, click the "Insurance Companies" link. |
The Notice of Producer Appointment form includes
the following statement on behalf of the insurer: We have investigated
the character and background of these individuals and are satisfied that the
individuals are trustworthy and qualified to act as our producer, we endorse
the individuals as being of good business standing and character. We are
familiar with the federal law (18 U.S.C. 1033) which prohibits anyone who has
been convicted of a felony involving dishonesty or a breach of trust from
conducting the business of insurance. We understand it is a violation of this
statute to willfully permit a prohibited person from conducting the business of
insurance.
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| Note: Please discard any instructions previously
provided to you for creating text file cancellations and appointments. |
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