Producer Requirements

Producer Requirements - (individuals)

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Definition

A natural person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance.

Qualifications

Qualifications are necessary in order to become an insurance producer, including, but not limited to:

Must be at least 18 years of age.
Must not have committed any act that is a ground for denial, suspension, or revocation of license, as follows:
- Providing incorrect, misleading, incomplete, or materially untrue information in any application or in any communication to the commissioner.
- Obtaining or attempting to obtain a license through misrepresentation or fraud.
- Intentionally misrepresenting the terms of any actual or proposed insurance contract or application for insurance.
- Having admitted or been found to have committed any insurance unfair trade practice or fraud.
- For inducing, persuading, or advising any policyholder to surrender or cause to be cancelled any policy of insurance issued to the policyholder by any authorized insurer in exchange for a policy offered by the licensee where the surrender or cancellation shall proximately result to the financial detriment of such policyholder, unless the policyholder shall have been fully advised of that fact by the licensee.
- Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business under a license in this state or elsewhere.
- Improperly withholding, misappropriating, or converting any monies or properties belonging to the insurers, insureds, or others received by the licensee in the exercise of his or her license.
- Violating insurance laws or violating any valid order, subpoena, rule, or regulation, issued by the commissioner or issued by another state's insurance commissioner.
- Having been convicted of a felony.
- Having an insurance producer license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory.
- Forging another's name to an application for insurance or to any document related to an insurance transaction.
- Improperly using notes or any other reference material to complete an examination for an insurance license.
- Knowingly accepting insurance business from an indivdual who is not licensed.
- Failing to comply with an administrative or court order imposing a child support obligation.
- Failing to pay state income tax or failing to comply with any administrative or court order directing payment of state income tax.
Must complete a prelicensing course of study for the lines of authority for which the person is applying consisting of 20 classroom hours per line of authority, or equivalent of individual instruction, on the general principles of insurance for that line of authority.
Must successfully complete the examination for the lines of authority for which the individual has applied.

Initial Licensing Process

Alabama Residents:

For persons not currently holding an active Temporary Insurance Producer License:
After successfully completing the examination, applicants must attach to the NAIC Uniform Application for Individual Producer License the original or a copy of the examination results certificate and a $60.00 fee and send to the Alabama Department of Insurance, PO Box 830704, Birmingham, AL 35283-0704.
For persons currently holding an active Temporary Insurance Producer License:
After successfully completing the examination, applicants must send a letter to the Alabama Department of Insurance, Producer Licensing Division, P. O. Box 303351, Montgomery, AL 36130-3351, within 30 days , requesting the issuance of a regular producer license and attaching the original examination results certificate. No fee is required.
NOTE: Examination certificate is valid for one year from date of completion.

NOTE: You will no longer be mailed a license. After 7 to 10 days you can go to our web site, www.aldoi.gov go to Online Services and Print Your License.

Non-Alabama Residents:

Applicants must be in good standing and hold an active license in their resident state for the same lines of authority for which they are applying.
Applicants must complete the Uniform Application for Individual Non-Resident License - NAIC, or apply online at www.nipr.com (For Initial Licenses Only - have held no previous Alabama license).
If Non-Resident using the NAIC application applying for MC or LS, please check the Other ("O") box and write in MC or LS.

NOTE: NO LETTER OF CERTIFICATION IS REQUIRED WITH APPLICATION.

All applicants must wait 24 hours and can then print their license from the website before acting as an Insurance Producer.
Upon printing the license, a producer can then be appointed by one or more insurers to act as their producer. The insurer must then submit the Notice of Appointment form (either Form AL-2A or Form AL-2B) to the Department within 15 days of the date the agency contract is executed or the date the first insurance application is submitted to the insurer, whichever occurs first.

Alabama Residents: NAIC Uniform Application for Individual Producer License
Non-Alabama Residents: Uniform Application for Individual Non-Resident License - NAIC

Mail the above applications and $60 fee to:
Alabama Department of Insurance
PO Box 830704
Birmingham, AL 35283-0704

Online Individual Non-Resident Application (NRL)
Notice of Producers Appointment -
- Form AL-2A for one insurer appointing multiple producers
- Form AL-2B for one producer appointed with mulitple insurers

Renewal Process

Beginning January 2007, all individual producers must renew their license online. Click HERE for details. Individual producers now renew their license based on their month and year of birth. A notice will be mailed by the DOI in 2007 to all producers approximately 45 days prior to their month of birth. Producers born in odd-numbered years will renew for two years in 2007 and every other year thereafter. Producers born in even-numbered years will renew for one year in 2007 and then for two years in 2008 and every other year thereafter.

Fees

Application Fee - $20
License Fee - $40
TOTAL INITIAL FEES - $60
Biennial License Renewal Fee - $20/$40*
Late Fee - $50
Notice of Appointment Fee - $30
Appointment Renewal Fee - $10

*In 2007, licensees born in odd-numbered years renew for two years at $40 and licensees born in even-numbered years only renew for one year at $20; thereafter all licensees renew biennially for $40.

How to Have Your Producer License Reissued after Expiration

A producer’s license expires when the license is not renewed in the producer’s birth month. There is a 30 day grace period following expiration, during which time the producer can renew with a $50.00 late fee plus the renewal fee. If the license is not renewed at this time, the license expires and all company appointments are cancelled.

A producer may have their license reissued within 12 months of expiration without having to be re-examined. If the producer comes in during 2008 to get their license reissued for the 2008 renewal year and they are an even-year birth month, the reissue fee is $40. If the producer comes in during 2008 to get their license reissued for the 2008 renewal year and they are an odd-year birth month, the reissue fee is $80 . Once the license is reissued, the producer must also be reappointed.

To receive a reissue form, fax your request to the Producer Licensing Division at (334) 240-3282. Please include your full name, social security number or license number and your return fax number.

When former producers have been without a license over 12 months, they must take the prelicensing course and retest before again applying for license. A non-resident must complete and submit the Uniform Application for Individual Non-Resident License.

Reinstatement Procedures

Prior to January 1, 2002, when an insurance agent failed to timely renew the license was suspended. Please follow these instructions to reinstate a license previously suspended due to nonrenewal:

Write a letter asking for the suspension to be lifted. Be sure to include the producer’s name, address and social security number. A Settlement Agreement and Order will be mailed with a cover letter indicating the amount due and further instructions. The Producer will need to sign and date the Settlement Agreement and mail it back in with any monies due and continuing education or letter of certification, if applicable.

The letter should be sent to:

Alabama Department of Insurance
Attn: Legal Division
P. O. Box 303351
Montgomery, Alabama 36130-3351

July 24, 2008