Frequently Asked Questions

Licensing                     return to top

Q.  Will I be mailed my license?
A.  No. Licenses are no longer being mailed. You can download and print your license from our website.

Q.  What should I do if I submitted an application and it appears it has not been processed?
A.  If it has been at least ten days check our web site to be sure it has not been processed (we do not mail licenses; they are printed from our web site). If not, you will need to contact our Licensing Division to see if it has been received and the reason it is delayed. If we have not received it and your check has not been cashed, you will need to submit a new application with the appropriate fees. If the check has cleared you will need to fax a copy of the back and front to us at 334-240-3282 for verification with a copy of the application for processing.

Q.  My check to the Department was returned (dishonored).  Who should I contact?
A.  Charlene Williams at (334) 269-3550

Initial Producer Licensing

Q.  What is the fee?
A.  $60 ($20 Application Fee and $40 License Fee)

Q.  Do I need to submit a certification letter?
A.  No, cert letters are no longer required.

Q.  What is the processing time and when can I check status of the application?
A.  Currently, approximately 2 weeks.

Q.  If I pass the Life and Health exam can I also get Variable?
A.  No, you must submit NASD examination scores for either Series 6, 63 or Series 7 to add the variable line of authority.

Q.  How do I add a line to an existing license?
A.  Submit an initial application along with the $60 fee.

Q.  Can I apply for a resident license online?
A.  No.

Q.  Can I apply for a non-resident license online?
A.  Yes, you can apply through National Insurance Producer Registry (NIPR) by going to our website and clicking Online Services and then going to Non-Resident Licensing or click here.

Adjusters

Q.  Does Alabama license/recognize third party administrators?
A.  Alabama does not license third party administrators.

Q.  Does Alabama license/recognize public adjusters?
A.  Alabama does not license or recognize public adjusters.

Q.  Do I need CE for an adjuster’s license?
A.  No, the license is issued based on experience.

Business Entities, Temporary and Service Representatives

Q.  Can I submit an agency check for a temporary license?
A.  No, the check must come from the underwriting company.

Q.  What is the processing time?
A.  JAN-SEPT: 5-10 business days and OCT-DEC: 5-15 business days.

Q.  Who can sign off on temporary applications?
A.  Only authorized company officials, not the agency.

Q.  Do we have to get the agency licensed?
A.  Yes, if the agency pays commission.

Q.  If I hold a temporary license, can I be appointed with more than one company?
A.  No, unless that company is an affiliate of the parent company.

License Renewal

Q.  Can I request a renewal form by phone?
A.  No. Renewals are all mandatory online – no form.

Q.  Can I renew my license without completing my continuing education?
A.  No. You must maintain your CE Certificates for auditing purposes.

Q.  When is my renewal considered late?
A.  It is considered late if it is not renewed online by the last day of your birth month.

Q.  How can I get a copy of my license?
A.  On our website go to Print Your License and follow the instructions carefully.

Q.  If I hold a temporary license can I be appointed by more than one company?
A.  Only if that company is an affiliate of the parent company.

Reissued Licenses

Q.  Can I request a reissue form by phone?
A.  No. The request for a reissue form has to be a written request. You can fax it to 334-240-3282 and include your full name, license number or social security number, and a return fax number so we can fax the form back to you. Renewals are all mandatory online – no form.

Q.  Can I reinstate my license without my continuing education certificates?
A.  No. You must always attach the copies of the CE credits to the reissue form even if they are carry-over hours. You must maintain your CE Certificates for auditing purposes.

Q.  If my license has been cancelled can I reissue it online?
A.  No, it can only be done through the mail.

Q.  How long should I wait for my faxed request or phone call to be returned?
A.  You should allow us one business day to return your fax or phone call (an exception is weekends/holidays).

Q.  Can I get a letter of clearance or certification letter if my license is cancelled?
A.  No. Your license must be active.

Q.  Can I bring my reissue license application to the office to be processed?
A.  Yes. You can drop off your application for processing and it will be available to you within two business days. You can print your license from our website.

Address Change Violations

Q.  If I received an address change violation letter can I call the office to state my case?
A.  No. All inquiries and/or explanations must be in writing.

Q.  What if I decide not to pay the address change violation fee?
A.  Your license will expire and you will not be allowed to renew or get another license until this fee is paid. You may also be subject to other administrative fees if it is not paid in a timely manner.

Prelicensing or (How to Become Licensed)

Q.  Where can I find the courses to become licensed?
A.  On our website, you can view our list of Approved Prelicensing Providers.  Here you can click on a certain provider and view what types of courses that provider offers.

Q.  Who do I contact to reschedule an exam?
A.  Because of the logistics of setting up testing, you cannot reschedule an exam. Please click here for more information.

Q.  Can I take an online course to get licensed?
A.  Yes, if the prelicensing provider and course is approved in Alabama.

Risk Purchasing Groups

Q.  How do I register as a purchasing group in Alabama?
A.  You fill out the NAIC registration form for risk purchasing groups and attach a check for $100.

Surplus Line Broker

Q.  I am a nonresident applying for a surplus line broker license in Alabama. Do I need to provide the state a bond in the amount of $50,000?
A.  No, only resident surplus line brokers need to provide a $50,000 bond.

Q.  I am a nonresident applying for a surplus line broker license in Alabama. Do I need to get my nonresident producer license for Property and Casualty prior to applying for the surplus line broker license?
A.  No, you only need to have a resident surplus line broker license in your name in your home state to qualify for the nonresident surplus line broker license here.

Business Entity (Surplus Line Broker)

Q.  Does my agency need to be registered through the Alabama Secretary of State’s Office as a foreign corporation prior to the submission of the business entity application?
A.  Yes

Q.  Do I have to have one surplus line broker in my agency licensed as a nonresident Alabama surplus line broker to qualify for the business entity license?
A.  Yes

Company

Q.  How do I start an Alabama Captive Insurer?
A.  The instructions for setting up an Alabama captive and the forms that will have to be completed are located on our website under Captives. If you have any questions, please contact Sean Duke at 334-241-4165.

Q.  How do I start a new Alabama Insurer?
A.  The instructions for setting up a new Alabama insurer are located on our website under Companies/New Domestic Company Requirements. Please contact the Legal Division at 334-241-4117 concerning the solicitation permit; Ann Strickland, Examiner, at 334-241-4154 for name approval and Richard Ford, Chief Examiner, at 334-241-4151 for all other questions.

Q.  How do I reserve an insurance company name?
A.   Please send a letter stating the proposed name to the attention of Ann Strickland, Examiner. You may e-mail the letter to Ann.Strickland@insurance.alabama.gov or fax it to 334-240-3194. If the name is available, you will be furnished a letter of availability which will give instructions on how to reserve the name with the Alabama Secretary of State.

Q.  What do I send to you if my company, which is a foreign insurer licensed to do business is Alabama, is changing its name or address, merging, redomesticating has a change of control? 
A.  The NAIC UCAA Corporate Amendments Application should be filed. The application is located on the NAIC's website. You do not need to submit items listed in the application that you have already filed with this Department if they have not changed. Please contact Ann Strickland, Examiner, at 334-241-4154 if you have any questions.

Q.  Do you license Third Party Administrators?
A.  This Department does not license TPAs. If the TPA is a corporation, it should contact the Corporate Division of the Secretary of State’s Office for instructions on qualification as a corporation.

Surplus Lines                 return to top

Q.  Do you accept courtesy filings?
A.  No. All surplus lines brokers who do business in Alabama, including non-residents, must hold an Alabama surplus lines license and are responsible for their own filings.

Q.  Where can I obtain a list of eligible surplus lines companies?
A.  We do not maintain a list of eligible surplus lines companies. A company must meet the criteria that are stated in Alabama Code Section 27-10-26 to be eligible to do business in Alabama. 

Q.  Do both the agency and the individual broker have to be licensed?
A.  The individual surplus lines broker must be licensed and is responsible for making the affidavit and tax filings with this Dept. If commissions are paid to the agency, it must hold a surplus lines license, in addition to an individual within that agency holding a surplus lines license. The agency is not required to make affidavit and tax filings as those are made by the individual licensed surplus lines broker only.

Q.  I’ve made a mistake on my ID-12 filing. Can I correct it?
A.  Certain fields on the ID-12 can be corrected by the broker. You should log on to your account, view your submitted ID-12s, click on the ID-12 that is to be corrected, make your changes and then click on the “Update ID-12” button.

Prem Finance Companies      return to top

Q.  Can a premium finance company pay a fee to an agent to place business with it?
A.  No. Pursuant to Alabama Code Section 27-40-16, rebates are illegal.

Insurance Companies            return to top

Q.  How do I locate an insurance company?
A.  You can obtain the address and telephone number of currently licensed companies from our website or you can search for a particular company. If the company is not listed, please call 334-241-4151 and we will assist you.

Q.  Do filings have to be received on the due date or postmarked by the due date?
A.  Filings with a U.S. Postal Service or Courier Service postmark which is dated on or before the due date will be accepted as timely filed. Your postage meter postmark will not be accepted as proof of timely mailing.

Q.  Does my company have to file a quarterly tax return if it owes no tax?
A.  Yes. Quarterly tax returns must be timely filed even if no premium tax is due.

Q.  Where do I mail my company’s quarterly tax return if it owes no tax?
A.  It still should be mailed to the lockbox address that is on the tax return.

Q.  How does my company obtain a refund?
A.  We do not issue automatic refunds of premium tax overpayments. You must submit a completed refund claim form in order for your overpayment to be refunded. Click on the following link to download the refund claim form.  Please mail the completed claim form to the attention of Ann Strickland, Examiner, at 201 Monroe St., Ste. 1700, Montgomery, AL 36104. In lieu of a refund, you may apply the overpayment to the next period’s tax return.

Q.  Can I pay my company’s premium tax by EFT?
A.  No. We are not set up to accept EFT payments of premium tax.

Q.  Where do I send my premium tax return?
A.  The addresses are stated on the tax returns located on our website under Foreign Insurance Companies or Domestic Insurance Companies. The addresses are Postal Service: c/o Compass Bank, P. O. Box 830691, Birmingham, AL 35283-0691 and Courier Service: c/o Compass Bank, 701 S. 32nd St., Birmingham, AL 35233.

Q.  Can you tell me where to send my municipal taxes?
A.   No. The Department of Insurance does not administer or collect municipal taxes. The Alabama League of Municipalities may be able to assist you. Its' telephone number is 334-262-2566 and its' website address is www.alalm.org.

Fire Marshal                 return to top

Q.  What are the requirements to become a blaster?
A.  The person must have two (2) years of experience, must be 21 years of age, and have no felonies.  A background check will be performed on each applicant.  Click on the following link for the application and laws.

Q.  What do we need to submit to the State Fire Marshal's Office for a new Blaster's permit and a Contractor's permit?
A.  Blaster - Blaster Application, Work Resume form, copies of other state licenses, 2x2 passport picture along with a check or money order for $100 made payable to the State Fire Marshal's Fund. 
     Contractor - Contractor Application along with a check or money order for $2,000 made payable to the State Fire Marshal's Fund.
     These forms are located on our website.

Q.  What is the difference between a Retailer and Seasonal Retailer Fireworks Permit?
A.  A retailer can sell fireworks any time during the year as long as the building does not move.  A seasonal retailer for the season 6/15 to 7/10 or 12/15 to 01/02 can sell only during these two times.  If the building or stand is moved, an individual must reapply for a permit.  A seasonal retailer for the season of 12/15 to 01/02 can only sell during the Christmas and New Year's season.

Q.  What are the codes and requirements for having a fireworks stand?
A.  Please see the Alabama Code of Law on our website.

Q.  What are the requirements for sprinkler permits?
A.  The applicant must have passed the NICET level III test in order to apply for a permit.

Q.  Can I make an appointment for a daycare?
A.  The individual must call the State Fire Marshal's office and put in a request for an inspection to be performed.  This can take two (2) weeks to 30 working days to complete.

Q.  I need a copy of an investigation.
A.  A person must submit this request in writing to our office.  Please include the owner's name, address and the date of the fire along with a phone number that you can be reached at if we have any questions.  There is a charge of $1.00 per page for copies.  We will send a copy of the report along with an invoice for you to remit to our office.

Q.  Who can I contact if I have a question or need information about NFIRS?
A.   Assistant State Fire Marshal Scott Pilgreen at (334) 241-4166 or Scott.Pilgreen@insurance.alabama.gov.

Service of Process               return to top

Q.  How do I serve legal process on an insurance company?
A.  You have two options. You may serve the company through either its registered agent in Alabama or through the Commissioner of Insurance. You do not need to serve both ways. The name and address of the registered agent may be obtained from our website at Agent Service of Process Search. Service of Process upon the Commissioner shall be made by an officer of Montgomery County, Alabama and the documents must be in triplicate. A $50.00 check made payable to the Commissioner must be attached to the service. Please contact Hamp Russell at 334-240-7587 if you have any questions.

Receivership                         return to top

Q.  What does Receivership mean?
A.  When insurance companies encounter legal or financial troubles which deems them insolvent (unable to pay policyholder claims), state insurance regulators obtain court orders placing them into receivership, a judicial proceeding similar to bankruptcy protection to protect policyholders and creditors. While a company is in Receivership, all of that company's assets are placed under the control of the department's Receiver, whose official actions are supervised by the court. Receivership proceedings can be used to rehabilitate troubled companies, or to liquidate them. The Receiver's primary responsibility is the protection of the policyholders and creditors. The Receivership Division is established in accordance with Section 27-2-50; Code of Alabama, 1975, as amended.

Q.  What is a Receiver?
A.  The Receiver is the rehabilitator, liquidator or conservator of an insolvent company. The Chief of the Receivership Division (the Receiver) is appointed by the Commissioner of Insurance in accordance with Section 27-2-53, Code of Alabama, 1975, as amended. The receiver is appointed to marshal all assets and attempts to rehabilitate the company if possible and liquidate if necessary. The Receiver's primary responsibility is the protection of policyholders and Alabama's insurance consumers. The Chief Receiver for the State of Alabama is Denise B. Azar.

Q.  How does the Receivership Process work?
A.  When the Commissioner of Insurance institutes delinquency proceedings against any insurer domiciled in Alabama, the proper circuit court having jurisdiction appoints the Chief of the Receivership Division as Receiver of the insurer. Typically, these proceedings begin with an Order of Rehabilitation, whereby the financial affairs of the insurer, during which time the regular operations of the company may or may not be suspended. If it is determined that the insurer can not be rehabilitated, the Receiver will suspend all operations that can be stopped and will liquidate the assets of the insolvent company in accordance with the court's directions.