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Licensing Frequently Asked Questions


FAQ Main Page


General

Adjuster

Reissue License

Address Change Violations

Prelicensing

Risk Purchasing Groups

Surplus Line Broker

Business Entity

Company

General

Q. Since all processes are done online through SBS/NIPR, can I still use my old license number?

A. All old license numbers (A123456) are still valid. Remember to leave off the “A”, it is no longer used.

Q. How do I apply for an Alabama license?

A. All licenses (resident/nonresident) are applied for on the web site through NIPR. (Go to Licensing Requirements and select the license you wish to apply for and follow the instructions.) Applications are not accepted in the office unless previously discussed and documented.

Q. If I am applying for Life & Health license can I also get Variable?

A. Yes, only if you have a FINRA CRD or have passed the variable exam.

Q. What is the fee?

A. The licensing fee is $60 ($20 application fee and $40 licensing fee).

Q. If I am a non-resident do I have to provide a certification letter from my home state?

A. No. Certification letters are no longer required.

Q. How long is the process?

A. The process takes a minimum of two to four working days.

Q. Will I be notified when the process is complete?

A. No. You can search our web site under “licensee search” to obtain your license number. If after this time it is not found contact our office for further information/details.

Q. Will I receive a copy of my license by mail?

A. No. All licenses are printed from our web site through SBS by clicking on “print your license” and following the prompts. You must register with them and also register your license number.

Q. How do I add a line to an existing license?

A. Go online and process as if it is a new license with the $60 fee.

Q. What is a Temporary License?

A. Temporary licenses are only given to Alabama residents who have not had one previously for the LOA requested. They are also processed online.

Q. When do I get my Temporary License?

A. Temporary licenses can also be printed from the web site. They will not print until they have been fully processed with a company appointment.

Q. If I hold a Temporary license can I be appointed by more than one company?

A. Only if the company is an affiliate of the parent company.

Q. How long is a Temporary license valid and can it be renewed?

A. A Temporary license is only valid for six months after it is approved. It cannot be renewed.

Q. Can I submit an agency check for a temporary license?

A. No. The payment must be made when applying online.

Q. Who can sign off on temporary applications?

A. Only authorized company officials, not the agency.

Q. How often do I renew my license?

A. All permanent licenses are renewed every two years depending on birth year (even/odd) of producer. Renewal notices will be mailed 45 days prior to renewal (last day of birth month). It is mandatory that they are done online.

Q. When is my renewal considered late?

A. If it is processed online by the last day of the renewal month it is considered late.

Q. Is there a penalty for being late?

A. If the renewal is processed after the renewal month there is a $50 late fee attached. If it is processed more than thirty days after the renewal month the license will have to be reissued. There is an $80 fee and you must have completed the required CE credits.

Q. Can I renew my license without being CE compliant?

A. Yes. Only if you request an extension or exemption when renewing online.

Q. How do I get a copy of my license renewal?

A. Licenses are printed from our web site by the same process as an initial license.

Q. Does Alabama license/recognize third party administrators?

A. Alabama does not license third party administrators.

Q. Why can’t I add an LOA to my existing non-resident license I received less than 30 days ago?

A. NIPR keeps the 1st application on their server for 30 days in case there is an issue with it. You will need to contact them to have them remove the old application so you can reapply for the new LOA.

Adjuster

Q. Does Alabama license/recognize public adjusters?

A. Alabama does not license or recognize public adjusters.

Q. What types of firms or business entities can be licensed as an independent adjuster?

A. A corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. Please note: A sole proprietorship can only be licensed as an individual.

Q. What are the fees for independent adjusters?

A. The initial fee for an individual independent adjuster license is $100, while the biennial renewal fee is $80. The initial fee for a business entity independent adjuster license is $220, while the biennial renewal fee is $200.

Q. How do I change my email address?

A. Individual and Business Entity Producers (Also-Individual and Business Entity Adjusters as required by law within 30 days) now have the ability to update their e-mail addresses online for Alabama through SBS Online tools. You can access this by going to our website at www.aldoi.gov and under Producers/Agents either click on Print Your License or View Your CE Info and that takes you straight to SBS and it will be under Email Maintenance.

Q. What lines of authority are available for an independent adjuster?

A. There are four lines of authority for an independent adjuster:
  • Property & Casualty, including Workers’ Compensation and Crop
  • Property & Casualty, excluding Workers’ Compensation and Crop
  • Workers’ Compensation
  • Crop

Q. What is an independent apprentice adjuster license?

A. It is a temporary one-time license not to exceed 12 months for an individual residing in this state who is qualified for an adjuster license except as to have taken and passed the prelicensing course and examination. The temporary apprentice adjuster must be sponsored by a licensed independent adjuster.

Q. Is there an examination to become an independent adjuster?

A. Yes, an individual seeking to be licensed as an independent adjuster must complete the appropriate prelicensing course and pass the state examination.

Q. When do I renew my independent adjuster license?

A. Beginning in 2013, the license of an individual born in an odd year expires at the end of the individual’s birth month in every odd year; the license of an individual born in an even year expires at the end of the individual’s birth month in every even year. Individuals can renew the license online starting 75 days prior to license expiration. A business entity adjuster license expires on December 31 of odd years and can be renewed October 1 to December 31.

Q. Do I need Continuing Education (CE) to renew my independent adjuster license?

A. Beginning in 2014, licensees whose licenses expire January 31, 2014, and thereafter, must complete 24 hours of CE, of which 3 hours must be in ethics, to be eligible to renew.

For those non-resident independent adjusters renewing whose home state or designated home state does not license adjusters or does not require CE, they must complete Alabama’s CE requirement in order to renew.

States who do not license independent adjusters: CO, DC, IL, IA, KS, MA, MD, MO, ND, NE, NJ, OH, PA, SD, TN, VA, and WI

States who do not require CE: AZ, CT, HI, ID, ME, MI, NV, NM, NY, OR, RI, SC, VT (only requires CE for WC), WA, and WV

Q. When is my adjuster license renewal considered late?

A. If it is not processed online by the last day of your renewal birth month.

Q. Can I renew late and is there a penalty for renewing late?

A. Yes, you can renew within 30 days after your renewal birth month by paying one and one-half times the license renewal fee which would be $120 for an individual and $300 for a business entity.

Q. If it has been over 30 days can I still renew my adjuster license?

A. Yes, only if it is within one year from date of expiration, you can get the license reissued by paying double the renewal fee which would be $160 for an individual and $400 for a business entity.

Q. Will I receive a copy of my license by mail?

A. No, you will need to go online and print off the license.

Reissue License

Q. Can I request a reissue form by phone?

A. No. You must go online through NIPR to have a license reissued through the renewal process if it is within one year of the expiration date.

Q. Can I reinstate/reissue my license without my continuing education certificates?

A. No. You must always provide proof of the CE credits if not in your CE transcript. You must maintain your CE Certificates for auditing purposes.

Q. If my license has been cancelled can I reissue it online?

A. Yes. It must be processed online but will be sent to the State Gateway to be reviewed for correctness.

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. No. Applications must be processed online. 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 under Prelicensing Information. Here you can click on a certain provider and view what type of courses the provider offers.

Q. Who do I contact to reschedule a State exam?

A. You will need to go online to reschedule an exam with the University of Alabama.

Q. Can I take an online course to get licensed?

A. Yes, if the Prelicensing provider and course are 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. No, but it is a state law.

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 call 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 and contact our Examination Division at 334-241-4154 for name approval and any 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 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 our Examination Division 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.