Producer Requirements - (Individuals)


For Legal Service, Dental Service, and Motor Club lines, please click on the respective line of insurance below.

Legal Service | Dental Service | Motor Club

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 complete an online application. You will be requested to supply a copy of your Certificate of Completion for the prelicensing course to the department. The $60.00 fee will be paid by credit card online. Visa, Mastercard, and American Express payments will be accepted. A small transaction fee, which is 3.5% of your total fee, will be charged to your credit card. NIPR FEES ARE NON-REFUNDABLE.
    Initial individual Producer license is effective until biennial renewal would be due. Individual producers renew their license based on their birth month and birth year, odd or even. See Producer Renewal Process for details.
  • For persons currently holding an active Temporary Insurance Producer License:
    After successfully completing the examination, applicants must within 30 days request the issuance of a regular producer license and attach an 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. Within 24 to 48 hours you can go online and perform a licensee search. If found, you can 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.
  • Effective July, 2013 for those non-residents who hold the Baggage LOA in their home state, they will need to apply for Travel here as Baggage falls under the Travel definition in the Producer law that went into effect January 1, 2013.

    If the Non-Resident holds Surety in your home state, you will need to apply for the new LOA entitled "Non-Resident Reciprocal – Surety".

There are two different online licensing processes. Online thru NIPR and online thru SBS.

NIPR Mandatory Online Process is for those non-resident applicants who hold any type of resident license in their home state. Applicant must apply online. Click Here

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

SBS Mandatory Online Process is for those non-resident applicants who hold rental vehicle, legal services, dental services, credit, personal lines, and motor club lines of authority and do not hold any type of license in your home state. Click Here

  • No examination is required.
  • Upon printing the license, a producer can then be appointed by one or more insurers to act as their producer.

Renewal Process

All individual producers must renew their license online.**   Click HERE to renew your license.

NOTE: Remember you cannot change your address during the renewal process.

**Exception for Non-Residents: If you only hold rental vehicle, legal services, dental services, credit, personal lines, and motor club lines of authority and do not hold any type of license in your home state, you will need to complete the SBS Online Renewal Process.

Individual producers renew their license based on their month and year of birth. A notice will be sent by the DOI to all producers approximately 45 days prior to their month of birth. Producers born in odd-numbered years will renew for two years in the odd years. Producers born in even-numbered years will renew for two years in the even years. Beginning January 1, 2013, excess credit hours earned in the previous biennial renewal period cannot be carried over to the next reporting period. Any excess is lost.

NOTE: Individual Producers 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.

Fees

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

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 by going online at www.nipr.com . If the producer comes in during 2008 to get their license reissued for the 2008 renewal year and they are an even-year birth year, the reissue fee is $40. If the producer comes in during 2008 to get their license reissued for the 2007 renewal year and they are an odd-year birth year, the reissue fee is $80 . Once the license is reissued, the producer must also be reappointed.

When former producers have been without a license over 12 months, they must take the prelicensing course and retest before again applying for license online at www.nipr.com.

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