Service Representative Requirements

Service Representative (Resident/Non-Resident) Requirements

Definition

A natural person, other than an officer, manager or managing general agent of the insurer, employed on salary by an insurer or managing general agent to work for, with or through producers in soliciting, negotiating and effectuating insurance for the insurer or for the insurers represented by the managing general agent.

Qualifications

Qualifications are necessary in order to become a service representative, 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 40 classroom hours or equivalent of individual instruction on the general principles of property and casualty insurance.

Initial Licensing Process

Applicant must complete an application (Form AL-1-TSR) and pay a $20.00 application fee and a $30.00 license/appointment fee for a total of $50.00 per insurer.
No written examination is required, but service representatives must complete the Property and Casualty prelicensing course.
Must be a salaried employee of an insurer/company or MGA.
Application and $50.00 fee should be mailed to:
Alabama Department of Insurance
P O Box 830704
Birmingham, AL 35283-0704
Please make checks payable to Commissioner of Insurance, State of Alabama.

Individual's Application For Service Representative License/Appointment - Form AL-1-TSR
NOTE: This form is also used for Temporary Producer Applications.

Service Representative Renewal Process

Beginning January 2007, all service representatives must renew their license online. Click HERE for details. Service representatives now renew their license based on their month and year of birth. A notice will be mailed by the DOI in 2007 to all licensees approximately 45 days prior to their month of birth. Licensees born in odd-numbered years will renew for two years in 2007 and every other year thereafter. Licensees 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 (per insurer) - $20
Initial License/Appointment Fee (per insurer) - $30
TOTAL INITIAL FEES (per insurer) - $50
Biennial License Renewal Fee - $20/$40*
Late Fee - $50
Appointment Renewal Fee - $30

*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.

July 25, 2008