Temporary Producer Requirements


**Attention** TEMPORARY PRODUCERS affected by new Producer Law changes effective 1-1-2013:
Individuals with an Industrial Fire Temporary License who have not taken the Industrial Fire exam by December 31, 2012 will have to take a Property Course and then pass the Property exam in order to get the permanent license starting January 1, 2013. You should arrange to take the IF exam before December 31, 2012. That way your Temporary license will automatically convert to the permanent Producer license with the Industrial Fire Line of Authority and in January it will automatically be changed to Property.

Individuals with an Automobile Temporary License who have not taken the Automobile exam by December 31, 2012 will have to take a Personal Lines Course and then pass the Personal Lines exam in order to get the permanent license starting January 1, 2013. You should arrange to take the Automobile exam before December 31, 2012. That way your Temporary license will automatically convert to the permanent Producer license with the Automobile Line of Authority and in January it will automatically be changed to Personal Lines.

*This office no longer issues temporary licenses for bail bond agents. See Section 27-7-24, Code of Alabama 1975.

Definition

A natural person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance who is otherwise qualified for a producer license except as to having taken and passed the written examination therefor.

Qualifications

Qualifications are necessary in order to become a temporary 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 poliyholder 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 individual 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.
    • Also note, Temporary Producer licenses will not automatically convert, within the six months to a Producer license without having completed the appropriate exam and fingerprinting by expiration date of the license.

      Follow instructions on this 3M Cogent link: www.cogentid.com

      Please be aware the fingerprint results will remain in our system only 30 days after you are fingerprinted. If the application reaches the DOI after those 30 days you will have to get fingerprinted again and again pay the required fee. **Note: The Department can only utilize fingerprints processed through 3M Cogent. We also cannot accept fingerprints completed for any reason outside of pursuing an insurance license from the Alabama Department of Insurance. The fingerprints will be utilized to conduct a federal and state criminal background check per Producer fingerprint requirements: Ala. Code § 27-7-4.4, Adjuster fingerprint requirements: Ala. Code § 27-9A-17 and Title agent fingerprint requirements: Ala. Code § 27-25-4.6. Being possessed of sound mind and legally competent to complete this request, the applicant authorizes the Alabama Department of Insurance, to obtain any and all criminal history information on said applicant from the ALEA and/or FBI. Applicant may challenge or appeal any portion of his/her own Criminal History Record Information (CHRI) that he/she believes to be incomplete or inaccurate by contacting the Records & Identification Division within ALEA 334-353-4340.

How a Temporary Producer Becomes Licensed

Complete an online application at www.nipr.com and pay a total of $120 per insurer. Visa, Mastercard, and American Express payments will be accepted. A $5.00 NIPR transaction fee will be charged for each initial and renewal transaction on top of the required state fee, for all license types. NIPR FEES ARE NON-REFUNDABLE.

Upon issuance of the temporary producer license and the company appointment, the producer may act as a producer for the insurer under the supervision of the insurer. If the company appointment is terminated the license will be taken down.

NOTE: The Temporary license is only valid if the temporary producer is sponsored and appointed by an underwriting company. Once applicant is issued a license number, the company will have 14 days to appoint them. No business can be written until appointment is added. If the applicant is not appointed within the 15 days, the license will be cancelled. Producers working with a temporary license can only write for one company and/or their subsidiaries until a permanent license is issued.

The temporary license is a one-time license for the lines of authority requested and is valid for only six months, during which time the temporary licensee must have completed the prelicensing course and successfully passed the written examination.

Upon successfully passing the examination, the temporary licensee should apply online at www.nipr.com for a producer license or if exam is passed before expiration date of temporary license it will be automatically converted to a permanent license.

Companies informed by NIPR or their licensing counterpart of a three to eight week delay in setting up to process appointments online are allowed to download below the appointment forms to process appointments for Temporary Insurance Producers. Please note the entire license and appointment fee will be paid during the appointment process.

Companies who do not want to do the programming themselves can utilize one of the NIPR Authorized Business Partners to handle the programming. Contact any Authorized Business Partner directly to determine their pricing.

frequently asked question

Q: If I have a temporary license and am appointed with a company, can I be appointed with another company?

A: Only if the new company is a subsidiary of the company you are already appointed with.