Producer Requirements - (Individuals)


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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 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.
  • 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.
  • Variable Life and Variable Annuity Products line of authority: Any insurance producer licensed for “Life Insurance” wishing to add the Variable Life and Variable Annuity line of authority to their existing license must pass securities examinations “Series 6” or “Series 7” and “Series 63” or “Series 66 “ and must be licensed with a registered Broker Dealer in accordance with the rules of the Alabama Securities Commission. During the application process, an applicant will be required to provide the CRD number to verify the exams passed.
  • In accordance with the Beason-Hammon Taxpayer and Citizen Protection Act, Alabama is now required to verify the citizenship of ALL APPLICANTS. Please submit proof of citizenship using the link below. There are sixteen different identifiers, including your official driver’s license, any one of which can be used as proof. Your license will not be issued until this documentation is received. If information is not received within 10 days your application will be rejected. Please note: Fees paid are non-refundable.
    Submit Proof of Citizenship

Fingerprinting Process

Effective April 1, 2015, all individual resident applicants seeking to become licensed as Producers, or who are adding a new line of authority to an existing Producer license, must have completed a Fingerprint background check. You should seek to get fingerprinted after passing the state exam and one day before applying for the license.

Follow instructions on this link: https://www.aps.gemalto.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 Gemalto. 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.

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 $80.00 fee will be paid by credit card online. 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.
    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 individuals who meet the Military Family Jobs Opportunity under Regulation 165, please click here for further information.
  • 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. 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".
  • 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.

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.
  • 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.

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 90 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. Effective 1-1-19, no more CE Extensions are being allowed and CE must be showing in the CE transcript for the producer to be able to renew the license. Please note that it generally can take 3-5 days after compliance for the CE information to be updated in the NIPR database so that you are able to renew.

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 or go to www.nipr.com and click on CCR.

Fees

TOTAL INITIAL LICENSE FEES - $80
Biennial License Renewal Fee - $70
Late Fee - $50
Notice of Appointment Fee - $40
Appointment Renewal Fee - $25

Alabama Appointment Backdating

Effective May 1, 2018, Alabama will no longer allow backdating on effective dates on Appointments and Terminations. The effective date of the Appointment and Terminations will be the date the transaction is processed. Any effective date entered will not be honored. Please contact NIPR Support at support@nipr.com with any questions or for additional information.

Cancel License

Request to Cancel or Surrender License

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. 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, retest, and get fingerprinted 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