Insurance Licensing Compliance Guide
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Alabama Insurance License

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Licensing requirements for Alabama insurance professionals and companies.

This page provides an overview of insurance licensing in Alabama for individuals and companies. You will find state requirements, application fees, filing instructions, and more. For assistance with licensing, please contact us to learn about our software and managed license services.

Companies that provide insurance producer services in Alabama must apply for a license prior to doing business. Depending on the lines of authority offered by the entity and the types of services offered, multiple firm licenses may be required.

Before applying, firms should ensure that the licensed individual to be appointed agent in charge has the necessary licenses. Firms should also gather proof of incorporation, or foreign qualification for out-of-state firms, in anticipation of application requirements.

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Company Licenses

Alabama Financial Services Company Licenses

Alabama Collection Agency License

Not required



Debt Collection Agency licensure is not required on the State level in Alabama.

Alabama does not currently issue licenses for collection agencies.

Alabama Insurance Agency License

Agency:Alabama Department of Insurance
Fact Checked:1/8/16

Initial Registration

This section applies to insurance firms that are applying for a license in Alabama for the first time.

Agency:Alabama Department of Insurance
Form:

http://www.aldoi.gov/Licensing/Requirements.aspx

Agency Fee:

Varies by insurance type. Baseline of $100

Fact Checked:1/8/16

Registration Renewal

This section applies to insurance firms that are already licensed in Alabama and need to renew their license.

Agency:Alabama Department of Insurance
Form:

http://www.aldoi.gov/Licensing/Requirements.aspx

Agency Fee:

Varies by insurance type. Baseline of $100

Due:

Annually or Biennially based on license type

Fact Checked:1/8/16

Alabama Utilization Management Certification

Type of Review:

Workers' Compensation Utilization Review

Agency:Alabama Department of Labor
Fact Checked:7/26/18

Initial Registration

Agency:Alabama Department of Labor
Form:

Application for Certification

Agency Fee:

$0

Fact Checked:7/26/18

Registration Renewal

Agency:Alabama Department of Labor
Form:

Application for Certification (Renewal)

Agency Fee:

$0

Due:

Biennially

Fact Checked:7/26/18

Alabama Utilization Review Agent Certification

Type of Review:

Medical Utilization Review

Agency:Alabama Department of Public Health
Law:

AL Code § 27-3A-1 et seq.

Fact Checked:7/26/18

Initial Registration

Agency:Alabama Department of Public Health
Form:

Application for Certification as a UR Review Agent

Agency Fee:

$0 for URAC accredited entities and $1,000 for non-accredited entities.

Notarize:Required
Notes:

Satellite site information and a policy and procedure checklist must also be submitted with the application.

Fact Checked:7/26/18

Registration Renewal

Agency:Alabama Department of Public Health
Form:

Renewal Application for URAC Accredited Agents or Renewal Application for Non-URAC Accredited Agents

Agency Fee:

$0 for URAC accredited entities and $1,000 for non-accredited entities.

Due:

Annually by June 30.

Notarize:Required
Notes:

Separate renewal forms should be filed for each additional physical site other than the location given.

Fact Checked:7/26/18

Individual Licenses

Alabama Individual Financial Services Licenses

Alabama Insurance Agent License

Agency:Alabama Department of Insurance

Initial Registration

This section applies to insurance agents that are applying for a license in Alabama for the first time.

Agency Fee:

From $60 to $1,000 depending on license type

Fact Checked:6/1/17

Alabama Resident Producer License

Agency:Alabama Department of Insurance
Fact Checked:10/1/19

Initial Registration

Instructions:
  1. Before an applicant can sit for the Alabama Resident Producer Exam, they must complete a pre-licensing course from an approved provider for all lines of insurance for which they are seeking a license.
  2. Upon completing the pre-licensing course, the applicant must register online for the Alabama state exam. These exams are only offered at locations in Alabama.
  3. Once the applicant receives a passing score, they must provide fingerprints through Gemalto (the state's approved vendor). Concurrently with fingerprinting, the applicant must submit proof of citizenship.
  4. Upon completion of all of the above, the applicant may apply through NIPR.
Filing Method:

Apply online through NIPR.

Agency Fee:

$80

Fact Checked:10/1/19

Registration Renewal

Filing Method:

Online

Agency Fee:

$80

Due:

Biennially. Renewal year is determined by licnesee's birth year.

Fact Checked:10/1/19

Learn about insurance licensing in other states:

Adjuster - A person or firm that is paid to adjust, investigate, and negotiate claim settlements. There are 3 categories of adjusters: company, independent, and public. Company adjusters work for insurance companies and investigate claims on behalf of the company. Independent adjusters investigate claims on a contractual basis for insurance companies. Public adjusters investigate claims on behalf of claimants, usually to determine the amount of money that can be claimed.

Agent in Charge - A licensed individual responsible for the supervision of all individuals within an insurance agency. The agent in charge must be licensed in the same lines as the agency.

Insurance Agent - Insurance agents act as intermediaries between the insurance company and policyholders. Agents can be either captive or independent. Captive agents represent a single insurance company, while independent agents represent multiple insurers.

Insurance Broker - Individuals who sell insurance policies while representing the interests of the buyer. Brokers are typically independent intermediaries without an insurance company affiliation.

Insurance Producer - May be used to refer to either individual insurance agents and brokers or insurance agencies and brokerages.

Managing General Agent - An agent or broker that is involved in underwriting and has other areas of authority normally handled by insurers. MGAs are typically involved in unusual lines of coverage or in geographically prohibitive areas.

Surplus Lines Insurer - An insurance carrier that takes on risks that a licensed carrier is unwilling to insure. Surplus lines insurers do not have access to state guaranty funds and are less tightly regulated by state governing bodies.

Third Party Administrator - An organization that manages group insurance policies and works with the employer and insurance carrier to process claims, handle loss control, and provide risk management and consulting services.

Title Agent - Title agents sell insurance that protects real estate owners against loss of ownership of a property due to a legal claim.

Viatical Settlement Provider - A company that purchases life insurance policies at a discount from individuals seeking immediately available funds.

Independent Insurance Agents and Brokers of America (Big “I”)
Advocacy group of independent insurance brokers and agents.

National Association of Insurance and Financial Advisors (NAIFA)
Professional association that advocates for favorable regulatory conditions for insurance agents and financial advisors.

National Association of Insurance Companies (NAIC)
A standard setting and regulatory support organization that is governed by state insurance regulators.

National Association of Professional Insurance Agents (PIA)
Professional association that provides education and advocacy for insurance agents throughout the United States.

National Insurance Producer Registry (NIPR)
An affiliate of the NAIC that provides streamlined and uniform producer licensing processes.

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