Insurance Licensing Compliance Guide

Insurance Licensing Compliance

Alabama Insurance License

An insurance agent inspecting the damages to a car

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



Alabama does not currently issue licenses for collection agencies.

Alabama Insurance Agency License

Agency:Alabama Department of Insurance

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: ACCESS PREMIUM DATA
Agency Fee:

Varies by insurance type. Baseline of $100

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: ACCESS PREMIUM DATA
Agency Fee:

Varies by insurance type. Baseline of $100

Due: ACCESS PREMIUM DATA

Alabama Utilization Management Certification

Type of Review:

Workers' Compensation Utilization Review

Agency:Alabama Department of Labor

Initial Registration

Agency:Alabama Department of Labor
Form: ACCESS PREMIUM DATA
Agency Fee:

$0

Registration Renewal

Agency:Alabama Department of Labor
Form: ACCESS PREMIUM DATA
Agency Fee:

$0

Due: ACCESS PREMIUM DATA

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.

Initial Registration

Agency:Alabama Department of Public Health
Form: ACCESS PREMIUM DATA
Agency Fee:

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

Notarize: ACCESS PREMIUM DATA
Notes:

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

Registration Renewal

Agency:Alabama Department of Public Health
Form: ACCESS PREMIUM DATA
Agency Fee:

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

Due: ACCESS PREMIUM DATA
Notarize: ACCESS PREMIUM DATA
Notes:

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

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

Alabama Resident Producer License

Agency:Alabama Department of Insurance

Initial Registration

Instructions: ACCESS PREMIUM DATA
Filing Method: ACCESS PREMIUM DATA
Agency Fee:

$80

Registration Renewal

Filing Method: ACCESS PREMIUM DATA
Agency Fee:

$80

Due: ACCESS PREMIUM DATA

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.

Business Compliance Services & Software

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