License Requirements

How to Get an Alabama Insurance License

Updated April 12, 2023

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On this page, you’ll find a comprehensive guide to becoming a licensed insurance agent. We’ll walk you through the process, and we’ll be here to answer any questions you have along the way.

The Alabama Department of Insurance (ALDOI) requires each person selling insurance in the state to hold an insurance producer license. You will choose which line of authority you want to be licensed in: health insurance, life insurance, property and casualty insurance, or any combination of those lines.

Once you know which license you need, you’re ready to begin. In Alabama, there are 4 steps to getting your insurance license.

1. Complete a Prelicensing Course

The first step is to complete a prelicensing education course. A.D. Banker offers prelicensing courses that will prepare you to successfully pass the state exam on your first attempt. We offer online courses that can be supplemented with web classes and learning tools like flashcards and study manuals.

Alabama requires potential agents to complete 20 hours of prelicensing education for each line of authority before attempting the state exam. The specifc hour requirements are as follows:

Life – 20 hours
Health – 20 hours
Life & Health – 40 hours
Property – 20 hours
Casualty – 20 hours
Property & Casualty – 40 hours
Personal Lines – 20 hours

After completing your course and fulfilling the time requirement, you will need to pass a Certification Exam. This demonstrates completion of the prelicensing requirement. The Certification Exam is not monitored. After passing the Certification Exam with a 70% or greater, you will receive a Certificate of Completion. Keep this certificate – you will be required to provide a copy of the certificate at the state exam. The Certification of Completion is valid for 1 year. You will need to take and pass the state within this time period.

2. Pass the State Licensing Exam

After you finish your prelicensing course, you are now ready to take the state licensing exam. You must score a 70% or higher to pass your licensing exam. There will be an extra fee if you retake the exam, so it is important to pass the test the first time.

3. Get Fingerprinted

Alabama requires fingerprint impressions for all unlicensed applicants. You will want to get fingerprinted after you have passed the exam and one day before you apply for your license.

4. Apply for License

After passing the exam, you are ready to apply for your license through the National Insurance Producer Registry (NIPR). This is an online application process. After 5 days, check Alabama’s Department of Insurance website, and go to the License Search under Producers/Agents to confirm the issuance of your license. Once a license is issued, you may print your license from the home page.

5. Plan for Continuing Education

Alabama insurance producers are required to complete continuing education courses to maintain their license. Continuing education must be completed every 2 years to renew your license.

Generally, Alabama insurance agents must complete 24 hours of CE starting with their second license renewal period. 3 of the 24 hours must be in topics relating to ethics. If you wish to sell long-term care insurance policies or annuities, there are additional education requirements. To learn more about CE requirements, check out the Alabama CE page.

Nonresident producers are currently required to adhere to their home state’s requirements.

Alabama Licensing Exam FAQ

Am I exempt from the insurance test?

If you are pursuing any of the following license types, you may qualify for an exemption from the exam requirement:

Variable Life and Variable Annuity Products*
Credit
Rental Vehicle
Crop
Portable Electronics
Travel
Legal Services
Dental Services
Motor Club

*You are required to have a life insurance license and a FINRA registration to apply for a Variable Product license.

If you are applying for a resident license and have been licensed in another state, you are not required to take an examination for the license type held as long as you submit your application within 90 days. You msut have been in good standing with your previous state.

Where will I take the state exam?

Licensing exams are provided by the University of Alabama. You have the option to take the exam online or at a physical location in Birmingham, Huntsville, Mobile, Tuscaloosa, or Montgomery. Exam fees must be paid at the time of reservation by credit or debit card. All reservations need to be made at least seven days (five business days) before the desired exam date. You can make a reservation online or by calling (205) 348-3000.

How should I prepare for my remote state exam?

The University of Alabama partners with Adjuster Pro to provide remote testing. Before scheduling your licensing exam, test the compatibility of your computer, webcam, and microphone. Adjuster Pro requires the newest versions of Microsoft Edge, Safari, Google Chrome, or Firefox. Testing is not allowed on phones, tablets, or Chromebooks. You must have a laptop or a desktop to qualify for remote testing.

After submitting your exam registration, you will receive an email within 2 business days to set up your test account and to upload your prelicensing certificate. Once the certificate is accepted, another email will be sent for you to upload your driver’s license or government ID. After your ID has been approved, you will receive an email to download Proctor Free, the software needed to monitor your remote exam.

Your remote test requires you to be alone in a private room for the duration of the exam. The surface you have your computer on must be clear of all objects. You cannot have a phone, headphones, or a wristwatch on you while you are taking the exam. Food, chewing gum, and tobacco products are also prohibited. You are permitted to have a beverage.

All exams are monitored by a third-party to ensure all testing requirements are followed. The monitors are able to answer questions that do not pertain to the content of the exam via live chat.

If you have any questions, please contact the remote testing support team at 205-348-0633.
If you have not received your first email within 48 hours after registration, email alabamasupport@adjusterpro.com.

How should I prepare for my in-person state exam?

Report to the testing center 15-20 minutes before your exam time for the check-in process. You will be required to present a valid government-issued ID and your prelicensing certification.

No personal items are allowed to be taken into the testing center. All personal items, including bags and wallets, will have to remain in your vehicle or be checked into provided storage space. Cell phones, calculators, electronic devices, and wrist watches are not allowed into the testing center. Food, chewing gum, and tobacco products are also prohibited. You are allowed to have a beverage. Examinees may not leave the room during an exam without permission from the exam proctor.

If you have any questions about the exam process, testing locations, or security measures, please contact Alabama Department of Insurance at 205-348-0633.

If you have not received your confirmation letter by email, you can call or email your name and confirmation number to insurance@au.edu.

What is the format of the state exam?

All licensing exams are taken on a computer and are multiple choice. The exam will cover both a general section with basic insurance product knowledge, and a state section with specific insurance laws, rules, regulations, and practices that are unique to Alabama. A good prelicensing training course will feature practice exams that simulate the format of the state exams, so you should know exactly what to expect on the actual state licensing exam.

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How long is the state exam?

Depending on which line of insurance you are testing on, the amount of time and number of questions on the exam vary. Exams will be 2–3 hours long and can have 100–150 questions.

Life Insurance Exam is 2 hours and 30 minutes with 125 questions
Health Insurance Exam is 2 hours with 100 questions
Life and Health Insurance Exam is 3 hours with 150 questions
Property Insurance Exam is 2 hours with 100 questions
Casualty Insurance Exam is 2 hours and 30 minutes with 125 questions
Property & Casualty Insurance Exam is 3 hours with 150 questions
Personal Lines Insurance Exam is 2 hours with 100 questions
Property & Casualty Adjuster (no Worker’s Compensation) Exam is 2 hours and 30 minutes with 100 questions
Property & Casualty Adjuster w/ Worker’s Compensation and Crop Exam is 3 hours with 150 questions