Alabama Producer Licensing Requirements

Alabama follows the NAIC Producer Licensing Model Act and has specific requirements for obtaining a Life & Health insurance producer license.

Pre-License Education Requirements

Alabama does NOT require pre-license education for insurance licenses:

• No mandatory classroom hours
• No specific courses required
• However, exam preparation courses are strongly recommended
• Most candidates complete 20-40 hours of self-study

Exam Tip: Alabama is one of the states that does NOT require pre-license education. However, the exam is challenging and thorough preparation is essential.

Basic Eligibility Requirements

• Must be at least 18 years of age
• Must be a U.S. citizen or have current work authorization
• Must reside or maintain principal place of residence in Alabama (for resident license)

Examination Requirements

The Alabama Life & Health examination:

Note: Alabama's 70% passing score is standard among most states.

Examination Process

1. Review the State of Alabama Licensing Candidate Handbook
2. Schedule exam through University of Alabama website
3. Take exam at University of Alabama testing center
4. Bring valid ID with photo (driver's license, passport, military ID)
5. Receive results immediately after exam

Background Check Requirements

Alabama requires fingerprinting and background check for all insurance license applicants:

Background Check Process

• Timing: Must be completed as part of application
• Method: Electronic fingerprinting
• Results: Submitted to ALDOI and FBI
• Cost: Approximately $40-50

Disqualifying Factors

ALDOI considers criminal history when evaluating license applications:

• Crimes involving fraud, dishonesty, or breach of trust
• Felonies substantially related to insurance activities
• Recent convictions (time elapsed matters)
• Pattern of criminal behavior

Note: A criminal record does not automatically disqualify an applicant. ALDOI considers the nature of the offense, time elapsed, and evidence of rehabilitation.

License Application

After passing the exam:

1. Submit application through NIPR or directly to ALDOI
2. Pay license fee (approximately $75 for 2-year license)
3. Complete background check if not already done
4. Receive license after ALDOI review

License Types and Authority

Resident vs. Non-Resident

• Resident: Primary business location in Alabama
• Non-Resident: Licensed in home state, applies for Alabama license through reciprocity