Key Takeaways
- Alabama P&C insurance licenses are valid for 2 years and must be renewed before expiration
- Renewal requires 24 hours of continuing education, including 3 hours of ethics
- Licenses not renewed on time may be reinstated within 12 months by completing CE and paying fees
- Address changes must be reported to ALDOI within 30 days
- ALDOI can discipline licensees including suspension, revocation, or fines
Last updated: January 2026
License Maintenance and Continuing Education
Alabama P&C insurance licenses require ongoing maintenance through continuing education and timely renewal.
License Terms and Renewal
| Item | Requirement |
|---|---|
| License Term | 2 years |
| Renewal Fee | $85 (resident) |
| Late Renewal | Additional fees apply |
| Reinstatement | Within 12 months with CE and fees |
Continuing Education Requirements
Alabama requires 24 hours of continuing education (CE) every 2 years:
CE Requirements
| Requirement | Hours |
|---|---|
| Total CE Hours | 24 |
| Ethics (required) | 3 |
| Electives | 21 |
| CE Period | 2 years (matches license term) |
CE Course Requirements
- Must be completed at ALDOI-approved providers
- Online and classroom options available
- Cannot repeat same course within 2-year period
- CE must be completed BEFORE license expiration
Exam Tip: Alabama requires 3 hours of ethics CE every 2 years, which is more than some other states.
Reporting Requirements
Alabama producers must notify ALDOI of changes within 30 days:
- Change of business address
- Change of residence address
- Change of name
- Administrative actions by other states
- Criminal charges or convictions
Disciplinary Actions
ALDOI can take disciplinary action against licensees for violations:
Types of Discipline
| Action | Description |
|---|---|
| Warning Letter | Minor first offense |
| Probation | License continues with conditions |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Fine | Monetary penalty |
| Restitution | Payment to harmed parties |
Common P&C Violations
- Misrepresentation of policy terms or coverage
- Twisting (replacing policies for commission)
- Rebating (offering unauthorized inducements)
- Unfair claims practices
- Commingling of funds
- Failure to maintain CE requirements
- Selling insurance without proper license
License Status Types
| Status | Meaning |
|---|---|
| Active | License current and in good standing |
| Inactive | Not actively practicing |
| Expired | License term ended, not renewed |
| Suspended | Temporary disciplinary action |
| Revoked | License permanently cancelled |
Appointing Companies
P&C agents must be appointed by insurers to sell their products:
- Appointment Required: Before selling products
- Appointment Fee: Paid by insurer
- Termination Reporting: Insurers must report terminations to ALDOI
- For Cause Terminations: May trigger ALDOI investigation
Test Your Knowledge
How many hours of continuing education does Alabama require for P&C license renewal?
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Test Your Knowledge
How many hours of ethics CE does Alabama require every 2 years?
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Test Your Knowledge
Within how many days must an Alabama producer report an address change to ALDOI?
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