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Which state agency is responsible for regulating insurance companies and producers in Alabama?

Alabama Insurance Commission

Alabama Department of Insurance (ALDOI)

Alabama Bureau of Insurance Regulation

Alabama Department of Finance, Insurance Division

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2026 Statistics

Key Facts: AL Life & Health Exam

62%

First-Time Pass Rate

AL DOI 2024

150 Q

Exam Questions

AL DOI

20 hrs

Pre-License Education

Title 27

$300K

Guaranty Life Limit

AL Guaranty Assoc.

24 hrs

CE Per Biennium

AL DOI

$56

Exam Fee

PSI

Alabama's life and health insurance exam has a 62% first-time pass rate. It requires 20 hours of pre-license education (Title 27, Chapter 8A), 150 questions in 2.5 hours, and 70% to pass. Alabama requires continuing education of 24 hours per biennium. The Alabama Life and Disability Insurance Guaranty Association protects policyholders with coverage limits of $300,000 for life insurance and $500,000 for health insurance.

Sample AL Life & Health Practice Questions

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1Which state agency is responsible for regulating insurance companies and producers in Alabama?

A.Alabama Insurance Commission

B.Alabama Department of Insurance (ALDOI)

C.Alabama Bureau of Insurance Regulation

D.Alabama Department of Finance, Insurance Division

Explanation: The Alabama Department of Insurance (ALDOI), headed by the Commissioner of Insurance, is the state agency that regulates all insurance activities in the state under Title 27 of the Alabama Code. The Alabama Insurance Commission, Bureau of Insurance Regulation, and Department of Finance Insurance Division do not exist as named. The Commissioner is appointed by the Governor and confirmed by the Alabama Senate.

2How is the Alabama Commissioner of Insurance selected?

A.Elected by popular vote in a statewide election

B.Appointed by the Governor and confirmed by the Alabama Senate

C.Appointed by the Alabama Legislature

D.Selected by a board of insurance industry representatives

Explanation: In Alabama, the Commissioner of Insurance is appointed by the Governor and must be confirmed by the Alabama Senate. This differs from some states where the insurance commissioner is elected. The Legislature does not appoint the Commissioner, and industry representatives have no role in the selection process.

3Under Alabama law, which title of the Alabama Code governs insurance regulation?

A.Title 8 - Commercial Law

B.Title 22 - Health, Mental Health, and Environmental Control

C.Title 27 - Insurance

D.Title 34 - Professions and Businesses

Explanation: Title 27 of the Alabama Code is specifically designated as the Insurance Code and contains all statutes governing insurance companies, producers, policies, and regulatory requirements in the state. Title 8 covers commercial law, Title 22 addresses health administration, and Title 34 covers other professions but not insurance producers specifically.

4How many hours of pre-licensing education must a candidate complete before taking the Alabama life and health insurance producer exam?

A.16 hours

B.20 hours

C.24 hours

D.40 hours

Explanation: Alabama requires 20 hours of approved pre-licensing education before a candidate is eligible to sit for the life and health insurance producer examination. 16 hours is insufficient, 24 hours is the continuing education requirement per biennium (not pre-licensing), and 40 hours exceeds the state's requirement for this license type.

5What is the minimum age requirement to obtain an insurance producer license in Alabama?

A.16 years old

B.18 years old

C.19 years old

D.21 years old

Explanation: Alabama requires that insurance producer license applicants be at least 18 years of age. While Alabama's general age of majority is 19, the insurance producer licensing requirement is 18. An applicant who is 16 is too young, and there is no 21-year-old requirement for producer licensing in Alabama.

6How many hours of continuing education (CE) must an Alabama insurance producer complete per biennial licensing period?

A.12 hours per year

B.20 hours per biennium

C.24 hours per biennium

D.30 hours per biennium

Explanation: Alabama requires insurance producers to complete 24 hours of approved continuing education during each two-year (biennial) licensing period. This includes specific hours dedicated to ethics training. 20 hours is the pre-licensing requirement, not CE. 12 hours per year and 30 hours per biennium are not the correct Alabama CE requirements.

7An Alabama insurance producer fails to renew their license before the expiration date. What is the consequence under Alabama law?

A.The license is automatically renewed with a late fee

B.The producer may continue selling for 30 days while completing renewal

C.The producer must cease all insurance activities until the license is reinstated

D.The ALDOI will issue a temporary permit valid for 90 days

Explanation: Under Alabama law, a producer whose license has expired must immediately cease all insurance activities. Transacting insurance without a valid license is a violation of Title 27. There is no automatic renewal, no grace period to continue selling, and the ALDOI does not issue temporary permits for lapsed licenses. The producer must apply for reinstatement and may be subject to penalties.

8Which of the following actions would the Alabama Commissioner of Insurance be authorized to take against a licensed producer who violates Title 27?

A.Impose criminal penalties including imprisonment

B.Revoke, suspend, or refuse to renew the producer's license and impose civil penalties

C.Order the producer to pay restitution directly to consumers without a hearing

D.Transfer the producer's license to another state for disciplinary proceedings

Explanation: The Alabama Commissioner of Insurance has the authority to revoke, suspend, or refuse to renew a producer's license and impose civil penalties for violations of insurance laws. Criminal penalties require prosecution through the court system, not the Commissioner's office. The Commissioner cannot order restitution without due process, and licenses are state-specific and cannot be transferred to another jurisdiction for discipline.

9A nonresident producer wants to sell life insurance in Alabama. Which of the following is required?

A.The producer must establish a physical office in Alabama

B.The producer must hold a valid license in their home state and apply for a nonresident license in Alabama

C.The producer must pass the Alabama insurance producer examination

D.The producer must complete Alabama's 20-hour pre-licensing course

Explanation: Under Alabama's reciprocal licensing provisions, a nonresident producer must hold a valid license in their home state and apply for a nonresident license in Alabama. They are generally not required to retake the licensing exam or complete Alabama's pre-licensing education if their home state has reciprocal agreements. They also do not need to establish a physical office in Alabama.

10Under Alabama's CE requirements, how many of the 24 required biennial hours must be in ethics?

A.2 hours

B.3 hours

C.4 hours

D.6 hours

Explanation: Alabama requires that 3 of the 24 biennial continuing education hours be dedicated to ethics training. This ethics component ensures producers maintain current knowledge of ethical standards and regulatory compliance. 2 hours and 4 hours are not the correct Alabama ethics CE requirement, and 6 hours would exceed the mandate.

About the AL Life & Health Exam

The Alabama life and health insurance exam covers Alabama DOI licensing requirements, state-specific life insurance regulations including free look periods and replacement rules, Alabama health insurance laws, Medicare supplement standards, and producer ethics under Alabama Code Title 27.

Questions

150 scored questions

Time Limit

2 hours 30 minutes

Passing Score

70%

Exam Fee

$56 (Alabama Department of Insurance / PSI)

AL Life & Health Exam Content Outline

25%

AL Insurance Regulation

Alabama DOI, producer licensing, 20-hour pre-license education, continuing education, appointment process

25%

AL Life Insurance Laws

Alabama life policy requirements, free look periods, replacement rules, annuity suitability, beneficiary rights

25%

AL Health Insurance Laws

Alabama health policy requirements, Medicare supplement, disability income, long-term care, small group reform

25%

AL Ethics & Practices

Unfair trade practices, producer conduct, AL Life and Disability Guaranty Association, penalties

How to Pass the AL Life & Health Exam

What You Need to Know

Passing score: 70%
Exam length: 150 questions
Time limit: 2 hours 30 minutes
Exam fee: $56

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

AL Life & Health Study Tips from Top Performers

1Master Alabama DOI licensing requirements under Title 27, Chapter 8A

2Know the AL Guaranty Association coverage limits: $300K life, $500K health

3Understand Alabama's replacement regulation requirements for life insurance

4Study Medicare supplement standardized plans as they apply in Alabama

5Learn Alabama's 10-day free look period for life insurance and 30 days for Medicare supplement

Frequently Asked Questions

How hard is the Alabama life and health insurance exam?

The AL life and health exam has a 62% first-time pass rate with 150 questions in 2.5 hours, requiring 70% to pass. Alabama-specific topics like Title 27 regulations, the AL Guaranty Association, and state replacement rules are heavily tested.

What are Alabama's pre-license education requirements for insurance?

Alabama requires 20 hours of approved pre-license education before taking the life and health insurance exam. Courses must cover insurance fundamentals and Alabama-specific regulations under Title 27.

What is the Alabama Life and Disability Insurance Guaranty Association?

The Alabama Life and Disability Insurance Guaranty Association protects policyholders when an insurance company becomes insolvent. Coverage limits are $300,000 for life insurance death benefits, $300,000 for present value of annuity benefits, and $500,000 for health insurance benefits.

How much continuing education does Alabama require for insurance producers?

Alabama requires 24 hours of continuing education every two years (biennium), including 3 hours of ethics. CE must be completed through approved providers before license renewal.