Getting your Alabama insurance license is the first step to becoming an insurance agent in the state. Whether you’re interested in selling property and casualty insurance, life insurance, health insurance, or any combination of those lines of authority, this article has the information you need to get started.
The Alabama Department of Insurance website has a 7-step process on how to become an insurance agent in Alabama. We’ll walk you through step-by-step; from the license application to insurance test prep, to the Alabama insurance exam, and relevant insurance laws.
This guide has everything you need to know to get your AL insurance license quickly and easily.
Pro tip: Doing a pre-licensing education course dramatically increases your chance of passing your exam on your first attempt, which can end up saving you both time and money in the long run.
Alabama Insurance License
Getting your insurance license in Alabama is easy! Just follow our step-by-step guide. Be sure to bookmark this page so that you can visit it again throughout this process.
Step 1. Which Insurance Licenses Do You Need?
The first step to getting your insurance license is choosing which licenses you need. The most common licenses new insurance agents get are the property & casualty license (P&C), life and health insurance license (L&H).
The types of insurance products and policies you’ll be selling will determine which licenses you need. Here are some examples of the types of policies you can market with each license:
- Property and Casualty Insurance License – Auto Insurance, Home Insurance, Business Insurance, etc…
- Life and Health Insurance License – Life Insurance, Annuities, Medicare, Health Insurance, etc…
Most insurance agents and producers choose to get both P&C and L&H licenses, but if you plan on specializing in only one category then you don’t need every license.
Insurance adjusters require a separate license. You can find more information on becoming an insurance adjuster here: Alabama Insurance Adjuster License.
Note
If you plan on specializing as a life insurance agent, then you may also need to hold a certain FINRA securities license.
Step 2. Alabama Insurance Pre-License Education
After you’ve determined which licenses you need, you must now take your Alabama insurance pre-license education courses.
Most folks choose to take their insurance pre-license course online. These courses are created specifically to give you the skills you need to pass the test. The types of licenses you choose (also known as “lines of authority”) will determine which courses you take.
Each line of authority in Alabama requires twenty (20) hours of pre-license education. This means that if you wish to get a Property and Casualty license, you must take forty (40) hours of pre-licensing, and for Life, Accident, and Health you must also take forty (40) hours.
You will receive a certificate upon completion of the course. Keep this certificate, as you will need it when taking your exam.
Recommended
Doing a pre-licensing education course dramatically increases your chance of passing your exam on your first attempt, which can end up saving you both time and money in the long run. For pre-licensing education, StateRequirement recommends:
Step 3. Alabama Insurance License Exam
The next step after completing all of your pre-license coursework is to take the insurance exam. You will take one exam for each line of insurance you wish to carry. Life & Health (L&H) and Property & Casualty (P&C) lines are combined as one test each, so you wouldn’t take four tests, you would only take two altogether. You must pass your exams within one year of pre-license education course completion.
This is a proctored test, which means that you will be in a controlled environment with a person watching you. For people who haven’t tested in a situation like this should be aware of this fact, and work on taming their nerves prior to sitting for the exam.
The fee for each attempt of the exams is $75.00 for each “combined producer exam” (P&C and L&H). When you show up you must have a photo ID and the original pre-license education certificate. You have three (3) hours to complete the exam, which is one hundred fifty (150) questions long. A passing score is 70%, so you must answer one hundred five (105) of the question correctly. Here is a copy of the L&H examination outline and the P&C examination outline. You are also limited to the number of times that you can take the exam. If you fail any exam twice, you must wait ninety (90) days to retake the exam for that line.
After passing your exam, allow 3-5 business days before applying for your license.
Check out our Insurance Exam Guide. It’s extremely in-depth, and will hopefully help you pass the first time.
Looking for a guide to passing the insurance exam in Alabama? Check out our Alabama Insurance License Exam article.
Insurance license tests are intentionally difficult, but not impossible by any means. You should study to the point of comfortability with the information before you attempt the test. Failing the exam isn’t the end of the world, but keep in mind that you will need to pay the fee each time you attempt the test.
Tip
StateRequirement recommends that you study for one exam at a time, then after passing, starting on your next line. The exams are difficult enough on their own without confusing information from one line to another. Check out our review of the Kaplan Insurance Course.
You may register to take your exams and find more information on the Alabama Department of Insurance website.
Step 4. Fingerprinting And Background Check
Alabama requires that all individual resident applicants provide fingerprints prior to licensing. Giving your fingerprints will initiate a background check. If you have any prior misdemeanors or felonies, this may affect the outcome of your licensing efforts. For more information on this topic, call the Alabama Department of Insurance at (334) 241-4126 or email the License Department. There is a $48.25 fee for fingerprinting services.
With the fees paid, your fingerprint results only remain in the state system for thirty (30) days. If you wait longer than this to apply for your license, you will need to re-fingerprint and pay the fee again. Apply for your license within thirty (30) days of having fingerprints taken!
Apply for and schedule your fingerprinting at with 3M/Cogent.
Step 5. Alabama Insurance License Application
Once you have completed your exams and fingerprinting, you are now ready to apply for your license. If you have more than one line of authority that you have passed the exam for, be sure to apply for all of those lines.
The fee for an online application is $80, and NIPR will charge a $5 transaction fee for a total of $85. If you apply for your additional lines of authority, only the $5 transaction fee will be charged on later additions.
Again, you must apply within thirty (30) days of completing your fingerprints to avoid additional work and fees.
Fill out your online application on the NIPR website.
After filling out the application, you have ten (10) days to complete the next step of submitting proof of citizenship.
Step 6. Proof of Citizenship
According to the Citizen Protection Act, Alabama mandates that you must submit proof of citizenship within ten (10) days of applying for your license. To do this, there are sixteen different identifiers you can upload as proof (e.g. official driver’s license or other state ID). There are some states whose driver’s license will not satisfy the requirement. A list of these states can be found here. If you have a question about which forms of ID will work, and which will not, please contact the Alabama Department of Insurance at (334) 241-4126 or email the License Department.
Submit your proof of citizenship on the Alabama Department of Insurance website.
Step 7. Application Review
Once you have submitted your application and have filled all the other requirements, your license application will be reviewed by the state. Your background check will also be reviewed.
If everything is to acceptable standards your license should be issued quickly. If there are any items from your background check that need to be reviewed, it may slow down the process of issuance. If this is the case, the state may contact you to provide context to the issues that they have run into.
To check and see if your license has been issued, you may look yourself up in the State-Based Systems License Look-Up System.
Congratulations!
You’ve done the work, put in the time and effort, and now hold the key to your own success! We’re proud of you. Take five (5) minutes and celebrate.
After Getting Your Alabama Insurance License
Once you’ve passed your exams and completed the licensing application, you are now a licensed insurance agent in Alabama. A common question we hear is, “I have my insurance license, now what?” Here are a few things you can do or need to know:
- Get a job in the insurance field. Check out StateRequirement’s Insurance Jobs board
- If you’re going to sell advanced life insurance products, you’ll need to have the proper securities licenses. Series 6, Series 7, and Series 63 are the most common among insurance agents, but you’ll need to begin with the SIE (Securities Industry Essentials) exam. Find out which licenses you need with our Securities Licensing Guide
- Every two years, you’ll need to renew your insurance license. Check out our guides on Alabama Insurance License Renewal and Alabama Insurance Continuing Education for more details
Alabama Department of Insurance Contact Information
Mailing Address:
P. O. Box 303351
Montgomery, Alabama 36130
Phone: (334) 241-4126
Email: ProducerLicensing@insurance.alabama.gov
Fax: (334) 240-3282
Website: http://www.aldoi.gov/
License Search: Alabama Insurance License Search and Lookup
Alabama Insurance License FAQ
How long is the insurance license period in Alabama?
In Alabama, insurance licenses are valid for two years. To maintain their insurance practice after this period, licensees must complete the renewal process before expiration to keep their license valid. You can find out more about the license renewal process in our Alabama Insurance License Renewal article.
How long does it take to get an insurance license in Alabama?
2-8 weeks. The bulk of the time is spent studying for your Alabama insurance exam. Some people study for as little as one week and feel comfortable taking the exam. We recommend you take whatever amount of time you need to feel comfortable with the material. Check out our guide: How to Pass the Insurance Exam.
How much does the Alabama insurance license cost?
The total cost for your insurance course, application, and exam will be about $375. If you don’t pass the test on your first attempt, you’ll be required to pay an additional $75 exam fee for each subsequent attempt.
How do I get a life insurance license in Alabama?
In Alabama, obtaining a life insurance license will require you to complete a pre-licensing course, pass the state exam, and apply to the Alabama Department of Insurance along with the necessary fees. This process is identical for all insurance producer and insurance agent licenses.
How do I get a property and casualty license in Alabama?
To secure a property and casualty license in Alabama, you must complete relevant pre-licensing education, achieve a passing grade on the state exam, and submit an application to the Alabama Department of Insurance with the associated fees. We explore these steps in greater detail above.
Do I need business insurance in Alabama?
In Alabama, insurance is recommended for some businesses and mandatory for others. For example, workers’ compensation policies are mandatory for any business with five or more employees in order to ensure protection for the business and its workers. You’ll likely need at least some form of business insurance if you’re operating in Alabama to protect your assets and operate safely.