October 21, 2022

Alabama Insurance License Exam

Written by: Ethan Peyton

Cartoon woman holding Alabama Insurance License Exam document

    Passing your Alabama insurance license exam is a pivotal part of becoming a licensed insurance agent in the state of Alabama.

    In this guide, we’ll break down the general information that you need to know in order to pass your exam, outline the differences between each examination line, and offer tips on both: how to prepare for your Alabama insurance licensing exam, and on what to do after you pass.

     

    Alabama Insurance Exam Basics

    General Information

    The state of Alabama administers its insurance agent licensing through the University of Alabama.

    Each major insurance line examination is made up of multiple-choice questions and includes both general and state-specific material.

    The general questions test your federal insurance product and agent knowledge, whereas the state-specific questions test you on the Alabama insurance regulations and laws that you will need to know in order to operate as an insurance agent.

    Note: A score of 70% or higher is required in order to pass an insurance license exam in Alabama.

     

    Cost

    Your Alabama insurance license exam cost will depend on the number of examinations that you take:

    Examination

    Cost 

    Time Allowed

    Number of Questions

    Life Producer

    $50

    150 Minutes

    125

    Health Producer

    $50

    120 Minutes

    100

    Life & Health

    $75

    180 Minutes

    150

    Property Producer

    $50

    120 Minutes

    100

    Casualty Producer

    $50

    150 Minutes

    125

    Property & Casualty

    $75

    180 Minutes

    150

    Note: You should focus on one exam at a time. This will likely increase the amount of time and effort you can allocate to each examination and should allow you to feel more prepared when you sit your exam.

    Recommended Pre-License Course

    Before taking your insurance exam, we recommend completing a pre-license education course. This is actually a requirement in Alabama, and can also go a long way in helping you learn all of the information that you will need to know during your exam.
    4.7 out of 5 starsKaplan Education Company

     

    Alabama Life and Health Insurance Exam

    Below you can find the content outline offered by the University of Alabama.

    We recommend using it as a checklist when working through your pre-license education course. This way, you’ll be absolutely sure that you haven’t missed any topic that you will be tested on later on.

    Life and Health Insurance Exam Content Outline

    I. General Life and Health Insurance

    1. Purpose of Insurance
    2. Contract Law
    3. Underwriting and the Application

     

    II. Life Insurance

    1. Traditional Life Policies
    2. Flexible Feature Life Policies
    3. Policy Provisions
    4. Policy Options
    5. Policy Riders
    6. Annuities and Retirement Plans
    7. Business and Group Life
    8. Social Security

     

    III. Health Insurance

    1. Health Foundations
    2. Medical Expense Policies
    3. Disability Income Policies
    4. Uniform Individual Health Policy Provisions Law
    5. Group Health
    6. Medicare and Medicaid
    7. Limited Health Insurance Policies

     

    IV. Alabama Insurance Law

    1. All Licensing Candidates
    2. Life Insurance Candidates
    3. Accident and Health (Disability) Insurance Candidates

    We recommend reading our in-depth How to Pass the Life Insurance Exam guide for a better overview.

     

    Alabama Property and Casualty License Exam

    Below you can find the content outline offered by the University of Alabama.

    You should use this outline as a checklist when working through your pre-license education course in order to ensure that you haven’t missed any topic that you will be tested on later on.

    Property and Casualty Exam Content Outline

    I. Property & Casualty Fundamentals

    1. Property & Casualty Vocabulary
    2. Contract Law
    3. Basics of Property Insurance
    4. Basics of Liability Insurance

     

    II. Personal Lines

    1. Homeowners & Dwelling Policies
    2. Personal Auto Policy
    3. Watercraft and Flood Policies

     

    III. Commercial Lines

    1. The Commercial Package Policy
    2. Commercial Property
    3. Commercial General Liability
    4. Crime and Fidelity Bonds
    5. Equipment Breakdown Coverage
    6. Other Commercial Policies
    7. Businessowners Policy
    8. Workers Comp and Employers Liability

     

    IV. Alabama Law

    1. All Licensing Candidates
    2. Property & Casualty Candidates
    3. Automobile Candidates

    We recommend reading our Property and Casualty Insurance exam article for a more in-depth overview.

     

    How to Pass the Alabama Insurance Exam

    Passing your Alabama insurance exam ultimately comes down to your mindset and degree of preparation.

    We have composed a few helpful exam tips and tricks that should help you perform as well as you can during your exam day.

    Get a Pre-License Course

    Getting a pre-license course can go a long way in helping you get accustomed to the prolific amount of content that you will have to memorize. It is also a legal requirement in the state of Alabama.

    We recommend Kaplan’s course because it offers a variety of helpful features, including:

    • Online exam simulations
    • Live online training
    • Printable study guides
    • End of chapter reviews

    For more information, we recommend reading our Kaplan Insurance Course Review.

     

    Make Enough Time to Study

    Not leaving enough time to prepare is one of the easiest ways to ensure that you do not pass your exam on your first attempt.

    Remember, there are zero questions on your exam that are based on common sense or critical thinking. All questions are purely factual, and so will relate to how well you understand and remember the content that you have learned.

    We recommend allocating around one to two weeks to prepare for your exam, as this should allow you to go through all of the material at least twice.

     

    Control Test Anxiety

    Even though you cannot control whether you get exam anxiety or not, you can take a few steps when preparing to limit its effect on your performance:

    • Establish a consistent pretest routine — Acclimate yourself to exam conditions by following a specific routine on each practice exam at home. This should help you feel less anxious during your exam day.
    • Get plenty of sleep — Lack of sleep can exacerbate your anxiety and increase your self-doubt. Make sure you are consistently getting a good night’s sleep in the week leading up to your exam.
    • Study effectively — This sounds obvious, but make sure you are actually tailoring your studying to the exam that you are taking. Remember, there are no critical thinking or common sense questions involved.
    • Arrive early — If you are planning to sit your exam in person, we recommend you arrive at least 30 minutes before it’s due to start in order to get used to your surroundings and have time to check in with your center’s administrator.

    For a more in-depth overview of how you can prepare for your Alabama insurance exam, we recommend reading our How to Pass the Insurance Exam article.

     

    Getting Your Alabama Insurance License

    Your next steps will depend on whether you actually passed your exam, as well as on whether you plan to get licensed for any additional lines.

    You can apply for your license up to 12 months after you complete your exam, so if you would like to attempt passing additional insurance line exams before filing your licensing application, you are totally free to do that.

    After you have passed your insurance licensing exam, you will need to:

    • Complete a fingerprint and background check
    • File your licensing application
    • Submit proof of citizenship to the Alabama Department of Insurance
    • Wait for your application to be reviewed

    Have a look at our How to Become an Insurance Agent in Alabama review for more information on all the steps that you will need to take after passing your insurance exam.




    Alabama Insurance Exams FAQ

    How often do I have to renew my license?

    You are required to renew your insurance license every two years in order to continue operating as a legitimate insurance agent in Alabama.

    For more information, see our guide on How to Renew Your Insurance License in Alabama.

     

    How long is the Alabama insurance exam?

    This will depend on the exam that you are taking. The Health and Property exams are both 120 minutes long.

    The Life and Casualty exams are slightly longer (e.g., 150 minutes long).

    Finally, the combined Life & Health and Property and Casualty exams are 180 minutes long each.

     

    How many times can you take the Alabama insurance exam?

    Candidates that fail the same insurance exam twice will not be able to sit the same examination for a period of 90 days.

    This waiting period doubles for candidates that fail the same exam four times or more.

     

    How much does an insurance license exam cost in Alabama?

    Individual producer exams cost $50. Combined exams (e.g., Life & Health, Property and Casualty, etc.) are $75 each.

    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




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    Information on this page has been gathered by a multitude of sources and was most recently updated in October 2022.

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