How to Get a Life Insurance License in Alabama

Written by: Mary Gerardine

    Getting your Alabama life insurance license is the first step toward becoming a life insurance agent. If you want to market and sell life insurance policies, follow this step-by-step guide for obtaining life insurance licensing in Alabama.

    The Alabama Department of Insurance (ALDOI) requires you to complete a six-step process to obtain your life insurance license — from taking the life insurance exam to applying for a license.

    These steps will take a few weeks to complete so we recommend you bookmark this page so you can use it as a reference throughout the process.

     

     

    How To Get Your Alabama Life Insurance License – Quick Version

    1. Complete an Alabama Insurance Prelicense Course (ExamFX – $189+)
    2. Take the Alabama Life Insurance Licensing Exam (The University of Alabama College of Continuing Studies – $50)
    3. Get a Fingerprint-Based Background Check (Gemalto – $48.25)
    4. Complete an Alabama Life Insurance License Application (National Insurance Producer Registry (NIPR) – $80 application fee + $5 transaction fee)
    5. Submit Your Proof of Citizenship
    6. Watch for Your Application Results

     

    Steps To Get an Alabama Life Insurance License

    Obtaining your Texas life insurance license isn’t difficult. Just follow these five steps to start your journey toward becoming a life insurance agent. Once you earn this license, check out our guide on how to get your Alabama property and casualty (P&C) license as well.

     

     

    Step 1: Complete an Alabama Insurance Prelicense Course

    Before you take the Texas life insurance licensing exam, it’s important to make time to acquire the knowledge you’ll need to pass this exam on your first attempt. Completing a pre-license education course will equip you with the necessary information and tools you’ll need to prepare for your exam.

    In Alabama, you must take a 20-hour course on life insurance. After completing the course, you’ll need to present a valid photo ID and an original certificate of completion from the approved prelicensing education provider when you arrive to take your exam. The pre-license course certificate is only valid for 12 months.

    A pre-license education course provides very specific industry knowledge that will be tested during the exam. There is very little information on the test that could be considered “common sense”. Pre-license education courses are self-paced and include study materials like practice exams and flashcards.

    Beyond helping you effectively prepare for and pass the life insurance licensing exam on your first try, taking a pre-license education course also will give you a solid understanding of your duties as a life insurance agent.

    Recommended Course

    For Alabama insurance pre-license education courses and exam prep, StateRequirement recommends: ExamFX


    For 10% off, use code examfx@staterequirement.com at checkout! Visit ExamFX

     

    Step 2: Take the Alabama Life Insurance Licensing Exam

    After you complete a prep course and your own independent studying, it’s time to take the Alabama life insurance exam.

    Alabama uses The University of Alabama College of Continuing Studies as its official exam provider for registering and administering licensure exams.

    The Alabama life insurance exam outline contains a total of 125 scored questions that includes three sections: the general section deals with basic life insurance product knowledge, the life insurance section contains life policies and provisions, and the state section covers laws, regulations, and practices specific to Alabama.

    You’ll have 150 minutes to complete the examThe Alabama life insurance exam fee is $50, which you must pay at the time of reservation by credit card, debit card, or voucher. The exam is a proctored test, meaning an official proctor will closely monitor you in a controlled environment.

    If you happen to fail the Alabama life insurance exam, you’re prohibited from retaking the life insurance exam for 90 days. If you fail the exam four times, you’ll have a 180-day waiting period for each subsequent exam.

    Tip:

    Check out our in-depth insurance exam guide for tips to help you pass on the first attempt.

     

    Step 3: Get a Fingerprint-Based Background Check

    After you take the Alabama life insurance exam, you must get a fingerprint-based background check from Gemalto. The fingerprinting fee is $48.25. Your fingerprint results only remain in the state system for 30 days. If you wait longer than this to apply for your license, you’ll need to redo your fingerprint-based background check and pay the fee again. That means you should apply for your license within 30 days of having your fingerprints taken.

    For more information, call the ALDOI at (334) 241-4126.

    After completing your fingerprint-based background check, you must submit your license application within one year of passing the licensing exam. If you fail to do so, you’ll need to retake the exam.

     

    Step 4: Complete an Alabama Life Insurance License Application

    Once you pass the life insurance exam and complete the background check, you can apply for your Alabama life insurance license. The application fee is $80, and the NIPR will charge a $5 transaction fee for a total of $85.

    ALDOI will issue a life insurance license to individuals who are at least 18 years old and have passed the proper licensing exam. You should submit your completed license application within 12 months of passing the exam.

    To apply for a life insurance license in Alabama, make sure you comply with the insurance licensing requirements as defined under the Alabama Insurance Code

    Send any questions or supporting documents to ProducerLicensing@insurance.alabama.gov.

     

    Step 5: Submit Your Proof of Citizenship

    Alabama will verify the citizenship of all its applicants. Within ten (10) days of submitting your license application, Alabama requires that you must submit proof of citizenship before your license is issued. If your file is not received within ten (10) days after submission, your application will be declined.

    You must upload a file that includes the front and the back of your identification (driver’s license or other state ID). If you have a question about which forms of ID will work, and which will not, please contact the ALDOI at 334-241-4126 or email the License Department.

     

    Step 6: Watch for Your Application Results

    After you complete the previous five steps, the ALDOI License Department will review your application and background check. It reviews filings in the order it receives them, and this process usually takes two days or more from the date you mail your application.

    Once your application review is complete, the ALDOI License Department will email you with its decision or ask you to provide more information.

    You can print your license from the NIPR website. There’s no charge to create an account or print a license. If you don’t remember your license number, you can find it by using the National Association of Insurance Commissioners (NAIC) State Based Systems (SBS) Alabama Lookup tool.

    Congratulations!

    You’re now ready to get started as a life insurance agent in Alabama.




    Next Steps After Securing Your Alabama Life Insurance License

    Once you complete the above steps and have your Alabama life insurance license, here’s what you should pursue next.

    Get Your FINRA Securities Licenses

    Overview

    Individuals planning to market and sell market-based life insurance products also must obtain the proper securities licenses. As a securities license holder, you can offer securities as part of your services. That’ll make you a credible authority in addressing all of your clients’ financial needs.

    To learn more, check out our Securities Licensing guide.

     

     

    SIE Exam

    To obtain these licenses, you’ll first need to take and pass the Securities Industry Essentials (SIE) exam. Professionals in the securities industry are required to take the SIE and a series of examinations administered by the Financial Industry Regulatory Authority (FINRA)

    The SIE exam ensures every life insurance professional has a basic understanding of securities. While taking the SIE exam isn’t a requirement for all insurance professionals, those who don’t obtain at least one securities license limit their ability to work with clients. With a securities license, you can give your clients the option to invest in securities-related products as part of their life insurance plans.

    Tip:

    To help you start preparing for the SIE exam, check out our full guide on How to Pass the SIE Exam.

    Obtaining a license to sell securities also requires sponsorship from a firm, company, or organization regulated by FINRA. The sponsor will pay the testing fees required for your SIE exams and submit your personal information to FINRA’s Central Registration Depository (CRD). The Series 6 and Series 7 licenses require a FINRA exam sponsorship before you can take the exam. The exam for a Series 63 license doesn’t require any sponsoring entity. 

    Once you get your securities license(s), FINRA will list you as a “registered representative.” By achieving the securities licensee designation, you’ll become a highly sought-after professional and set yourself up for a successful career in the insurance industry.

     

     

    Series 6, 7, and 63 Licenses

    Some of the most common securities licenses for insurance agents include the Series 6, 7, and 63 licenses because they allow licensees to sell almost every type of individual security.

    The Series 6 (Investment Company and Variable Contracts Products Representative) Securities License is the primary license sought by insurance sales professionals and financial advisors, allowing them to sell grouped securities related to insurance products. 

    Series 6 works together with Series 63 because they are the two partner licenses required to sell insurance policies tied to investments. The North American Securities Administrators Association (NASAA) oversees regulation of the Series 63 (Uniform Securities Agent State Law) license.

    The Series 7 license allows you to buy and sell securities (e.g., stocks, bonds, and mutual funds) as part of an investment plan for your clients. To get a Series 7 license, you will first need to register as a new candidate with FINRA and pass the Series 7 exam. The Series 7 exam is commonly known as the General Securities Representative Qualification Exam, but is sometimes referred to as the “Series 7 Top-Off Exam.”

     

     

    Get a Job in the Insurance Field

    Once you earn your license, you can start applying for jobs in the insurance field. With a life insurance license, you can provide advice and recommend insurance products to clients, sell life insurance policies that pay a beneficiary upon an insured person’s death, and sell annuities that pay a set income at retirement.

    Find life insurance job postings on our Insurance Jobs Board.

    When applying for an insurance-related job, potential employers will request your license number and National Producer Number (NPN).

     

     

    Complete Continuing Education and Renew Your License

    In Alabama, you must complete continuing education (CE) credits every two years to maintain your license in good standing. You must complete 24 hours (of which 3 should be ethics) per reporting period for producers and 12 hours (of which 2 should be ethics) per reporting period for producers who are employed by another producer or insurer to work only in the office of the employer and who are not licensed as a non-resident in any other state.

    If you are licensed for less than twelve months at the time of your first renewal, you are not required to complete the educational requirements but must claim the CE exemption during renewal through NIPR.

    In Alabama, you must also renew and manage your life insurance license every two years. To avoid delays in renewing your license, you must complete continuing education hours at least 75 days before your license expires. The continuing education provider will report the successful completion of the course to the NAIC SBS within 10 days of completion. The renewal fee is $70 and the late fee is $50.

    Learn how to renew your license with our Alabama insurance license renewal guide.




    Alabama Department Of Insurance Contact Information

    Mailing Address:

    Alabama Department of Insurance
    Attn: Licensing Division
    P.O. Box 303351
    Montgomery, AL 36130-3351

    Phone: 334-241-4126

    Email: ProducerLicensing@insurance.alabama.gov

    Website: https://www.aldoi.gov/

    License Search: Alabama Insurance License Lookup




    Alabama Life Insurance License FAQ

    How much does it cost to get a life insurance license in Texas?

    Obtaining a life insurance license in Alabama requires these fees: 

     

     

    How long does it take to process a life insurance license application in Alabama?

    This process typically takes two days or more. You can print your license by going to NIPR’s license print page by selecting the State of Alabama.

     

     

    Can I get a temporary life insurance agent license in Alabama?

    Yes. Alabama provides a temporary life insurance license. You must complete an online application and pay the $80 fee via credit card (Visa, Mastercard, or American Express).

     

     

    Can I get an emergency life insurance agent license in Alabama?

    No. An emergency license isn’t available for life insurance producers in Alabama.

     

     

    Do I need to get my securities license on top of a life insurance license in Alabama?

    Probably. While you can sell certain basic life insurance products with just a life insurance license, a securities license removes the limits on what you can sell and puts you in a much better career position. As a securities license holder, you can provide your clients with products tied to the securities market as part of their retirement and life insurance plans. But, you’ll need FINRA accreditation to obtain your securities license.

     

     

    What can I sell with a life insurance license in Alabama?

    With an Alabama life insurance license, you can sell life insurance policies that pay a designated beneficiary when the insured person dies. You also can sell annuities that pay a set income at retirement.

     

     

    How much can you make with a life insurance license in Alabama? 

    According to ZipRecruiter, life insurance agents earn an average of $79,730 per year.

     

     

    What are the limitations of an Alabama life insurance license?

    Unless you have multiple licenses to sell various types of insurance products (e.g., the combined life and health insurance license), having an Alabama life insurance license only qualifies you to sell life insurance policies as well as retirement plans and annuities. You can’t sell other types of insurance. A securities license on top of your life insurance license removes that limitation and enables you to offer securities, including stocks and bonds.

     

     

    Can I cancel my life insurance license in Alabama?

    Yes. To cancel your license, visit the Request to Cancel or Surrender License/Line of Authority section of the ALDOI website.

     

     

    How hard is it to get a life insurance license in Alabama?

    The process is quite simple! Follow the steps above and get started today!




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    Information on this page has been gathered by a multitude of sources and was most recently updated in October 2021.

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