How to Get a Property and Casualty License in Alabama

Written by: Mary Gerardine

Cartoon woman holding Alabama property and casualty license

    Getting your Alabama property and casualty license is the first step toward becoming a P&C insurance agent in Alabama.

    The Alabama Department of Insurance requires you to complete a six-step process to obtain your property & casualty license – from taking the P&C insurance exam to applying for a P&C 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 Property and Casualty Insurance License

    1. Complete an Alabama Pre-License Education Course (ExamFX – $189+)
    2. Take the Alabama Licensing Exam (The University of Alabama College of Continuing Studies – $75)
    3. Get a Fingerprint-Based Background Check (Gemalto – $47.35)
    4. Complete an Alabama License Application (National Insurance Producer Registry (NIPR) – $80 application fee + $5.60 transaction fee)
    5. Submit Your Proof of Citizenship
    6. Watch for Your Application Results

     

     

    Steps to Get an Alabama Property and Casualty Insurance License

    Obtaining your Alabama P&C license is easy. Just follow these six simple steps to start your journey toward becoming a property and casualty insurance agent. Once you earn this license, check out our guide on how to get your Alabama life insurance license as well.

     

    Step 1: Complete an Alabama Pre-License Education Course

    Before you take the Alabama P&C 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 need to take 40 hours of combined P&C pre-licensing education courses – either in a classroom setting or online. Those 40 hours of pre-education should include a minimum of five hours dedicated to the discussion of Alabama Law.

    A pre-license education course provides very specific industry knowledge that insurance professionals will encounter during the exam. There are very few questions on this test that you can answer with “common sense” information.

    You can complete insurance licensing courses on your own schedule and at your own pace when you choose online courses. Taking a pre-license education course will also give you a solid understanding of your duties as a P&C 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!

     

     

    Step 2: Take the Alabama Licensing Exam

    Once you complete a pre-licensing course and receive a certificate, you can take the Alabama P&C license exam within one year from the date of the certificate.

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

    The Alabama P&C insurance exam:

    • Includes a total of 150 scored questions across four parts, covering property and casualty fundamentals, personal lines, commercial lines, and Alabama law.
    • Gives you 180 minutes to complete the test. The exam is a proctored test, meaning an official proctor will closely monitor you in a controlled environment.
    • Costs $75, a fee you must pay at the time of reservation by credit card, debit card, or voucher.

     

    Once you pass the exam, you must allow three to five business days before applying for your P&C insurance producer license.

    Passing the Alabama P&C license exam can prove challenging, but taking an exam prep course and following a good study program can help prepare you to pass on your first attempt.

    If you happen to fail the Alabama P&C insurance exam, you’re not allowed to retake the 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 P&C license exam, you must get a fingerprint-based background check from GemaltoThe fee for fingerprinting services is $47.35 to cover the cost of comparing your prints against criminal history records.

    Your fingerprint results will remain in the ALDOI’s system only 30 days after your fingerprint appointment. If your license application reaches the ALDOI after those 30 days, you’ll have to get fingerprinted again and pay the required fee.

    The ALDOI can only use fingerprints processed through Gemalto. 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 License Application

    Once you pass the P&C insurance exam and complete a fingerprint-based background check, you can apply for your P&C insurance license.

    In Alabama, you must apply online via the NIPR. The application fee is $80, and the NIPR will charge a $5.60 transaction fee for a total of $85.60.

    The 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.

    If you have any questions or need to forward supporting documents related to your license application, send them to Producerlicensing@insurance.alabama.gov.

     

    Step 5: Submit Your Proof of Citizenship

    In Alabama, you must verify your citizenship to apply for an insurance license. Within 10 days of submitting your license application, Alabama requires you to submit proof of citizenship. If the ALDOI doesn’t receive your proof within those 10 days, it’ll decline your application.

    You must upload a file that includes images of the front and back sides of your identification (e.g., a driver’s license or other state ID). If you have questions about which forms of ID will work and which won’t, please contact the ALDOI at (334) 241-4126 or Producerlicensing@insurance.alabama.gov.

     

    Step 6: Watch for Your Application Results

    After you complete the previous five steps, the ALDOI will review your application and fingerprint-based background check. This process usually takes two or more days from the date you mail your application.

    Once it finishes reviewing your application, the ALDOI’s Producer Licensing Department will email you with its decision. If you need to provide more information, a specialist will contact you.

    You can print your license from the NIPR website. There’s no charge to create an account or print a license. If you need to search for 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 P&C insurance agent in Alabama.




    Next Steps After Securing Your Alabama Property and Casualty Insurance License

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

     

    Get a Job in the Insurance Field

    Once you hold a P&C license, you can consider several different insurance-related careers. The P&C license gives you authorization within your state to sell P&C insurance policies and related products that’ll provide financial protection to your clients against loss or damage.

    You can find P&C 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 take 24 hours of continuing education (CE) courses every two years to renew your P&C license.

    Alabama CE requirements include completing 24 hours (of which 3 should focus on ethics) per reporting period for producers. But, producers who are employed by another producer or insurer to work only in the office of that employer and who aren’t licensed as a non-resident in any other state must complete 12 hours of CE courses (of which 2 should focus on ethics) per reporting period.

    If you’re a non-resident who has satisfied your home state’s CE requirements, then you’re exempt from completing the CE requirements in Alabama.

    If you’re issued your license for less than 12 months at the time of your first renewal, you’re not required to complete the educational requirements but must claim the CE exemption during the renewal process through the NIPR.

    The NIPR accepts license renewals on behalf of the ALDOI through its website. The renewal fee is $70 and the late fee is $50. The ALDOI won’t accept paper renewal forms. The ALDOI will review and process renewals within 10 business days.

    To avoid delays in renewing your license, you must complete the required CE hours at least 30 days before your license expires.

    For more detailed information, check out how to renew your license with our Alabama insurance license renewal guide.




    Alabama Department of Insurance Contact Information

    Mailing Address:
    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 Property and Casualty License FAQ

    How much does it cost to get a property and casualty insurance license in Alabama?

    The total cost of getting a property and casualty (P&C) insurance license in Alabama is at least $396.95, but can reach nearly $500 based on the type of pre-license course you choose.

    The costs include:

     

    How long does it take to process a property and casualty insurance license application in Alabama?

    This process typically takes two or more days. You can print your license by going to the NIPR’s license print page and selecting Alabama from the drop-down list of states.

     

    Can I get a temporary property and casualty insurance agent license in Alabama?

    Yes. Alabama provides a six-month, temporary P&C insurance license. Temporary insurance producers must first go to NIPR and apply for an Alabama Temporary Producer License. A temporary producer license is only valid if you’re sponsored and appointed by an insurance company. Only Alabama residents can qualify for temporary producer licenses.

     

    Can I get an emergency property and casualty insurance agent license in Alabama?

    No. An emergency license isn’t available for P&C insurance producers in Alabama.

     

    What can I sell with a property and casualty insurance license in Alabama?

    With an Alabama P&C license, you can sell insurance products like homeowners insurance, renters insurance, auto insurance, general liability insurance, and workers’ compensation policies.

     

    How much can you make with a property and casualty insurance license in Alabama?

    According to ZipRecruiter, P&C insurance agents earn an average salary of between $30,000 and $44,500+ per year. P&C insurance agents who sell homeowners and auto insurance also can earn a 5 percent to 20 percent commission based on policy premiums.

     

    What are the limitations of an Alabama property and casualty insurance license?

    Unless you have multiple licenses to sell various types of insurance products, having an Alabama P&C license only gives you the authority to negotiate and sell P&C insurance policies. You’ll need additional licenses to sell other types of insurance.

     

    Can I cancel my property and casualty license in Alabama?

    Yes. To cancel or surrender your license, you can use the Request to Voluntarily Cancel or Surrender License form. Upload your completed form at the Request to Cancel or Surrender License/Line of Authority section of the ALDOI website.

     

    How hard is it to get a property and casualty 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 July 2022.

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