Becoming An Auto Insurance Agent In Alabama: A Guide

If you're thinking about becoming an auto insurance agent in Alabama, you'll need to obtain an Alabama insurance license. The first step is to decide which insurance license you'll need. For auto insurance, you'll need a Property & Casualty (P&C) license. Once you've decided on the type of license, the next step is to complete a pre-licensing education course, which will increase your chances of passing your exam. After completing the course, you'll need to pass the relevant Alabama insurance license exam. Then, you'll need to complete a fingerprint and background check and fulfill the citizen requirement by submitting proof of citizenship. Finally, you can submit your insurance license application.

Pass the relevant Alabama insurance license exam(s)

To pass the relevant Alabama insurance license exam, you must first complete a pre-licensing education course. The state of Alabama requires candidates applying for certain lines of authority—such as Life & Health and Property & Casualty—to complete a state-approved pre-licensing education course.

There are many pre-licensing education courses available, so it's important to choose one that suits your needs. Consider the course's flexibility, price, and reputation when making your decision.

Completing a pre-licensing education course will increase your chances of passing your exam on the first attempt, saving you time and money.

Once you have completed your chosen pre-licensing education course, you will need to register for the relevant Alabama insurance license exam. This will depend on the line you wish to specialize in. For example, if you plan to become a life and health insurance agent, you will need to pass the Life and Health Insurance exam, which consists of 150 scored questions.

To register for the exam, go to the University of Alabama's website and follow these steps:

• Click on the "Register Today" link on the homepage.
• On the next page, click on the "Registration Link."
• Select your desired date and follow the prompts to complete your registration.

The cost of the licensing exam depends on the line of authority you are testing for:

• Producer Combined Life and Health exam: $75
• Producer Combined Property and Casualty exam: $75
• Independent Adjuster Exam Fee: $75
• Title Agent Exam Fee: $75

Keep in mind that you can sit for more than one exam at a time, but this is not recommended as it increases the risk of confusing separate line material.

Also, note that if you fail an exam twice, you will be required to wait 90 days before registering for another attempt, and this increases to 180 days for candidates who fail four times. The fees paid are non-refundable.

Complete a pre-licensing education course

To become an auto insurance agent in Alabama, you must complete a pre-licensing education course. This step is optional but highly recommended, as it increases your chances of passing your licensing exam on the first attempt.

The state of Alabama requires candidates applying for certain lines of authority, such as Life & Health and Property & Casualty, to complete a state-approved pre-licensing education course. When choosing a course, consider factors such as flexibility, price, and the course provider's reputation.

Several companies offer pre-licensing education courses, including Kaplan Financial Education, ExamFX, and At Your Pace Online. These courses provide comprehensive insurance training packages and study tools to help you prepare for the exam.

For example, ExamFX offers a first-time pass guarantee for its customers. They also have a Readiness Exam with a score of 80% to determine maximum exam readiness. At Your Pace Online offers various exam prep courses, including the Deluxe P&C Insurance Exam Prep and the Deluxe Life/Health Insurance Exam Prep. These courses include downloadable PDFs, subject lessons, quizzes, and test-simulator final exams.

Completing a pre-licensing education course will give you a strong foundation and increase your chances of success in obtaining your Alabama auto insurance agent license.

Submit an application

Once you've passed your exam, you will need to submit your application for your Alabama insurance adjuster license. You can do this through the National Insurance Producer Registry (NIPR) website, where you will also need to pay an $80 processing fee.

Alabama requires applicants to submit a proof of citizenship document and a fingerprint background check with their license application. You can schedule an appointment to get fingerprinted through Fieldprint.

You must submit your application within 30 days of completing your fingerprint check. Your fingerprint results will remain in the Alabama system for 30 days after you have completed your fingerprint check. If your application reaches the Department of Insurance after those 30 days, you will need to get fingerprinted again and repay the required fee.

Note that NIPR stores your first application on their server for 30 days. As you cannot have two active applications simultaneously, you will need to contact NIPR and remove your previous application if you plan to apply for an additional line of authority within this period.

Fulfill the citizen requirement

To become an auto insurance agent in Alabama, you must be a US citizen or a legal alien with work authorization from the Immigration and Naturalization Services.

In accordance with the Beason-Hammon Taxpayer and Citizen Protection Act, Alabama requires verification of citizenship for all individual resident applicants before issuing an insurance license. This means that you will need to submit proof of citizenship with the state; there are sixteen different identifiers that you can use while doing so, including your official driver's license.

Note that your license will not be issued until this documentation is received. If the required information is not submitted within 10 days, your application will automatically be rejected.

Complete a fingerprint and background check

To become an auto insurance agent in Alabama, you will need to complete a fingerprint and background check as part of the licensing process. Here is a detailed, step-by-step guide on how to do this:

As an aspiring insurance agent in Alabama, you must undergo a fingerprinting and background check in compliance with Alabama law (Ala. Code § 27-7-4.4). This process is a mandatory step in obtaining your Alabama insurance license.

Choose a Fingerprinting Vendor

The Alabama Department of Insurance only accepts fingerprints processed through Fieldprint, their designated vendor. You can schedule an appointment for fingerprinting with Fieldprint Alabama by visiting their website or office.

Pay the Processing Fee

The fingerprinting service comes with a processing fee of $47.20 per application. This fee is non-refundable and must be paid directly to Fieldprint.

Submit Your Fingerprints

After scheduling your appointment and paying the fee, you will provide your fingerprints, which will be used to conduct a background check. This background check will involve the Alabama Department of Insurance obtaining your criminal history information from the Alabama Law Enforcement Agency (ALEA) and/or the FBI.

Review Your Criminal History Record Information (CHRI)

Once your fingerprints have been processed, you have the right to review your CHRI for accuracy and completeness. If you identify any inaccuracies or missing information in your CHRI, you can submit an appeal by contacting the Records & Identification Division at (334) 353-4340.

Meet Deadlines

It is important to be mindful of the validity period of your fingerprint results. Your fingerprint results will remain valid for only 30 days. If you fail to submit your insurance license application to the Department of Insurance within this timeframe, you will need to repeat the fingerprinting process and pay the processing fee again.

Address Misdemeanors or Felonies

If you have any concerns about how misdemeanors or felonies on your record might impact your licensing application, you can contact the Alabama Department of Insurance by phone or email to seek guidance on this matter.

Additional Considerations

License Application Submission

After successfully completing your fingerprinting and background check, along with the other requirements, you can proceed to submit your insurance license application. You will need to wait at least three to five business days after passing your exams to ensure that your exam results have been processed.

Application Review Timeline

Once you have submitted your application, the Alabama Department of Insurance will review it, along with your background check results. This process typically takes between two and five weeks. However, if there are any items from your background check that require further review, the process may take longer.

Communication from the State

If the state encounters any issues during the review process, they will likely contact you to provide context. Once the review is complete, the state will send you an email regarding the status of your license.

By carefully following the outlined steps, you can successfully complete the fingerprinting and background check requirements for becoming an auto insurance agent in Alabama. Remember to stay mindful of deadlines and address any concerns regarding your criminal record.

Frequently asked questions