Becoming An Alabama Insurance Broker: Steps To Take

If you're looking to become an insurance broker in Alabama, there are a few key steps you need to follow. Firstly, you'll need to decide on the type of insurance license you want to obtain, such as health insurance, life insurance, or property and casualty insurance. The next step is to complete a pre-licensing education course, which will prepare you for the state licensing exam. It's important to pass this exam with a score of 70% or higher, as there will be an additional fee for retaking it. After passing the exam, you'll need to get fingerprinted and apply for your license through the National Insurance Producer Registry (NIPR). Additionally, Alabama requires proof of citizenship and completion of continuing education courses to maintain your license. The entire process can take between two to five weeks, assuming there are no issues with your application.

Choose the type of insurance license

To become an insurance broker in Alabama, you must obtain an Alabama insurance license. The type of insurance license you need depends on the type of insurance policies you want to sell. Here is a list of the different types of insurance licenses available in Alabama:

• Property & Casualty (P&C) license: This license is required if you want to sell auto, home, or business insurance.
• Life Accident & Health or Sickness
• Variable Life and Variable Annuity

Most insurance agents obtain either a Property and Casualty (P&C) or a Life and Health license. Many agents also choose to get both licenses to offer a wider range of products to their clients. However, if you want to specialise in a specific type of policy, you only need to focus on the relevant license.

It's important to note that if you want to work as an insurance adjuster, you will need a separate license.

• The type of insurance policies you want to sell: As mentioned earlier, different licenses are required for selling different types of insurance policies. For example, if you want to sell auto or home insurance, you will need a Property & Casualty license.
• Your area of specialisation: If you plan to specialise in a specific type of insurance, such as life insurance or health insurance, you should choose the license that aligns with your specialisation.
• Your career goals: Consider your long-term career goals and the type of clients you want to work with. For example, if you want to work with individuals and help them manage their personal risks, a life and health insurance license may be more suitable. On the other hand, if you want to work with businesses and help them with their commercial insurance needs, a property and casualty license may be more appropriate.
• The requirements of the license: Each license has specific requirements, including education, training, and examination. Make sure you understand the requirements for each license and ensure you are eligible and capable of fulfilling them.
• The cost of obtaining the license: There are fees associated with obtaining an insurance license, including examination fees, application fees, and fingerprinting fees. Consider the cost of obtaining each type of license and choose the one that fits your budget.

Complete a pre-licensing course

To become an insurance broker in Alabama, you must complete a pre-licensing course. This is the first step towards obtaining your license. The Alabama Department of Insurance (ALDOI) requires all insurance brokers in the state to hold an insurance producer license.

There are several pre-licensing courses available, so it's important to choose the right one for you. Consider the course's flexibility, price, and reputation. For example, does the course provider have a good track record of helping students pass their exams?

The pre-licensing course will cover various insurance concepts, definitions, insurance laws, and agent regulations. These concepts will be outlined on the Alabama Examination Content Outline, which your course should cover.

Online courses are available, often supplemented with web classes, learning tools, and study materials. The cost of pre-licensing education is generally around $100-$200.

Once you've completed your pre-licensing course, you'll be ready to take the state licensing exam.

Pass the Alabama Insurance License Exam

To pass the Alabama Insurance License Exam, you must first complete a pre-licensing education course. While this is not a mandatory requirement in Alabama, it is highly recommended. A pre-licensing course will cover the topics you need to know for your exam and can increase your chances of passing the test on your first attempt.

There are several pre-licensing courses available, so it's important to choose one that suits your needs and learning style. Consider factors such as course flexibility, price, and the provider's reputation. ExamFX and AD Banker are two popular options, with the former offering a money-back guarantee.

Once you've completed your pre-licensing course, you can register for the state licensing exam. This exam is administered by the University of Alabama, and you can choose to take it online or at a physical location in Birmingham, Huntsville, Mobile, Tuscaloosa, or Montgomery. The exam consists of multiple-choice questions and covers basic insurance product knowledge and specific insurance laws, rules, regulations, and practices unique to Alabama.

The format of your exam will depend on the type of insurance license you're seeking. For example, the Life Insurance Exam is 2.5 hours long and consists of 125 questions, while the Health Insurance Exam is 2 hours long and has 100 questions. To pass, you must achieve a score of 70% or higher.

On the day of your exam, arrive at least 15 minutes early and bring a valid form of government-issued identification, such as a driver's license, passport, or military ID. You will not be permitted to bring personal items into the testing center, and you will need to store them elsewhere.

After completing the exam, you will be informed of your results. If you pass, you can then proceed to the next steps of the licensing process, including fingerprinting and applying for your license.

Submit fingerprints and pass a background check

To become an insurance broker in Alabama, you must submit to a fingerprint and background check. This is a legal requirement under Alabama state law (Ala. Code § 27-7-4.4).

To do this, you must schedule an appointment with Fieldprint Alabama, the state's designated fingerprint vendor, and pay a processing fee of $47.20. By submitting your fingerprints, you authorise the Alabama Department of Insurance to obtain any and all criminal history information relating to you from the Alabama Law Enforcement Agency (ALEA) and/or the FBI.

If you find any part of your Criminal History Record Information (CHRI) to be incomplete or inaccurate, you have the right to submit an appeal by contacting the Records & Identification Division at (334) 353-4340.

Your fingerprint results will remain valid for 30 days. If your application is not submitted to the Department of Insurance within this timeframe, you will need to be fingerprinted again and pay the processing fee again.

Any misdemeanours or felonies may affect the outcome of your licensing efforts. If you are concerned about this, you can contact the Alabama Department of Insurance by phone or email for more guidance.

Fulfill the citizen requirement

To become an insurance broker in Alabama, you must be a citizen of the United States and provide proof of citizenship. This is in accordance with the Beason-Hammon Taxpayer and Citizen Protection Act, which requires Alabama to verify the citizenship of all individual resident applicants before issuing an insurance license.

There are sixteen different identifiers that can be used to prove citizenship, including your official driver's license. It is important to note that your license will not be issued until this documentation is received, and if the required information is not submitted within 10 days, your application will automatically be rejected.

Additionally, non-citizens of the U.S. must have a resident license for selling insurance in one of the fifty U.S. states. Eligibility will be verified through the Systematic Alien Verification for Entitlements program, operated by the United States Department of Homeland Security.

Frequently asked questions