Get A Life Insurance License: Alabama Requirements

If you're looking to get a life insurance license in Alabama, there are a few key steps you need to follow. First, you need to complete a pre-licensing course to prepare for the state licensing exam – which you need to pass with a score of 70% or higher. After that, you'll need to get a fingerprint-based background check and submit your license application, along with proof of citizenship, through the National Insurance Producer Registry (NIPR). While the process is not overly complicated, it's important to follow the steps correctly to ensure you're set up for success as a licensed life insurance agent in Alabama.

Choose a life insurance license type

The Alabama Department of Insurance (ALDOI) requires you to choose a line of authority you want to be licensed in. You can choose from health insurance, life insurance, property and casualty insurance, or any combination of those lines.

• Life Accident & Health or Sickness
• Combined life/accident & health or sickness (commonly called life & health)
• Variable life and variable annuity products

If you want to sell basic products, a life insurance license will suffice. However, if you want to offer a wider range of products tied to the securities market, you'll need a securities license in addition to your life insurance license.

Many agents opt for both a Property and Casualty (P&C) license and a Life and Health license to offer clients a broader range of insurance products.

If you already know you want to specialize in one type of policy, you can focus on the specific license relevant to that insurance type.

Complete a pre-licensing course

To obtain a life insurance license in Alabama, you must complete a pre-licensing course. This is the first step in the process of becoming a licensed insurance agent in Alabama. While Alabama does not require licensing candidates to complete prelicensing education, it is highly recommended that you undertake a course to prepare for your state's licensing exam.

A.D. Banker offers prelicensing courses that will prepare you to pass the state exam on your first attempt. These courses are online and can be supplemented with web classes and learning tools like flashcards and study manuals. ExamFX also offers prelicensing courses that will help you prepare for your state's licensing exam.

Kaplan Education Company offers a pre-license course for $149. This course will provide you with the necessary information and tools to prepare for your exam. In Alabama, you must take a 20-hour course on life insurance. After completing the course, you will 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.

Pre-license education courses are self-paced and include study materials like practice exams and flashcards. These courses will give you a solid understanding of your duties as a life insurance agent, in addition to helping you prepare for the exam.

Pass the state licensing exam

Passing the state licensing exam is a pivotal part of becoming a licensed insurance agent in Alabama. The exam is administered by the University of Alabama and covers both general insurance product knowledge and Alabama-specific insurance laws and regulations. To pass, you need a score of 70% or higher. Here are some detailed steps and tips to help you prepare for and pass the exam:

Understand the Exam Format and Content

The Alabama life insurance licensing exam consists of 125 multiple-choice questions, divided into three sections. The general section covers basic life insurance product knowledge, the life insurance section deals with life policies and provisions, and the state section focuses on Alabama-specific laws, regulations, and practices. The exam fee is $50, and you must pay by credit card, debit card, or voucher when making your reservation.

Complete a Pre-licensing Course

While not mandatory, enrolling in a pre-licensing course is highly recommended. These courses are designed to provide you with the knowledge and tools needed to pass the exam. A good pre-licensing course will cover the specific industry knowledge that will be tested and help you understand your duties as a life insurance agent. Look for courses that offer practice exams, flashcards, and other study materials.

Allocate Sufficient Study Time

Make sure to set aside dedicated time to prepare for the exam. It is recommended to allocate around one to two weeks for studying, allowing you to thoroughly cover the material. Remember, the exam will solely consist of factual questions, so a strong understanding of the content is crucial.

Take Practice Exams

Practice exams are an excellent way to familiarize yourself with the exam format and the types of questions asked. They help you identify areas you need to focus on and improve your test-taking strategies. Aim to take practice exams under simulated exam conditions to get used to the timing and environment.

Control Test Anxiety

To minimize exam anxiety, establish a consistent pre-test routine. This could include practicing with mock exams, getting a good night's sleep in the days leading up to the exam, and arriving early at the test centre to familiarize yourself with the surroundings.

Know What to Bring on Exam Day

On the day of the exam, remember to bring one valid form of government-issued identification, such as a driver's license, passport, or military ID, which must include your name and photograph.

Be Aware of Exam Results and Retake Policies

You will be informed of your exam results immediately after completing the examination. However, it may take up to three days for the results to appear on the Alabama Department of Insurance's website. If you happen to fail the exam, you are prohibited from retaking it for 90 days. If you fail the exam four times, a 180-day waiting period is imposed for each subsequent attempt.

Get fingerprinted

To get an Alabama life insurance license, you will need to get a fingerprint-based background check. This is a requirement for all unlicensed applicants in Alabama.

The fingerprinting process is straightforward. You will need to visit a fingerprinting vendor such as Fieldprint® Alabama or Gemalto. These companies have locations across the state, so you can choose the one that is most convenient for you. The fingerprinting fee is typically around $48.25.

It is important to note that your fingerprint results will only remain in the Alabama system for 30 days. Therefore, you should aim to apply for your license within this timeframe to avoid having to redo your fingerprint-based background check and pay the fee again.

Additionally, you must submit your license application within one year of passing the licensing exam. If you fail to do so, you will need to retake the exam.

Submit proof of citizenship

Submit Your Proof of Citizenship

Alabama requires that you submit proof of citizenship in accordance with the Alabama Citizen Protection Act. This must be done within ten days of submitting your license application. If your file is not received within this timeframe, your application will be declined.

You will need to use one of the sixteen different identifiers listed on ALDOI before your license is issued. A file containing the front and back of your identification must be uploaded. Acceptable forms of ID include your official driver's license or other state ID. If you are unsure about which forms of ID are acceptable, contact the ALDOI at (334) 241-4126 or email the License Department.

Additional Information

The Alabama Department of Insurance (ALDOI) will issue a life insurance license to individuals who are at least 18 years old and have passed the proper licensing exam. To apply for a life insurance license in Alabama, ensure that you comply with the insurance licensing requirements as defined under the Alabama Insurance Code.

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Frequently asked questions