Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-111 - LICENSING OF LIMITED LINE CREDIT INSURANCE PRODUCERS
Section 482-1-111-.05 - Licensing Of Credit Insurance Producers

Universal Citation: AL Admin Code R 482-1-111-.05

Current through Register Vol. 42, No. 5, February 29, 2024

(1) No person shall, in this state, be, act as, hold himself or herself out as, or claim to be or act as, a limited line credit insurance producer unless then licensed in this state as an insurance producer under the provisions of Chapter 7 of Title 27, Code of Ala. 1975. A limited line credit insurance producer can only market one or more forms of credit insurance to individuals through a master, corporate, group, or individual policy.

(2) An individual or business entity licensed under the provisions of Chapter 7 of Title 27, Code of Ala. 1975:

(a) As an insurance producer for the life line of authority has the authority to market credit life insurance.

(b) As an insurance producer for the disability line of authority has the authority to market credit disability insurance.

(c) As an insurance producer for the property and casualty lines of authority has the authority to market credit property and casualty insurance.

(d) As an insurance producer for the automobile line of authority has the authority to market credit property and casualty insurance in transactions where the collateral is an automobile.

(3) An insurance producer license is not required of persons who secure and furnish information for the purpose of group life insurance, group property and casualty insurance, group annuities, group or blanket accident and health insurance or for the purpose of enrolling individuals in such plans, or issuing certificates thereunder or otherwise assisting in administering such plans, or performs administrative services related to mass marketed property and casualty insurance; where no commission is paid to such person for such services. These persons may enroll debtors without any license; however, commissions may be paid on this business only to licensed producers.

(4) Individuals will be issued a limited line credit insurance license upon application if otherwise qualified, without prelicensing education or written examination.

(5) Business entities, including creditors, that have at least one individual licensed as a limited line credit insurance producer will be licensed as a limited line credit insurance producer upon application.

(6) A creditor may form or acquire a subsidiary corporation for the purpose of securing a producer license. A licensed partnership, corporation, financial institution or other creditor may receive payment of commissions directly from the sale of credit insurance.

(7) Employees of creditors may be individually licensed and appointed as producers. Employee includes officers, directors, stockholders and traditional employees.

Author: Reyn Norman, Associate Counsel

Statutory Authority: Code of Ala. 1975, §§ 27-2-17, 27-7-43.

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