Current through Register Vol. 42, No. 5, February 29, 2024
(1)
(a)
Except as provided in paragraph (3), all individuals must successfully pass an
examination prior to becoming licensed as an insurance producer for the
following lines of authority:
1.
Life.
2. Health.
3. Property.
4. Casualty.
5. Personal Lines.
6. Bail Bonds.
(b) An outline for each examination will be
posted on the Department's Web site setting forth the number of questions on
the examination from each test section and the time allowed within which to
complete the examination.
(2) Unless otherwise exempt, an insurance
producer whose license has expired or has otherwise been terminated and has not
been in effect for twelve (12) consecutive calendar months must successfully
pass the applicable examination(s), as required in paragraph (1), in order to
again become licensed.
(3) The
examination requirements shall not apply as follows:
(a) All applicants for a license to transact
only the following lines of authority are exempt from the requirements of this
rule:
1. Variable Life and Variable Annuity
Products.
2. Credit.
3. Rental Vehicle.
4. Crop.
5. Portable Electronics.
6. Travel.
7. Legal Services.
8. Dental Services.
9. Motor Club.
10. Self-Service Storage Facility.
(b) An individual licensed as an
insurance producer in another state is exempt from successfully passing an
examination in order to apply for an Alabama producer license with the same
line(s) of authority if, at the time of application, the individual's
out-of-state license is current or was cancelled within ninety (90) days before
the application and the individual is in good standing in that state or in the
state's producer database records as maintained by the NAIC.
(c) An individual currently licensed as an
insurance producer (or its equivalent) in another state is exempt from
successfully passing an examination in order to apply for a nonresident
producer license in Alabama with the same line(s) of authority if the
individual is in good standing in that state or in the state's producer
database records as maintained by the NAIC.
(4) Examination Passing Grade.
(a) Prior to an examination, each question
will be valued with the sum of the values equaling 100.
(b) After an examination, the value of each
question answered correctly will be counted and the sum of the values totaling
70 or more shall constitute a passing grade.
(5) Limitations on Repeat Examinations.
(a) If an individual takes and fails to pass
two examinations for a particular line of authority, the individual must wait a
minimum of ninety (90) days after the last failure before the individual can
again take the examination for that line of authority.
(b) If an individual thereafter fails the
examination two additional times, the individual must wait a minimum of one
hundred eighty (180) days after the last failure before each subsequent
examination for that line of authority.
(c) The waiting periods described in
paragraphs (a) and (b) expire twenty-four (24) months after the date of the
last failed examination.
(d) For
purposes of applying the waiting periods in the context of examinations on
related lines of authority:
1. The waiting
periods relating to the life examination and the health examination apply also
to the combined life and health examination.
2. The waiting periods relating to the
combined life and health examination apply also to the life examination and to
the health examination.
3. The
waiting periods relating to the property examination apply also to the personal
lines examination and the combined property and casualty examination.
4. The waiting periods relating to the
casualty examination apply also to the personal lines examination and the
combined property and casualty examination.
5. The waiting periods relating to the
combined property and casualty examination apply also to the personal lines
examination, the property examination, and the casualty examination.
6. The waiting periods for the personal lines
examination apply also to the personal lines examination, the property
examination, the casualty examination, and the combined property and casualty
examination.
(6) An individual passing an examination will
be furnished an examination results certificate by the examination
administrator. This certificate must be kept by the individual and presented to
Department of Insurance upon request.
(7) Examination results certificates are
valid for one year from the date of issuance.
(8) An individual shall pay a non-refundable
fee as indicated below for each examination scheduled:
(a) Life $50.00
(b) Health $50.00
(c) Combined Life and Health $75.00
(d) Property $50.00
(e) Casualty $50.00
(f) Combined Property and Casualty
$75.00
(g) Personal Lines
$50.00
(h) Bail Bonds
$50.00
Author: Commissioner of Insurance
Statutory Authority:
Code of Ala.
1975, §§
27-2-17,
27-7-4.3,
27-7-5,
27-7-23,
27-7-24,
27-7-30,
27-7-43.
