Current through Register Vol. 42, No. 5, February 29, 2024
(1)
Business Entity Producer. A business entity may be issued an insurance producer
license in accordance with the following:
(a)
To be licensed as an insurance producer, a business entity must be a
corporation, a limited liability company, a partnership, a limited partnership,
a limited liability partnership, or another legally recognized form of entity
distinct from an individual or the individuals or other entities that may own
or hold interests in, or be members of, the entity as determined by the laws of
the entity's state of domicile. A sole proprietorship can only be licensed as
an individual producer. One or more individuals doing business under a trade
name cannot obtain a business entity producer license absent formal
organization as an entity.
(b) An
Alabama-domiciled business entity shall complete the Department's on-line
licensing process to become licensed as an insurance producer for a particular
line or lines of insurance. Instructions for the on-line licensing process will
be provided on the Department's Web site.
(c) A foreign-domiciled business entity may
use the on-line licensing process or may submit or transmit a copy of the
application that was submitted to its domiciliary state. Issuance of an Alabama
business entity producer license to a foreign-domiciled business entity does
not in itself satisfy any applicable Alabama constitutional and statutory
requirements that may require the entity to qualify through or register with
the Alabama Secretary of State in order to lawfully do business in
Alabama.
(d) The business entity
license applicant must identify at least one licensed individual producer
designated as responsible for the business entity's compliance with all
applicable laws, rules, and regulations for each line of authority. A licensed
individual producer so designated must have such a degree of affiliation with
the entity in terms of an ownership interest in the entity, a role as an
officer or director, by contract or employment relationship, or otherwise as
reasonably assures that the licensed individual producer can cause or influence
the entity's compliance with all applicable laws, rules, and
regulations.
(e) Business entity
producers must be appointed to act on behalf of an insurer and must be
appointed by each insurer it represents. A business entity is deemed to be
representing or acting on behalf of an insurer upon entering into an agency
contract or agreement with the insurer. Each individual producer acting as a
producer of the insurer on behalf of the business entity producer must also be
appointed to represent the insurer.
(2) Individual Producer. An individual may be
issued an insurance producer license in accordance with the following:
(a) An Alabama resident shall complete the
Department's on-line licensing process to become licensed as an insurance
producer for a particular line or lines of insurance.
(b) A nonresident individual may also use the
on-line licensing process or may submit or transmit a copy of the application
that was submitted to the home state.
(c) Individual insurance producers must be
appointed to act on behalf of an insurer and must be appointed by each insurer
it represents.
(3) Unless
exempt, an individual applicant must comply with the examination requirements
prior to making application for license as an insurance producer for those
lines of authority requiring an examination.
(4) An individual seeking to be licensed for
or holding the variable life and variable annuity products line of authority
must also hold the life line of authority as an insurance producer and must
also successfully complete the appropriate securities examinations and be
registered under the applicable federal and state securities laws.
(5) An individual or business entity may
apply for an insurance producer license for any or all of the lines of
authority for which qualified at one time; however, subsequent applications for
additional lines of authority are treated the same as initial applications. All
license and application fees apply for each application submitted or
transmitted.
(6) Instructions for
the on-line licensing process, as it may change from time to time, will be
provided on the Department's Web site.
(7) The initial fees for an individual
insurance producer license are set by statute and are listed on the
Department's Web site.
(8)
Subsequent changes in the name, mailing address, or electronic mail address of
a producer must be reported within 30 days thereof. While there is no filing
fee for reporting such changes, there is a penalty of $50 for the failure to
report the changes within 30 days. Instructions for the name, mailing address,
or electronic mail address change process, as it may change from time to time,
will be provided on the Department's Web site.
(9)
(a)
Individual and business entity producers are subject to the license renewal
process set forth in Chapter
482-1-110.
(b) If an insurance producer license is not
renewed in accordance with Chapter
482-1-110 the license expires and
all insurer appointments are canceled.
(c) Within twelve months of expiration, the
former licensee can reapply for an insurance producer license without having to
retake the examination by following the instructions for the on-line license
reinstatement process, as it may change from time to time, as directed on the
Department's Web site. Upon receiving the reinstated license, the producer may
again be appointed by insurers by following the on-line appointment
process.
(d) When former licensees
have been without a license for over twelve months, they must comply with any
applicable examination requirements before again applying for an insurance
producer license.
(10)
When an insurance producer's license is suspended or revoked, the former
licensee should contact the Legal Division of the Department to receive
instructions should the former licensee desire to again become
licensed.
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.
