Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-147 - INSURANCE PRODUCERS, TEMPORARY PRODUCERS, AND SERVICE REPRESENTATIVES
Section 482-1-147-.08 - Temporary Producer License
Universal Citation: AL Admin Code R 482-1-147-.08
Current through Register Vol. 42, No. 5, February 29, 2024
(1) Temporary License - Pending Examination.
(a)
An individual otherwise qualified as an insurance producer except as to having
taken and passed the written examination may apply for a temporary producer
license according to the requirements set forth in this rule for the following
lines of insurance:
1. Life.
2. Health.
3. Property.
4. Casualty.
5. Personal Lines.
(b) The applicant for a temporary producer
license must be actively engaged in a prelicensing course for the line or lines
of authority under the supervision of the appointing insurer or
insurers.
(c) The applicant shall
complete the Department's on-line licensing process to become licensed as a
temporary producer for a particular line or lines of insurance. Instructions
for the on-line licensing process, as they may change from time to time, will
be provided on the Department's Web site.
(d) A temporary producer license is valid for
a maximum of six months, during which time the temporary licensee must complete
the examination requirements to convert the temporary license to a regular
producer license.
(e)
1. An individual may only have one temporary
producer license for a particular line of authority in a lifetime, except when
the prior license was canceled before expiration, in which case the remaining
time may be applied to a subsequent temporary producer license.
2. The Department will rely on its license
and appointment records to determine the length of time an individual held a
temporary license in a line of authority for purposes of the six-month
limitation. The Department will not accept or act upon insurer representations
that a producer's part appointment terminated earlier than as shown in the
Department's records or that the producer did not earn commissions while
appointed, or other similar claims which are not established or capable of
being established in the Department's records.
(f)
1. A
temporary producer must be appointed by at least one insurer for each line of
authority but may be appointed to represent more than one insurer only by
affiliated companies.
2. Each
insurer using temporary producers shall have prospective temporary producer
licensees sign a disclosure statement before application is made for the
license, whether a new applicant or an applicant using the balance of an unused
prior six-month license. The Department will provide a copy of the disclosure
form on its Web site. A copy of the signed disclosure shall be provided to the
applicant and the original signed disclosure shall be retained by the insurer
and made available to the Department upon request.
3. An insurer shall terminate a temporary
producer's appointment through the Department within five (5) business days
after the date on which the temporary producer's employment with the insurer
terminated, whether voluntarily by the producer's decision or involuntarily by
the insurer's decision.
(g) The fees for a temporary producer license
are the same as for an individual producer license provided in Code
of Ala. 1975, §
27-4-2(a), as set
forth below:
|
1. Application fee |
$30.00 |
|
2. License fee |
$50.00 |
|
3. Appointment fee |
$40.00 |
(2) Temporary License - Death, Disability or Military Service of Licensed Producer (Type 2).
(a) An individual otherwise qualified as an
insurance producer except as to having taken and passed the written examination
may apply for a temporary producer license, herein referred to as a "Type 2"
temporary license, for any line of insurance according to the requirements set
forth in this rule under the following circumstances:
1. The individual is the surviving spouse or
court-appointed personal representative of a licensed producer who dies or
becomes mentally or physically disabled.
2. The individual is a member or employee of
a business entity which is a licensed insurance producer, upon the death or
disability of the licensed individual producer designated by the business
entity to be responsible for the business entity's compliance with all
applicable laws, rules, and regulations.
3. The individual is the designee of a
licensed producer entering active service in the Armed Forces of the United
States of America.
4. Another
circumstance determined by the Commissioner on a case-by-case basis which best
serves the public interest.
(b) The applicant shall submit or transmit
the forms provided by the Department to become licensed as a Type 2 temporary
insurance producer under this paragraph. Instructions for the licensing
process, as they may change from time to time, will be provided by the
Department.
(c) The applicant must
be sponsored by a licensed insurance producer or insurer who will assume
responsibility for all acts of the Type 2 temporary producer.
(d) A Type 2 temporary producer license is
valid for a period not to exceed six months, except a Type 2 temporary license
issued under circumstances of disabling or confining illness or injury of the
producer may be renewed for one additional six-month term.
(e) The Type 2 temporary licensee may
complete the examination requirements and convert the Type 2 temporary license
to an ordinary producer license.
(f) In the event an individual is unable to
serve for the duration of the temporary license, a substitute individual may be
licensed under the same requirements and conditions; however, the expiration
date of the substitute licensee will be adjusted to conform to the time period
indicated above in paragraph (c).
(g) A Type 2 temporary producer licensed
under this paragraph may be appointed by more than one insurer.
(h) The fees for a Type 2 temporary producer
license are the same as for an individual producer provided in Code
of Ala. 1975, §
27-4-2(a), as set
forth below:
|
1. Application fee |
$30.00 |
|
2. License fee |
$50.00 |
|
3. Appointment fee |
$40.00 |
(3)
(a)
Upon successful completion of the required insurance producer examination and
any criminal history record check required under Chapter
482-1-157, an unexpired temporary
producer license under either paragraph (1) or (2) will be automatically
converted to an individual insurance producer license for the same line of
authority covered by the examination. No additional fees are required at that
time and the new individual insurance producer license will be considered to
have been first issued on the date of the conversion from the temporary license
for purposes of determining renewal and continuing education
requirements.
(b) If the temporary
insurance producer license expires prior to successful completion of the
required examination and any criminal history record check required under
Chapter 482-1-157, the individual must
complete the application process for individual insurance producer license to
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.
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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