If you want to sell life and health insurance in Alabama, you must first obtain the appropriate license from the Alabama Department of Insurance. Rather than obtaining a life insurance license and health insurance license separately, the department offers a combined Life and Health Insurance license. To obtain a license, you must be at least 18 years old, meet the prelicensing education requirements and pass a licensing examination.
Prelicense Education
All applicants for a Life and Health Insurance license in Alabama must complete a 40-hour prelicensing education course from an approved provider. You may complete the course in a classroom setting or online. At least five hours of education must be in Alabama law. You can find a list of approved education providers on the Alabama Department of Insurance website (see References). You will receive a certificate of completion after successfully completing the course.
Examination
You are required to take the Life and Health Insurance license examination within one year of completing your prelicensing education course. You can take the examination at a location in one of five Alabama cities -- Birmingham, Huntsville, Mobile, Tuscaloosa and Montgomery. The examination consists of 150 questions, and you must correctly answer at least 105 of them to pass. As of March 2011, the examination fee is $50. If you fail the examination, you must wait at least 90 days before retaking it and pay another registration fee.
Application
After passing the licensing examination, you have to submit a licensing application to the Alabama Department of Insurance. The department requires that you submit your application electronically online via the National Insurance Producer Registry (see Resource). The licensing fee is $60 as of March 2010. You can print a copy of your license from the department's website after the approval of your application. The department will not mail paper copies of licenses to its licensees.
Renewal
You are required to renew your license biennially by the end of the month in which you were born. Between renewal periods, you must complete 24 hours of continuing education from an approved education provider. You can request a renewal extension if you have not completed your continuing education credits by your renewal date. The department requires that you submit your renewal application online through the National Insurance Producer Registry website. The renewal fee is $60 as of March 2010.
