Alabama Property & Casualty Insurance License Exam — All Questions

Which agency issues resident property and casualty producer licenses in Alabama?

• a.The federal National Association of Insurance Commissioners
• b.Alabama Department of Insurance✓
• c.Alabama Secretary of State
• d.Alabama Department of Motor Vehicles

Alabama's insurance regulator is the Alabama Department of Insurance, led by the Commissioner of Insurance appointed by the Governor. It issues producer licenses and enforces the state insurance code — not the DMV, the Secretary of State, or the NAIC.

After a producer is licensed in Alabama, what must occur before he or she can transact business for a specific insurer?

• a.The insurer must appoint the producer and file that appointment with the Alabama Department of Insurance✓
• b.The producer must first sell ten policies as a supervised trainee
• c.The producer must post a personal surety bond with the state treasurer
• d.Nothing further; the license alone authorizes representing any insurer

A license lets a person act as a producer, but to represent a particular company the insurer must appoint the producer and file the appointment with the Alabama Department of Insurance. A producer may hold appointments from several insurers at once.

Which statement best describes Alabama's continuing education (CE) requirement for resident P&C producers?

• a.CE can be satisfied only by retaking the state licensing examination
• b.No CE is ever required once the license is issued
• c.State-approved CE, including an ethics component, must be completed each renewal period to keep the license active✓
• d.CE is required only in the first renewal cycle and never again

Like other NAIC-model states, Alabama requires resident producers to complete approved CE each renewal cycle, including a required ethics portion, plus the renewal fee. Exact hour totals are set by the Alabama Department of Insurance; confirm the current hours before renewing.