Alabama Insurance Exam Guides
Pick the license you're studying for. Each guide covers Alabama-specific requirements, fees, and official links — plus a free practice exam. Then scroll down to explore the Alabama exam's state-law material, mapped.
Free study resource
What's actually tested on the Alabama exam — the state regulations, mapped
Every Alabama insurance exam reserves a block of questions for Alabama-specific law — the fees, deadlines, limits, and rules that generic national study guides gloss over. This is that material: 106 facts from the TESTivity Alabama regulations curriculum, organized the way we teach them. Open a branch, explore, and let the structure do some of the remembering for you.
Every fact below carries its source citation and the date we last verified it (most recently July 2026) — and is re-checked on a schedule. Facts marked tested are ones you should expect to see on the exam.
Life 12 facts
The life insurance rules that differ by state — free look, grace, reinstatement.
- Incontestability period testedTwo years from date of issue, during the insured's lifetime — except for nonpayment of premium
- Grace period for individual life tested30 days (or, at the insurer's option, one month of not less than 30 days)
- Window to reinstate a lapsed policy tested3 years from the date of premium default
- Max interest chargeable on reinstatement, if capped testedInterest on overdue premiums and indebtedness may not exceed the POLICY LOAN RATE specified in the policy
- Suicide exclusion period testedTwo years from date of issue — and the statute says 'while sane or insane'
- Free look for annuities tested**A CONDITIONAL 15-day free look only** — triggered solely where the Buyer's Guide and disclosure document were NOT provided at or before the time of application. There is no unconditional annuity free look in Alabama. It runs concurrently with any other free look.
- Free look when a policy is being replaced tested30 days, with an unconditional full refund of all premiums paid, including any policy fees or charges
- Free look for long-term care tested30 days — and the refund must be made within 30 days of the return
- Required nonforfeiture options testedA paid-up nonforfeiture benefit (requestable within 60 days of the defaulted premium) and a cash surrender value (after 3 full years' premiums for ordinary, 5 for industrial). A specified benefit becomes automatic if no election is made within 60 days.
- Registrations required to sell variable products testedThe Life line of authority PLUS the securities exams and registration
- Does the state regulate viatical/life settlements? tested**NO — Alabama has no viatical or life settlement act.** Title 27 contains no viatical/life settlement chapter.
- Has the state adopted the NAIC best interest standard? testedYES — Alabama adopted the NAIC best interest standard effective January 1, 2022. Four obligations: Care, Disclosure, Conflict of Interest, Documentation. Producers must complete a one-time 4-credit annuity training course.
Health 10 facts
Health coverage rules — continuation, prompt pay, mandates, public programs.
- Has the state expanded Medicaid under the ACA? testedNO — Alabama has not expanded Medicaid under the ACA and remains a non-expansion state
- Agency administering Medicaid testedAlabama Medicaid Agency
- Federal marketplace or state-based exchange testedFederal marketplace (healthcare.gov) — Alabama is not a state-based exchange
- Name of the state CHIP program testedALL Kids — administered by the Alabama Department of Public Health
- Clean-claim payment deadline, electronic tested30 calendar days
- Clean-claim payment deadline, paper tested45 calendar days
- Does the state distinguish electronic vs paper claims? testedYES — Alabama splits electronic (30 days) and paper (45 days), the same structure as Texas
- Interest / penalty on late claim payment testedInterest at 1.5% per month, prorated daily. Administrative fines up to $1,000 per violation or per day, not exceeding $100,000 per violation.
- Is the IRO's external review decision binding on the plan? tested**Alabama has NO state external review process.** It defers to the FEDERAL HHS-administered external review process. The IRO's decision IS binding on the plan — but by force of FEDERAL rule (45 C.F.R. § 147.136), not Alabama law.
- Employer size at which federal COBRA applies tested20 or more employees
Auto 11 facts
Auto insurance — minimum limits, fault system, required coverages.
- Fault-based (tort) or no-fault testedFault-based (tort)
- Minimum bodily injury liability per person tested$25,000
- Minimum bodily injury liability per occurrence tested$50,000
- Minimum property damage liability tested$25,000
- The memorizable shorthand (e.g. 30/60/25) tested25/50/25
- Uninsured motorist: mandatory / must be offered & rejectable / not required testedMust be OFFERED — every auto policy includes UM coverage unless the insured REJECTS IT IN WRITING
- Underinsured motorist status testedMust be offered; rejectable in writing
- Personal injury protection status testedNot required — Alabama is not a no-fault state
- Contributory / pure comparative / modified comparative negligence testedCONTRIBUTORY NEGLIGENCE — any fault at all, even 1%, bars ALL recovery
- The bar percentage, if modified comparative testedAny fault bars recovery entirely — there is no proportional recovery
- Assigned risk / residual market plan for auto tested**The Alabama Automobile Insurance Plan (ALAIP)** — the assigned-risk plan, in effect since May 17, 1948, administered through AIPSO. Risks are assigned among all insurers writing auto in Alabama.
CE & Renewal 10 facts
Continuing education and renewal rules — the numbers the exam loves.
- How long a license lasts before renewal testedTwo years (biennial)
- What the renewal date keys off (flat term / birthday / birth year) testedBirth month AND odd/even birth year — born in an odd-numbered year, renew at the end of your birth month in odd years; born in an even year, renew in even years. The renewal window opens 90 days before the end of your birth month.
- CE hours per renewal period, standard case tested24 hours per biennial reporting period
- CE hours if holding multiple license types (if different) testedStill 24 — the requirement does NOT increase with the number of lines you hold
- Ethics hours required per period tested3 hours
- Limits on who may provide CE credits testedNo provider quota, but the Commissioner will not approve courses that prepare for initial licensure, or that cover only office skills, sales promotion/technique, motivation, psychology, or time management
- Initial long-term care training requirement testedA one-time 8-hour LTC training course, PLUS ongoing 4 hours every 24 months. You must also hold the Life or Accident & Health line.
- What happens if CE is not completed (fine / expiry / cancellation) testedThere is no separate CE fine. The license simply will not renew until the CE is showing in the transcript — and no CE extensions have been granted since January 1, 2019. Fail to renew and the license expires and all company appointments are canceled.
- Late renewal / reinstatement tiers tested30-day grace after your birth month: renew for $70 plus a $50 late fee, retroactive to the expiration date. After the grace period and up to 12 months: the license is EXPIRED — reinstate without re-examination by paying double the renewal fee, but appointments were canceled and must be re-filed. Over 12 months without a license: you must RETEST and be RE-FINGERPRINTED.
- Any CE exemption (e.g. long-service agents) testedCurrent exemptions: newly licensed producers for 12 months; limited-line-only licensees; nonresidents meeting home-state CE under reciprocity. GRANDFATHERED ONLY (frozen as of January 1, 2013): licensed 15 years and age 60+; and holders of CPCU, CIC, CLU, ChFC, CFP, RHU, REBC, or ARM designations.
Property 8 facts
Property insurance — rate regulation, residual markets, catastrophe exposure.
- Rate regulation system (file-and-use / prior approval / use-and-file) tested**A SPLIT SYSTEM.** **Personal lines P&C = PRIOR APPROVAL.** **Commercial lines = FILE AND USE** — except workers' compensation, medical malpractice, and any overall rate increase of **10% or more**, all of which require **PRIOR APPROVAL**.
- Is insurance credit scoring permitted in personal lines? tested**Permitted, but tightly restricted** by Ala. Admin. Code ch. 482-1-127. The insurance scoring model must be FILED with the Commissioner before use.
- Does the state have a FAIR Plan? testedYes — the Alabama Insurance Underwriting Association (AIUA), Alabama's coastal 'beach pool'
- Name of the FAIR Plan, if any testedAlabama Insurance Underwriting Association (AIUA)
- Coastal windstorm pool, if any (e.g. TWIA) testedAIUA — the market of last resort for property owners in BALDWIN and MOBILE counties (Alabama's two coastal counties) who cannot obtain coverage in the private market. Rates are filed with and APPROVED BY ALDOI before use. AIUA offers significant premium discounts for FORTIFIED construction and wind-mitigation features.
- Dominant catastrophe perils in the state testedGulf hurricane and storm surge along the Baldwin/Mobile coast; tornado and severe storm inland (Alabama sits in Dixie Alley)
- What license you must already hold to write surplus lines testedA resident PROPERTY AND CASUALTY producer license — plus a high school diploma, 3 years of recent full-time P&C experience, and a $50,000 bond
- Is a diligent-effort search of the admitted market required first? testedYes
Guaranty 10 facts
The safety nets when an insurer fails — and their limits.
- Name of the life & health guaranty association testedAlabama Life and Disability Insurance Guaranty Association (ALDIGA)
- Life death benefit limit tested$300,000
- Life cash surrender / withdrawal value limit tested$100,000
- Annuity benefit limit tested$250,000 in present value of annuity benefits
- Health benefit limit tested$500,000 for basic hospital, medical-surgical, or major medical; $300,000 for disability income; $300,000 for long-term care; $100,000 for other health coverages
- Aggregate per-individual cap, if any tested$300,000 per life — except $500,000 where basic hospital/medical-surgical or major medical is involved. A single owner of multiple non-group life policies is capped at $5,000,000.
- Does the state follow the standard NAIC model limits? testedBroadly, yes — but with Alabama's own tiered health limits
- Name of the P&C guaranty association testedAlabama Insurance Guaranty Association (AIGA)
- Per-claim cap tested$300,000 per claim, or the policy limits, whichever is LESS — but workers' compensation claims are paid IN FULL with no cap, and the return of unearned premium is capped at $10,000 per policy
- Is using the guaranty association as a sales inducement prohibited? tested**No express prohibition found.** Neither Ala. Code ch. 42 (P&C) nor ch. 44 (Life & Disability) contains an advertising or sales-inducement prohibition, and neither does Reg 482-1-132 (Advertisements of Life Insurance and Annuities). Alabama appears to be an outlier — most states expressly ban it.
Workers Comp 6 facts
Who must carry workers' compensation and what it pays.
- Is workers' compensation mandatory for private employers? testedYes — for employers with FIVE or more employees
- Employee count at which coverage is required testedFive or more employees (full-time or part-time, including corporate officers and LLC members) — contractors excluded
- Agency administering workers' compensation testedAlabama Department of Labor, Workers' Compensation Division
- Temporary total disability wage replacement rate tested**66⅔%** of average weekly earnings at the time of injury, subject to the statutory maximum and minimum in Ala. Code § 25-5-68
- Deadline to file a claim tested**2 years** from the accident (or, for cumulative physical stress, 2 years from the date of injury). In death cases, 2 years from death. Where compensation payments have been made, the limitation period does not begin to run until the LAST payment.
- Ways an employer may comply (insure / self-insure / group) testedPurchase coverage from a licensed insurer, qualify as an individual self-insurer, or join a group self-insurance fund
Regulator 5 facts
Who regulates insurance here and what powers the office holds.
- Name of the state insurance regulator testedThe Alabama Department of Insurance (ALDOI)
- Title of the person who heads it testedCommissioner of Insurance
- How the commissioner is chosen: elected / appointed by governor / appointed by other body testedAppointed by the Governor, serving a term concurrent with the Governor's — not elected
- Where the state's insurance law is codified testedTitle 27 of the Code of Alabama (the Alabama Insurance Code), with regulations at Chapter 482 of the Alabama Administrative Code
- Does the regulator sit somewhere unusual (e.g. inside a constitutional commission)? testedNo — a conventional executive-branch department
Cancellation 7 facts
When and how policies can be canceled or nonrenewed — heavily tested.
- Initial window during which an insurer may cancel more freely tested**AUTO: 60 days.** The statutory list of permitted cancellation reasons does not apply to an auto liability policy in force less than 60 days (unless it is a renewal) — so within that window the insurer may cancel for any reason. **HOMEOWNERS: there is no initial window, because Alabama has NO residential property cancellation statute at all.**
- Notice days to cancel a personal auto policy inside the initial window tested20 days' notice before the effective date of cancellation
- Notice days for cancellation for nonpayment tested10 days' notice, and the notice MUST be accompanied by the reason
- Notice days for cancellation for other permitted causes tested20 days' notice
- Notice days required for nonrenewal tested**HOMEOWNERS: no general individual nonrenewal statute.** The only binding rule is regulatory and applies to BLOCK / catastrophe-driven nonrenewals imposed on a 'category or group' of insureds: **120 days' written notice to the named insured**, and **150 days' written notice to the Commissioner**. **AUTO: NO statutory nonrenewal notice at all** — Ala. Code § 27-23-28 says in terms: *'Nothing in this article shall apply to nonrenewal.'*
- Must the reason be stated proactively, on request, or not at all? testedOn request. If the reason is not included in the cancellation notice, the notice must state that the insurer will supply the reason if the insured asks IN WRITING at least 15 days before the effective date of cancellation. Separately, the Alabama Homeowners Policyholder Bill of Rights (Act 2012-510) gives homeowners the right to receive the reason for cancellation in writing.
- Restrictions on nonrenewing because of claims (e.g. weather claims excluded) testedALDOI has acted against disaster-driven cancellations through **Bulletin No. 2025-08** (dated 4 February 2026), *'Unlawful trade practices – property and automobile insurance – prohibition against certain cancellations, non-renewals, or premium increases.'* Reporting indicates it bars property insurers from canceling or non-renewing because of a natural disaster, or because of losses outside the line of business, and bars related premium increases or surcharges.
Licensing 27 facts
How you get and keep the license — exams, fees, applications, background checks.
- Is there a standalone life license/exam? testedYes — Life (125 questions, 150 minutes)
- Is there a standalone health license/exam? testedYes — Health (100 questions, 120 minutes)
- Is there a combined life+health license/exam? testedYes — combined Life & Health (150 questions, 180 minutes)
- Is there a personal lines license/exam? testedYes — Personal Lines (100 questions, 120 minutes)
- Is P&C one combined license, or split into Property and Casualty? testedBOTH — Alabama offers a combined Property & Casualty exam AND separate Property-only and Casualty-only exams. It is one of the few states to offer every configuration.
- Does the life license cover annuities? testedYes — annuities are sold under the Life line of authority
- Does the P&C license already include personal lines authority? testedNo — Personal Lines is a separate, narrower line of authority
- Full list of exam-based agent license types testedLife · Accident and Health or Sickness (Disability) · Property · Casualty · Personal Lines · Variable Life and Variable Annuity · Credit · Bail Bond · Rental Vehicle · Crop · Portable Electronics · Travel
- Exam administrator (Prometric / PSI / Pearson VUE) testedThe University of Alabama — NOT Prometric, Pearson VUE, or PSI
- Exam fee tested$50 for a single-line exam; $75 for a combined Life & Health or Property & Casualty exam
- License application fee tested$80 total ($30 application fee + $50 license fee), plus a $5 NIPR transaction fee
- Fee per insurer appointment tested$40 to file the initial notice of appointment; $25 annual continuation
- Passing score tested70%
- Minimum age to be licensed tested18
- Is pre-licensing education required? testedNO — Alabama abolished the pre-licensing certificate requirement effective January 1, 2024
- Pre-licensing hours and any exceptions (e.g. Title, adjusters) testedNone. (One vestige: Reg 482-1-147-.08(1)(b) still requires an applicant for a TEMPORARY producer license to be actively engaged in a prelicensing course — do not confuse the two.)
- Fingerprints, state police report, or none testedFingerprints — submitted to ALEA (Alabama Law Enforcement Agency) and the FBI
- Who takes the prints / issues the report testedFieldprint — and ONLY Fieldprint. ALDOI cannot accept prints taken anywhere else, or prints taken for any purpose other than an Alabama insurance license.
- How long the background report stays valid testedFingerprint results remain in ALDOI's system for 30 days — apply within that window or you must be reprinted and pay again
- Deadline to apply after passing the exam testedThe examination certificate is valid for ONE YEAR from the date of completion
- How long a passed exam remains valid tested1 year
- Waiting period before retaking a failed exam testedNo wait after the 1st failure. After the 2nd failure: 90 days. After the 4th failure: 180 days for each subsequent attempt. All waiting periods reset 24 months after the last failure.
- Limit on number of attempts, if any testedNo hard cap, but the waiting periods apply across related exams — see the note on retake_wait
- Notice required to reschedule/cancel without forfeiting the fee testedRegister at least 7 days in advance; arrive 15 minutes early
- Where you apply (Sircon / NIPR / state portal) testedNIPR (nipr.com)
- Are temporary licenses available? testedYes — a 6-month temporary producer license, sponsored and paid for by an appointing insurer
- Temporary license duration and training requirement testedMaximum 6 months, non-renewable, ONCE IN A LIFETIME per line of authority. Alabama residents only. The insurer sponsors, appoints, and pays the $120 fee. It converts automatically to a full producer license if the holder passes the exam AND submits fingerprints before it expires.