Ala. Admin. Code r. 482-1-147-.07

Current through Register Vol. 43, No. 02, November 27, 2024

Section 482-1-147-.07 - Insurance Producer License

(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.

Ala. Admin. Code r. 482-1-147-.07

New Rule: October 18, 2012; effective January 1, 2013. Filed with LRS October 18, 2012. Rule is not subject to the Alabama Administrative Procedure Act.

Amended by Alabama Administrative Monthly Volume XLI, Issue No. 10, July 31, 2023, eff. 1/1/2024.

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.