Alabama Life and Health Insurance Agent Exam

Need of a License: An individual who is acting as an agent or producer needs a license to sell life and health insurance in Alabama.

Who Grants a License: Licenses are granted by the Alabama Department of Insurance.

Qualifications to receive a License: Individuals must complete a prelicensing course of study for the lines of authority desired before taking any examination. The prelicensing course must consist of 20 classroom hours per line of authority, or equivalent individual instruction, on the general principles of insurance for that line of authority. The lines of authority requiring a prelicensing course are as follows:

Life – 20 hour course on Life Insurance or 40 hour course on Life & Health Insurance
Accident & Health or Sickness (Disability) – 20 hour course on Health Insurance or 40 hour course on Life & Health Insurance
Combined Life / Accident & Health or Sickness (Disability) – 40 hour course on Life & Health Insurance

A list of approved prelicensing providers is available on the Alabama Department of Insurance website, as well as more information on qualifications.

Once the prelicensing course is completed and a certificate is awarded, the insurance licensing examination can be taken within one year from the date of the certificate.

Applying for the Producer Exam: Individuals who have completed the appropriate prelicensing course, are eligible to sit for the insurance producer examination. You can apply online for the testing site of your choice.

Test Information: The Life and Health Exam is divided into four sections, each with the following major subtopics:

I. General – Life and Health Insurance

Chapter 1: Purpose of Insurance
Chapter 2: Contract Law
Chapter 3: Underwriting and the Application

II. Life Insurance

Chapter 4: Traditional Life Policies
Chapter 5: Flexible Feature Life Policies
Chapter 6: Policy Provisions
Chapter 7: Policy Options
Chapter 8: Policy Riders
Chapter 9: Annuities and Retirement Plans
Chapter 10: Business and Group Life
Chapter 11: Social Security

III. Health Insurance

Chapter 12: Health Foundations
Chapter 13: Medical Expenses
Chapter 14: Disability Income Policies
Chapter 15: Uniform Individual Health Policy Provisions Law
Chapter 16: Group Health
Chapter 17: Medicare and Medicaid
Chapter 18: Limited Health Insurance Policies

IV. Alabama Insurance Law

Topic 1: All Licensing Candidates
Topic 2: Life Insurance Candidates
Topic 3: Accident and Health (Disability) Candidates

There are a total of 150 questions on the Life and Health exam with an allowable completion time of 180 minutes. A score of 70% or greater is required to pass the exam. Your examination will be graded immediately upon submission, and your examination certificate is valid for one year from date of completion.

An exam study guide is available for purchase, and coincides with the examination outlines published by the State of Alabama at aldoi.gov.

How to Apply for the License: There are separate licensing processes which are dependent upon your residency and licensure status.
Alabama Residents:

If you don’t currently hold an active Temporary Insurance Producer License, you must complete an online application after successfully completing the examination. The $60.00 fee must be paid by credit card online.

Those currently holding an active Temporary Insurance Producer License, and who have successfully completed the examination, must request the issuance of a regular producer license within 30 days. No fee is required.

License Renewal Requirements:
Individual Producer licenses must be renewed every 2 years and there is a continuing education requirement.

Applicable Regulations: Life and health insurance agents in Alabama are regulated by the Alabama Department of Insurance.

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For more information on life and health insurance agent licensing and exam preparation, go to Tests.com’s Life and Health Insurance Exam Guide.

And take Tests.com’s free Life and Health Insurance Agent Practice Test.

For life and health insurance agent exam preparation products, such as study guides, flashcards and courses, go to Tests.com’s Life and Health Insurance Sales Exam listings.

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