Ala. Admin. Code r. 482-1-147-.08
Current through Register Vol. 43, No. 1, October 31, 2024
Section 482-1-147-.08 - Temporary Producer License(1) Temporary License - Pending Examination.(a) An individual otherwise qualified as an insurance producer except as to having taken and passed the written examination may apply for a temporary producer license according to the requirements set forth in this rule for the following lines of insurance:(b) The applicant for a temporary producer license must be actively engaged in a prelicensing course for the line or lines of authority under the supervision of the appointing insurer or insurers.(c) The applicant shall complete the Department's on-line licensing process to become licensed as a temporary producer for a particular line or lines of insurance. Instructions for the on-line licensing process, as they may change from time to time, will be provided on the Department's Web site.(d) A temporary producer license is valid for a maximum of six months, during which time the temporary licensee must complete the examination requirements to convert the temporary license to a regular producer license.(e)1. An individual may only have one temporary producer license for a particular line of authority in a lifetime, except when the prior license was canceled before expiration, in which case the remaining time may be applied to a subsequent temporary producer license.2. The Department will rely on its license and appointment records to determine the length of time an individual held a temporary license in a line of authority for purposes of the six-month limitation. The Department will not accept or act upon insurer representations that a producer's part appointment terminated earlier than as shown in the Department's records or that the producer did not earn commissions while appointed, or other similar claims which are not established or capable of being established in the Department's records.(f)1. A temporary producer must be appointed by at least one insurer for each line of authority but may be appointed to represent more than one insurer only by affiliated companies.2. Each insurer using temporary producers shall have prospective temporary producer licensees sign a disclosure statement before application is made for the license, whether a new applicant or an applicant using the balance of an unused prior six-month license. The Department will provide a copy of the disclosure form on its Web site. A copy of the signed disclosure shall be provided to the applicant and the original signed disclosure shall be retained by the insurer and made available to the Department upon request.3. An insurer shall terminate a temporary producer's appointment through the Department within five (5) business days after the date on which the temporary producer's employment with the insurer terminated, whether voluntarily by the producer's decision or involuntarily by the insurer's decision.(g) The fees for a temporary producer license are the same as for an individual producer license provided in Code of Ala. 1975, § 27-4-2(a), as set forth below: 1. Application fee | $30.00 |
2. License fee | $50.00 |
3. Appointment fee | $40.00 |
(2) Temporary License - Death, Disability or Military Service of Licensed Producer (Type 2). (a) An individual otherwise qualified as an insurance producer except as to having taken and passed the written examination may apply for a temporary producer license, herein referred to as a "Type 2" temporary license, for any line of insurance according to the requirements set forth in this rule under the following circumstances: 1. The individual is the surviving spouse or court-appointed personal representative of a licensed producer who dies or becomes mentally or physically disabled.2. The individual is a member or employee of a business entity which is a licensed insurance producer, upon the death or disability of the licensed individual producer designated by the business entity to be responsible for the business entity's compliance with all applicable laws, rules, and regulations.3. The individual is the designee of a licensed producer entering active service in the Armed Forces of the United States of America.4. Another circumstance determined by the Commissioner on a case-by-case basis which best serves the public interest.(b) The applicant shall submit or transmit the forms provided by the Department to become licensed as a Type 2 temporary insurance producer under this paragraph. Instructions for the licensing process, as they may change from time to time, will be provided by the Department.(c) The applicant must be sponsored by a licensed insurance producer or insurer who will assume responsibility for all acts of the Type 2 temporary producer.(d) A Type 2 temporary producer license is valid for a period not to exceed six months, except a Type 2 temporary license issued under circumstances of disabling or confining illness or injury of the producer may be renewed for one additional six-month term.(e) The Type 2 temporary licensee may complete the examination requirements and convert the Type 2 temporary license to an ordinary producer license.(f) In the event an individual is unable to serve for the duration of the temporary license, a substitute individual may be licensed under the same requirements and conditions; however, the expiration date of the substitute licensee will be adjusted to conform to the time period indicated above in paragraph (c).(g) A Type 2 temporary producer licensed under this paragraph may be appointed by more than one insurer.(h) The fees for a Type 2 temporary producer license are the same as for an individual producer provided in Code of Ala. 1975, § 27-4-2(a), as set forth below: 1. Application fee | $30.00 |
2. License fee | $50.00 |
3. Appointment fee | $40.00 |
(3)(a) Upon successful completion of the required insurance producer examination and any criminal history record check required under Chapter 482-1-157, an unexpired temporary producer license under either paragraph (1) or (2) will be automatically converted to an individual insurance producer license for the same line of authority covered by the examination. No additional fees are required at that time and the new individual insurance producer license will be considered to have been first issued on the date of the conversion from the temporary license for purposes of determining renewal and continuing education requirements.(b) If the temporary insurance producer license expires prior to successful completion of the required examination and any criminal history record check required under Chapter 482-1-157, the individual must complete the application process for individual insurance producer license to become licensed.Ala. Admin. Code r. 482-1-147-.08
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 XXXIII, Issue No. 01, October 31, 2014, eff. 10/26/2014.Amended by Alabama Administrative Monthly Volume XXXIII, Issue No. 11, August 31, 2015, eff. 1/1/2016.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.