ALABAMA ADJUSTER LICENSING INFORMATION

License Types

Independent Adjuster

An individual, a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity can be an independent adjuster. A sole proprietorship can only be licensed as an individual. There are four lines of authority for an independent adjuster:

• Property & Casualty, including Workers’ Compensation and Crop
• Property & Casualty, excluding Workers’ Compensation and Crop
• Workers’ Compensation
• Crop

Apprentice Independent Adjuster

Apprentice must be supervised by actively licensed Independent Adjuster who can only supervise up to 5 Apprentices at once.Also note Apprentice Adjuster licenses will not automatically convert within one year to an Adjusters License, without having completed the appropriate exam and fingerprinting by expiration date of the license. Therefore, it is our recommendation that exams are taken and passed, and you are then fingerprinted at least ONE WEEK prior to expiration of Adjuster Apprentice licenses. This will allow time for electronic conversion without applicants having to reapply.

Public Adjuster

Alabama does not license or recognize public adjusters.       

Staff Adjuster

Alabama does not license staff adjusters.

Emergency

Exclusions

1. Attorneys-at-law admitted to practice in this state when acting in their professional capacity as an attorney.
2. A salaried employee of an insurer.
3. A person employed solely to obtain facts surrounding a claim or to furnish technical assistance to a licensed independent adjuster.
4. An individual who is employed to investigate suspected fraudulent insurance claims but who does not adjust losses or determine claims payments.
5. A person who solely performs executive, administrative, managerial, or clerical duties or any combination thereof and who does not investigate, negotiate, or settle claims with policyholders, claimants, or their legal representative.
6. A licensed health care provider or its employee who provides managed care services so long as the services do not include the determination of compensability.
7. A managed care organization or any of its employees or an employee of any organization providing managed care services so long as the services do not include the determination of compensability.
8. A person who settles only reinsurance or subrogation claims.
9. An officer, director, manager, or employee of an authorized insurer, surplus lines insurer, a risk retention group, or an attorney-in-fact of a reciprocal insurer.
10. A U.S. manager of the United States branch of an alien insurer.
11. A person who investigates, negotiates, or settles life, accident and health, annuity, or disability insurance claims.
12. Under a self-insured arrangement, an individual employee who adjusts claims on behalf of his or her employer.
13. A licensed insurance producer appointed to represent the insurer, attorney-in-fact of a reciprocal insurer, or managing general agent of the insurer, to any of whom claim authority has been granted by the insurer.
14. a. An individual who collects portable consumer electronic device insurance claim information from insureds or claimants, enters such data into an automated claims adjudication system, and furnishes claim information to the insureds or claimants from the results of such system.
    b. For purposes of this subdivision, the individual must be an employee of a licensed independent adjuster or of a licensed insurance producer exempt from adjuster licensure pursuant to subdivision (13) or of an affiliate of either a licensed independent adjuster or a licensed insurance producer exempt from adjuster licensure pursuant to subdivision (13), but in any case where no more than 25 such individuals are under the supervision of a single individual licensed independent adjuster or insurance producer.
    c. For purposes of this subdivision, "automated claims adjudication system" means a preprogrammed computer system designed for the collection, data entry, calculation, and system-generated final resolution of claims which meets all of the following:
    1. It shall only be utilized by a licensed independent adjuster, licensed insurance producer, or by individuals supervised by a licensed independent adjuster or insurance producer pursuant to this subdivision.
    2. It shall comply with all claims payment requirements of the insurance code.
    d. For purposes of this subdivision, "portable consumer electronic device" means a personal, self-contained, easily carried by an individual, battery-operated electronic communication, viewing, listening, recording, gaming, computing, or global position device, and other similar devices and their accessories.
    e. The licensed independent adjuster or insurance producer who supervises the individuals shall file a report with the commissioner indicating an intention to operate pursuant to this subdivision.

Licensing Requirements

Requirements

• Be 18 years of age or more.
• Must complete the required 20 or 40 Hour Pre-licensing Adjuster Course from an approved provider for the requested line of authority. Must take and pass the State final exam and then apply for the license.
• Beginning on December 15, 2015, Proof of U.S. Citizenship is required for all applicants and licensees. Proof may be submitted using this link: https://aldoi.gov/LicenseeCZ/Initial.aspx. Proof is required in accordance with the Beason-Hammon Taxpayer and Citizen Protection Act. Citizenship verification is required of ALL APPLICANTS. There are sixteen different identifiers, including your official driver’s license, any one of which can be used as proof. Your license will not be renewed or issued until this documentation is received. If information is not received within 10 days your application will be rejected. Please note: fees paid are non-refundable NOTE: Non-resident individuals and non-Alabama firms must permit Alabama resident adjusters and Alabama firms to act as adjusters in their home state.
  
  Effective April 1, 2015, all individual resident applicants seeking to become licensed as Adjusters, or who are adding a new line of authority to an existing Adjuster license, must have completed a Fingerprint background check. You should seek to get fingerprinted after passing the state exam and one day before applying for the license.

Reciprocity and Non Residents

• Emergency Adjusters: the Alabama Insurance Code, allows adjusters not licensed in the state and acting on behalf of an insurer to conduct business within the state in the event of a catastrophe.
• Emergency Adjusters who will be employed by an Alabama insurer may register online using this link: https://aldoi.gov/OnlineAAP/default.aspx . and now requires a fee of $50 per individual registration
• Registration as an Emergency Adjuster is required in order to be issued Disaster Emergency Adjuster Passes and Disaster Emergency Adjuster Access Passes.

Reciprocity with Texas license

Alabama does not require you to hold a license in your state of residence in order to enjoy the benefits of reciprocity through Texas.

Pre Licensing Education

Alabama requires any individual seeking an Alabama adjuster license to complete an approved PreLicensing Course & Exam.

o       Residents & Non-residents of Alabama alike seeking an Alabama adjuster license must complete both the Pre-Licensing program and AdjusterPro's Alabama Adjuster Exam
o       Students will take a Prse-Licensing Exam at the conclusion of their Pre-Licensing course.
o       Students can take the Alabama state exam after successfully completing the Pre-Licensing Exam with a passing score of 70% or higher.
o       The Alabama State Exam, administered through the AdjusterPro online learning center, also must be passed with a 70% or higher. Students have three attempts to successfully pass the exam (retakes must be purchased at $75 per attempt).
o       Both exams are taken within the online classroom. One attempt at the State Exam is included with the course. Additional State Exam attempts must be purchased.
o       The State of Alabama requires that all Pre-Licensing courses be passed by examination prior to taking the State Exam.

Bond Requirement

In Alabama Adjuster Bond not required for Licensing.

How to Apply

Alabama Residents:

• Must have completed the 20 or 40 hour pre-licensing course and passed the state exam.
• Applicant must apply online. Use Link https://pdb.nipr.com/html/erlWelcome.html to register
• CLM users can apply through CLM Tracker
• Application fee of $110 will be accessed . NIPR FEES ARE NON-REFUNDABLE.
• To change/add a designated adjuster click here.
• Use link https://sbs-al.naic.org/Lion-Web/jsp/ext/login/launch.jsp to print your license.

Non-Residents: There are three different initial licensing processes. Online thru NIPR and online thru SBS.
NIPR Mandatory Online Process is for those non-resident adjuster applicants whose home state licenses Independent adjusters. Applicant must apply online. Please use the below link.
https://pdb.nipr.com/html/nrlWelcome.html
CLM Tracker Online Process is for those non-resident adjuster applicants whose home state licenses Independent adjusters. Applicant can apply online via CLM Tracker
SBS Mandatory Online Process is for those non-resident applicants whose home state, as listed below, does not license adjusters. These states do not license Independent Adjusters (CO, DC, IA, IL, KS, MA, MD, MO, ND, NE, NJ, OH, PA, SD, TN, VA, and WI; NOTE: Cannot use AL as a designated home state unless applicant is from a non-licensing state and has passed AL exam). Please use the below link to register.
https://sbs-al.naic.org/Lion-Web/jsp/ext/login/UserVerification.jsp

• Partial SBS applications will be rejected and no refund given. Must reapply.
  

Maintaining Your License

Renewal

Adjuster licenses are renewed biennially. Individual adjusters are allowed to renew their license online 45 days prior to their birth month until the last day of their birth month, with a renewal fee of $80. If your license is not renewed by the last day of the birth month, the license is given a 30 day grace period with a $40.00 late fee plus the $80.00 renewal fee.

Beginning on December 15, 2015, Proof of U.S. Citizenship is required for all applicants and licensees. Proof may be submitted using this link: https://aldoi.gov/LicenseeCZ/Initial.aspx. Proof is required in accordance with the Beason-Hammon Taxpayer and Citizen Protection Act. Citizenship verification is required of ALL APPLICANTS. There are sixteen different identifiers, including your official driver’s license, any one of which can be used as proof. Your license will not be renewed or issued until this documentation is received. If information is not received within 10 days your application will be rejected. Please note: fees paid are non-refundable
CLM Tracker subscribed users can renew the licenses via CLM.

Continuing Education

Beginning January, 2014 continuing education is required for the independent adjuster license renewal as per the new Adjuster law (Act 2011-637) that went into effect January 1, 2012. Independent Adjusters will be required to complete 24 CE hours of which 3 should be in ethics. MUST HAVE CE COMPLETED TO RENEW LICENSE. Non-Resident Adjusters who have met CE compliance requirements in their resident state or designated home state’s CE requirement is exempt here. Otherwise, they must complete Alabama CE. Business Entity Adjuster licenses are renewed biennially by December 31st in odd years. Renewal fee is $200. The license is given a 30 day grace period, with one and one half times the renewal fee ($300).
CLM Tracker subscribed users can track their CE Credits via CLM.

Reissue

If the license is cancelled, it can be reissued upon request.

Fees

Contact

Contact the Alabama Department of Insurance Alabama Insurance Department, PO Box 303351, Montgomery, Alabama 36130 Phone: (334) 269-3550, Fax: (334) 241-4192, Email: insdept@insurance.alabama.gov
http://www.aldoi.gov/Licensing/AdjusterReq.aspx