Alabama Life & Health Exam Overview

Alabama Life & Health Insurance State

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1 Introduction: Alabama Life & Health Insurance Exam Overview

Alabama Life & Health Exam Overview

2 Chapter 1: Alabama Insurance Regulation & Licensing

1.1 Alabama Department of Insurance (ALDOI) 1.2 Alabama Producer Licensing Requirements 1.3 License Maintenance and Continuing Education

3 Chapter 2: Alabama Life Insurance Laws

2.1 Alabama Life Insurance Policy Requirements 2.2 Alabama Annuity Regulations 2.3 Alabama Replacement Rules

4 Chapter 3: Alabama Health Insurance Laws

3.1 Alabama Health Insurance Policy Requirements 3.2 Alabama Medicare Supplement (Medigap) Regulations 3.3 Alabama Disability and Long-Term Care Insurance

5 Chapter 4: Alabama Insurance Ethics & Prohibited Practices

4.1 Unfair Trade Practices 4.2 Producer Conduct and Fiduciary Duties 4.3 Alabama Life and Disability Insurance Guaranty Association

Alabama Life & Health Exam Overview

Key Takeaways Explain This Topic AI

The combined Life, Accident & Health exam is 150 multiple-choice questions in 3 hours, scored against a 70% passing standard.

Effective January 1, 2024 (Act 2023-104), Alabama eliminated mandatory pre-licensing education — you may register for the exam directly.

The exam is delivered through the University of Alabama testing program for the Alabama Department of Insurance (ALDOI); fees are $50 single line or $75 combined.

Resident applicants must complete an electronic fingerprint background check before ALDOI will issue the license.

The standard producer CE requirement is 24 hours every 2 years (3 ethics); limited categories and exemptions differ. Producers renew on the last day of their birth month with a 30-day grace period and $50 late fee.

Last updated: July 2026

About the Alabama Life & Health Exam

Welcome to ExamFinch's FREE Alabama Life & Health prep guide. The Alabama Life, Accident and Health Agent examination is delivered through the University of Alabama testing program on behalf of the Alabama Department of Insurance (ALDOI) . Passing it qualifies you to hold the Life line, the Health line, or the combined line of authority.

The test blends national insurance concepts with Alabama statute. Roughly 80–85% covers general principles (life products, health products, policy provisions, taxation, underwriting); the remaining 15–20% tests Alabama-specific law — the topics this guide drills.

Exam-Day Logistics

• Item Detail
• Vendor University of Alabama (for ALDOI)
• Questions (combined L&H) 150 multiple-choice
• Time limit 3 hours
• Passing score 70% (correct, not scaled)
• Single-line exam Life or Health, fewer questions, $50
• Combined L&H fee $75 (vs. $100 for two singles)
• Format Computer-based; testing centers or online proctored
• Results Immediate, on screen
• Score validity 1 year to apply for the license

Trap: 70% is a flat percentage of correct answers — there is no curve and no separate national/state passing line on the combined test. Missing roughly 45 of 150 questions ends the attempt.

How the Combined Test Saves Money

Taking Life ($50) and Health ($50) separately costs $100 . The combined Life & Health exam is $75 — a $25 saving — and only one seat to schedule. Most candidates pursue the combined line because employers expect both authorities.

Arrive with a valid government photo ID whose name matches your registration exactly. A name mismatch is the most common cause of being turned away at the door, forfeiting the fee. Testing is available in Birmingham, Huntsville, Mobile, Montgomery, and Tuscaloosa , plus remote online proctoring.

Major Change: Pre-Licensing Education Eliminated

The single most important update: effective January 1, 2024 , under Act 2023-104 , Alabama eliminated the mandatory pre-licensing course . Before that date the state required 20 classroom hours per line (40 for combined L&H) and a completion certificate to sit for the exam. That certificate is no longer demanded by ALDOI.

What Changed

• Feature Before 1/1/2024 Now
• Pre-licensing hours 20 hrs per line (40 combined) 0 required
• Completion certificate Required to register Not required
• Exam eligibility After course Register directly
• Self-study Allowed but certificate still needed Fully sufficient

Exam trap: A question may state "Alabama requires 40 hours of pre-licensing education before the L&H exam." Under current law that is false — the answer is 0 required hours . Older study materials still cite the 40-hour rule; trust the post-2024 standard.

Why Most Candidates Still Take a Course

A structured 40-hour Life & Health course (or 20-hour single-line) remains the smart choice because the exam draws on dense product, taxation, and provision material. Recommended preparation by line:

• Life only — 20-hour Life course, then practice to a consistent 80%+
• Health only — 20-hour Health course
• Combined L&H — 40-hour Life & Health course

Aim to score 80% or higher on full-length practice tests before scheduling — the 10-point cushion above the 70% pass line absorbs exam-day nerves and unfamiliar question wording.

From Exam Pass to Issued License

Passing the exam is step one. ALDOI issues the license only after the application and background steps clear:

Pass the exam (70%+) — the score remains valid for 1 year .

Complete the required electronic fingerprint background check through the approved channel for resident individual applicants.

Apply through NIPR (or Sircon) for the line or lines passed and pay the resident application fee.

Meet eligibility — be at least 18 , satisfy Alabama's character and legal requirements, and obtain any required federal consent under 18 U.S.C. 1033 .

Receive the license — producer licenses renew on a roughly 2-year birth-month cycle.

License Maintenance

• Requirement Detail
• Standard producer CE 24 hours every 2 years
• Standard ethics portion 3 of the 24 hours
• Qualified office-only CE 12 hours including 2 ethics
• Renewal deadline Last day of birth month, every 2 years
• Even/odd rule Birth year controls the renewal-year parity
• Grace period 30 days after birth month, with the applicable late fee

The 12-hour rule is narrow. It applies to a producer or Service Representative who is employed by another producer or insurer , works only in that employer's office , and is not licensed as a nonresident in another state .

Product-Specific Training

• Training Rule
• Long-term care (LTC) 8-hour initial course, then 4 hours every 24 months while selling LTC
• Annuities Complete Alabama's required annuity best-interest training before soliciting annuities
• Flood (NFIP) Complete the required flood training before selling federal flood policies

Approved LTC training may earn general CE credit . The LTC duty remains product-specific, however: a producer with a general CE exemption must still complete the required LTC training before selling, soliciting, or negotiating LTC coverage.

Current CE Exemptions

Current exemptions include qualifying limited-line licenses, newly licensed producers and Service Representatives during their first 12 months, and qualifying nonresidents who satisfy reciprocal home-state CE. Separate grandfathered exemptions apply only when the exemption existed before January 1, 2013 and continues without a disqualifying lapse or change. Examples include a person who, before that date, was at least 60 and had been Alabama-licensed for 15 years, or already held a listed professional designation.

ALDOI contact: aldoi.gov · 201 Monroe Street, Suite 502, Montgomery, AL 36104 · 334-241-4126 · ProducerLicensing@insurance.alabama.gov .

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