HB306 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Gregory Canfield
Republican
Session: Regular Session 2011
Title: Insurance adjusters, licensing and regulation by Insurance Department, Secs. 27-9A-1 to 27-9A-18, inclusive, added; Sec. 27-4-2 am'd.; Secs. 27-9-1 to 29-9-8, inclusive, repealed
Summary: HB306 creates a new Chapter 9A to regulate independent insurance adjusters in Alabama, including licensing, apprenticeship, and emergency adjuster registration, replacing the old Chapter 9.
What This Bill Does
It establishes licensing rules for independent adjusters and apprentice adjusters, plus a process for registering emergency independent adjusters during states of emergency. It requires prelicensing coursework, a written exam, biennial continuing education, and background checks (including fingerprints). It defines nonresident licensing rules, record-keeping, and standards of conduct, and gives the Insurance Commissioner authority to set regulations and delayed enforcement dates to allow for implementation. It also updates the fee structure and repeals Chapter 9, replacing it with Chapter 9A.

Who It Affects
Independent adjusters (residents, nonresidents, apprentices, and those acting as emergency adjusters): must obtain licenses or registrations, complete prelicensing hours and exams, meet continuing education requirements, undergo background checks, comply with standards of conduct, and renew licenses biennially.
Insurance companies, insurers, and business entities that employ or contract with adjusters: must register emergency adjusters deployed during a state of emergency, designate a responsible individual, pay applicable fees, and ensure licensing and conduct requirements are followed.
Note: Nonresident adjusters must meet home-state reciprocity rules, and apprentices must be supervised by a licensed adjuster and can convert to a full license after passing the exam.

Key Provisions
Adds Chapter 9A to Title 27 to govern qualifications, procedures, and restrictions for independent adjusters, apprentice independent adjusters, and emergency independent adjusters.
Defines key terms including independent adjuster, apprentice, home state, and emergency adjuster; establishes reciprocity and home-state rules for nonresidents.
Requires licensure for independent adjusters, with prelicensing course (20 hours per line), passing a written exam, meeting age and eligibility requirements, and paying fees; allows for exemptions in certain cases.
Imposes biennial license renewals with continuing education (minimum 24 hours every two years, including 3 hours of ethics); outlines penalties for noncompliance and establishes reporting requirements for actions in other jurisdictions.
Creates an apprenticeship pathway: an apprentice independent adjuster license valid up to 12 months, supervised by a licensed adjuster (max five apprentices per supervisor); automatic conversion to full licensure upon passing the exam; compensation limited to salary or hourly wages.
Establishes emergency independent adjuster registration during states of emergency, valid up to 90 days, with a $50 registration fee; registrants are subject to the same rules as licensed adjusters.
Requires fingerprint-based background checks for applicants (with potential NAIC centralized repository use) and imposes record-retention rules for adjusters.
Authorizes the Commissioner to promulgate rules and to implement delayed enforcement dates up to 24 months for certain provisions related to apprenticeship, fingerprinting, prelicensing, and continuing education.
Amends Section 27-4-2 to set fee levels for adjuster licenses (application $20, license $80, examination up to $100) and updates related miscellaneous fees.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Insurance Department