SB106 Alabama 2012 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Mark Slade Blackwell
Republican
Session: Regular Session 2012
Title: Insurance Department, insurance producers licensure further provided for, require licensees notification of changes in addresses, Secs. 27-7-1, 27-7-5, 27-7-14.1, 27-7-17, 27-7-37, 27-8A-1, 27-8A-6 am'd; 27-7-4.4, 27-22A-1 to 27-22A-7, inclusive, added; 27-7-20, 27-7-21 repealed
Summary: SB106 reorganizes Alabama's insurance producer licensing, ends certain lines of authority, creates portable electronics insurance with vendor licensing, and adds new background checks and reporting requirements.
What This Bill Does
Eliminates the automobile and industrial fire lines of authority for insurance producers and transitions existing licenses to new lines (auto → personal lines, industrial fire → property lines) on the next renewal, while adding travel and crop insurance as limited lines. Allows exceptions to prelicensing education and exams for certain applicants (e.g., college insurance degree holders and variable life/variable annuity line), and requires related licensing and securities registrations for some lines. Creates a new portable electronics insurance framework (Chapter 22A) requiring vendors to hold a limited lines license, establishing a supervising entity and a registry, providing employee training, and setting disclosure, billing, and termination rules for customers enrolled in portable electronics coverage. Adds fingerprinting and criminal history background checks for initial resident license applicants, requires reporting of mailing/email address changes within 30 days, and introduces a centralized producer license registry; also revises continuing education requirements and grandfather clauses.

Who It Affects
Insurance producers and service representatives in Alabama, who face changed lines of authority, revised continuing education rules, potential background checks, and new reporting requirements for name and address changes.
Vendors of portable electronics and their enrolled customers, who become subject to a new licensed program with training, supervision requirements, customer disclosures, billing rules, termination procedures, and oversight by the Department of Insurance.

Key Provisions
Eliminate insurance producer lines of authority for automobile and industrial fire; transition existing licenses to personal lines (auto) and property lines (industrial fire) on renewal; travel and crop insurance added as limited lines.
Provide exceptions to prelicensing courses for applicants with a college insurance degree and for variable life/variable annuity authority; require life authority licensing and securities registration for some variable life/annuity applicants; remove certain exemptions from prelicensing and examination requirements in some cases.
Authorize the Commissioner of Insurance to prescribe by regulation alternative methods to serve administrative complaints and to operate a centralized, possibly multi-state, producer license registry.
Eliminate certain continuing education exemptions for producers, with a grandfather provision for those exempted prior to the act; remove the requirement to certify CE completion on renewal forms; require 30-day notice of address or email changes.
Authorize fingerprinting and criminal history background checks for initial resident insurance producer license applicants; create new §27-7-4.4 detailing fingerprint collection, federal/state checks, and centralized NAIC repository use.
Establish Chapter 22A Portable Electronics Insurance defining portable electronics, portable electronics insurance, vendors, supervising entities, and customers; require a limited lines license for vendors to sell or offer portable electronics insurance.
Require vendors to maintain a supervising entity registry of locations authorized to sell portable electronics insurance; training, disclosure, and advertising restrictions for vendor employees; itemized billing and clear notices when coverage is included with the purchase of portable electronics.
Impose penalties for portable electronics violations (fines up to $500 per violation or $5,000 in aggregate), and allow suspension or revocation of licenses or vendor authority for violations; require 30 days’ notice to policyholders for changes and 15 days’ notice for enrollment termination in certain cases.
Set license fees for portable electronics licenses (up to $1,000 initial, $500 renewal; $100 initial/renewal for vendors with 10 or fewer locations); treat licensed vendors as having an appointment with the commissioner for service of process; specify transition rules for auto/industrial fire licenses and appointments.
Repeal Sections 27-7-20 and 27-7-21; set January 1 following passage as the effective date, with possible up to 24-month delayed enforcement for fingerprint requirements.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Insurance Department