SB460 Alabama 2012 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2012

Title

Insurance, title insurance agents, qualifications and procedures for licensing, written examination, continuing education requirements, Commissioner of Insurance promulgate rules, exceptions, Secs. 27-25-3, 27-25-4 am'd; Secs. 27-25-4.1, 27-25-4.2, 27-25-4.3, 27-25-4.4, 27-25-4.5, 27-25-4.6, 27-25-4.7, 27-25-4.8 added

Summary

SB460 would require title insurance agents to be licensed, trained, tested, and regularly educated, with background checks, while establishing a new certificate-and-appointment framework for insurers.

What This Bill Does

It replaces the current status where title agents operate without licenses by creating a licensing system. It requires individuals to complete a 20-hour prelicensing course and pass a written exam, and it mandates 24 hours of continuing education every two years (including ethics). It also adds fingerprinting and criminal background checks, and sets up a process for title insurers to obtain a certificate of authority and appoint agents, along with associated fees and record-keeping. The bill includes transition provisions, temporary licenses during implementation, and authority for the Commissioner of Insurance to enact rules.

Who It Affects

• Individual title insurance agents: must obtain a license, meet age/residency requirements, complete prelicensing coursework and an exam, undergo background checks, pay licensing and renewal fees, and complete ongoing continuing education every two years.
• Title insurers and their offices/agencies: must appoint licensed title agents and obtain a certificate of authority for each agency, pay appointment fees, designate a responsible agent, and ensure compliance with licensing rules by their agents.

Key Provisions

• Licensing requirement: All title insurance agents must be licensed to issue title insurance policies in Alabama; individuals must meet age and residency requirements and may be prohibited from acts that would disqualify them from licensure.
• Prelicensing and examination: Individuals must complete a 20-hour prelicensing course and pass a written title insurance examination, with exemptions possible under specified conditions; business entities must designate a responsible licensed agent.
• Continuing education: Licensed title agents must complete at least 24 hours of continuing education every two years, including at least 3 hours of ethics, with specific renewal timing and exemptions for certain cases.
• Background checks and fingerprints: Initial applicants must undergo state and national criminal history checks, including fingerprints, with privacy protections and centralized storage where applicable.
• Fees and certificates of authority: The Commissioner collects various fees (application, license, renewal, examination, appointment) and a $50 annual certificate of authority per agency; funds go to the Insurance Department Fund and agency information must be shown on documents.
• Implementation and transition: The bill provides for delayed enforcement of certain provisions (up to 24 months), replacement licenses for existing agents, staggered renewal schedules, and temporary licenses during transition; effective date is January 1, 2013.

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