SB101 Alabama 2014 Session

Summary

Primary Sponsor

Paul Bussman

Republican

Session

Regular Session 2014

Title

Insurance Department, licensing of insurance producers, title insurance agents, or independent adjusters, applicants, fingerprinting for criminal background check, provisions regarding transfer to National Association of Insurance Commissioners (NAIC's) deleted, Secs. 27-7-4.4, 27-9A-17, 27-25-4.6 am'd.

Summary

SB101 requires fingerprint-based background checks for new license applicants for insurance producers, title insurance agents, and independent adjusters in Alabama, and updates how fingerprint records are handled (including NAIC central repository aspects) with an exemption for limited lines producers.

What This Bill Does

It authorizes the Insurance Commissioner to require fingerprints for initial resident license applicants and to send those fingerprints and the background-check fee to the Alabama Department of Public Safety and the FBI for state and national checks. It allows the Commissioner to contract with a third-party fingerprinting service, with applicants paying any related fees. It also provides for waivers if fingerprints are already on file with the NAIC central repository, and allows submission of electronic fingerprint records to the NAIC for centralized retention. The bill keeps fingerprint records confidential and allows delayed enforcement for up to 24 months after the act’s effective date. It applies similar requirements to business entities applying for licensure, including officers/directors with significant ownership, and also excludes limited lines producers from these requirements.

Who It Affects

• Individual applicants for licenses as insurance producers, title insurance agents, or independent adjusters, who would need to submit fingerprints and undergo state and national background checks.
• Business entities seeking licensure (and their key personnel such as executive officers, directors, or 51% owners), who must have certain individuals fingerprinted and checked as part of the licensing process.

Key Provisions

• Requires fingerprints for initial resident applicants seeking insurance producer licenses and title insurance agent licenses, with fingerprints and fees sent to DPS and the FBI for state and national background checks.
• Allows the Commissioner to contract with a fingerprint collection/transmission contractor; the applicant pays the contractor a fingerprinting fee plus the background-check fee.
• Permits waivers for applicants whose fingerprints are already on file with the NAIC central repository; also covers the possibility of receiving criminal history information from sources other than DPS.
• Authorizes the Commissioner's submission of electronic fingerprint records to the NAIC for permanent retention in a centralized repository to aid background checks.
• Maintains confidentiality and security of fingerprint and criminal history information, with limited subpoena rights and storage safeguards.
• Provides for delayed enforcement of these provisions for up to 24 months after the act’s effective date to allow implementation.
• Specifically applicable to initial license eligibility in sections covering producers, title agents, and independent adjusters, with an explicit exception for limited lines producers.

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