SB139 Alabama 2023 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Session

Regular Session 2023

Title

Relating to the Alabama Department of Insurance; to amend Sections 27-7-5, 27-7-14.1, 27-9A-6, 27-9A-8, 27-9A-9, 27-9A-11, 27-25-4.1, and 27-25-4.3, Code of Alabama 1975, to delete the requirement for insurance producers, independent adjusters, apprentice independent adjusters, and title insurance agents to complete a prelicensing course of study approved by the Commissioner of Insurance prior to licensure by the department; and to eliminate the issuance of new service representative licenses prospectively and to authorize a current licensee to renew his or her license.

Summary

SB139 would remove the prelicensing course requirement for several insurance licenses and stop issuing new service representative licenses, while allowing current service representative licensees to renew.

What This Bill Does

If enacted, the bill would end the requirement for insurance producers, independent adjusters, apprentice independent adjusters, and title insurance agents to complete a prelicensing course before taking licensing exams. It would also eliminate the issuance of new service representative licenses, but allow holders of a valid service representative license on the effective date to renew. There are transition rules governing renewal and expiration for service representatives, and the changes would take effect on January 1, 2024.

Who It Affects

• Insurance producers, independent adjusters, apprentice independent adjusters, and title insurance agents would no longer have to complete a Commissioner-approved prelicensing course before licensure.
• Persons who currently hold a service representative license would be able to renew their license, but no new service representative licenses would be issued; if a service representative license expires and is not renewed for 12 consecutive months, it cannot be renewed or reactivated.

Key Provisions

• Deletes the prelicensing course of study requirement for insurance producers, independent adjusters, apprentice independent adjusters, and title insurance agents prior to licensure.
• Eliminates the issuance of new service representative licenses after the act's effective date; current service representative license holders may renew.
• Provides renewal rules and expiration penalties for service representatives (e.g., license expiration and a 12-month renewal renewal window with renewal restrictions).
• Makes conforming amendments to Sections 27-7-5, 27-7-14.1, 27-9A-6, 27-9A-8, 27-9A-9, 27-9A-11, 27-25-4.1, and 27-25-4.3 to reflect removal of the prelicensing requirement and changes to service representative licensing.
• Effective date of the act is January 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.