Key Takeaways
- The Alabama Department of Insurance (ALDOI) regulates all insurance activities in Alabama under Title 27 of the Alabama Code
- The Insurance Commissioner is appointed by the Governor with confirmation by the State Senate
- ALDOI handles licensing, enforcement, consumer complaints, rate review, and market conduct examinations
- Alabama requires fingerprinting and background checks for all insurance license applicants
- The Commissioner has authority to investigate complaints, conduct examinations, and take disciplinary action
Last updated: January 2026
Alabama Department of Insurance (ALDOI)
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The Alabama Department of Insurance (ALDOI) is the state agency responsible for regulating the insurance industry in Alabama. The department operates under Title 27 of the Alabama Code.
The Insurance Commissioner
The Insurance Commissioner is:
- Appointed by the Governor with Senate confirmation
- Serves at the pleasure of the Governor
- Responsible for enforcing Alabama insurance laws
- Authorized to adopt regulations, investigate violations, and discipline licensees
Commissioner Powers and Duties
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rulemaking | Adopt regulations interpreting Title 27 |
| Enforcement | Investigate and prosecute violations |
| Rate Review | Review and approve insurance rates |
| Consumer Protection | Handle complaints and protect policyholders |
| Market Conduct | Examine insurer business practices |
Alabama Insurance Code (Title 27)
Alabama insurance law is found in Title 27 of the Alabama Code, which contains:
- Licensing requirements for producers and insurers
- Policy standards and required provisions
- Consumer protections and disclosure requirements
- Prohibited practices and penalties
- Claims handling requirements
Exam Tip: Remember that the Insurance Commissioner is APPOINTED in Alabama (unlike the 11 states where the Commissioner is elected). This is frequently tested.
ALDOI Organization
ALDOI operates through several divisions:
- Licensing Division - Handles agent/broker licensing
- Rates and Forms Division - Reviews rates and policy forms
- Market Conduct Division - Examines insurer practices
- Fraud Investigation Unit - Investigates insurance fraud
- Consumer Services Division - Handles consumer complaints
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Test Your Knowledge
How is the Alabama Insurance Commissioner selected?
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Test Your Knowledge
Where is Alabama insurance law primarily found?
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