- (1) Any producer offering business to another producer under the provisions of Section 27-7-34, Code of Ala. 1975, has the responsibility of knowing that the accepting agent is properly licensed and appointed as required under this statute.
- (2) No producing agent shall hold himself or herself out as having authority to bind coverage on behalf of any insurer unless he or she is properly appointed as a producer for the insurer.
- (3) Any producer accepting an application for insurance under the provisions of Section 27-7-34, Code of Ala. 1975, shall at that time furnish the applicant a written receipt listing coverages requested by the applicant and monies collected. The receipt must also clearly state that insurance will not be effective until accepted and bound by a duly appointed and licensed producer for the insurance company that is to provide coverage.
Author: Commissioner of Insurance
Statutory Authority: Code of Ala. 1975, §27-2-17.
History: New Rule: February 17, 1975; effective April 1, 1975. Revised: April 27, 2007; effective May 7, 2007. Filed with LRS April 27, 2007. Rule is not subject to the Alabama Administrative Procedure Act.