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<P align=center><FONT size=5><B>UNITED STATES<BR>SECURITIES AND EXCHANGE
COMMISSION<BR></B></FONT><FONT size=2><B>Washington, D.C. 20549
</B></FONT></P><BR>
<P align=center><FONT size=5><B>FORM 8-K </B></FONT></P>
<P align=center><FONT size=3><B>CURRENT REPORT </B></FONT></P>
<P align=center><FONT size=3><B>Pursuant to Section&nbsp;13 or 15(d) of the
Securities Exchange Act of 1934 </B></FONT></P>
<P align=center><FONT size=2>Date of Report (Date of earliest event reported):
</FONT><FONT size=2><B>March&nbsp;2, 2006 </B></FONT></P>
<P align=center><FONT size=5><B>Protective Life Insurance
Company<BR></B></FONT><FONT size=2>(Exact name of registrant as specified in its
charter) </FONT></P><!-- User-specified TAGGED TABLE -->
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=middle width="32%"><FONT size=2><B>Tennessee</B></FONT><FONT
      size=2><BR>(State or other jurisdiction<BR>of incorporation)</FONT></TD>
    <TD width="3%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=middle width="32%"><FONT size=2><B>001-31901</B></FONT><FONT
      size=2><BR>(Commission File Number)</FONT></TD>
    <TD width="3%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=middle width="32%"><FONT size=2><B>63-0169720</B></FONT><FONT
      size=2><BR>(IRS Employer<BR>Identification No.)</FONT></TD></TR></TABLE><!-- end of user-specified TAGGED TABLE -->
<P align=center><FONT size=2><B>Protective Life Insurance Company<BR>2801
Highway 280 South<BR>Birmingham, Alabama<BR></B></FONT><FONT size=2>(Address of
principal executive offices)<BR><B>35223</B><BR>(Zip Code) </FONT></P>
<P align=center><FONT size=2>Registrant's telephone number, including area code: <B>
(205)&nbsp;268-1000 </B></FONT></P>
<H4 style="FONT-WEIGHT: bold; MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=center><B><FONT style="FONT-SIZE: 10pt" face="Times New Roman"
size=2>N/A</FONT></B></H4>
<H4 style="FONT-WEIGHT: bold; MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"
align=center><B><FONT style="FONT-WEIGHT: normal; FONT-SIZE: 10pt"
face="Times New Roman" size=2>(Former name or former address, if changed since
last report.)</FONT></B></H4>
<P style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=2></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt"
face="Times New Roman" size=2>Check the appropriate box below if the
Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions:</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=2></FONT>&nbsp;</P>
<P
style="FONT-SIZE: 10pt; MARGIN: 0in 0in 0pt 0.25in; TEXT-INDENT: -0.25in"><FONT
style="FONT-SIZE: 10pt" face=Wingdings size=2>o</FONT><FONT
style="FONT-SIZE: 8.5pt" size=1>&nbsp;&nbsp;&nbsp; </FONT>Written communications
pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</P>
<P style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=2></FONT>&nbsp;</P>
<P
style="FONT-SIZE: 10pt; MARGIN: 0in 0in 0pt 0.25in; TEXT-INDENT: -0.25in"><FONT
style="FONT-SIZE: 10pt" face=Wingdings size=2>o</FONT><FONT
style="FONT-SIZE: 8.5pt" size=1>&nbsp;&nbsp;&nbsp; </FONT>Soliciting material
pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=2></FONT>&nbsp;</P>
<P
style="FONT-SIZE: 10pt; MARGIN: 0in 0in 0pt 0.25in; TEXT-INDENT: -0.25in"><FONT
style="FONT-SIZE: 10pt" face=Wingdings size=2>o</FONT><FONT
style="FONT-SIZE: 8.5pt" size=1>&nbsp;&nbsp;&nbsp; </FONT>Pre-commencement
communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17
CFR 240.14d-2(b))</P>
<P style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=2></FONT>&nbsp;</P>
<P
style="FONT-SIZE: 10pt; MARGIN: 0in 0in 0pt 0.25in; TEXT-INDENT: -0.25in"><FONT
style="FONT-SIZE: 10pt" face=Wingdings size=2>o</FONT><FONT
style="FONT-SIZE: 8.5pt" size=1>&nbsp;&nbsp;&nbsp; </FONT>Pre-commencement
communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17
CFR 240.13e-4(c))</P>
<P><FONT size=2>
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<P><FONT size=2></A></FONT></P>
<P><FONT size=2><BR></FONT><FONT size=2><B>Item 9.01 Financial Statements
and Exhibits <BR></B></FONT></P>
<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
documents are filed with reference to and are hereby incorporated by reference
into the Registration Statement on Form&nbsp;S-3 (File No.&nbsp;333-126757), as
amended, of Protective Life Insurance Company, filed with the Securities and
Exchange Commission on July&nbsp;21, 2005 and amended on August&nbsp;17,
2005. </FONT></P>
<UL>
  <DL compact>
    <DT style="MARGIN-BOTTOM: -11pt"><FONT size=2>(c)</FONT>
    <DD><FONT size=2>Exhibits </FONT></DD></DL></UL><!-- User-specified TAGGED TABLE -->
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    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;5.1</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Opinion of Nancy Kane, in-house counsel
      to Protective Life Insurance Company.</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;5.2</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Opinion of Richards, Layton&nbsp;&amp;
      Finger, P.A., special Delaware counsel to Protective Life Insurance
      Company, relating to Protective Life Secured Trust 2006-3.</FONT></TD></TR>

  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;5.3</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Opinion of William L.&nbsp;McCarty,
      in-house counsel to Protective Life Insurance Company.</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;8</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Opinion of Debevoise&nbsp;&amp; Plimpton
      LLP (re: tax matters).</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit 23.1</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Consent of Nancy Kane, in-house counsel
      to Protective Life Insurance Company (included in Exhibit
  5.1).</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;23.2</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Consent of Richards, Layton&nbsp;&amp;
      Finger, P.A. (included in Exhibit 5.2).</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;23.3</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Consent of William L. McCarty, in-house
      counsel to Protective Life Insurance Company (included in Exhibit
      5.3).</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;23.4</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Consent of Debevoise&nbsp;&amp; Plimpton
      LLP (included in Exhibit 8).</FONT></TD></TR></TABLE></DIV><!-- end of user-specified TAGGED TABLE -->
<P align=center><FONT size=2>2</FONT></P>
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<P align=center><FONT size=2></A></A><BR></FONT><FONT size=2><B>SIGNATURES <BR></B></FONT></P>
<P><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized. </FONT></P><!-- User-specified TAGGED TABLE -->
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    <TD width="39%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD colSpan=2><FONT size=2><BR>Protective Life Insurance
      Company<BR>(Registrant)</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="39%"><FONT size=2><BR>Date: March&nbsp;7, 2006</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="4%"><FONT size=2><BR>By:</FONT></TD>
    <TD width="54%"><FONT size=2><BR>/s/&nbsp;&nbsp;</FONT><FONT size=2>JUDY
      WILSON</FONT><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <HR noShade>
      <FONT size=2>Name: Judy Wilson<BR>Title: Senior Vice
  President</FONT></TD></TR></TABLE><!-- end of user-specified TAGGED TABLE -->
<P align=center><FONT size=2>3</FONT></P>
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<P align=center><FONT size=2><B>EXHIBIT INDEX </B></FONT></P><!-- User-specified TAGGED TABLE -->
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  <TR vAlign=bottom>
    <TH align=middle width="17%"><FONT size=1><B>Exhibit<BR>Number</B></FONT>
      <HR noShade>
    </TH>
    <TH width="3%"><FONT size=1>&nbsp;</FONT></TH>
    <TH align=middle width="81%"><FONT size=1><B>Description</B></FONT>
      <HR noShade>
    </TH></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;5.1</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Opinion of Nancy Kane, in-house counsel
      to Protective Life Insurance Company.</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;5.2</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Opinion of Richards, Layton&nbsp;&amp;
      Finger, P.A., special Delaware counsel to Protective Life Insurance
      Company, relating to Protective Life Secured Trust 2006-3.</FONT></TD></TR>

  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;5.3</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Opinion of William L.&nbsp;McCarty,
      in-house counsel to Protective Life Insurance Company.</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;8</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Opinion of Debevoise&nbsp;&amp; Plimpton
      LLP (re: tax matters).</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit 23.1</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Consent of Nancy Kane, in-house counsel
      to Protective Life Insurance Company (included in Exhibit
  5.1).</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;23.2</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Consent of Richards, Layton&nbsp;&amp;
      Finger, P.A. (included in Exhibit 5.2).</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;23.3</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Consent of William L. McCarty, in-house
      counsel to Protective Life Insurance Company (included in Exhibit
      5.3).</FONT></TD></TR>
  <TR vAlign=top>
    <TD width="17%"><FONT size=2><BR>Exhibit&nbsp;23.4</FONT></TD>
    <TD width="3%"><FONT size=2><BR>&nbsp;</FONT></TD>
    <TD width="81%"><FONT size=2><BR>Consent of Debevoise&nbsp;&amp; Plimpton
      LLP (included in Exhibit 8).</FONT></TD></TR></TABLE><!-- end of user-specified TAGGED TABLE -->
<P align=center><FONT size=2>4</FONT></P>
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{"company-data": {"conformed-name": "PROTECTIVE LIFE INSURANCE CO", "cik": "0000310826", "assigned-sic": "6311", "irs-number": "630169720", "state-of-incorporation": "TN", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-31901", "film-number": "06669405"}, "business-address": {"street1": "2801 HIGHWAY 280 SOUTH", "city": "BIRMINGHAM", "state": "AL", "zip": "35223", "phone": "2058799230"}, "mail-address": {"street1": "PO BOX 2606", "city": "BIRMINGHAM", "state": "AL", "zip": "35202"}}
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
March 2, 2006
Protective Life Insurance
Company
(Exact name of registrant as specified in its
charter)
Tennessee
(State or other jurisdiction
of incorporation)
001-31901
(Commission File Number)
63-0169720
(IRS Employer
Identification No.)
Protective Life Insurance Company
2801
Highway 280 South
Birmingham, Alabama
(Address of
principal executive offices)
35223
(Zip Code)
Registrant's telephone number, including area code:
(205) 268-1000
N/A
(Former name or former address, if changed since
last report.)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions:
o
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Item 9.01 Financial Statements
and Exhibits
The following
documents are filed with reference to and are hereby incorporated by reference
into the Registration Statement on Form S-3 (File No. 333-126757), as
amended, of Protective Life Insurance Company, filed with the Securities and
Exchange Commission on July 21, 2005 and amended on August 17,
2005.
(c)
Exhibits
Exhibit 5.1
Opinion of Nancy Kane, in-house counsel
      to Protective Life Insurance Company.
Exhibit 5.2
Opinion of Richards, Layton &
      Finger, P.A., special Delaware counsel to Protective Life Insurance
      Company, relating to Protective Life Secured Trust 2006-3.
Exhibit 5.3
Opinion of William L. McCarty,
      in-house counsel to Protective Life Insurance Company.
Exhibit 8
Opinion of Debevoise & Plimpton
      LLP (re: tax matters).
Exhibit 23.1
Consent of Nancy Kane, in-house counsel
      to Protective Life Insurance Company (included in Exhibit
  5.1).
Exhibit 23.2
Consent of Richards, Layton &
      Finger, P.A. (included in Exhibit 5.2).
Exhibit 23.3
Consent of William L. McCarty, in-house
      counsel to Protective Life Insurance Company (included in Exhibit
      5.3).
Exhibit 23.4
Consent of Debevoise & Plimpton
      LLP (included in Exhibit 8).
2
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
Protective Life Insurance
      Company
(Registrant)
Date: March 7, 2006
By:
/s/
JUDY
      WILSON
Name: Judy Wilson
Title: Senior Vice
  President
3
EXHIBIT INDEX
Exhibit
Number
Description
Exhibit 5.1
Opinion of Nancy Kane, in-house counsel
      to Protective Life Insurance Company.
Exhibit 5.2
Opinion of Richards, Layton &
      Finger, P.A., special Delaware counsel to Protective Life Insurance
      Company, relating to Protective Life Secured Trust 2006-3.
Exhibit 5.3
Opinion of William L. McCarty,
      in-house counsel to Protective Life Insurance Company.
Exhibit 8
Opinion of Debevoise & Plimpton
      LLP (re: tax matters).
Exhibit 23.1
Consent of Nancy Kane, in-house counsel
      to Protective Life Insurance Company (included in Exhibit
  5.1).
Exhibit 23.2
Consent of Richards, Layton &
      Finger, P.A. (included in Exhibit 5.2).
Exhibit 23.3
Consent of William L. McCarty, in-house
      counsel to Protective Life Insurance Company (included in Exhibit
      5.3).
Exhibit 23.4
Consent of Debevoise & Plimpton
      LLP (included in Exhibit 8).
4