Get Your Illinois Life Insurance License: A Guide

how to apply for a life insurance license in Illinois

If you're thinking about becoming a life insurance agent in Illinois, you'll need to get an Illinois life insurance license. The Illinois Department of Insurance (IDOI) requires you to complete a four-step process to become a life insurance agent in the state. These steps include taking a pre-licensing course, passing the Illinois Life Insurance Licensing Exam, completing an Illinois Life Insurance License Application, and waiting for your application results.

Characteristics Values
Step 1 Complete a pre-licensing education course
Step 2 Pass the relevant Illinois Insurance License Exam(s)
Step 3 Submit your insurance license application
Step 4 Fulfill the Bond Requirement

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Complete a pre-licensing course

To apply for a life insurance license in Illinois, you must complete a pre-licensing course. This is the first step in the process of becoming a life insurance agent in the state.

Illinois requires potential agents to complete 20 hours of prelicensing education for each line of authority before attempting the state and general exams. 7.5 of those hours must be completed in a classroom or web class. The specific hour requirements are as follows:

  • 20 hours - Health & Accident
  • 20 hours - Personal Lines
  • 12.5 hours - Motor Vehicle

To satisfy the requirements for your course, you will need to complete the required classroom education and pass a Certification Exam. The Certification Exam is not monitored. After passing the Certification Exam with a score of 70% or greater, you will receive a Certificate of Completion. You will be required to bring a copy of the Certificate of Completion to the state exam. Prelicensing education is valid for one year from the date of completion; you will need to take and pass your exam within this timeframe.

Your exam will be based on the Illinois exam outline, which can be found in PearsonVUE's Candidate Handbook.

Kaplan Education Company offers pre-licensing courses with pass rates among the highest in the industry. A.D. Banker also offers pre-licensing courses that will prepare you to pass the state exam on your first attempt.

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Pass the state licensing exam

To pass the state licensing exam, you must complete a prelicensing course. A.D. Banker and Kaplan both offer prelicensing courses that will prepare you to pass the state exam. These courses are 20 hours long, and 7.5 of those hours must be completed in a classroom or web class. The rest of the required hours can be completed in person or online.

The prelicensing course will give you the knowledge you need to pass the state exam and will cover your duties as a life insurance agent. It will also include study materials like practice exams and flashcards.

Once you have completed the prelicensing course, you can take the state licensing exam. The exam is administered by Pearson VUE and is divided into two sections: general and state-specific knowledge. The general section deals with basic life insurance product knowledge, while the state-specific section covers insurance concepts, terms, rules, regulations, and practices specific to Illinois. The exam is proctored, meaning an official proctor will closely monitor you in a controlled environment.

You will have 135 minutes to complete the exam, which contains a total of 81 scored questions. To pass, you need to score at least 70%. The exam fee is $92 for each section, and you must pay the total of $184 at the time of reservation by credit card, debit card, or voucher.

If you happen to fail one or both sections of the exam, you can retake it and pass both sections within 90 days of your first attempt.

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Submit your license application

Once you have passed your state licensing exam, you must wait at least five days before applying for your license. After this waiting period, you can submit your license application online through the National Insurance Producer Registry (NIPR). The NIPR website offers detailed, step-by-step guidance to help you through the application process.

The application process comes with a $215 processing fee, and you will receive an email confirmation once your application is being processed.

After you complete the application process through the NIPR, you will receive an email confirmation that the transaction was successful. Then, your application will be submitted to Illinois.

Additional information

Illinois requires that you submit your license application online. Illinois uses the last day of your birth month as your expiration date, and the fee paid for licensure through NIPR will be prorated for the birth month expiration date.

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Plan for continuing education

To apply for a life insurance license in Illinois, you must complete a four-step process, which includes planning for continuing education. Here is a detailed plan for the continuing education requirements:

Continuing education (CE) is a crucial aspect of maintaining your life insurance license in Illinois. All Illinois insurance agents must comply with CE requirements to renew their licenses. The state mandates 24 hours of CE every two years, including three hours of ethics training. It is important to complete these requirements in a timely manner, as you won't be able to renew your license until you've fulfilled the necessary hours and paid any outstanding fines.

Ethics Training:

Of the 24 required CE hours, three hours must focus on ethics training. This ethics portion must be completed in a classroom setting or via a webinar. It is worth noting that excess ethics hours can be carried over to the next licensing term, but they will only be counted as general credits and won't satisfy future ethics requirements.

Special Training Requirements:

Certain types of insurance sales have additional training requirements. For instance, if you plan to sell annuities, you must complete a one-time, four-hour Annuity Suitability Training course before making any sales. Similarly, if you intend to sell flood insurance, you need to take a one-time, three-hour course related to the National Flood Insurance Program (NFIP). Additionally, for selling long-term care policies, an initial eight-hour training course is mandatory, followed by a four-hour course every two years.

License Renewal:

To renew your Illinois life insurance license, you must submit a renewal application through the National Insurance Producer Registry (NIPR). The renewal fee is $180. It is important to complete the required CE hours at least ten days before your license expires to avoid any delays in the renewal process.

Stay Informed:

Remember to stay updated on any changes to Illinois' insurance continuing education requirements. You can find this information on the Illinois Department of Insurance website. By staying informed and proactive about your continuing education, you can ensure your license remains in good standing.

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Choose a means of selling

Once you have obtained your Illinois life insurance license, you will need to decide on a means of selling. There are two main options: working as a captive agent or as an independent agent.

Captive Agent

Captive agents are employed by a single company and sell only that company's products. This option is beneficial if you are just starting out in the industry as you will have the support of an established company. However, your opportunities for growth may be limited as you will be restricted to selling only that company's products.

Independent Agent

As an independent agent, you will run your own business and have the freedom to sell products from multiple companies. This option provides more flexibility and the potential for higher earnings, but it also requires more responsibility and may be more challenging for those new to the industry.

Your choice between these two options will depend on your personal aspirations, level of experience, and comfort with taking on the additional responsibilities of running your own business.

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