Get Certified To Issue Insurance In Illinois

To become certified to issue insurance in Illinois, you must obtain an Illinois insurance license. The process involves five steps: deciding which insurance license you need, completing a pre-licensing education course, passing the relevant Illinois insurance license exam, submitting your insurance license application, and fulfilling the bond requirement. The type of insurance policies you want to sell will dictate the type of license you need. For example, to sell auto, home, or business insurance, you need a Property & Casualty (P&C) license. Most insurance agents obtain a Life and Health license or a P&C license, or both, to offer clients a wider range of insurance products.

Complete a pre-licensing course

To become certified to issue insurance in Illinois, you must complete a pre-licensing course. This is a requirement for those seeking an insurance license in Illinois, and it must be done before taking the state licensing exam. The number of hours of pre-licensing education required depends on the type of insurance you want to sell.

For example, for life insurance, accident/health insurance, fire (property) insurance, casualty insurance, and personal lines insurance, you need 20 hours of pre-licensing education for each type. Out of those 20 hours, 7.5 must be completed in a classroom setting, while the rest can be done through an approved online or self-study program.

The motor vehicle line of authority requires 12.5 credit hours, with 5 hours in the classroom.

The purpose of these courses is to prepare candidates for the licensing examination and for a successful career in insurance. After completing the pre-licensing course, you will receive a signed pre-license course completion certificate, which you must keep safe as you will need to present it to the Illinois Department of Insurance before they issue your license.

Your pre-licensing course completion certificate will be valid for 12 months. If you don't obtain your insurance producer license within this period, you'll need to retake the course.

Pass the state licensing exam

Passing the state licensing exam is a pivotal part of becoming a certified insurance broker in Illinois. Here are some steps to help you prepare for and pass the exam:

Understand the Exam Format

The Illinois insurance license exam is administered by Pearson VUE and can be taken online or in person. The exam consists of multiple versions, known as forms, with different questions covering both general and state-specific topics. The general section will test your knowledge of federal insurance products and agent knowledge, while the state-specific section will focus on Illinois insurance regulations and laws.

Complete Pre-Licensing Education

Before taking the state licensing exam, Illinois requires you to complete pre-licensing education. This education can be in the form of online or classroom courses, with a minimum number of hours required for each line of authority. For example, the pre-licensing requirement for Accident/Health, Fire (Property), and Casualty is 20 hours, 7.5 of which must be completed in a classroom setting.

Choose a Prep Course

Consider enrolling in a pre-license course to help you prepare for the state licensing exam. These courses can provide structure and guidance to your studies and improve your chances of passing the exam on your first attempt. ExamFX and Kaplan are two popular providers of pre-license courses, offering features like money-back guarantees and high pass rates.

Study and Practice

Allocate sufficient time to study for the exam, as the questions are purely factual and will test your knowledge and understanding of the material. It is recommended to set aside one to two weeks to prepare, allowing you to go through the material at least twice. Make use of practice tests and create a consistent study routine to help you retain information effectively.

Manage Test Anxiety

To perform your best on exam day, it's important to manage test anxiety. Get plenty of sleep in the week leading up to the exam, and establish a pre-test routine by acclimating yourself to exam conditions through practice exams. Arriving early at the test centre can also help you feel more relaxed and familiar with your surroundings.

Take the Exam

On the day of the exam, arrive at least 30 minutes early and remember to bring the required identification and your Pre-License Course Certificate. The exam will be computer-based, and you will be required to sign the "Candidate Rules Agreement" before starting. Remember, a scaled score of at least 70 is needed to pass the Illinois insurance license exam.

Apply for an insurance license

Once you have passed your state licensing exam, you are ready to apply for an insurance license.

You will need to wait five days after you passed your examination to apply for your license. This is to ensure that your exam results are verified and processed by the system.

After this waiting period, you will need to 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 cost of the license for an Illinois resident is $90 for two years.

The application fee is $215, and the NIPR will charge a $5.60 transaction fee for a total of $220.60.

The Illinois Department of Insurance will issue a life insurance license to individuals who are at least 18 years old and have passed the proper licensing exam.

Illinois now requires you to apply for your license electronically. Once you complete the application process through the NIPR, you’ll receive an email from the NIPR that confirms it submitted your application to the IDOI.

To apply for a life insurance license in Illinois, make sure you comply with the insurance licensing requirements as defined under the Illinois Insurance Code.

Send any questions or supporting documents to [email protected].

After you complete the previous steps, the IDOI will review your application. It reviews filings in the order it receives them, and this process usually takes up to three business days from the date you submit your application.

You can print your license from the NIPR website. There’s no charge to create an account or print a license. You can search for and manage your license by visiting the National Association of Insurance Commissioners (NAIC) State Based Systems (SBS) Lookup Search tool and selecting Illinois.

Obtaining a life insurance license in Illinois requires the following fees:

• Insurance Pre-license Education Course Fee: $149+ via Kaplan Education Company
• Exam Fee: $184 via Pearson VUE ($92 each for the general and state-specific sections)
• Application Fee: $215 + $5.60 transaction fee via the NIPR

Fulfill the bond requirement

To fulfill the bond requirement, you must obtain a surety bond. This is an insurance contract that holds insurance producers accountable to the promises they make to their customers. In Illinois, insurance producers are required to maintain a bond if they place insurance either directly or indirectly with an insurer and do not have an agency agreement with them.

The bond must be in favor of the people of the state of Illinois, executed by an authorized surety company, and payable to any party injured under the terms of the bond. It needs to be continuous and must amount to either $2,500 or 5% of the premiums brokered in the previous calendar year, whichever is greater. The total aggregate liability of the bond cannot exceed $50,000.

You are obligated to keep this bond at your place of business and ensure that information regarding the bond is readily available. You must provide this information within three working days of receiving a request.

To get a bond, contact an authorized surety company. While premiums vary, you can find bonds that go for under $100 for the basic $2,500 bond. Your premium rate will depend on your financial assets, credit scores, and professional credentials.

Plan to complete required insurance continuing education credits

To maintain your insurance producer license in Illinois, you must complete continuing education (CE) credits. These credits must be completed before you renew your license, which is done every one to two years, depending on your license type. Your license will state the expiration date.

In Illinois, insurance producers must complete 24 hours of CE every 2 years, including 3 hours in Ethics. The Ethics course must be completed in a classroom or via webinar and cannot be taken for credit more than once in a 2-year license term.

Up to 12 hours of excess CE credits may be carried over to the next license term. However, excess Ethics hours will only be counted as general credits and will not satisfy future Ethics requirements.

To renew your license, you must complete all required CE courses for the year. Your renewal period begins 90 days before the expiration of your license.

• Plan your CE courses accordingly to ensure you can renew your license on time without any delays. It takes about two weeks for CE credits to appear on your license.
• You can find a list of approved CE courses on the Illinois Department of Insurance website.
• Make sure to select courses that are relevant to your license type.
• Stay on top of your CE requirements and stay ahead of the competition by enrolling in a CE library that offers unlimited course access.
• If you are a member of the Independent Insurance Agents of Illinois, they offer continuing education courses.

Frequently asked questions