Get Your Illinois Life Insurance License: A Guide

If you're looking to become a life insurance agent in Illinois, there are a few steps you need to take to get licensed. The Illinois Department of Insurance (IDOI) requires you to complete a four-step process that includes taking the life insurance exam and applying for a license. Here's an overview of the process:

First, complete an Illinois insurance pre-license course. This step will equip you with the necessary knowledge to pass the licensing exam. Illinois requires 20 hours of pre-license education, 7.5 of which must be completed in a classroom setting. You can finish the remaining hours through an approved online or self-study program.

Next, take the Illinois Life Insurance Licensing Exam. This exam is administered by Pearson VUE and covers both general and state-specific knowledge. The general section covers basic life insurance product knowledge, while the state-specific section focuses on insurance concepts, rules, and regulations unique to Illinois. The exam costs $92 for each section, and you'll have 135 minutes to complete it.

Once you've passed the exam, you can proceed to complete the Illinois Life Insurance License Application through the National Insurance Producer Registry (NIPR). There is an application fee of $215, plus a $5.60 transaction fee. After submitting your application, you'll need to wait for the IDOI to review it, which usually takes up to three business days.

Finally, keep in mind that to maintain your license, you'll need to renew it periodically and complete continuing education credits. In Illinois, insurance producers must complete 24 hours of continuing education every two years, including three hours of ethics courses.

Complete a pre-licensing course

To obtain 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 20 hours of pre-licensing education for each line of authority you'll be applying for. 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.

A pre-licensing course will give you the tools and knowledge to prepare for your exam and will cover specific industry knowledge that will be tested during the exam. It will also give you a solid understanding of your duties as a life insurance agent.

After completing your pre-licensing education, you will receive a signed pre-license course completion certificate, which you will need to present to sit for the licensing examination. Your pre-licensing course completion certificate will be valid for 12 months, so you will need to obtain your insurance producer license within this period.

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.

Pass the state exam

To pass the state exam, you must complete a pre-licensing course. A.D. Banker and Kaplan both offer pre-licensing courses that will prepare you to pass the state exam. These courses are designed to give you the best chance of passing and cover the topics that will be tested during the exam.

Illinois requires potential agents to complete 20 hours of pre-licensing 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

After completing the required classroom education, you will need to pass a Certification Exam. This exam is not monitored, and you will need to score 70% or higher to pass. Once you pass, you will receive a Certificate of Completion, which you will need to bring to the state exam. Prelicensing education is valid for one year from the date of completion, and you will need to take and pass your exam within this timeframe.

The state exam will cover specific insurance laws, rules, regulations, and practices that are unique to Illinois. The exam is multiple-choice and must be completed on a computer. The Life Producer State Exam is 50 minutes long and consists of 39 questions. You will need to score 70% or higher to pass.

You can schedule your state exam through Pearson VUE or by calling (800) 274-0402. Each exam costs $92, but you can save money by scheduling both the general and state-specific exams at the same time for a total of $92. You will need to pay the exam fee at the time of reservation by credit card, debit card, or voucher.

If you fail your exam, you can immediately reschedule without a waiting period. You can also obtain a diagnostic report from Pearson VUE to help you identify your strengths and weaknesses.

Submit your application

Once you have passed your state licensing exam, you are ready to apply for your life insurance license. You will need to allow a five-day waiting period after your examination is complete before you can apply. This is done 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 application comes with a $215 processing fee, plus a $5.60 transaction fee, totalling $220.60. You’ll receive an email confirmation signalling that your application is being processed.

The NIPR website offers detailed, step-by-step guidance to help you through the application process. 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 Illinois Department of Insurance (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].

Plan for continuing education

To maintain your Illinois insurance license, you must complete continuing education (CE) requirements. These requirements are necessary for license renewal and apply to all Illinois insurance agents.

The general CE requirements for agents and adjusters are 24 hours every 2 years, including 3 hours of ethics training. However, it is important to note that specific types of insurance producers may have additional special training requirements. For example, producers selling annuities, long-term care, or flood insurance must meet certain conditions before selling these products.

You can meet your CE requirements by taking advantage of various learning formats, including online courses, webinars, and live classes. These courses cover relevant topics such as anti-money laundering, long-term care certification training, tax updates, annuities, and property-casualty basics.

When choosing a CE course, it is important to ensure that the course is approved by the Illinois Department of Insurance and meets the required number of credit hours. Additionally, keep in mind that ethics courses must be completed in person or via webinar.

To stay compliant, it is recommended to complete your CE requirements at least ten business days before your license's expiration date. By staying on top of your continuing education, you can ensure that your Illinois insurance license remains active and renew it biennially.

Fulfill the bond requirement

To get a life insurance license in Illinois, you must fulfill the bond requirement. This means that insurance producers in the state of Illinois are required to maintain a bond if they place insurance directly or indirectly with an insurer and do not have an agency agreement with them. This bond must be in favor of the people of the state of Illinois and must be executed by an authorized surety company. It should also be payable to any party injured under the bond's terms.

The bond amount should be either $2,500 or 5% of the premiums brokered in the previous calendar year, whichever is greater. However, the total aggregate liability of the bond cannot exceed $50,000. You are required to keep this bond at your place of business and provide information about it to any inquiring party within three working days of their request.

Frequently asked questions