Insurance licensing inIllinois
Insurance licensing in Illinois
Are you interested in learning how to get an insurance license? Pursuing a career as an insurance agent is an excellent opportunity for anyone seeking a client-facing, flexible, and lucrative career. Learning how to get an insurance license in Illinois is the first crucial step for anyone wishing to sell insurance and offer valuable coverage to individuals and businesses.
As a licensed insurance agent, you'll help clients safeguard what matters most to them and reduce their financial risks. From advising companies on selecting group health insurance plans to guiding first-time homeowners through policy options, the scope of an insurance agent's responsibilities is broad.
Below, we've provided a comprehensive guide to help you easily access insurance prelicensing rules and details for Illinois, giving you a head start.
How to get an insurance license
As mentioned above, insurance license requirements vary across states. In many areas, completing an insurance prelicensing course is a necessary step before applying for a life insurance license, health insurance license, or property insurance license. Many states require a certificate of completion from an approved insurance license course, but a little less than half do not.
States that do not require a certificate of completion for a prelicensing course include:
- Alabama
- Alaska
- Arizona
- Delaware
- District of Columbia
- Hawaii
- Idaho
- Iowa
- Kansas
- Louisiana
- Maine
- Maryland
- Massachusetts
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Mexico
- North Dakota
- Oklahoma
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Wyoming
The states that do require a certificate of completion and additional coursework are:
- Arkansas
- California
- Colorado
- Connecticut
- Florida
- Georgia
- Illinois
- Indiana
- Kentucky
- Michigan
- Minnesota
- Mississippi
- New Jersey
- New York
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- West Virginia
- Wisconsin
The structure of the insurance licensing exam also differs by state and by license type. For example, in certain states, candidates can take a combined life and health insurance license exam to qualify for both health and life policy sales. In other states, separate exams are required for each license type. The number of questions and the time allotted for each insurance licensing exam depend on the state administering the test. The content is generally consistent nationwide, covering essential topics such as insurance products, contract annuities, underwriting processes, and the fundamentals of insurance transactions.
While there isn't a single universal path for how to get an insurance license, most states follow similar steps in the process. Obtaining a life insurance license, health insurance license, or property insurance license often involves:
- Completing an approved prelicensing course (usually 20-40 hours) to prepare for your insurance license exam
- Registering for the appropriate licensing exam online and paying the required fee
- Passing the state-administered exam with a minimum score of 70% or higher
- Undergoing a background check as part of your application process
- Submitting your application for an insurance license in your state
Although not mandatory, a college degree is heavily preferred for most insurance agent roles. A degree in business, finance, or marketing builds a strong knowledge base for a successful career in insurance.
Insurance licensing exams for all lines are notoriously difficult, with pass rates of just over 60% for many state exams. Insurance prelicensing courses are often mandated because they supply test takers with the knowledge and training needed to attain a passing score. Test preparation for license insurance exams is bolstered by intentional self-studying, which is why it's critical to utilize well-crafted testing materials and develop smart exam study strategies.
To maintain your certification and remain eligible to sell insurance products, you must comply with continuing education requirements and adhere to state-specific renewal statutes. Services like the National Insurance Product Registry (NIPR) make the process of applying to and renewing insurance licenses more streamlined, no matter where you're located.
Before applying for an insurance license, it's a good idea to review your state's policies to prepare yourself for the application process.
Find your state's license requirements
Pre-licensing education
Illinois requires producer licensing candidates to take and complete a state-approved prelicensing course. Potential agents must complete 20 hours of education and 7.5 of those hours must be completed in a classroom or web class. You will also need to apply to your license with the state insurance department and register for the state licensing exam. Make sure to register for all 3 (prelicensing course, license application, state exam) using the personally identifiable information exactly as it appears on your government-issued ID. Discrepancies will delay the licensing process.
How to get your license
- Step 1: Complete a Department of Insurance-approved prelicensing course. After finishing, Achievable will confirm your completion of the required classroom portion and exam. The Certificate of Completion is valid for 1 year, so it’s advisable to complete the licensing process within 6-9 months.
- Step 2: Schedule your exam with Pearson VUE. You can book online at [the website or call (800) 274-0402. Choose between an in-person exam at a Pearson VUE center or a remote online proctored exam.
- Step 3: On exam day, bring two valid government-issued IDs (e.g., driver’s license, passport), including one with a photo. Also, carry your signed Certificate of Completion. Without these, you won't be allowed to take the exam. If testing at a Pearson VUE site, you’ll get your score report on-site. For online tests, access the score through your Pearson VUE account.
- Step 4: Apply for your license at least 5 days after passing your exam. Submit your application online at the website.
Exam information
Illinois Life Insurance Examination
Illinois Accident and Health Insurance Examination
Illinois Property Insurance Examination
Illinois Casualty Insurance Examination
Contact your state insurance department
Illinois Department of Insurance 320 West Washington Street Springfield, IL 62767 Phone: (217) 782-6366 Website: https://idoi.illinois.gov
Frequently asked questions (FAQs)
What types of insurance are there?
Insurance exams entitle agents with the ability to sell a wide array of commonly used insurance products. Popular types of insurance and their respective insurance licensing exams are as follows:
- Life-only insurance exam: Required to obtain a life insurance license, this exam qualifies individuals to sell life insurance policies that allow policyholders to designate beneficiaries in the event of death.
- Health-only insurance exam: This exam is necessary for a health insurance license and authorizes agents to transact health insurance policies covering regular and unexpected medical expenses. Agents can also enroll clients in public programs like Medicaid and Medicare, depending on eligibility.
- Life and Health (L&H) insurance exam: The life and health insurance license is obtained by passing this combined exam, allowing agents to sell life and health insurance products simultaneously.
- Property-only insurance exam: Passing the property insurance exam grants the ability to provide property insurance products that protect homes or other significant assets against accidents or weather-related emergencies. Renters' insurance also falls under this category.
- Casualty-only insurance exam: This exam enables agents to sell casualty insurance policies, which cover financial losses from liability claims and property damage. Auto insurance is a well-known product within this broad category.
- Property and Casualty (P&C) insurance exam: To obtain a property and casualty insurance license, candidates must pass this exam. It authorizes the sale of both property and casualty insurance plans, such as workers' compensation and other examples of P&C coverage.
- Personal lines insurance exam: The personal lines insurance exam allows agents to transact insurance for non-commercial clients, protecting individuals and families from losses caused by property damage, injury, or death.
- General lines insurance exam: Earning a general lines insurance license through this exam enables agents to offer a wide spectrum of insurance products. General lines include homeowners, auto, pet, creditor, and other types of insurance that protect policyholders from various unforeseen events.
What's covered on insurance licensing exams?
All exams cover the fundamentals of insurance, from key terms to policy details, line-specific information, and state laws and regulations. Each exam requires dedicated preparation and a firm grasp of both insurance basics and specifics related to the kind of insurance tested on and the state in which the license will be granted.
Can insurance agents be licensed in multiple states?
Insurance agents can hold multiple licenses for a variety of insurance types, and some are even registered in multiple states. Our directory above provides detailed information on the format, length, passing scores, and success rates for a range of exams to support your licensing journey. Please be aware that the application for non-resident licenses may require additional licensing exams and courses on top of the standard application and fee.
What does an insurance agent do?
An insurance agent works with commercial and non-commercial clients to select and purchase insurance products based on specific needs. They expertly advise clients on different types of insurance and policies and make recommendations on how clients can best minimize financial risk.
Insurance agents act as intermediaries between companies and clients, though some work independently or as part of an agency. Agents take into account clients' unique situations, financial goals, and risk tolerances to inform policy option choices. They may specialize in areas such as health, life, property, or auto insurance and assist with policy renewals, claims processes, and updating insurance plans.
A standard day for an agent includes reaching out to clients, following up with leads, performing administrative duties, preparing insurance quotes, and demystifying policy specifics to clients.
Captive insurance agents vs. independent insurance agents
Captive agents work for specific companies, such as Allstate or Geico, for a salary and bonuses. While the suite of products they can offer is limited, captive agents benefit from more stable work conditions, established training, and consistent clientele and income. Independent agents work independently, sometimes as independent contractors for large companies, for commission only: the more sales they make, the more money they receive. This option is riskier and less structured, but affords agents more autonomy and a higher earning potential for those highly adept at sales.
What is the difference between a real estate agent and a real estate broker?
An insurance agent works for a particular provider, or possibly several providers as an independent agent, and are experts on the offerings of specific companies. Insurance brokers, conversely, directly represent clients, helping them shop around for the best insurance options for them. They play more of a financial consulting role since they do not sell insurance themselves, but are required to be licensed similarly to insurance agents.
Insurance agents are contracted by specific companies and paid directly through them. Brokers are also paid by insurance companies on commission based on their sales activity, but they also charge clients broker fees for their services.
Conclusion
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