How to Become an Insurance Agent in Illinois
If you’re looking to become an insurance agent in Illinois, there are multiple requirements you must meet.
It’s important to educate yourself on these requirements prior to starting the application process, so you’ll know what to expect.
What are the requirements for becoming an agent?
The first step towards becoming an agent in Illinois is completing a pre-licensing requirement of 20 hours per line of authority, 7.5 of those hours must be completed in a classroom setting.
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The only exception to this is Motor Vehicle, which requires 12.5 hours of pre-licensing and 5 hours in a classroom setting.
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Once you’ve completed pre-licensing, your next step will be to take a licensing exam.
Take the insurance licensing exam.
You’ll want to review the Insurance Licensing Examination Pearson VUE Candidate Handbook & Outline beforehand. It describes how, when, and where to apply for the producer exam.
When you go to take the licensing exam, make sure to bring a copy of completion for your pre-licensing course to the testing center. Without it, you won’t be able to take the exam.
When you pass the exam, you’ll receive both a pass sheet and an instruction sheet by the test administrator, Pearson VUE.
Carefully read and retain it for your records. If you fail the exam, Pearson VUE will provide the results and make arrangements for you to retake the exam in the future.
Apply for your insurance license.
It’s important you wait five days after passing your exam to apply for your license. After that time, you’ll be able to apply online at nipr.com.
Illinois is using the last day of your birth month as your expiration date. Additionally, the fee paid for licensure through NIPR will be prorated for the birth month expiration date.
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Once you’ve finished the application process through NIPR and have received an e-mail from them that your transaction was successful, your application will be submitted to Illinois.
It’s important to note that effective August 1, 2012, Illinois requires you to apply for your license electronically.
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Pay the agent licensing fees.
It’s important to understand the fees that come with obtaining an agent license in Illinois.
A licensing fee is prorated if the total days of licensing granted to the applicant are less than a full two years or 730 days, as determined by the assigned expiration date, which is the last day of the applicant’s birth month two years in the future.
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If the license is issued for a full two years or 730 days, there is no prorating and the normal fee applies.
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The total length of the license granted will be no less than 18 months and no more than 29 months.
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Also, note fees shown are state fees only and don’t include NIPR state transaction fees. All fees are charged per application. Different fees apply for different types of producers.
Furthermore, it’s important to understand limited lines, in which the appointing company will pay for the license through the appointment process. The insurance producer will only be responsible for the NIPR transaction fee.
With a Navigator certificate, the applicant won’t be charged a late fee, only a NIPR transaction fee.
Submit lines of authority.
Prior to allowing submission of any application, NIPR verifies exams.
License class names can vary by state, and applications for other lines of authority will defer to the state for approval.
Also, note that a resident cannot apply for just the Variable line of authority. They must already hold the Life line of authority and then fax the Illinois Department of Insurance at Series 6 or 7, and Illinois will add the Variable line to their license.
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Remember these rules and requirements when obtaining your insurance license.
Remember that when it comes to licensing, there are various rules and requirements for applicants.
Applicants can:
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- Submit initial license for individuals electronically
- Submit major lines of authority
- Submit limited lines of authority
- Submit surplus lines for individuals
- Add lines of authority (amend) to an existing active license
- Reinstate/reapply through NIPR’s Resident License (RL) Application
- Print licenses electronically
Sources:
1. insurance.illinois.gov,
Illinois Producer Information, 2020
2. nipr.com,
State Requirements, 2020