What Do You Need to Be Able to Sell Insurance in Illinois?

To protect the public against unqualified or unethical insurance agents, Illinois law requires all agents who sell insurance in the state to have a license from the Illinois Department of Insurance. Agents can obtain licenses for six different classes of insurance. You can sell policies as either a resident agent or a non-resident agent. Resident agents reside in Illinois while non-resident agents reside in other states.

Pre-Licensing Education

• Depending on the type of insurance you want to sell, you must complete between 12.5 and 20 hours of pre-licensing education from a provider approved by the Illinois Department of Insurance. However, you can apply for a waiver of this requirement for some licenses by having one of several professional designations. You can find a list of approved educational and professional designations that qualify for the waiver on the Illinois Department of Insurance website.

Licensing Examination

• Illinois has contracted with Pearson VUE, a private company, for the administration of the licensing examination. You can register for the exam on Pearson VUE website or by calling 800-274-0402. As of January 2011, the examination fee is $103. Examination outlines and practice exams are available on the website. You will take the test at a Pearson VUE examination site and you need to achieve a score of at least 70 percent to pass.

Licensing Application

• After passing the licensing exam, you can submit your license application to the Illinois Department of Insurance. You can download an application from the department's website and submit it through the mail, or you can submit it online through the National Insurance Producer Registry (NIPR). As of January 2011, the license fee is $180 for a resident license and $250 for a non-resident license. The Illinois Department of Insurance will issue your license after approving your application.

Insurance Company Appointments

• If you will be an agent who sells insurance for one company -- commonly referred to as a captive agent -- it means that company has granted you permission to sell its insurance products. However, if you intend to be an independent agent that sells insurance policies for various insurers, each insurer must appoint you to sell its products. The process varies by company, so contact the marketing or sales department of each firm for specific instructions.

License Renewal

• An Illinois insurance license is valid for two years. To have your license renewed, you must obtain 24-hours of continuing education credits and submit a renewal application. The renewal fee is $180 for a resident license and $250 for a non-resident license as of January 2011. If you allow your license to lapse, you can apply for reinstatement within a year by completing the reinstatement application and paying a reinstatement fee. If you wait more than a year, you will have to retake the licensing examination.