October 12, 2022

Illinois Insurance License Exam

Written by: Ethan Peyton

Cartoon woman holding Illinois Insurance License Exam document

    Passing your Illinois insurance license exam is a pivotal part of becoming a licensed insurance agent in the state of Illinois.

    In this guide, we’ll break down the general information that you need to know in order to pass your exam, outline the differences between each examination line, and offer tips on both: how to prepare for your Illinois insurance licensing exam, and on what to do after you pass.

     

    Illinois Insurance Exam Basics

    General Information

    The State of Illinois uses Pearson VUE to administer its insurance agent licensing. This means you can register and book all of your licensing examinations through the Pearson VUE website. Your test can be carried out online or in person.

    Each major insurance line examination includes both general and state-specific material.

    The general questions test your federal insurance product and agent knowledge, whereas the state-specific questions test you on the Illinois insurance regulations and laws that you will need to know in order to operate as an insurance agent.

    Score Explanation

    Each licensing examination has multiple versions (known as forms), which are made up of different questions. This means that your exam can be easier or more difficult than someone else’s, even if you’re being tested on the same line, on the same day.

    A statistical procedure known as equating is used to ensure that any differences in form difficulty are accounted for.

    Example:

    Imagine that you have two forms of a Life exam.

    On Form X, the Illinois Department of Insurance (IDOI) determines that correctly answering 30 questions demonstrates that you have the minimum knowledge necessary to pass your exam and become a licensed agent.

    On Form Y, however, the same level of understanding is demonstrated by answering 25 questions correctly. In this scenario, you would need 30 correct answers to pass on Form X, whereas you would need 25 correct answers to pass on Form Y.

    Following this, a second procedure known as scaling is used to translate this method into a numerical figure, which is then reported to all candidates. A scaled score of 70 or above is needed in order to pass your insurance license exam(s) in Illinois.

     

    Cost

    Your Illinois insurance license exam cost will depend on the number of examinations that you take:

    Examination

    Cost 

    Time Allowed

    IL Life Producer General

    $92

    85 Minutes

    IL Life Producer State

    $92

    50 Minutes

    IL Accident and Health Producer General

    $92

    85 Minutes

    IL Accident and Health Producer State

    $92

    55 Minutes

    IL Property Producer General

    $92

    85 Minutes

    IL Property Producer State

    $92

    50 Minutes

    IL Casualty Producer General

    $92

    80 Minutes

    IL Casualty Producer State

    $92

    55 Minutes

    Note: You should focus on one exam at a time. This will likely increase the amount of time and effort you can allocate to each examination and should allow you to feel more prepared when you sit your exam.

    Recommended Pre-License Course

    Before taking your insurance exam, you must complete a pre-license education course. This is actually a requirement in the state of Illinois, and can go a long way in helping you learn all of the information that you will be expected to know during your exam.
    4.7 out of 5 starsKaplan Education Company

     

    Illinois Life and Health Insurance Exam

    Below you can find the content outline offered by Pearson VUE.

    We recommend using it as a checklist when working through your pre-license education course. This way, you’ll be absolutely sure that you haven’t missed any topic that you will be tested on later on.

    Life General Knowledge Content Outline

    50 scorable questions, plus 10 pretest questions.

    I. Types of Policies

    A. Traditional whole life products
    B. Interest/market-sensitive/adjustable life products
    C. Term life
    D. Annuities
    E. Combination plans and variations

     

    II. Policy Riders, Provisions, Options, and Exclusions

    A. Policy Riders
    B. Policy Provisions and Options
    C. Policy Exclusions

     

    III. Completing the Application, Underwriting, and Delivering the Policy

    A. Completing the Application
    B. Underwriting
    C. Delivering the Policy
    D. Contract Law

     

    IV. Taxes, Retirement and Other Insurance Concepts

    A. Third-Party Ownership
    B. Viatical Settlements
    C. Life Settlements
    D. Group Life Insurance
    E. Retirement Plans
    F. Life Insurance Needs Analysis/Suitability
    G. Social Security Benefits
    H. Tax Treatment of Insurance Premiums, Proceeds, and Dividends

     

    Life Illinois Specific Content Outline

    31 scorable questions, plus 8 pretest questions.

    I. Illinois Statutes and Regulations Common to Life, Accident and Health, Property, Casualty and Personal Lines Insurance

    A. Insurance Director
    B. License and registration
    C. Fiduciary responsibilities
    D. Commissions and compensation
    E. Felony convictions
    F. Disclosure
    G. Marketing practices
    H. Unfair claims practices

     

    II. Illinois Statutes and Requirements Pertinent to Life Insurance Only

    A. Advertising and sales
    B. Replacement
    C. Life solicitation
    D. Accelerated benefits
    E. Illustrations
    F. Viatical Settlements
    G. Unfair Practices
    H. Life & Health Insurance Guaranty Association

     

    Health General Knowledge Content Outline

    50 scorable questions, plus 10 pretest questions.

    I. Types of Policies

    A. Disability income
    B. Accidental death and dismemberment
    C. Medical expense insurance
    D. Medicare supplement policies
    E. Group insurance
    F. Individual/Group Long Term Care (LTC)
    G. Other policies

     

    II. Policy Provisions, Clauses, and Riders

    A. Mandatory and optional provisions
    B. Other provisions and clauses
    C. Riders
    D. Rights of renewability

     

    III. Social Insurance

    A. Medicare (Parts A, B, C, D)
    B. Medicaid
    C. Social Security Benefits

     

    IV. Other Insurance Concepts

    A. Total, Partial, Recurrent, and Residual Disability
    B. Owner’s Rights
    C. Dependent Children Benefits
    D. Primary and Contingent Beneficiaries
    E. Modes of Premium Payments
    F. Nonduplication and Coordination of Benefits (e.g., primary vs. excess)
    G. Occupational vs. Non-occupational
    H. Tax Treatment of Premiums and Proceeds of Insurance Contracts (e.g., disability income and medical expenses, etc.)
    I. Managed Care
    J. Workers Compensation
    K. Subrogation

     

    V. Field Underwriting Procedures

    A. Completing the Application
    B. Explaining sources of insurability and HIPAA privacy information (e.g., MIB Report, Fair Credit Reporting Act, etc.)
    C. Initial premium payment and receipt and consequences of the receipt (e.g., medical examination, etc.)
    D. Submitting application (and initial premium if collected) to company for underwriting
    E. Policy Delivery
    F. Explaining Policy and its Provisions, Riders, Exclusions, and Ratings to Clients
    G. Replacement
    H. Contract Law

     

    Accident and Health Illinois Specific Content Outline

    39 scorable questions, plus 5 pretest questions.

    I. Illinois Statutes and Regulations Common to Life, Accident and Health, Property, Casualty and Personal Lines Insurance

    A. Insurance Director
    B. License and registration
    C. Fiduciary responsibilities
    D. Commissions and compensation
    E. Felony convictions
    F. Disclosure
    G. Marketing practices
    H. Unfair claims practices

     

    II. Illinois Statutes and Regulations Pertinent to Accident and Health Insurance Only

    A. Medicare supplements
    B. Long term care
    C. Advertising
    D. Minimum standards for Individual Policies
    E. Group Insurance
    F. Unfair Practices
    G. Life & Health Insurance Guaranty Association
    H. Short-Term Limited-Duration Health Insurance
    I. Health Maintenance Organizations (HMO)
    J. Limited Health Service Organizations (LHSO)

    We recommend reading our in-depth How to Pass the Life Insurance Exam guide for a better overview.

     

    Illinois Property and Casualty License Exam

    Below you can find the content outline offered by Pearson VUE.

    You should use this outline as a checklist when working through your pre-license education course in order to ensure that you haven’t missed any topic that you will be tested on later on.

    Property General Knowledge Content Outline

    50 scorable questions, plus 10 pretest questions.

    I. Types of Policies 

    A. Homeowners
    B. Dwelling Policies
    C. Commercial Lines
    D. Inland Marine
    E. National Flood Insurance Program
    F. Others

     

    II. Insurance Terms and Related Concepts

    A. Insurance
    B. Insurable Interest
    C. Risk
    D. Hazards
    E. Peril
    F. Loss
    G. Loss Valuation
    H. Proximate Cause
    I. Deductible
    J. Indemnity
    K. Limits of Liability
    L. Coinsurance/Insurance to Value
    M. Occurrence
    N. Cancellation
    O. Nonrenewal
    P. Vacancy and Inoccupancy
    Q. Liability
    R. Negligence
    S. Binders
    T. Endorsements
    U. Blanket vs. Specific

     

    III. Policy Provisions and Contract Law

    A. Declarations
    B. Insuring Agreement
    C. Conditions
    D. Exclusions
    E. Definition of the Insured
    F. Duties of the Insured
    G. Obligations of the Insurance Company
    H. Mortgagee Rights
    I. Proof of Loss
    J. Notice of Claim
    K. Appraisal
    L. Other insurance Provision
    M. Subrogation
    N. Elements of a contract
    O. Warranties, representations, and concealment
    P. Sources of underwriting information
    Q. Fair Credit Reporting Act
    R. Privacy Protection (Gramm Leach Bliley)
    S. Policy Application
    T. Terrorism Risk Insurance Act (TRIA)

     

    Property Illinois Specific Content Outline

    30 scorable answers plus 7 pretest questions.

    I. Illinois Statutes and Regulations Common to Life, Accident and Health, Property, Casualty and Personal Lines Insurance

    A. Insurance Director
    B. License and registration
    C. Fiduciary responsibilities
    D. Commissions and compensation
    E. Felony convictions
    F. Disclosure
    G. Marketing practices
    H. Unfair claims practices
    I. Illinois Insurance Guaranty Fund

     

    II. Illinois Statutes and Regulations Common to Property and Casualty Insurance Only

    A. Renewal, nonrenewal, cancellation, and Certificates of Insurance
    B. Financing insurance premiums
    C. Insurance Claims Fraud Prevention Act
    D. Use of credit information
    E. Hate crimes

     

    III. Illinois Statutes and Regulations Pertinent to Property Insurance Only

    A. Rejection on basis of location
    B. Illinois FAIR Plan (FAIR plan)
    C. Mine subsidence
    D. Customer affairs and info. dept

     

    Casualty General Knowledge Content Outline

    50 scorable answers plus 10 pretest questions.

    I. Types of Policies, Bonds, and Related Terms

    A. Commercial general liability
    B. Automobile: personal auto and business auto
    C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues
    D. Crime
    E. Bonds
    F. Professional liability
    G. Umbrella/Excess Liability

     

    II. Insurance Terms and Related Concepts

    A. Risk
    B. Hazards
    C. Indemnity
    D. Insurable interest
    E. Loss Valuation
    F. Negligence
    G. Liability
    H. Occurrence
    I. Binders
    J. Warranties
    K. Representations
    L. Concealment
    M. Deposit Premium/Audit
    N. Certificate of Insurance
    O. Law of Large Numbers
    P. Pure vs. Speculative Risk
    Q. Endorsements
    R. Damages
    S. Compliance with Provisions of Fair Credit Reporting Act

     

    III. Policy Provisions

    A. Declarations
    B. Insuring agreement
    C. Conditions
    D. Exclusions and Limitations
    E. Definition of the Insured
    F. Duties of the Insured after a Loss
    G. Cancellation and Nonrenewal Provisions
    H. Supplementary Payments
    I. Proof of Loss
    J. Notice of Claim
    K. Arbitration
    L. Other Insurance
    M. Subrogation
    N. Loss Settlement Provisions including Consent to Settle a Loss
    O. Terrorism Risk Insurance Act (TRIA)

     

    Casualty Illinois Specific Content Outline

    37 scorable answers plus 7 pretest questions.

    I. Illinois Statutes and Regulations Common to Life, Accident and Health, Property, Casualty and Personal Lines Insurance

    A. Insurance Director
    B. License and registration
    C. Fiduciary responsibilities
    D. Commissions and compensation
    E. Felony convictions
    F. Disclosure
    G. Marketing practices
    H. Unfair claims practices
    I. Illinois Insurance Guaranty Fund

     

    II. Illinois Statutes and Regulations Common to Property and Casualty Insurance

    A. Renewal, nonrenewal, cancellation, and Certificates of Insurance
    B. Financing insurance premiums
    C. Insurance Claims Fraud Prevention Act
    D. Use of credit information
    E. Hate crimes

     

    IlI. Illinois Statutes and Regulations Pertinent to Casualty Insurance Only

    A. Auto
    B. Worker’s Compensation Assigned Risk Pool

    We recommend reading our Property and Casualty Insurance exam article for a more in-depth overview.

     

    How to Pass the Illinois Insurance Exam

    Passing your Illinois insurance exam ultimately comes down to your mindset and degree of preparation.

    We have composed a few helpful exam tips and tricks that should help you perform as well as you can during your exam day.

    Get a Pre-License Course

    Getting a pre-license course can go a long way in helping you get accustomed to the prolific amount of content that you will have to memorize. It is also a legal requirement in the state of Illinois.

    We recommend Kaplan’s course because it offers a variety of helpful features, including:

    • Online exam simulations
    • Live online training
    • Printable study guides
    • End of chapter reviews

    For more information, we recommend reading our Kaplan Insurance Course Review.

     

    Make Enough Time to Study

    Not leaving enough time to prepare is one of the easiest ways to ensure that you do not pass your exam on your first attempt.

    Remember, there are zero questions on your exam that are based on common sense or critical thinking. All questions are purely factual, and so will relate to how well you understand and remember the content that you have learned.

    We recommend allocating around one to two weeks to prepare for your exam, as this should allow you to go through all of the material at least twice.

     

    Control Test Anxiety

    Even though you cannot control whether you get exam anxiety or not, you can take a few steps when preparing to limit its effect on your performance:

    • Establish a consistent pretest routine — Acclimate yourself to exam conditions by following a specific routine on each practice exam at home. This should help you feel less anxious during your exam day.
    • Get plenty of sleep — Lack of sleep can exacerbate your anxiety and increase your self-doubt. Make sure you are consistently getting a good night’s sleep in the week leading up to your exam.
    • Study effectively — This sounds obvious, but make sure you are actually tailoring your studying to the exam that you are taking. Remember, there are no critical thinking or common sense questions involved.
    • Arrive early — If you are planning to sit your exam in person, we recommend you arrive at least 30 minutes before it’s due to start in order to get used to your surroundings and have time to check in with your center’s administrator.

    For a more in-depth overview of how you can prepare for your Illinois insurance exam, we recommend reading our How to Pass the Insurance Exam article.

     

    Getting Your Illinois Insurance License

    Your next steps will depend on whether you actually passed your exam, as well as on whether you plan to get licensed for any additional lines.

    You can apply for your license up to 12 months after you complete your exam, so if you would like to attempt passing additional insurance line exams before filing your licensing application with the IDOI, you are totally free to do that.

    After you have passed your insurance licensing exam, you will need to:

    • Complete a fingerprint and background check
    • File your licensing application
    • Wait for your application to be reviewed

    Have a look at our How to Become an Insurance Agent in Illinois review for more information on all the steps that you will need to take after passing your insurance exam.




    Illinois Insurance Exams FAQ

    How often do I have to renew my license?

    In Illinois, you need to renew your insurance license every two years in order to continue operating as a legitimate insurance agent.

    For more information, see our guide on How to Renew Your Insurance License in Illinois.

     

    How long is the Illinois insurance exam?

    This will depend on the exam in question. The Life, Accident and Health, Casualty and Property general exams are all between 80 and 85 minutes long.

    Their state-specific counterparts, on the other hand, are between 50 and 55 minutes long.

     

    How many times can you take the Illinois insurance exam?

    There is no limit to the amount of times you can take the Illinois insurance exams. Having said that, you will be required to pass both the general and state-specific parts of your exam within 90 days of each other.

     

    How many questions are on the Illinois insurance exam?

    This will depend on the exam that you are taking. The Life insurance exam, for example, is made up of 81 questions (split into a general and state-specific exam).

    On the other hand, the Accident & Health exam has 89 — 50 general and 39 state-specific questions.

    Illinois Department of Insurance Contact Information

    Mailing Address:

    320 West Washington Street
    Springfield, Illinois 62767-0001

    Phone: (217) 782-4515

    Fax: (217) 782-5020

    Email: DOI.Licensing@illinois.gov

    Website: http://insurance.illinois.gov

    License Search: Illinois Insurance License Search and Lookup




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