Illinois Insurance Adjuster License

Written by: Kevelyn Rodriguez

Last updated:

The state of Illinois does not require its adjusters to obtain an Illinois adjuster license.

This means that you will be able to operate legitimately without purchasing a pre-exam course, passing a state licensing exam, or applying for a license.

Even so, several Illinois residents choose to obtain a license from a different state — known as a designated home state (DHS) license — in order to increase their potential long-term earnings.

We recommend getting a DHS license in Florida. This is because a Florida DHS adjuster license has great reciprocity, the quickest application process, and a relatively short insurance adjuster exam.

How to Get Your Insurance Adjuster License in Illinois

The state of Illinois does not require its adjusters to obtain an Illinois adjuster license.

This means that you will be able to operate legitimately without purchasing a pre-exam course, passing a state licensing exam, or applying for a license.

Even so, several Illinois residents choose to obtain a license from a different state — known as a designated home state (DHS) license — in order to increase their potential long-term earnings.

How to Get Your Insurance Adjuster License in Illinois

Illinois does not offer a resident adjuster license and does not require Illinois residents to hold a license in order to operate as adjusters within the state.

Having said that, getting a license from a different state — known as a DHS license — is often recommended nonetheless.

This is because operating without a license can handicap you significantly in the long run and will undoubtedly limit your employment opportunities.

Designated Home State Insurance Adjuster License

There are several states that offer what is called a Designated Home State license. Having said that, it is important to note that Florida, Texas, and Indiana are the most popular.

Essentially, this is a type of license that allows people that live in a non-licensing state — such as Illinois or Maryland — the opportunity to “designate” a different state (e.g., Florida, etc.) as their “home state”.

This allows them to apply for and obtain a Florida insurance adjuster license as if they were an in-state resident of Florida.

This is beneficial for several reasons, including:

  • Employment – Many potential employers of claims adjusters will look specifically for applicants who are already licensed. Even if they aren’t specifically looking for a licensed insurance adjuster, they will likely prefer one over a non-licensed alternative (due to the geographical flexibility advantage)
  • Catastrophe (CAT) or Traveling Adjusters – If a non-licensed adjuster wishes to work on CAT claims, there is a good chance that they will need to travel across state lines. To operate in a state other than your home state, you will need to have a reciprocal license in that state. This means that applying for a reciprocity license can only be done if you hold an equivalent license in your own state (such as a DHS license)

The bottom line is this: if you wish to work in insurance claims, you should have a license to do so, and in Illinois, the only way to do that is to get a designated home state license.

StateRequirement recommends getting a Florida DHS Adjuster License. This is because it has an, exceptionally fast application process, short exam structure, and high reciprocity.

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You’ve done the work, put in the time and effort, and now hold the key to your own success!  We’re proud of you. Take five (5) minutes and celebrate.

What Kind of Insurance Adjuster Will You Be?

There are four main types of insurance adjustersstaff adjusters, independent adjusters, catastrophe adjusters, and public adjusters.

Each of these positions accomplishes essentially the same task: assess the damage to property brought about by some event and make an evaluation of what monetary value the insurance claim should carry.

The big difference between these different types of insurance adjusters is who pays them, and in the case of the public adjuster, who they are advocating for. Staff, independent, and catastrophe adjusters do not require a license in Illinois, whereas public adjusters do.

  • Staff Adjuster – Works directly for one insurance company in order to investigate, evaluate, and potentially settle claims.
  • Licensed Independent Adjuster – Works for a third-party company, often called an Independent Adjusting Firm, which has been contracted by insurance carriers to help settle their claims.
  • Catastrophe (CAT) Adjuster – Can be an independent or staff adjuster who travels to an area that has been largely affected by an event (usually severe weather) and performs claims adjuster services en masse.
  • Inside Adjuster – Inside adjusters, sometimes referred to as “desk” or “remote” adjusters, handle claims from an office. They are the policyholder’s main contact and the person who applies the policy terms and standards to the claim.
  • Public Adjuster – An independent insurance adjuster that customers choose to hire in order to settle insurance claims. Public adjusters are not hired by insurance companies.

Illinois Public Adjuster

If you want to become a public adjuster in Illinois, you will need to apply for (and obtain) a public adjuster license.

In order to do this, you will need to pass the Illinois Public Adjusters Examination, which is administered by Pearson VUE.

The examination fee for the final exam is $92, which includes a $50 state administrative fee.

After you complete and pass your exam, you will need to submit Form PA-1: Public Adjuster License Application to the Illinois Department of Insurance alongside a $250 check.

Note: Your application must be accompanied by a surety bond or irrevocable letter of credit in the amount of $20,000.

Illinois Department of Insurance Contact Information

Mailing Address:

320 W. Washington Street
Springfield, Illinois 62767

Phone: (217) 782-4515

Fax: (217) 782-5020

Email: DOI.Licensing@illinois.gov

Website: http://insurance.illinois.gov

Illinois Insurance Adjuster License FAQ

Does Illinois require an adjusters license?

No. In fact, the state of Illinois does not license insurance adjusters (with the exception of public adjusters). Nonetheless, we recommend getting a designated home state — known as a DHS — license from another state as an Illinois adjuster. For detailed licensing instructions, see our Florida DHS Adjuster License article.

How much does a claim adjuster earn in Illinois?

This depends on several factors, including an adjuster’s experience.
For entry-level claims adjusters, the average annual salary as of 2023 was just under $40,000 (i.e., $39,899). The average annual salary for all Illinois claims adjusters is $60,306. See our How Much Does an Insurance Adjuster Make review for more information.

How do I become an insurance adjuster in Illinois?

You do not need to obtain a license — or pass an adjuster examination — in order to become an Illinois insurance adjuster. Nonetheless, we recommend obtaining a Florida DHS license in order to improve your employment opportunities. You can do this by completing a pre-exam course, passing the Florida insurance adjuster exam, and filing an application with the Department of Insurance.

How much does it cost to get an insurance adjuster license in Illinois?

This will depend on whether you choose to obtain a DHS license from a different state (since Illinois does not license its adjusters). If you do, you will likely need to pay for a pre-exam course, state-specific exam, and online application. Note: You may also decide to purchase certain insurance adjuster tools in order to help you operate.

How can I become a public adjuster in Illinois?

In order to become a licensed public adjuster in Illinois, you will need to pass the Illinois Public Adjusters Examination ($92 fee), as well as submit Form PA-1 to the Illinois Department of Insurance alongside a $250 check. When it comes to your preparation, you will likely benefit from purchasing a pre-exam course. See our review of the Best Adjuster Licensing Courses for more information.

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