Illinois Insurance Agents Licensing Guide & FAQHelpful Question and Answers for Current and Prospective Illinois Insurance Producers
Currently, resident insurance producer licenses cost $90 per year for two years, and non-resident producer licenses cost $125 per year. A license must be renewed every two years, and renewal costs are the same as the initial licensing cost.
Fees due to penalties or for license reinstatement are equal and in addition to the standard cost of licensing.
When moving to Illinois with an out-of-state license, most agents in good standing with their previous state do not need to complete any pre-licensing courses or examinations , although they are required to pay the standard licensing fee. Although the Illinois DOI does not require a Letter of Clearance, they do verify your previous license status through the Producer Database.
A surety bond of $2,500 (or 5% of premiums brokered during the previous year) is required from all licensed producers who do not have direct contracts with an insurer.What do I need to know about license renewal?
As of January 1, 2010, all licensed agents whose license is up for renewal are required to complete at least 3 hours of Ethics Continuing Education classes. CPMI offers classes throughout the state to help you with this requirement.
The Illinois Department of Insurance will send out notices to all insurance agents approximately forty-five days before their licenses expire to the address they have on file (at the DOI). It is your responsibility, as required by law, to make sure that the DOI is notified of any change of residential address within 30 days of moving. If you do not receive a renewal notice in the mail, you will want to contact the state Licensing Unit by phone at 217.782.6366.What is a letter of Certification / letter of Clearance?
Licensed Illinois insurance producers seeking to expand or establish their practice into a second state are required to obtain one of these two letters from the Director of Insurance. There is a ten dollar fee in exchange for this service.
Letters of Certification are obtained in order to apply as a non-resident insurance producer in another state, without moving from Illinois or cancelling your license in IL. Letters of Clearance are used when moving out of the state altogether, and will in effect cancel your license as of the date they are issued.
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