Illinois Life & Health Insurance License Exam Overview
The Illinois Life & Health Insurance License Exam is administered by Pearson VUE on behalf of the Illinois Department of Insurance (IDOI). Illinois is the sixth-largest state by population, with Chicago serving as one of the nation's premier financial and insurance centers.
Passing this exam qualifies you to sell life insurance, health insurance, annuities, and related products throughout Illinois—a state with nearly 13 million residents, a diverse economy, and some of the nation's largest insurance company headquarters.
Exam Format at a Glance
| Component | Life Exam | Health Exam |
|---|---|---|
| Total Questions | 94 (81 scored + 13 pretest) | 102 (89 scored + 13 pretest) |
| Time Limit | 2 hours 15 minutes | 2 hours 15 minutes |
| Passing Score | 70% | 70% |
| Testing Vendor | Pearson VUE | Pearson VUE |
| Exam Fee | $92 per exam | $92 per exam |
| Pre-licensing Education | 20 hours | 20 hours |
Note: For a combined Life & Health license, you need to pass both exams and complete 40 hours of pre-licensing education total (20 per line). You can save $92 by booking both exams (General + State) on the same order.
Why Get Licensed in Illinois?
- Major national market — Nearly 13 million potential clients
- Chicago financial hub — Major insurance headquarters and corporate clients
- Moderate pre-licensing — 20 hours per line (40 hours total for Life & Health)
- Central location — Easy expansion to neighboring Midwest states
- High earning potential — Average agent salary over $68,000
📚 Start Your FREE Illinois Life & Health Exam Prep
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Key Topics Covered on the Exam
1. Life Insurance Fundamentals (30-35%)
Types of Life Insurance:
- Term Life (level, decreasing, renewable, convertible)
- Whole Life (ordinary, limited pay, single premium)
- Universal Life (flexible premiums, adjustable death benefit)
- Variable Life (securities-based, separate account)
Policy Provisions Under Illinois Law:
| Provision | Illinois Requirement |
|---|---|
| Grace Period | 30 days minimum |
| Incontestability | 2 years |
| Suicide Clause | 2 years (1 year for reinstatements) |
| Free Look Period | 10 days |
| Reinstatement | 3 years |
| Misstatement of Age | Adjustment of benefits |
Beneficiary Designations:
- Primary and contingent beneficiaries
- Revocable vs. irrevocable designations
- Per stirpes vs. per capita distribution
- Illinois divorce and beneficiary rules
2. Health Insurance Fundamentals (30-35%)
Major Medical Coverage:
- Deductibles, copays, coinsurance
- Out-of-pocket maximums
- Network types (HMO, PPO, EPO, POS)
- Essential health benefits under ACA
Illinois-Specific Health Topics:
- Get Covered Illinois marketplace
- Illinois Comprehensive Health Insurance Plan (ICHIP)
- All Kids program for children
- Mental Health Parity and Addiction Equity compliance
Disability Income Insurance:
- Short-term vs. long-term disability
- Own occupation vs. any occupation definitions
- Elimination periods and benefit periods
- Social Security integration
Long-Term Care Insurance:
- Benefit triggers (ADLs, cognitive impairment)
- Illinois Partnership for Long-Term Care
- Tax-qualified policies
- Inflation protection options
3. Annuities (15-20%)
- Fixed vs. variable annuities
- Immediate vs. deferred annuities
- Accumulation and annuitization phases
- Illinois annuity suitability requirements
- Surrender charges and free withdrawal provisions
- 1035 exchanges and tax implications
4. Illinois Insurance Code and Regulations (15-20%)
215 ILCS 5 Key Provisions:
- Producer licensing requirements (215 ILCS 5/500)
- Unfair trade practices (Article XXVI)
- Unfair claims settlement practices
- Replacement regulations
- Advertising guidelines
Licensing Requirements:
- Pre-licensing education: 20 hours per line (40 hours for Life & Health combined)
- 7.5 hours must be in a live classroom or webinar setting
- Continuing education: 24 hours every 2 years
- Ethics requirement: 3 hours (must be classroom or webinar)
- Background check and fingerprinting required
Producer Responsibilities:
- Fiduciary duties to clients
- Premium handling requirements
- Record retention (3 years minimum)
- Reporting changes within 30 days
5. Ethics and Professional Conduct (10-15%)
- Suitability and needs analysis
- Disclosure requirements
- Privacy and confidentiality (HIPAA compliance)
- Anti-rebating and anti-twisting rules
- Handling complaints and grievances
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Life insurance products and provisions | 10-12 |
| Week 2-3 | Health insurance and ACA | 10-12 |
| Week 3-4 | Annuities and specialty products | 6-8 |
| Week 4 | Illinois regulations (215 ILCS 5) | 6-8 |
| Week 5 | Practice exams and review | 10-12 |
Total recommended study time: 45-55 hours
🎯 Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the Illinois Life & Health exam.
Illinois-Specific Exam Tips
1. Know Your Illinois Laws
The exam tests Illinois-specific regulations:
- 215 ILCS 5 — Illinois Insurance Code
- Get Covered Illinois — State marketplace
- Director powers — Enforcement and penalties
- Article XXVI — Unfair trade practices
2. Master the Numbers
| Topic | Illinois Requirement |
|---|---|
| Grace period | 30 days |
| Free look period | 10 days |
| Incontestability | 2 years |
| CE requirement | 24 hours/2 years |
| Pre-licensing | 20 hours per line |
| Passing score | 70% |
| Record retention | 3 years |
3. Understand Get Covered Illinois
Illinois's health insurance marketplace:
- Open enrollment periods (November-January)
- Special enrollment qualifications
- Subsidy and tax credit eligibility
- Plan tier options (Bronze through Platinum)
4. Focus on Senior Protections
Illinois has enhanced rules for seniors:
- Annuity suitability requirements (4-hour training required for agents)
- Medicare supplement regulations
- Long-term care disclosure requirements
- Enhanced disclosure requirements for annuity sales to seniors
Common Mistakes to Avoid
- Underestimating study time — Pre-licensing alone isn't enough
- Skipping Illinois-specific laws — 215 ILCS 5 is heavily tested
- Ignoring senior protections — Illinois has enhanced rules
- Not practicing timed exams — 2.25 hours per exam requires steady pacing
- Missing health insurance weight — It's equal to life insurance
- Cramming last minute — Spread study over 4-5 weeks
After Passing Your Exam
- Apply for license through NIPR (required since July 2023—no paper applications)
- Complete fingerprinting at LiveScan location
- Pay license fee — $215 for 2-year resident license (plus $5 NIPR fee)
- Affiliate with insurer — Get appointed by carrier
- Maintain CE compliance — 24 hours every 2 years (3 hours ethics in classroom/webinar)
- Begin selling — Your license is valid for 2 years
2026 Illinois Updates
For 2026, be aware of:
- New exam content outlines effective January 1, 2026
- No more remote exams — As of January 17, 2025, all exams must be taken in-person at Pearson VUE testing centers
- Get Covered Illinois marketplace changes
- Enhanced telehealth coverage requirements
- Updated producer appointment rules
Start Your Illinois Insurance Career Today
The Illinois Life & Health license opens doors to one of the nation's premier insurance markets. With proper preparation, you can pass the exam on your first attempt.
Our free study materials include:
- ✅ Complete topic coverage
- ✅ Practice questions with explanations
- ✅ Illinois-specific regulations (215 ILCS 5)
- ✅ Study guides and summaries
- ✅ AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.