Illinois Life & Health Insurance Exam 2026

Welcome to your FREE Illinois Life & Health Insurance exam preparation guide. This comprehensive study resource covers Illinois-specific insurance laws, regulations, and requirements you need to pass your state licensing exam.

Note: This guide covers Illinois state-specific content. You should also study national Life & Health insurance concepts, as you must pass both a general knowledge exam AND a state-designated exam.

Why Get Licensed in Illinois?

Illinois offers outstanding opportunities for insurance professionals:

• Third Largest State: Over 12 million residents create massive insurance demand
• Diverse Economy: Chicago's financial hub, manufacturing, agriculture, and healthcare industries
• Major Insurance Center: Home to many insurance company headquarters
• Aging Population: Growing demand for Medicare supplements, long-term care, and life insurance
• Urban and Rural Markets: Opportunities from Chicago metro to downstate communities
• Strong Regulatory Framework: Professional standards maintained by IDOI
• Business Hub: Commercial and group insurance opportunities

What This Guide Covers

This FREE study guide includes:

• Illinois Insurance Law & Regulations - IDOI structure, Illinois Insurance Code (215 ILCS 5), producer licensing
• Life Insurance - Illinois-specific provisions, policy requirements, beneficiary rules
• Health Insurance - State mandates, consumer protections, continuation rights
• Licensing Requirements - Pre-license education, exam structure, CE requirements
• Practice Questions - Quiz questions with detailed explanations in each chapter

Exam Format & Requirements

Pre-License Education (REQUIRED)

Illinois REQUIRES pre-licensing education before you can take the licensing exam:

Pre-License Course Requirements

• You must score 70% or better on each chapter quiz before progressing to the next chapter
• You must attend the required 7.5 hours per line in a classroom/web education setting
• You must complete and pass the Certificate Exam with a score of 70% or better
• Certificates are valid for 1 year from the date of completion
• You must pass the state exam within 1 year of completing your pre-licensing course

Exam Tip: Plan your study schedule carefully. Illinois requires significant classroom time, so you'll need to coordinate your self-study with scheduled live sessions.

Exam Structure

Illinois requires TWO separate exams for each line of authority:

Important: You must pass BOTH exams within 90 days of each other.

Exam Details

What to Bring to the Exam

When you arrive at the scheduled time for your licensing exam, you must bring:

• Your certificate of completion of pre-licensing education
• Two valid forms of government-issued ID, including at least one photo ID

Exam Costs (2026)

• Pre-License Education Course: $150-$400 (varies by provider)
• General Knowledge Exam Fee: $92
• State Exam Fee: $92 (combined purchase may be $92 total)
• License Application Fee: Via NIPR
• Total Initial Investment: Approximately $350-$600

Application Process

Steps to Get Licensed

1. Complete Pre-Licensing Education: 40 hours for combined L&H (15 hours classroom minimum)
2. Pass Certificate Exam: Score 70% or better
3. Schedule State Exams: Book with Pearson VUE online or by phone at (800) 274-0402
4. Pass Both Exams: General knowledge AND state exam within 90 days of each other
5. Wait 5 Days: Allow processing time before applying
6. Submit Application: Apply online through NIPR
7. Receive License: Illinois Department of Insurance issues license

Application Timeline

• Pre-licensing certificate valid for 1 year
• Must pass both exams within 90 days of each other
• Must wait 5 days after passing before applying for license

Exam Content Areas

General Knowledge Exam (Life)

1. General Insurance Concepts (15-20%)

   • Risk and insurance fundamentals
   • Policy structure and provisions
   • Insurable interest and indemnity
   • Insurance company operations

2. Life Insurance Products (30-35%)

   • Term life insurance types
   • Whole life and permanent insurance
   • Universal and variable life
   • Annuities and retirement products

3. Life Insurance Policy Provisions (25-30%)

   • Standard policy provisions
   • Optional provisions and riders
   • Beneficiary designations
   • Settlement options

4. Life Insurance Underwriting & Taxation (15-20%)

   • Underwriting basics
   • Tax treatment of life insurance
   • Business uses of life insurance
   • Estate planning concepts

General Knowledge Exam (Health)

1. General Insurance Concepts (15-20%)

   • Risk and insurance fundamentals
   • Policy structure and provisions
   • Insurable interest principles

2. Health Insurance Products (30-35%)

   • Medical expense insurance
   • Disability income insurance
   • Long-term care insurance
   • Medicare and Medicaid

3. Health Insurance Policy Provisions (25-30%)

   • Mandatory and optional provisions
   • Policy riders and endorsements
   • Renewal provisions
   • Claims procedures

4. Group Health Insurance (15-20%)

   • Group plan characteristics
   • COBRA and continuation rights
   • ERISA requirements
   • ACA compliance

Illinois State Exam Content

The Illinois state-designated exam covers:

1. Illinois Department of Insurance (IDOI)

   • Department structure and authority
   • Director of Insurance powers
   • Illinois Insurance Code (215 ILCS 5)
   • Regulatory oversight and enforcement

2. Illinois Producer Licensing

   • Licensing requirements and process
   • Lines of authority
   • Pre-licensing education requirements
   • Continuing education requirements
   • License renewal procedures

3. Illinois Life Insurance Laws

   • Policy delivery requirements
   • Free look period (10 days minimum)
   • Beneficiary designation rules
   • Policy replacement regulations
   • Standard policy provisions

4. Illinois Health Insurance Laws

   • State health insurance mandates
   • Illinois Continuation rights
   • Individual and group market rules
   • Medicare supplement regulations
   • Mental health parity requirements

5. Illinois Insurance Trade Practices

   • Unfair trade practices
   • Prohibited practices and penalties
   • Consumer protection laws
   • Claims handling requirements
   • Privacy and disclosure rules

License Maintenance & Continuing Education

CE Requirements

• Total Hours: 24 hours every 2 years
• Ethics Requirement: 3 hours of ethics CE required
• Remaining Hours: 21 hours of insurance concepts and solutions
• Deadline: CE must be completed before license expiration

License Renewal

• Renewal Period: Every 2 years
• Renewal Process: Through NIPR
• Late Renewal: Additional fees and potential license lapse

Reporting Requirements

• Report address changes within required timeframe
• Report administrative actions promptly
• Maintain records for required period

Study Strategy

Recommended Study Plan

Week 1-2: Pre-License Course (Self-Study Portion)

• Complete online modules
• Pass chapter quizzes with 70%+
• Focus on national L&H concepts

Week 3: Classroom Sessions

• Attend required 15 hours of live instruction
• Engage with instructors
• Ask questions about challenging topics

Week 4: Certificate Exam & State Exam Prep

• Pass certificate exam (70%+)
• Focus on Illinois-specific content
• Review Illinois Insurance Code

Week 5-6: State Exam Preparation

• Study Illinois-specific laws
• Take practice exams
• Review IDOI regulations

Week 7: Final Review & Exams

• Take both state exams
• Review any missed questions
• Apply for license within 5 days of passing

Key Numbers to Memorize

Pre-License Education

• Total Hours: 40 hours for combined L&H
• Classroom Hours: 15 hours minimum
• Certificate Exam Pass Score: 70%
• Certificate Valid: 1 year

Exam Requirements

• Passing Score: 70% on each exam
• Exam Fee: $92-$103 per exam
• Time Between Exams: Must pass both within 90 days
• Wait After Passing: 5 days before applying

Continuing Education

• CE Hours: 24 hours every 2 years
• Ethics Hours: 3 hours required
• Other Hours: 21 hours

Illinois Insurance Resources

Official Resources

• Illinois Department of Insurance: insurance.illinois.gov
• Illinois Insurance Code (215 ILCS 5): ilga.gov
• Pearson VUE Exam Information: pearsonvue.com
• NIPR Licensing Portal: nipr.com

Important Contacts

Illinois Department of Insurance

• Address: 320 W. Washington Street, Springfield, IL 62767
• Chicago Office: 122 S. Michigan Avenue, 19th Floor, Chicago, IL 60603
• Phone: (217) 782-4515
• Website: insurance.illinois.gov

Pearson VUE Testing

• Website: pearsonvue.com
• Phone: (800) 274-0402

Getting Started

This study guide is organized into chapters covering Illinois-specific requirements:

Chapter 1: Illinois L&H Regulation & Licensing

• Illinois Department of Insurance structure
• Pre-license education requirements
• Producer licensing process
• Continuing education requirements

Chapter 2: Illinois Life Insurance

• State policy requirements
• Free look and replacement rules
• Beneficiary provisions
• Group life insurance

Chapter 3: Illinois Health Insurance

• State health mandates
• Illinois continuation rights
• Medicare supplement regulations
• Mental health parity

Chapter 4: Illinois Ethics & Professional Conduct

• Unfair trade practices
• Producer duties to clients
• Claims handling requirements
• Privacy and disclosure

Ready to start? Begin with Chapter 1 to learn about Illinois's regulatory structure and licensing requirements.

Disclaimer

This study guide is for educational purposes only and reflects Illinois insurance laws and regulations as of January 2026. Insurance laws change frequently. Always verify current requirements with the Illinois Department of Insurance before relying on any information for licensing or business decisions.

Good luck on your Illinois Life & Health insurance exam!