How Much Does An Illinois Public Adjuster License Cost?

The Illinois public adjuster license costs $350 to $400 in direct costs, including a $92 state exam fee and $250 application fee. Additional costs include a $200 to $800 surety bond premium, which is charged annually or per month.

A first-time public adjuster applicant should prepare for a $600 to $900 figure. Why? We'll explain the apparent and hidden costs of getting an adjuster license. 

Quick Cost Table for Public Adjuster Licenses

State Exam Fee for Public Adjusters

The first major step in becoming an Illinois public adjuster is taking the state exam. Pearson VUE administers the exam on behalf of the Illinois Department of Insurance (IDOI). The public adjuster exam fee costs $92.

Candidates pay this fee when scheduling with Pearson VUE. You must pay the fee for each retake if you do not pass this exam on the first attempt. That's precisely why you need to diligently prepare for the public adjuster exam.

License Application Fee

You must submit your license application after you pass the public adjuster exam. The fee for an individual public adjuster license is $250. This fee is paid electronically during the online application process.

Please gather all required documents before applying to avoid rejection. The fee itself is not refundable, so being prepared saves both time and money. You must also pay an additional fee for a business entity license.

Surety Bond Requirement

Illinois requires every public adjuster to provide proof of financial responsibility. Most candidates satisfy this requirement with a $50000 surety bond. The good news is that you do not pay the full $50000 upfront.

Instead, you pay only the premium, which is a small percentage of the bond amount. Most bond providers ask for $200 to $800 per year. Your personal credit rating plays a major role in determining how much you pay. 

You can do 2 things to reduce this cost:

1. Maintain a good credit rating.
2. Compare prices from different providers.

Fingerprinting and Background Check

All candidates must complete a fingerprint-based background check. The cost depends on the vendor but is usually between $60 and $120. This fee covers both state and federal processing.

You must get the fingerprinting done through an approved live scan provider. Once completed, your fingerprint results are automatically sent to the state. This is an important step because your license cannot be issued until the registry recieves the results.

NIPR Processing Fees

When you apply through the National Insurance Producer Registry, you will notice a small additional processing or transaction fee. These fees are usually just a few dollars and help cover the cost of the online system.

They vary slightly depending on how you pay and which type of transaction you are completing. Although small, I always remind students to expect these, so nothing on the payment screen is surprising.

Optional Exam Preparation Costs

While Illinois does not require pre-licensing education, many candidates choose to purchase optional study materials. These can range from free resources to more comprehensive paid programs.

Most paid prep courses fall between $100 and $500, depending on whether they include live instruction, practice exams, or structured lessons. Candidates who prefer independent study may spend nothing.

Join our Public Adjuster classes if you want an affordable but high quality course. We prepare students for everything, including the insurance adjuster exam and post-exam processes.

Continuing Renewal Costs

Once licensed, you will need to renew every two years. You must pay $250 for each subsequent license renewal. Failure in doing so leads to reinstatement and late fees.

Reinstatement and Late Fees

If a license expires or if a renewal is missed, there is $250 to $500 reinstatement fee. These can be significant and vary depending on the specific situation and timing.

Although you may never need this information, it is useful to understand that keeping up with renewal deadlines helps avoid unnecessary costs.

Business Entity Licensing Costs

If you plan to operate as a company rather than solely as an individual, you must also choose to license your business entity. This requires its own application and a fee of $250.

You will also need to provide the required contracts and financial responsibility documents for the entity. Keep in mind that forming an LLC or corporation comes with additional state formation fees, which are separate from licensing.

Additional Optional or Typical Costs

Beyond the official licensing requirements, you may encounter several optional but common expenses. These may include professional liability insurance, also known as errors and omissions insurance, which many adjusters choose for protection.

If you want your public adjuster contract reviewed by an attorney, that may also add to your start-up costs. Some candidates also budget for marketing materials, office setup or software once they begin practicing.

Typical First Year Budget

Many candidates ask what they should realistically expect to spend during their first year. A frugal budget with a low bond premium, minimal prep materials, and basic fees may total around $600 to $900.

A more typical range for most applicants is around $1200 to $3000, which allows room for exam preparation, mid-range bond premiums, continuing education, and miscellaneous start-up expenses. Candidates with credit challenges or those who invest in professional services may spend more.

FAQs on the Cost of an Illinois PA License

What is the public adjuster fee in Illinois?

The public adjuster fee in Illinois is capped at 10% of the final claim payout. Illinois law sets this limit to protect policyholders and prevent excessive charges. Public adjusters cannot collect more than this percentage on any claim negotiated or settled in the state.

How much do public adjusters make in Illinois?

Public adjusters make $45,000 to $120,000 per year, depending on experience, claim volume, and commission rates. Adjusters who handle large commercial claims or work in high-loss regions often earn over $150,000 annually through percentage-based fees capped at 10% in Illinois.

What does a public adjuster do in Illinois?

A public adjuster in Illinois documents property damage, values losses, and negotiates insurance claims for policyholders. Public adjusters inspect damage, prepare estimates, file claim paperwork, and negotiate settlements to secure the highest lawful payout under Illinois insurance regulations.

Bottom Line on Public Adjuster License Costs

The Illinois public adjuster license costs $350 to $400 in direct costs. Aggregate costs can range from $600 to $900, depending on surety bond premiums, processing, and background checks. 

Please remember, you must repay the examination fee if you fail to pass the exam. Blunders in documentation can also balloon the cost. The best way to mitigate these costs is through thorough research and preparation.

Join our PA prep classes to prepare for the public adjuster exam and the post-process. We help you apply for the license, fill out the necessary application, and reduce errors. Join our classes today to safeguard your future.