IL
Illinois House Bill HB2203

Illinois 2023-2024 Regular Session

Illinois House Bill HB2203 Compare Versions

Only one version of the bill is available at this time.
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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2203 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 215 ILCS 5/143.19.4 new Amends the Illinois Insurance Code. Provides that the amendatory Act may be referred to as the Motor Vehicle Insurance Fairness Act. Provides that no insurer or insurance company group shall refuse to issue or renew a private passenger motor vehicle liability policy based in whole or in part on specified prohibited underwriting or rating factors. Sets forth factors that are prohibited with respect to automobile liability insurance underwriting and rating. Provides that every insurer or insurance company group selling automobile liability insurance in the State shall demonstrate that its marketing, underwriting, rating, claims handling, fraud investigations, and any algorithm or model used for those business practices do not disparately impact any group of customers based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression. Provides that no rate shall be approved or remain in effect that is excessive, inadequate, unfairly discriminatory, or otherwise in violation of the provisions. Provides that every insurer that desires to change any rate shall file a complete rate application with the Director of Insurance. Provides that all information provided to the Director under the provisions shall be available for public inspection. Provides that any person may initiate or intervene in any proceeding permitted or established under the provisions and challenge any action of the Director under the provisions. Provides that the Department of Insurance shall adopt rules. Provides that all insurers subject to the provisions shall be assessed a fee of 0.05% of their total earned premium from the prior calendar year, and that the fee shall be payable to the Department no later than July 1 of each calendar year and shall be used by the Department to implement the provisions. LRB103 25405 BMS 51752 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2203 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 215 ILCS 5/143.19.4 new 215 ILCS 5/143.19.4 new Amends the Illinois Insurance Code. Provides that the amendatory Act may be referred to as the Motor Vehicle Insurance Fairness Act. Provides that no insurer or insurance company group shall refuse to issue or renew a private passenger motor vehicle liability policy based in whole or in part on specified prohibited underwriting or rating factors. Sets forth factors that are prohibited with respect to automobile liability insurance underwriting and rating. Provides that every insurer or insurance company group selling automobile liability insurance in the State shall demonstrate that its marketing, underwriting, rating, claims handling, fraud investigations, and any algorithm or model used for those business practices do not disparately impact any group of customers based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression. Provides that no rate shall be approved or remain in effect that is excessive, inadequate, unfairly discriminatory, or otherwise in violation of the provisions. Provides that every insurer that desires to change any rate shall file a complete rate application with the Director of Insurance. Provides that all information provided to the Director under the provisions shall be available for public inspection. Provides that any person may initiate or intervene in any proceeding permitted or established under the provisions and challenge any action of the Director under the provisions. Provides that the Department of Insurance shall adopt rules. Provides that all insurers subject to the provisions shall be assessed a fee of 0.05% of their total earned premium from the prior calendar year, and that the fee shall be payable to the Department no later than July 1 of each calendar year and shall be used by the Department to implement the provisions. LRB103 25405 BMS 51752 b LRB103 25405 BMS 51752 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2203 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
33 215 ILCS 5/143.19.4 new 215 ILCS 5/143.19.4 new
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55 Amends the Illinois Insurance Code. Provides that the amendatory Act may be referred to as the Motor Vehicle Insurance Fairness Act. Provides that no insurer or insurance company group shall refuse to issue or renew a private passenger motor vehicle liability policy based in whole or in part on specified prohibited underwriting or rating factors. Sets forth factors that are prohibited with respect to automobile liability insurance underwriting and rating. Provides that every insurer or insurance company group selling automobile liability insurance in the State shall demonstrate that its marketing, underwriting, rating, claims handling, fraud investigations, and any algorithm or model used for those business practices do not disparately impact any group of customers based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression. Provides that no rate shall be approved or remain in effect that is excessive, inadequate, unfairly discriminatory, or otherwise in violation of the provisions. Provides that every insurer that desires to change any rate shall file a complete rate application with the Director of Insurance. Provides that all information provided to the Director under the provisions shall be available for public inspection. Provides that any person may initiate or intervene in any proceeding permitted or established under the provisions and challenge any action of the Director under the provisions. Provides that the Department of Insurance shall adopt rules. Provides that all insurers subject to the provisions shall be assessed a fee of 0.05% of their total earned premium from the prior calendar year, and that the fee shall be payable to the Department no later than July 1 of each calendar year and shall be used by the Department to implement the provisions.
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1111 1 AN ACT concerning regulation.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 1. This Act may be referred to as the Motor Vehicle
1515 5 Insurance Fairness Act.
1616 6 Section 5. The Illinois Insurance Code is amended by
1717 7 adding Section 143.19.4 as follows:
1818 8 (215 ILCS 5/143.19.4 new)
1919 9 Sec. 143.19.4. Motor vehicle insurance fairness.
2020 10 (a) Definition. As used in this Section, "proceeding"
2121 11 includes the filing of any rate, rule, or form and any
2222 12 rulemaking conducted pursuant to this Section.
2323 13 (b) Prohibitions; refusal to insure.
2424 14 (1) No insurer or insurance company group shall refuse
2525 15 to issue or renew a private passenger motor vehicle
2626 16 liability policy, bond, or any other insurance based on
2727 17 the ownership or operation of a motor vehicle based in
2828 18 whole or in part on any of the prohibited underwriting and
2929 19 rating factors set forth in subsection (c), or use those
3030 20 factors to determine the terms of coverage or placement in
3131 21 a particular affiliate within an insurance company group.
3232 22 (2) Classification plans, rating plans, rating tier
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3737 215 ILCS 5/143.19.4 new 215 ILCS 5/143.19.4 new
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3939 Amends the Illinois Insurance Code. Provides that the amendatory Act may be referred to as the Motor Vehicle Insurance Fairness Act. Provides that no insurer or insurance company group shall refuse to issue or renew a private passenger motor vehicle liability policy based in whole or in part on specified prohibited underwriting or rating factors. Sets forth factors that are prohibited with respect to automobile liability insurance underwriting and rating. Provides that every insurer or insurance company group selling automobile liability insurance in the State shall demonstrate that its marketing, underwriting, rating, claims handling, fraud investigations, and any algorithm or model used for those business practices do not disparately impact any group of customers based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression. Provides that no rate shall be approved or remain in effect that is excessive, inadequate, unfairly discriminatory, or otherwise in violation of the provisions. Provides that every insurer that desires to change any rate shall file a complete rate application with the Director of Insurance. Provides that all information provided to the Director under the provisions shall be available for public inspection. Provides that any person may initiate or intervene in any proceeding permitted or established under the provisions and challenge any action of the Director under the provisions. Provides that the Department of Insurance shall adopt rules. Provides that all insurers subject to the provisions shall be assessed a fee of 0.05% of their total earned premium from the prior calendar year, and that the fee shall be payable to the Department no later than July 1 of each calendar year and shall be used by the Department to implement the provisions.
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6767 1 placement factors, scoring models, rules, rates, premiums,
6868 2 or any other method of establishing the premium to be paid
6969 3 by an automobile insurance policyholder or covered driver,
7070 4 and the modification thereof, based in whole or in part on
7171 5 any of the prohibited underwriting and rating factors in
7272 6 subsection (c) are unfairly discriminatory.
7373 7 (c) Prohibited factors. With respect to automobile
7474 8 liability insurance underwriting and rating, the use of the
7575 9 following factors shall be prohibited:
7676 10 (1) sex or gender;
7777 11 (2) marital status;
7878 12 (3) race;
7979 13 (4) creed;
8080 14 (5) national origin;
8181 15 (6) religion;
8282 16 (7) age;
8383 17 (8) employment or occupation;
8484 18 (9) education level attained;
8585 19 (10) home ownership;
8686 20 (11) consumer credit information or other credit-based
8787 21 score;
8888 22 (12) the absence of prior insurance;
8989 23 (13) the amount or provider of prior insurance
9090 24 coverage;
9191 25 (14) any measure of a consumer's price elasticity of
9292 26 demand; and
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103103 1 (15) the level of income or wealth.
104104 2 (d) Prohibited business practices. Every insurer or
105105 3 insurance company group selling automobile liability insurance
106106 4 in Illinois shall demonstrate that its marketing,
107107 5 underwriting, rating, claims handling, fraud investigations,
108108 6 and any algorithm or model used for those business practices
109109 7 do not disparately impact any group of customers based on
110110 8 race, color, national or ethnic origin, religion, sex, sexual
111111 9 orientation, disability, gender identity, or gender
112112 10 expression.
113113 11 (e) Prior approval of rates.
114114 12 (1) No rate shall be approved or remain in effect that
115115 13 is excessive, inadequate, unfairly discriminatory, or
116116 14 otherwise in violation of this Section. In considering
117117 15 whether a rate is excessive, inadequate, or unfairly
118118 16 discriminatory, no consideration shall be given to the
119119 17 degree of competition and the Director shall consider
120120 18 whether the rate mathematically reflects the insurance
121121 19 company's investment income.
122122 20 (2) Every insurer that desires to change any rate
123123 21 shall file a complete rate application with the Director.
124124 22 A complete rate application shall include all data
125125 23 necessary to justify the proposed rate and such other
126126 24 information as the Director may require. The applicant
127127 25 shall have the burden of proving that the requested rate
128128 26 change is justified and meets the requirements of this
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139139 1 Section.
140140 2 (3) The Director shall notify the public of any
141141 3 application by an insurer for a rate change. The
142142 4 application shall be deemed approved 60 days after public
143143 5 notice unless:
144144 6 (A) the Director disapproves the application;
145145 7 (B) a consumer or the consumer's representative
146146 8 requests a hearing within 45 days after the public
147147 9 notice and the Director grants the hearing, or the
148148 10 Director determines not to grant the hearing and
149149 11 issues written findings in support of that decision;
150150 12 or
151151 13 (C) the Director, on the Director's own motion,
152152 14 determines to hold a hearing. If the proposed rate
153153 15 adjustment exceeds 7% of the then-applicable rate for
154154 16 personal lines insurance or 15% for commercial lines
155155 17 insurance, then the Director must hold a hearing upon
156156 18 a timely request. If the application is incomplete or
157157 19 otherwise subject to disapproval, then the Director
158158 20 may extend the application review process by up to 60
159159 21 days with the agreement of the applicant.
160160 22 (f) Right of the public to inspect rates. All information
161161 23 provided to the Director pursuant to this Section shall be
162162 24 available for public inspection.
163163 25 (g) Right of the public to participate.
164164 26 (1) Any person may initiate or intervene in any
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175175 1 proceeding permitted or established pursuant to this
176176 2 Section and challenge any action of the Director under
177177 3 this Section.
178178 4 (2) The Director or a court shall award reasonable
179179 5 advocacy and witness fees and expenses to any person who
180180 6 demonstrates that the person represents the interests of
181181 7 consumers and that the person made a substantial
182182 8 contribution to the adoption of any order, regulation, or
183183 9 decision by the Director or a court. Where such advocacy
184184 10 occurs in response to a rate application, the award shall
185185 11 be paid by the applicant.
186186 12 (h) Rules.
187187 13 (1) The Department shall, no later than 90 days after
188188 14 the effective date of this amendatory Act of the 103rd
189189 15 General Assembly, adopt rules that guide the filing and
190190 16 approval of rates, rules, and forms pursuant to this
191191 17 Section. The Director shall develop formulas for
192192 18 evaluating rates and any rules or forms that impact rates
193193 19 that will be used to determine whether to approve or
194194 20 disapprove any filing.
195195 21 (2) Until the rules described in paragraph (1) have
196196 22 taken effect, no insurer or insurance advisory
197197 23 organization may file for a change in any rate, rule, or
198198 24 form that would result in a rate increase. If, before the
199199 25 adoption of the rules described in paragraph (1), an
200200 26 insurer asserts that it would not be able to earn a
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211211 1 reasonable rate of return without an increase, then it may
212212 2 request a hearing. If it is determined after a hearing
213213 3 that a rate increase is needed to earn a reasonable rate of
214214 4 return, then the insurer shall be allowed to make a change
215215 5 that affords it the minimum increase required to earn a
216216 6 reasonable rate of return.
217217 7 (3) The Department shall, no later than 180 days after
218218 8 the effective date of this amendatory Act of the 103rd
219219 9 General Assembly, establish rules that implement the
220220 10 testing of insurer business practices for compliance with
221221 11 this Section.
222222 12 (i) No taxpayer cost. All insurers subject to the
223223 13 provisions of this Section shall be assessed a fee of 0.05% of
224224 14 their total earned premium from the prior calendar year. The
225225 15 fee shall be payable to the Department no later than July 1 of
226226 16 each calendar year and shall be used by the Department to
227227 17 implement the provisions of this Section.
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