103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3861 Introduced , by Rep. Harry Benton SYNOPSIS AS INTRODUCED: 215 ILCS 5/143.5 new Amends the Illinois Insurance Code. Requires insurance policies to be written in language easily readable and understandable by a person of average intelligence and education. Provides the factors the Director of Insurance shall consider in making the determination that the policy is easily readable and understandable by a person of average intelligence and education. LRB103 29424 BMS 55815 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3861 Introduced , by Rep. Harry Benton SYNOPSIS AS INTRODUCED: 215 ILCS 5/143.5 new 215 ILCS 5/143.5 new Amends the Illinois Insurance Code. Requires insurance policies to be written in language easily readable and understandable by a person of average intelligence and education. Provides the factors the Director of Insurance shall consider in making the determination that the policy is easily readable and understandable by a person of average intelligence and education. LRB103 29424 BMS 55815 b LRB103 29424 BMS 55815 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3861 Introduced , by Rep. Harry Benton SYNOPSIS AS INTRODUCED:
215 ILCS 5/143.5 new 215 ILCS 5/143.5 new
215 ILCS 5/143.5 new
Amends the Illinois Insurance Code. Requires insurance policies to be written in language easily readable and understandable by a person of average intelligence and education. Provides the factors the Director of Insurance shall consider in making the determination that the policy is easily readable and understandable by a person of average intelligence and education.
LRB103 29424 BMS 55815 b LRB103 29424 BMS 55815 b
LRB103 29424 BMS 55815 b
A BILL FOR
HB3861LRB103 29424 BMS 55815 b HB3861 LRB103 29424 BMS 55815 b
HB3861 LRB103 29424 BMS 55815 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Insurance Code is amended by
5 adding Section 143.5 as follows:
6 (215 ILCS 5/143.5 new)
7 Sec. 143.5. Policy readability.
8 (a) On and after the effective date of this amendatory Act
9 of the 103rd General Assembly, a policy issued, amended,
10 renewed, or delivered by an insurance company authorized to do
11 business in this State shall be written in language easily
12 readable and understandable by a person of average
13 intelligence and education.
14 (b) In determining whether a policy is readable within the
15 meaning of this Section, the Director shall consider, at
16 least, the following factors:
17 (1) the simplicity of the sentence structure and the
18 shortness of the sentences used;
19 (2) the extent to which commonly used and understood
20 words are employed;
21 (3) the extent to which legal terms are avoided;
22 (4) the extent to which references to other sections
23 or provisions of the contract are minimized;
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3861 Introduced , by Rep. Harry Benton SYNOPSIS AS INTRODUCED:
215 ILCS 5/143.5 new 215 ILCS 5/143.5 new
215 ILCS 5/143.5 new
Amends the Illinois Insurance Code. Requires insurance policies to be written in language easily readable and understandable by a person of average intelligence and education. Provides the factors the Director of Insurance shall consider in making the determination that the policy is easily readable and understandable by a person of average intelligence and education.
LRB103 29424 BMS 55815 b LRB103 29424 BMS 55815 b
LRB103 29424 BMS 55815 b
A BILL FOR
215 ILCS 5/143.5 new
LRB103 29424 BMS 55815 b
HB3861 LRB103 29424 BMS 55815 b
HB3861- 2 -LRB103 29424 BMS 55815 b HB3861 - 2 - LRB103 29424 BMS 55815 b
HB3861 - 2 - LRB103 29424 BMS 55815 b
1 (5) the extent to which definitional provisions are
2 incorporated in the text of the policy or contract; and
3 (6) any additional factors relevant to the readability
4 or understandability of an insurance policy or contract
5 that the Director may prescribe by rule.
HB3861 - 2 - LRB103 29424 BMS 55815 b