Illinois 2023-2024 Regular Session

Illinois House Bill HB4611 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4611 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED: 215 ILCS 5/143.19.4 new Amends the Illinois Insurance Code. Provides that an insurer shall not, with regard to any motor vehicle liability insurance practice, (i) unfairly discriminate based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression or (ii) use any external consumer data and information sources in a way that unfairly discriminates based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression. Allows the Department of Insurance to examine and investigate an insurer's use of external consumer data and information sources, algorithms, or predictive models in any motor vehicle liability insurance practice. Specifies that the provisions shall not be construed to require an insurer to collect consumer's demographic data, to prohibit the use of a driver's history that has a direct relationship with risk, or to prohibit the use of or require testing of longstanding and well-established common industry practices in settling claims or traditional underwriting practices. Prohibits an insurer from canceling, refusing to renew, or increasing the premium for any policy of automobile insurance solely because an insured person has reached the age of 65 years if the insured has a valid Illinois driver's license. Defines terms. LRB103 37111 MXP 67230 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4611 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED: 215 ILCS 5/143.19.4 new 215 ILCS 5/143.19.4 new Amends the Illinois Insurance Code. Provides that an insurer shall not, with regard to any motor vehicle liability insurance practice, (i) unfairly discriminate based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression or (ii) use any external consumer data and information sources in a way that unfairly discriminates based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression. Allows the Department of Insurance to examine and investigate an insurer's use of external consumer data and information sources, algorithms, or predictive models in any motor vehicle liability insurance practice. Specifies that the provisions shall not be construed to require an insurer to collect consumer's demographic data, to prohibit the use of a driver's history that has a direct relationship with risk, or to prohibit the use of or require testing of longstanding and well-established common industry practices in settling claims or traditional underwriting practices. Prohibits an insurer from canceling, refusing to renew, or increasing the premium for any policy of automobile insurance solely because an insured person has reached the age of 65 years if the insured has a valid Illinois driver's license. Defines terms. LRB103 37111 MXP 67230 b LRB103 37111 MXP 67230 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4611 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED:
3	3	215 ILCS 5/143.19.4 new 215 ILCS 5/143.19.4 new
4	4	215 ILCS 5/143.19.4 new
5	5	Amends the Illinois Insurance Code. Provides that an insurer shall not, with regard to any motor vehicle liability insurance practice, (i) unfairly discriminate based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression or (ii) use any external consumer data and information sources in a way that unfairly discriminates based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression. Allows the Department of Insurance to examine and investigate an insurer's use of external consumer data and information sources, algorithms, or predictive models in any motor vehicle liability insurance practice. Specifies that the provisions shall not be construed to require an insurer to collect consumer's demographic data, to prohibit the use of a driver's history that has a direct relationship with risk, or to prohibit the use of or require testing of longstanding and well-established common industry practices in settling claims or traditional underwriting practices. Prohibits an insurer from canceling, refusing to renew, or increasing the premium for any policy of automobile insurance solely because an insured person has reached the age of 65 years if the insured has a valid Illinois driver's license. Defines terms.
6	6	LRB103 37111 MXP 67230 b LRB103 37111 MXP 67230 b
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11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Insurance Code is amended by
15	15	5 adding Section 143.19.4 as follows:
16	16	6 (215 ILCS 5/143.19.4 new)
17	17	7 Sec. 143.19.4. Automobile insurance practices; prohibition
18	18	8 on discrimination.
19	19	9 (a) As used in this Section:
20	20	10 "Algorithm" means a computational or machine learning
21	21	11 process that informs human decision-making in insurance
22	22	12 practices.
23	23	13 "External consumer data and information source" means a
24	24	14 data or an information source that is used by an insurer to
25	25	15 supplement traditional underwriting or other insurance
26	26	16 practices or to establish lifestyle indicators that are used
27	27	17 in insurance practices.
28	28	18 "External consumer data and information source" includes
29	29	19 credit scores, social media habits, locations, purchasing
30	30	20 habits, home ownership, educational attainment, occupation,
31	31	21 licensures, civil judgments, and court records.
32	32	22 "Insurance practice" means marketing, underwriting,
33	33	23 pricing, utilization management, reimbursement methodologies,
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4611 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED:
38	38	215 ILCS 5/143.19.4 new 215 ILCS 5/143.19.4 new
39	39	215 ILCS 5/143.19.4 new
40	40	Amends the Illinois Insurance Code. Provides that an insurer shall not, with regard to any motor vehicle liability insurance practice, (i) unfairly discriminate based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression or (ii) use any external consumer data and information sources in a way that unfairly discriminates based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression. Allows the Department of Insurance to examine and investigate an insurer's use of external consumer data and information sources, algorithms, or predictive models in any motor vehicle liability insurance practice. Specifies that the provisions shall not be construed to require an insurer to collect consumer's demographic data, to prohibit the use of a driver's history that has a direct relationship with risk, or to prohibit the use of or require testing of longstanding and well-established common industry practices in settling claims or traditional underwriting practices. Prohibits an insurer from canceling, refusing to renew, or increasing the premium for any policy of automobile insurance solely because an insured person has reached the age of 65 years if the insured has a valid Illinois driver's license. Defines terms.
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42	42	LRB103 37111 MXP 67230 b
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68	68	1 and claims management in the transaction of insurance.
69	69	2 "Predictive model" means a process of using mathematical
70	70	3 and computational methods that examine current and historical
71	71	4 data sets for underlying patterns and calculate the
72	72	5 probability of an outcome.
73	73	6 "Unfairly discriminate" includes the use of one or more
74	74	7 external consumer data and information sources, as well as
75	75	8 algorithms or predictive models using external consumer data
76	76	9 and information sources, that have a correlation to age, race,
77	77	10 color, national or ethnic origin, immigration or citizenship
78	78	11 status, sex, sexual orientation, disability, gender identity,
79	79	12 or gender expression of an individual and that uses results in
80	80	13 a disproportionately negative outcome for such classification
81	81	14 or classifications, which negative outcome exceeds the
82	82	15 reasonable correlation to the underlying insurance practice,
83	83	16 including losses and costs for underwriting.
84	84	17 (b) An insurer shall not, with regard to any motor vehicle
85	85	18 liability insurance practice:
86	86	19 (1) unfairly discriminate based on age, race, color,
87	87	20 national or ethnic origin, immigration or citizenship
88	88	21 status, sex, sexual orientation, disability, gender
89	89	22 identity, or gender expression; or
90	90	23 (2) use any external consumer data and information
91	91	24 sources, as well as any algorithm or predictive models
92	92	25 that use external consumer data and information sources,
93	93	26 in a way that unfairly discriminates based on age, race,
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104	104	1 color, national or ethnic origin, immigration or
105	105	2 citizenship status, sex, sexual orientation, disability,
106	106	3 gender identity, or gender expression.
107	107	4 (c) The Department of Insurance may examine and
108	108	5 investigate an insurer's use of external consumer data and
109	109	6 information sources, algorithms, or predictive models with
110	110	7 regard to any motor vehicle liability insurance practice.
111	111	8 Insurers shall cooperate with the Department of Insurance in
112	112	9 any examination or investigation under this Section.
113	113	10 (d) Nothing in this Section may be construed to:
114	114	11 (1) Require an insurer to collect from an applicant or
115	115	12 policyholder the age, race, color, national or ethnic
116	116	13 origin, immigration or citizenship status, sex, sexual
117	117	14 orientation, disability, gender identity, or gender
118	118	15 expression of an individual.
119	119	16 (2) Prohibit the use of a driver's history that has a
120	120	17 direct relationship to risk unless such information is
121	121	18 otherwise included in the testing of an algorithm or
122	122	19 predictive model that also uses external consumer data and
123	123	20 information sources.
124	124	21 (3) Prohibit the use of or require testing of
125	125	22 longstanding and well-established common industry
126	126	23 practices in settling claims or traditional underwriting
127	127	24 practices unless such practices or factors are otherwise
128	128	25 included in the testing of an algorithm or predictive
129	129	26 model that also uses external consumer data and
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