If enacted, HB4767 would greatly reform how automobile insurance policies are issued and calculated in Illinois. Insurers will be required to demonstrate that their practices do not disparately impact any customer group based on the prohibited factors. Additionally, the bill mandates that rates cannot be excessive, inadequate, or unfairly discriminatory, thereby increasing accountability for insurance providers and potentially benefiting consumers by ensuring more equitable pricing structures.
House Bill 4767, referred to as the Motor Vehicle Insurance Fairness Act, aims to amend the Illinois Insurance Code by prohibiting insurers from using specific factors in underwriting and rating automobile insurance policies. It defines 'prohibited underwriting and rating factors' to include characteristics such as race, color, national origin, religion, sex, sexual orientation, and more. This legislation is designed to ensure that automobile insurance is issued and renewed fairly, without discrimination based on these outlined factors.
The bill aims to establish a framework for evaluating insurance rates and practices, requiring insurers to comply with new regulations that promote fairness. Issues might arise regarding the impact on insurance companies' business models, as they may need to adjust their pricing strategies. There could also be concerns over the administrative burden placed on insurers to provide documentation demonstrating compliance with the new regulations and how the changes will affect overall insurance availability and affordability in the state.