INS CD/NO-FAULT AUTO CRASHES
Moreover, the bill stipulates that insurance carriers cannot cancel, refuse to issue, or renew a policy based on a previous insurer's lower liability limits without actuarial justification. This aims to create a more equitable insurance landscape, ensuring that drivers are not penalized for their previous insurance terms unless there is substantial justification provided by insurers. The provisions are intended to foster a fairer insurance system that protects drivers from arbitrary decisions made by insurance companies.
House Bill 5112 seeks to amend the Illinois Insurance Code by introducing new provisions related to automobile insurance, specifically addressing issues surrounding no-fault motor vehicle crashes. The bill establishes that insurers cannot assign driving record points or impose higher premiums on insured individuals who have been involved in a motor vehicle accident where they were not at fault. This represents a significant shift towards consumer protection within the insurance sector, as it seeks to shield drivers from potential punitive measures related to accidents that were not their fault.
There are noteworthy exclusions within the bill, as it does not apply to individuals who have been convicted of serious violations such as homicide or assault related to the operation of a motor vehicle, or those found driving under the influence. This highlights an effort to maintain accountability for irresponsible driving behavior while still providing protections for drivers not at fault in accidents. The discussion around this bill is likely to evoke responses from both consumer advocacy groups, which may support its intentions, and the insurance industry, which may raise concerns regarding potential changes in risk assessment strategies.