Illinois 2025-2026 Regular Session

Illinois House Bill HB2766 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2766 Introduced , by Rep. Jeff Keicher SYNOPSIS AS INTRODUCED: 215 ILCS 5/151 from Ch. 73, par. 763 Amends the Illinois Insurance Code. Provides that nothing in provisions prohibiting the payment or acceptance of rebates shall prevent the offer or provision by insurers or producers, by or through employees, affiliates, or third-party representatives, of value-added products or services at no or reduced cost when such products or services are not specified in the policy of insurance, so long as the product or service relates to the insurance coverage and is primarily designed to satisfy specified criteria. Sets forth provisions concerning the requirements for insurers or producers offering non-cash gifts, items, or services or conducting raffles or drawings. Provides that an insurer, producer, or representative of an insurer or producer may not offer or provide insurance as an inducement to the purchase of another policy or otherwise use the words "free", "no cost", or words of similar import in an advertisement. LRB104 08210 BAB 18260 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2766 Introduced , by Rep. Jeff Keicher SYNOPSIS AS INTRODUCED: 215 ILCS 5/151 from Ch. 73, par. 763 215 ILCS 5/151 from Ch. 73, par. 763 Amends the Illinois Insurance Code. Provides that nothing in provisions prohibiting the payment or acceptance of rebates shall prevent the offer or provision by insurers or producers, by or through employees, affiliates, or third-party representatives, of value-added products or services at no or reduced cost when such products or services are not specified in the policy of insurance, so long as the product or service relates to the insurance coverage and is primarily designed to satisfy specified criteria. Sets forth provisions concerning the requirements for insurers or producers offering non-cash gifts, items, or services or conducting raffles or drawings. Provides that an insurer, producer, or representative of an insurer or producer may not offer or provide insurance as an inducement to the purchase of another policy or otherwise use the words "free", "no cost", or words of similar import in an advertisement. LRB104 08210 BAB 18260 b LRB104 08210 BAB 18260 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2766 Introduced , by Rep. Jeff Keicher SYNOPSIS AS INTRODUCED:
3	3	215 ILCS 5/151 from Ch. 73, par. 763 215 ILCS 5/151 from Ch. 73, par. 763
4	4	215 ILCS 5/151 from Ch. 73, par. 763
5	5	Amends the Illinois Insurance Code. Provides that nothing in provisions prohibiting the payment or acceptance of rebates shall prevent the offer or provision by insurers or producers, by or through employees, affiliates, or third-party representatives, of value-added products or services at no or reduced cost when such products or services are not specified in the policy of insurance, so long as the product or service relates to the insurance coverage and is primarily designed to satisfy specified criteria. Sets forth provisions concerning the requirements for insurers or producers offering non-cash gifts, items, or services or conducting raffles or drawings. Provides that an insurer, producer, or representative of an insurer or producer may not offer or provide insurance as an inducement to the purchase of another policy or otherwise use the words "free", "no cost", or words of similar import in an advertisement.
6	6	LRB104 08210 BAB 18260 b LRB104 08210 BAB 18260 b
7	7	LRB104 08210 BAB 18260 b
8	8	A BILL FOR
9	9	HB2766LRB104 08210 BAB 18260 b HB2766 LRB104 08210 BAB 18260 b
10	10	HB2766 LRB104 08210 BAB 18260 b
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 changing Section 151 as follows:
16	16	6 (215 ILCS 5/151) (from Ch. 73, par. 763)
17	17	7 Sec. 151. Payment or acceptance of rebates prohibited.
18	18	8 (a) (1) No company doing business in this State and no
19	19	9 insurance agent or broker shall offer, promise, allow, give,
20	20	10 set off or pay, directly or indirectly, any rebate of or part
21	21	11 of the premium payable on the policy, or on any policy or
22	22	12 agent's commission thereon or earnings, profits, dividends or
23	23	13 other benefits founded, arising, accruing or to accrue thereon
24	24	14 or therefrom, or any special advantage in date of policy or age
25	25	15 of issue, or any paid employment or contract for services of
26	26	16 any kind or any other valuable consideration or inducement to
27	27	17 or for insurance on any risk in this State, now or hereafter to
28	28	18 be written, or for or upon any renewal of any such insurance,
29	29	19 which is not specified in the policy contract of insurance, or
30	30	20 offer, promise, give, option, sell, purchase any stocks,
31	31	21 bonds, securities or property or any dividends or profits
32	32	22 accruing or to accrue thereon, or other thing of value
33	33	23 whatsoever as inducement to insurance or in connection
34	34
35	35
36	36
37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2766 Introduced , by Rep. Jeff Keicher SYNOPSIS AS INTRODUCED:
38	38	215 ILCS 5/151 from Ch. 73, par. 763 215 ILCS 5/151 from Ch. 73, par. 763
39	39	215 ILCS 5/151 from Ch. 73, par. 763
40	40	Amends the Illinois Insurance Code. Provides that nothing in provisions prohibiting the payment or acceptance of rebates shall prevent the offer or provision by insurers or producers, by or through employees, affiliates, or third-party representatives, of value-added products or services at no or reduced cost when such products or services are not specified in the policy of insurance, so long as the product or service relates to the insurance coverage and is primarily designed to satisfy specified criteria. Sets forth provisions concerning the requirements for insurers or producers offering non-cash gifts, items, or services or conducting raffles or drawings. Provides that an insurer, producer, or representative of an insurer or producer may not offer or provide insurance as an inducement to the purchase of another policy or otherwise use the words "free", "no cost", or words of similar import in an advertisement.
41	41	LRB104 08210 BAB 18260 b LRB104 08210 BAB 18260 b
42	42	LRB104 08210 BAB 18260 b
43	43	A BILL FOR
44	44
45	45
46	46
47	47
48	48
49	49	215 ILCS 5/151 from Ch. 73, par. 763
50	50
51	51
52	52
53	53	LRB104 08210 BAB 18260 b
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63	HB2766 LRB104 08210 BAB 18260 b
64	64
65	65
66	66	HB2766- 2 -LRB104 08210 BAB 18260 b HB2766 - 2 - LRB104 08210 BAB 18260 b
67	67	HB2766 - 2 - LRB104 08210 BAB 18260 b
68	68	1 therewith, or any renewal thereof which is not specified in
69	69	2 the policy. Nothing in this Section shall prevent a company
70	70	3 from paying a bonus to policyholders or otherwise abating
71	71	4 their premiums in whole or in part out of surplus accumulated
72	72	5 from nonparticipating insurance nor prevent a company which
73	73	6 transacts industrial life insurance on a weekly payment plan
74	74	7 from returning to policyholders who have made premium payments
75	75	8 for a period of at least one year directly to the company at
76	76	9 its home or district offices the percentage of premium which
77	77	10 the company would otherwise have paid for the weekly
78	78	11 collection of such premium nor shall this Section be construed
79	79	12 to prevent the taking of a bona fide obligation, with interest
80	80	13 at six per centum per annum, in payment of any premium.
81	81	14 (1)(A) Nothing in this Section shall prevent the offer
82	82	15 or provision by insurers or producers, by or through
83	83	16 employees, affiliates, or third-party representatives, of
84	84	17 value-added products or services at no or reduced cost
85	85	18 when such products or services are not specified in the
86	86	19 policy of insurance, so long as the product or service
87	87	20 relates to the insurance coverage and is primarily
88	88	21 designed to satisfy one or more of the following criteria:
89	89	22 (i) providing loss mitigation or loss control;
90	90	23 (ii) reducing claim costs or claim settlement
91	91	24 costs;
92	92	25 (iii) providing education about liability risks or
93	93	26 risk of loss to persons or property;
94	94
95	95
96	96
97	97
98	98
99	99	HB2766 - 2 - LRB104 08210 BAB 18260 b
100	100
101	101
102	102	HB2766- 3 -LRB104 08210 BAB 18260 b HB2766 - 3 - LRB104 08210 BAB 18260 b
103	103	HB2766 - 3 - LRB104 08210 BAB 18260 b
104	104	1 (iv) monitoring or assessing risk, identifying
105	105	2 sources of risk, or developing strategies for
106	106	3 eliminating or reducing risk;
107	107	4 (v) enhancing health;
108	108	5 (vi) enhancing financial wellness through items
109	109	6 such as education or financial planning services;
110	110	7 (vii) providing post-loss services;
111	111	8 (viii) incentivizing behavioral changes to improve
112	112	9 the health or reduce the risk of death or disability of
113	113	10 a policyholder, potential policyholder, certificate
114	114	11 holder, potential certificate holder, insured,
115	115	12 potential insured, or applicant; or
116	116	13 (ix) assisting in the administration of the
117	117	14 employee or retiree benefit insurance coverage.
118	118	15 (B) The cost to the insurer or producer offering the
119	119	16 product or service to any given customer must be
120	120	17 reasonable in comparison to that customer's premiums or
121	121	18 insurance coverage for the policy class.
122	122	19 (C) If the insurer or producer is providing the
123	123	20 product or service offered, the insurer or producer must
124	124	21 ensure that the customer is provided with contact
125	125	22 information to assist the customer with questions
126	126	23 regarding the product or service.
127	127	24 (D) The Director may adopt rules when implementing the
128	128	25 permitted practices set forth in this Section to ensure
129	129	26 consumer protection. Such rules, consistent with
130	130
131	131
132	132
133	133
134	134
135	135	HB2766 - 3 - LRB104 08210 BAB 18260 b
136	136
137	137
138	138	HB2766- 4 -LRB104 08210 BAB 18260 b HB2766 - 4 - LRB104 08210 BAB 18260 b
139	139	HB2766 - 4 - LRB104 08210 BAB 18260 b
140	140	1 applicable law, may address, among other issues, consumer
141	141	2 data protections and privacy, consumer disclosure, and
142	142	3 unfair discrimination.
143	143	4 (E) The availability of the value-added product or
144	144	5 service must be based on documented objective criteria and
145	145	6 offered in a manner that is not unfairly discriminatory.
146	146	7 The documented criteria must be maintained by the insurer
147	147	8 or producer and produced upon request by the Department.
148	148	9 (F) If an insurer or producer does not have sufficient
149	149	10 evidence, but has a good faith belief that the product or
150	150	11 service meets the criteria in subparagraph (A) of
151	151	12 paragraph (1) of this subsection, the insurer or producer
152	152	13 may provide the product or service in a manner that is not
153	153	14 unfairly discriminatory as part of a pilot or testing
154	154	15 program for no more than one year. An insurer or producer
155	155	16 must notify the Department of such a pilot or testing
156	156	17 program offered to consumers in this State prior to its
157	157	18 start and may proceed with the program unless the
158	158	19 Department objects within 21 days after notice. This
159	159	20 paragraph (F) applies solely to policies of life
160	160	21 insurance.
161	161	22 (2) Nothing in this Section shall prevent a company
162	162	23 from offering a child passenger restraint system or a
163	163	24 discount from the purchase price of a child passenger
164	164	25 restraint system to policyholders, when the purpose of
165	165	26 such restraint system is the safety of a child and
166	166
167	167
168	168
169	169
170	170
171	171	HB2766 - 4 - LRB104 08210 BAB 18260 b
172	172
173	173
174	174	HB2766- 5 -LRB104 08210 BAB 18260 b HB2766 - 5 - LRB104 08210 BAB 18260 b
175	175	HB2766 - 5 - LRB104 08210 BAB 18260 b
176	176	1 compliance with the "Child Passenger Protection Act",
177	177	2 approved June 27, 1983, as amended.
178	178	3 (3) Nothing in this Section shall prevent an insurer
179	179	4 or a producer from offering or giving non-cash gifts,
180	180	5 items, or services, including meals to or charitable
181	181	6 donations on behalf of a customer, to commercial or
182	182	7 institutional customers in connection with the marketing,
183	183	8 sale, purchase, or retention of contracts of insurance, as
184	184	9 long as the cost is reasonable in comparison to the
185	185	10 premium or proposed premium and the cost of the gift or
186	186	11 service is not included in any amounts charged to another
187	187	12 person or entity. The offer must be made in a manner that
188	188	13 is not unfairly discriminatory. The customer may not be
189	189	14 required to purchase, continue to purchase or renew a
190	190	15 policy in exchange for the gift, item, or service.
191	191	16 (4) Nothing in this Section shall prevent an insurer
192	192	17 or a producer from conducting raffles or drawings to the
193	193	18 extent permitted by State law, as long as there is no
194	194	19 financial cost to entrants to participate, the drawing or
195	195	20 raffle does not obligate participants to purchase
196	196	21 insurance, the prizes are not valued in excess of a
197	197	22 reasonable amount determined by the Director, and the
198	198	23 drawing or raffle is open to the public. The raffle or
199	199	24 drawing must be offered in a manner that is not unfairly
200	200	25 discriminatory. The customer may not be required to
201	201	26 purchase, continue to purchase, or renew a policy in
202	202
203	203
204	204
205	205
206	206
207	207	HB2766 - 5 - LRB104 08210 BAB 18260 b
208	208
209	209
210	210	HB2766- 6 -LRB104 08210 BAB 18260 b HB2766 - 6 - LRB104 08210 BAB 18260 b
211	211	HB2766 - 6 - LRB104 08210 BAB 18260 b
212	212
213	213
214	214
215	215
216	216
217	217	HB2766 - 6 - LRB104 08210 BAB 18260 b