IL
Illinois Senate Bill SB0268

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0268 Compare Versions

Only one version of the bill is available at this time.
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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0268 Introduced 1/24/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: 215 ILCS 5/Art. XLVIII heading new215 ILCS 5/1801 new215 ILCS 5/1805 new215 ILCS 5/1810 new215 ILCS 5/1815 new215 ILCS 5/1820 new215 ILCS 5/1825 new215 ILCS 5/1830 new215 ILCS 5/1835 new215 ILCS 5/1840 new215 ILCS 5/1845 new Creates the Insurance Fairness and Consumer Protection Law Article of the Illinois Insurance Code. Provides that insurers must submit a request for approval to the Department of Insurance for any proposed rate increase for homeowners insurance premiums or automobile insurance premiums. Prohibits implementing any rate increase without prior written approval of the Department. Prohibits using nondriving factors, such as credit score, occupation, and education level, to determine automobile insurance premiums. Provides that, for homeowners insurance, factors unrelated to the insured property's location, age, and condition shall not be considered in rate setting. Requires a public disclosure and comment period for any proposed rate increase exceeding 10% in a 12-month period. Prohibits an insurer from increasing premiums by more than 15% per year for any policyholder without exceptional justification, which must include specified evidence. Sets forth provisions concerning definitions; penalties; reimbursement of consumers; market conduct actions; Department approval of rate increases; and rulemaking. Effective immediately. LRB104 08773 BAB 18827 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0268 Introduced 1/24/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: 215 ILCS 5/Art. XLVIII heading new215 ILCS 5/1801 new215 ILCS 5/1805 new215 ILCS 5/1810 new215 ILCS 5/1815 new215 ILCS 5/1820 new215 ILCS 5/1825 new215 ILCS 5/1830 new215 ILCS 5/1835 new215 ILCS 5/1840 new215 ILCS 5/1845 new 215 ILCS 5/Art. XLVIII heading new 215 ILCS 5/1801 new 215 ILCS 5/1805 new 215 ILCS 5/1810 new 215 ILCS 5/1815 new 215 ILCS 5/1820 new 215 ILCS 5/1825 new 215 ILCS 5/1830 new 215 ILCS 5/1835 new 215 ILCS 5/1840 new 215 ILCS 5/1845 new Creates the Insurance Fairness and Consumer Protection Law Article of the Illinois Insurance Code. Provides that insurers must submit a request for approval to the Department of Insurance for any proposed rate increase for homeowners insurance premiums or automobile insurance premiums. Prohibits implementing any rate increase without prior written approval of the Department. Prohibits using nondriving factors, such as credit score, occupation, and education level, to determine automobile insurance premiums. Provides that, for homeowners insurance, factors unrelated to the insured property's location, age, and condition shall not be considered in rate setting. Requires a public disclosure and comment period for any proposed rate increase exceeding 10% in a 12-month period. Prohibits an insurer from increasing premiums by more than 15% per year for any policyholder without exceptional justification, which must include specified evidence. Sets forth provisions concerning definitions; penalties; reimbursement of consumers; market conduct actions; Department approval of rate increases; and rulemaking. Effective immediately. LRB104 08773 BAB 18827 b LRB104 08773 BAB 18827 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0268 Introduced 1/24/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED:
33 215 ILCS 5/Art. XLVIII heading new215 ILCS 5/1801 new215 ILCS 5/1805 new215 ILCS 5/1810 new215 ILCS 5/1815 new215 ILCS 5/1820 new215 ILCS 5/1825 new215 ILCS 5/1830 new215 ILCS 5/1835 new215 ILCS 5/1840 new215 ILCS 5/1845 new 215 ILCS 5/Art. XLVIII heading new 215 ILCS 5/1801 new 215 ILCS 5/1805 new 215 ILCS 5/1810 new 215 ILCS 5/1815 new 215 ILCS 5/1820 new 215 ILCS 5/1825 new 215 ILCS 5/1830 new 215 ILCS 5/1835 new 215 ILCS 5/1840 new 215 ILCS 5/1845 new
44 215 ILCS 5/Art. XLVIII heading new
55 215 ILCS 5/1801 new
66 215 ILCS 5/1805 new
77 215 ILCS 5/1810 new
88 215 ILCS 5/1815 new
99 215 ILCS 5/1820 new
1010 215 ILCS 5/1825 new
1111 215 ILCS 5/1830 new
1212 215 ILCS 5/1835 new
1313 215 ILCS 5/1840 new
1414 215 ILCS 5/1845 new
1515 Creates the Insurance Fairness and Consumer Protection Law Article of the Illinois Insurance Code. Provides that insurers must submit a request for approval to the Department of Insurance for any proposed rate increase for homeowners insurance premiums or automobile insurance premiums. Prohibits implementing any rate increase without prior written approval of the Department. Prohibits using nondriving factors, such as credit score, occupation, and education level, to determine automobile insurance premiums. Provides that, for homeowners insurance, factors unrelated to the insured property's location, age, and condition shall not be considered in rate setting. Requires a public disclosure and comment period for any proposed rate increase exceeding 10% in a 12-month period. Prohibits an insurer from increasing premiums by more than 15% per year for any policyholder without exceptional justification, which must include specified evidence. Sets forth provisions concerning definitions; penalties; reimbursement of consumers; market conduct actions; Department approval of rate increases; and rulemaking. Effective immediately.
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2121 1 AN ACT concerning regulation.
2222 2 Be it enacted by the People of the State of Illinois,
2323 3 represented in the General Assembly:
2424 4 Section 5. The Illinois Insurance Code is amended by
2525 5 adding Article XLVIII as follows:
2626 6 (215 ILCS 5/Art. XLVIII heading new)
2727 7 ARTICLE XLVIII. INSURANCE RATE FAIRNESS AND CONSUMER
2828 8 PROTECTION
2929 9 (215 ILCS 5/1801 new)
3030 10 Sec. 1801. Short title. This Article may be cited as the
3131 11 Insurance Rate Fairness and Consumer Protection Law.
3232 12 (215 ILCS 5/1805 new)
3333 13 Sec. 1805. Purpose. The purpose of this Law is to limit
3434 14 unjustified increases in homeowners and automobile insurance
3535 15 premiums, ensure transparency in rate-setting practices, and
3636 16 grant the Department of Insurance greater oversight authority
3737 17 to protect consumers.
3838 18 (215 ILCS 5/1810 new)
3939 19 Sec. 1810. Definitions. As used in this Law:
4040 20 "Department" means the Department of Insurance.
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4444 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0268 Introduced 1/24/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED:
4545 215 ILCS 5/Art. XLVIII heading new215 ILCS 5/1801 new215 ILCS 5/1805 new215 ILCS 5/1810 new215 ILCS 5/1815 new215 ILCS 5/1820 new215 ILCS 5/1825 new215 ILCS 5/1830 new215 ILCS 5/1835 new215 ILCS 5/1840 new215 ILCS 5/1845 new 215 ILCS 5/Art. XLVIII heading new 215 ILCS 5/1801 new 215 ILCS 5/1805 new 215 ILCS 5/1810 new 215 ILCS 5/1815 new 215 ILCS 5/1820 new 215 ILCS 5/1825 new 215 ILCS 5/1830 new 215 ILCS 5/1835 new 215 ILCS 5/1840 new 215 ILCS 5/1845 new
4646 215 ILCS 5/Art. XLVIII heading new
4747 215 ILCS 5/1801 new
4848 215 ILCS 5/1805 new
4949 215 ILCS 5/1810 new
5050 215 ILCS 5/1815 new
5151 215 ILCS 5/1820 new
5252 215 ILCS 5/1825 new
5353 215 ILCS 5/1830 new
5454 215 ILCS 5/1835 new
5555 215 ILCS 5/1840 new
5656 215 ILCS 5/1845 new
5757 Creates the Insurance Fairness and Consumer Protection Law Article of the Illinois Insurance Code. Provides that insurers must submit a request for approval to the Department of Insurance for any proposed rate increase for homeowners insurance premiums or automobile insurance premiums. Prohibits implementing any rate increase without prior written approval of the Department. Prohibits using nondriving factors, such as credit score, occupation, and education level, to determine automobile insurance premiums. Provides that, for homeowners insurance, factors unrelated to the insured property's location, age, and condition shall not be considered in rate setting. Requires a public disclosure and comment period for any proposed rate increase exceeding 10% in a 12-month period. Prohibits an insurer from increasing premiums by more than 15% per year for any policyholder without exceptional justification, which must include specified evidence. Sets forth provisions concerning definitions; penalties; reimbursement of consumers; market conduct actions; Department approval of rate increases; and rulemaking. Effective immediately.
5858 LRB104 08773 BAB 18827 b LRB104 08773 BAB 18827 b
5959 LRB104 08773 BAB 18827 b
6060 A BILL FOR
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6666 215 ILCS 5/Art. XLVIII heading new
6767 215 ILCS 5/1801 new
6868 215 ILCS 5/1805 new
6969 215 ILCS 5/1810 new
7070 215 ILCS 5/1815 new
7171 215 ILCS 5/1820 new
7272 215 ILCS 5/1825 new
7373 215 ILCS 5/1830 new
7474 215 ILCS 5/1835 new
7575 215 ILCS 5/1840 new
7676 215 ILCS 5/1845 new
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9595 1 "Director" means the Director of Insurance.
9696 2 "Insurer" means an insurance company offering homeowners
9797 3 insurance policies or automobile insurance policies within the
9898 4 State.
9999 5 (215 ILCS 5/1815 new)
100100 6 Sec. 1815. Prior approval requirement for rate changes.
101101 7 (a) Insurers must submit a request for approval to the
102102 8 Department for any proposed rate increase for homeowners
103103 9 insurance premiums or automobile insurance premiums.
104104 10 (b) The Department shall review the rate request within 60
105105 11 days after submission.
106106 12 (c) If the Department does not make a determination within
107107 13 the 60-day review period, the request shall be deemed denied
108108 14 until further review.
109109 15 (d) Insurers shall not implement any rate increase without
110110 16 prior written approval from the Department.
111111 17 (e) An insurer that submits false or misleading
112112 18 information in a rate request shall be subject to an immediate
113113 19 penalty of $100,000 per offense and mandatory audits by the
114114 20 Department for the next 3 years.
115115 21 (f) This Section is operative on and after January 1,
116116 22 2026.
117117 23 (215 ILCS 5/1820 new)
118118 24 Sec. 1820. Limitation on nondriving factors in automobile
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129129 1 insurance rate setting.
130130 2 (a) Insurers are prohibited from using nondriving factors,
131131 3 such as credit score, occupation, and education level, to
132132 4 determine automobile insurance premiums.
133133 5 (b) For homeowners insurance, factors unrelated to the
134134 6 insured property's location, age, and condition shall not be
135135 7 considered in rate setting.
136136 8 (c) The Department may impose civil penalties of up to
137137 9 $50,000 per violation on insurers that fail to comply with
138138 10 this Section.
139139 11 (215 ILCS 5/1825 new)
140140 12 Sec. 1825. Public disclosure and comment period.
141141 13 (a) For any proposed rate increase exceeding 10% in a
142142 14 12-month period, the insurer must publish a public notice,
143143 15 including a detailed justification for the increase.
144144 16 (b) A 30-day public comment period shall follow the
145145 17 publication of the notice, during which consumers may submit
146146 18 comments or objections to the proposed rate increase.
147147 19 (c) The Department shall consider public feedback when
148148 20 making a final determination regarding the proposed rate
149149 21 increase.
150150 22 (d) Failure to publish the notice shall result in
151151 23 automatic denial of the rate increase and a fine of $250,000.
152152 24 (215 ILCS 5/1830 new)
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163163 1 Sec. 1830. Rate increase limitations.
164164 2 (a) No insurer shall increase premiums by more than 15%
165165 3 per year for any policyholder without exceptional
166166 4 justification.
167167 5 (b) Exceptional justification must include evidence of
168168 6 increased claims related to natural disasters, regulatory
169169 7 changes, or unforeseen market shifts.
170170 8 (c) The Department shall have sole discretion to determine
171171 9 whether the exceptional justification is valid.
172172 10 (d) Unauthorized increases exceeding the limitation on
173173 11 premium increases under subsection (a) shall result in: (1)
174174 12 the insurer fully reimbursing affected policyholders plus 25%
175175 13 of the reimbursement amount; and (2) a fine of $500,000.
176176 14 (215 ILCS 5/1835 new)
177177 15 Sec. 1835. Regular market conduct examinations.
178178 16 (a) The Department shall conduct market conduct
179179 17 examinations of insurers at least once every 3 years to ensure
180180 18 compliance with this Law.
181181 19 (b) Examinations shall assess the fairness of rate-setting
182182 20 practices, transparency of filings, and adherence to approved
183183 21 rates.
184184 22 (c) The Department may issue corrective actions, fines, or
185185 23 sanctions for violations discovered during market conduct
186186 24 examinations.
187187 25 (d) Insurers found in repeated noncompliance of this law
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198198 1 shall be fined $1,000,000 and may have their license to
199199 2 operate suspended for up to 12 months.
200200 3 (215 ILCS 5/1840 new)
201201 4 Sec. 1840. Penalties and enforcement.
202202 5 (a) Insurers that implement unapproved rate increases or
203203 6 fail to comply with this Law shall be subject to fines up to
204204 7 $250,000 per violation.
205205 8 (b) In cases of repeated violations of this Law, the
206206 9 Department may suspend or revoke an insurer's license to
207207 10 operate in Illinois.
208208 11 (c) Policyholders affected by unapproved rate increases
209209 12 shall be entitled to reimbursement of any overpaid premiums
210210 13 plus an additional 30% penalty paid by the insurer.
211211 14 (215 ILCS 5/1845 new)
212212 15 Sec. 1845. Rulemaking authority. The Department may adopt
213213 16 rules necessary to implement and enforce the requirements of
214214 17 this Law.
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