summary
Introduced
01/10/2025
01/10/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Insurance Code. Provides that the amendatory Act may be referred to as the Motor Vehicle Insurance Fairness Act. Provides that no insurer shall refuse to issue or renew a policy of automobile insurance based in whole or in part on specified prohibited underwriting or rating factors. Sets forth factors that are prohibited with respect to underwriting and rating a policy of automobile insurance. Sets forth provisions concerning the use of territorial factors. Provides that every insurer selling a policy of automobile insurance in the State shall demonstrate that its marketing, underwriting, rating, claims handling, fraud investigations, and any algorithm or model used for those business practices do not disparately impact any group of customers based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression. Provides that no rate shall be approved or remain in effect that is excessive, inadequate, unfairly discriminatory, or otherwise in violation of the provisions. Provides that every insurer that desires to change any rate shall file a complete rate application with the Director of Insurance. Provides that all information provided to the Director under the provisions shall be available for public inspection. Provides that any person may initiate or intervene in any proceeding permitted or established under the provisions and challenge any action of the Director under the provisions. Provides that the Department of Insurance shall adopt rules. Provides that all insurers subject to the provisions shall be assessed a fee of 0.05% of their total earned premium from the prior calendar year, and that the fee shall be payable to the Department no later than July 1 of each calendar year and shall be used by the Department to implement the provisions.
AI Summary
This bill, known as the Motor Vehicle Insurance Fairness Act, proposes significant reforms to automobile insurance practices in Illinois by prohibiting insurers from using various discriminatory factors when determining insurance rates, coverage, or policy issuance. The bill specifically bars insurers from using factors such as sex, gender, marital status, race, national origin, religion, age, employment, education level, home ownership, credit information, prior insurance history, zip code, and income level when underwriting or rating automobile insurance policies. Insurers are required to demonstrate that their marketing, underwriting, rating, claims handling, and algorithmic models do not disparately impact customers based on protected characteristics like race, color, religion, sexual orientation, and gender identity. The bill mandates that all rate changes must be filed with and approved by the Director of Insurance, with provisions for public inspection and intervention in the review process. Insurers must prove that their proposed rates are not excessive, inadequate, or unfairly discriminatory, and they will be subject to a 0.05% fee on their total earned premiums to support the implementation of these regulations. Furthermore, the bill allows for some limited considerations, such as years of driving experience, and permits territorial factors with restrictions, ensuring a more equitable approach to automobile insurance pricing and access.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1252&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB1252.htm |
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