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IL HB1234

IL HB1234
INS RATEMAKING-AFFORDABILITY


summary

Introduced
01/10/2025
In Committee
06/02/2025
Crossed Over
04/08/2025
Passed
Dead

Introduced Session

Potential new amendment
104th General Assembly

Bill Summary

Amends the Secretary of State Act. Provides that, by January 1, 2026, the Secretary of State shall conduct a study on the affordability and availability of statutorily mandated automobile insurance in the State. Provides that, when conducting the study, the Secretary of State may use data or academic studies conducted by other sources, solicit feedback and testimony from constituents and community leaders, consider any guidance, written or otherwise, provided by insurance industry experts based in the State, and consider statutes and regulations in other states and national trends. Provides that the study shall include, but shall not be limited to, the use of zip codes, credit scores, and age in ratemaking and whether the specific factor results in inequitable rates being assessed to certain populations. Provides that, no later than January 1, 2026, the Secretary of State shall submit the report and its recommendations to the Governor and the General Assembly. Effective immediately.

AI Summary

This bill requires the Secretary of State to conduct a comprehensive study on automobile insurance affordability and availability in Illinois by January 1, 2026. The study will examine how factors like zip codes, credit scores, and age impact insurance rates, specifically investigating whether these factors lead to inequitable pricing for certain populations. In conducting the research, the Secretary of State is authorized to use existing academic studies, gather feedback from constituents and community leaders, consult with insurance industry experts in the state, and review insurance statutes and trends from other states and nationwide. The bill mandates that by January 1, 2026, the Secretary of State must submit a detailed report with findings and recommendations to the Governor and the General Assembly. Ratemaking, in this context, refers to the methods insurance companies use to determine premium prices, and the bill seeks to understand whether current practices may be discriminatory. The legislation takes effect immediately upon becoming law, emphasizing the importance of addressing potential inequities in automobile insurance pricing.

Committee Categories

Business and Industry

Sponsors (33)

Last Action

Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments (on 06/02/2025)

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