summary
Introduced
02/05/2025
02/05/2025
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 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.
AI Summary
This bill amends the Illinois Insurance Code to modify regulations around rebates and inducements in insurance sales. The bill allows insurers and insurance producers to offer value-added products or services at no or reduced cost, even if not specified in the insurance policy, as long as these products or services meet specific criteria. These criteria include loss mitigation, risk reduction, health enhancement, financial wellness, post-loss services, and behavioral incentives, among others. The bill requires that the cost of these services be reasonable compared to the customer's premiums and that the offerings be based on objective, non-discriminatory criteria. Additionally, the bill permits insurers and producers to offer non-cash gifts to commercial customers, conduct raffles or drawings (subject to certain restrictions), and provide child passenger restraint systems, all while maintaining consumer protection. The legislation aims to provide flexibility for insurers to offer additional value to customers without being considered improper rebates, while also establishing guidelines to prevent unfair practices. The bill explicitly prohibits using words like "free" or "no cost" in advertisements and prevents insurance from being used as an inducement to purchase another policy.
Committee Categories
Business and Industry
Sponsors (1)
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=2766&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB2766.htm |
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