Bill > SB1769

This bill amends the Illinois Insurance Code to modify regulations around rebates and incentives 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, provided these offerings meet specific criteria. These criteria include loss mitigation, risk education, health enhancement, financial wellness, post-loss services, and behavioral change incentives. The bill establishes several important requirements: the cost of such products or services must be reasonable compared to the customer's premiums, the insurer must provide contact information for the offering, and the availability must be based on objective, non-discriminatory criteria. The bill also permits insurers to provide non-cash gifts to commercial customers, conduct public raffles or drawings under certain conditions, and offer child safety restraint systems. Importantly, the bill prohibits insurers from using words like "free" or "no cost" in advertisements or offering insurance as an inducement to purchase another policy. The Illinois Department of Insurance is granted rulemaking authority to ensure consumer protection, with specific considerations for data privacy, disclosure, and preventing unfair discrimination.

Business and Industry

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1769&GAID=18&DocTypeID=SB&SessionID=114&GA=104