Bill > HB3804

This bill amends the Illinois Insurance Code by adding a new section that requires insurance policies to be written in clear, accessible language that can be easily understood by an average person. Specifically, the bill mandates that any insurance policy issued, amended, renewed, or delivered by an insurance company operating in Illinois must use language that is readable and comprehensible to someone of average intelligence and education. To determine whether a policy meets this readability standard, the Director of Insurance must evaluate several key factors, including the simplicity of sentence structure, the use of short sentences, the employment of commonly understood words, the avoidance of legal jargon, and the minimization of cross-references to other sections of the contract. The goal of this legislation is to make insurance policies more transparent and easier for consumers to comprehend, potentially helping them better understand their coverage and rights.

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https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3804&GAID=18&DocTypeID=HB&SessionID=114&GA=104