Bill > SB2691

This bill establishes the Nondriving Factors in Insurance Rate-Setting Study Act, which requires the Illinois Department of Insurance to conduct a comprehensive investigation into how non-driving factors are used in setting automobile and homeowners insurance premiums. The study will examine how characteristics like credit scores, occupation, education level, and other socioeconomic criteria potentially contribute to inequitable insurance pricing, with a specific focus on understanding their impact on low-income individuals, communities of color, veterans, seniors, and other protected groups. The department must analyze these factors' relationship to claim loss ratios, compare insurance practices across different states, and develop recommendations for potential statutory or regulatory reforms to ensure fairer, more risk-based insurance rate-setting. By January 1, 2027, the Department of Insurance must submit a detailed report of its findings and recommendations to key legislative leaders, and the entire act will be automatically repealed on January 1, 2028, making this a time-limited legislative study designed to evaluate and potentially reform insurance rating practices in Illinois.