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IL SB3827

IL SB3827
INS-FIRE & EXTENDED COVERAGE


summary

Introduced
02/06/2026
In Committee
02/06/2026
Crossed Over
Passed
Dead

Introduced Session

104th General Assembly

Bill Summary

Amends the Illinois Insurance Code. Creates the Rates for Fire and Extended Coverage Insurance Article. Provides that the Article applies to policies of fire and extended coverage insurance and establishes policies that are exempt from the Article. Provides that rates shall not be excessive, inadequate, or unfairly discriminatory, as specified. Requires each insurer to file with the Director of Insurance all rates and supplementary rate information for risks that are to be written in this State 20 days prior to the effective date of the rates. Sets forth provisions concerning filing requirements for insurers in competitive and noncompetitive markets and the monitoring duties of the Director concerning market competition and the availability of insurance for the policies of insurance to which the Article applies. Provides that a competitive market is presumed to exist for a line of insurance unless the Director, after a hearing, issues an order stating that a reasonable degree of competition does not exist in the market. Provides that the ruling of the Director regarding market competition is subject to judicial review under the Administrative Review Law. Effective January 1, 2028.

AI Summary

This bill amends the Illinois Insurance Code to create a new article specifically for fire and extended coverage insurance policies, aiming to protect policyholders from excessive, inadequate, or unfairly discriminatory rates while promoting competition among insurers and ensuring the availability of insurance. The new rules will apply to most fire and extended coverage policies, with specific exemptions for commercial liability and property insurance, certain rental or unoccupied properties, and farm policies. Insurers will be required to file their proposed rates with the Director of Insurance 20 days before they become effective, with different timelines for filing approval depending on whether the market is deemed competitive or noncompetitive. A competitive market is generally presumed to exist unless the Director, after a hearing and considering factors like the number of insurers, market share, and entry barriers, determines otherwise, with such rulings subject to judicial review. The Director will actively monitor market competition and insurance availability, and these new provisions will take effect on January 1, 2028.

Sponsors (1)

Last Action

Referred to Assignments (on 02/06/2026)

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