Bill Amendment: IL HB4611 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

---

Bill Title: INS CD-AUTOMOBILE INSURANCE

Status: 2024-04-19 - House Floor Amendment No. 5 Rule 19(c) / Re-referred to Rules Committee [HB4611 Detail]

Download: Illinois-2023-HB4611-House_Amendment_002.html

---

Rep. Thaddeus Jones

Filed: 4/9/2024

10300HB4611ham002 LRB103 37111 RPS 71454 a
AMENDMENT TO HOUSE BILL 4611
AMENDMENT NO. ______. Amend House Bill 4611 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Insurance Code is amended by
adding Sections 143.19.4 and 417 as follows:
(215 ILCS 5/143.19.4 new)
Sec. 143.19.4. Standards applicable to vehicle insurance
rates.
(a) The following standards apply to insurance on risks
described in Class 2(b) and Class 3(e) of Section 4:
(1) An insurer shall use methods based on sound
actuarial principles to calculate its rates.
(2) A rate may not be excessive, inadequate, or
unfairly discriminatory.
(3) A rate is excessive if it is likely to produce a
profit that is unreasonably high for the insurance

10300HB4611ham002 - 2 - LRB103 37111 RPS 71454 a
provided. A rate in a competitive market is not considered
excessive.
(4) A rate is not inadequate unless such rate is
insufficient to sustain projected losses and expenses in
the class of business to which it applies or the use of
such rate has or, if continued, will endanger the solvency
of the insurer using it or have the effect of
substantially lessening competition or the tendency to
create a monopoly in any market.
(5) Unfair discrimination exists if, after allowing
for practical limitations, price differentials fail to
reflect equitably the differences in expected losses and
expenses. A rate is not unfairly discriminatory because
different premiums result for policyholders with like loss
exposures but different expenses, or like expenses but
different loss exposures, so long as the rate reflects the
differences with reasonable accuracy.
(b) With respect to rating for policies described in Class
2(b) and Class 3(e) of Section 4, the use of the following
factors are prohibited:
(1) Race.
(2) Color.
(3) Religion.
(4) National origin.
(5) Physical disability, as that term is defined in
Section 143.24a.

10300HB4611ham002 - 3 - LRB103 37111 RPS 71454 a
(215 ILCS 5/417 new)
Sec. 417. The Automobile Insurance Affordability and
Availability Task Force.
(a) The Auto Insurance Affordability and Availability Task
Force is created to direct a study of Illinois' automobile
insurance marketplace and regulatory environment and their
impacts on overall availability and affordability of
automobile insurance. The Task Force shall, at a minimum,
consider the following issues and may make recommendations to
address any findings:
(1) national trends and data on availability and
affordability of automobile insurance in Illinois and
other jurisdictions;
(2) rate approval regimes in other jurisdictions,
including their relative impact on affordability and
availability, time and cost efficiency for regulators and
taxpayers, and expected impact on residual markets;
(3) inflationary pressures on insurance affordability,
including, but not limited to, the cost of vehicle parts,
vehicle repair labor, and medical costs;
(4) driving behavior patterns as well as driving under
the influence of alcohol, speeding, distracted driving,
red light enforcement, and enforcement trends, including,
but not limited to, the analysis and recommendations
identified in the 2024 Road Map to Safety by Advocates for

10300HB4611ham002 - 4 - LRB103 37111 RPS 71454 a
Highway and Auto Safety; and
(5) automobile-related tort and litigation trends,
including, but not limited to, the effect of assignments
of benefits.
(b) With respect to consumer education, the Task Force
shall review, assess, develop, and make available to consumers
educational materials based on the publications (i) Regulatory
Resources for Consumers on Personal Lines Pricing and (ii)
Underwriting and Consumers Guide to Auto Insurance, both
published by the National Association of Insurance
Commissioners.
(c) The Director of Insurance or the Director's designee
shall serve as the Chair of the Task Force.
(d) The Task Force shall include:
(1) the Secretary of State or the Secretary's
designee;
(2) the Secretary of Transportation or the Secretary's
designee; and
(3) one member of the Senate appointed by the
President of the Senate, one member of the Senate
appointed by the Senate Minority Leader, one member of the
House of Representatives appointed by the Speaker of the
House of Representatives, and one member of the House of
Representatives appointed by the Minority Leader of the
House of Representatives, all appointed on or before
December 31, 2024.

10300HB4611ham002 - 5 - LRB103 37111 RPS 71454 a
(e) The Governor shall appoint the following individuals
to the Task Force on or before December 31, 2024:
(1) one representative from a nonprofit consumer
organization that serves to protect the interests of
Illinois consumers as it relates to the regulation of
insurance;
(2) one representative from an organization
representing the interests of minority populations or
economically disadvantaged populations, or both;
(3) one representative from a trade organization
representing the insurance industry in Illinois;
(4) one representative from a national trade
organization representing property and casualty insurers;
(5) one representative from a national trade
organization representing mutual insurance companies;
(6) one representative from a national trade
association representing insurance compliance
professionals; and
(7) one representative from a trade organization
representing insurance agents.
(f) Subject to appropriation, the Office of Risk
Management and Insurance Research at the University of
Illinois shall provide technical support and guidance to the
Task Force on matters of insurance marketplace analysis,
including conducting market studies as requested by the Task
Force.

10300HB4611ham002 - 6 - LRB103 37111 RPS 71454 a
(g) A majority of the voting members of the Task Force
constitutes a quorum for the transacting of business. Official
action by the Task Force requires the approval of a majority of
the members of the Task Force.
(h) The Task Force shall conclude its business on or
before July 1, 2027. The Task Force may issue a report to the
General Assembly detailing its findings.
(i) The Task Force is dissolved, and this Section is
repealed, and on July 1, 2028.
Section 10. The Illinois Vehicle Code is amended by
changing Section 7-606 as follows:
(625 ILCS 5/7-606) (from Ch. 95 1/2, par. 7-606)
Sec. 7-606. Uninsured motor vehicles; suspension vehicles -
suspension and reinstatement. The Secretary shall suspend
the vehicle registration of any motor vehicle determined by
the Secretary to be in violation of Section 7-601 of this Code,
including any motor vehicle operated in violation of Section
3-707, 3-708 or 3-710 of this Code by an operator other than
the owner of the vehicle. Neither the fact that, subsequent to
the date of verification or conviction, the owner acquired the
required liability insurance policy nor the fact that the
owner terminated ownership of the motor vehicle shall have any
bearing upon the Secretary's decision to suspend.
The Secretary is authorized to suspend the registration of

10300HB4611ham002 - 7 - LRB103 37111 RPS 71454 a
any motor vehicle registered in this State upon receiving
notice of the conviction of the operator of the motor vehicle
in another State of an offense which, if committed in this
State, would constitute a violation of Section 7-601 of this
Code.
Until it is terminated, the suspension shall remain in
force after the registration is renewed or a new registration
is acquired for the motor vehicle. The suspension also shall
apply to any motor vehicle to which the owner transfers the
registration.
In the case of a first violation, the Secretary shall
terminate the suspension upon payment by the owner of a
reinstatement fee of $100 and submission of proof of insurance
as prescribed by the Secretary.
In the case of a second or subsequent violation by a person
having ownership interest in a motor vehicle or vehicles
within the preceding 4 years, or a violation of Section 3-708
of this Code, the Secretary shall terminate the suspension 4
months after its effective date upon payment by the owner of a
reinstatement fee of $100 and submission of proof of insurance
as prescribed by the Secretary.
Upon a verified demonstration of financial need by the
owner, the Secretary may waive a reinstatement fee under this
Section.
All fees collected under this Section shall be disbursed
under subsection (g) of Section 2-119 of this Code.

10300HB4611ham002 - 8 - LRB103 37111 RPS 71454 a
(Source: P.A. 99-127, eff. 1-1-16.)