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

NOTE: For additional amemendments please see the Bill Drafting List

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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_004.html

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Rep. Thaddeus Jones

Filed: 4/17/2024

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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
changing Section 424 and by adding Sections 143.19.4,
143.19.5, and 143.19.6 as follows:
(215 ILCS 5/143.19.4 new)
Sec. 143.19.4. Standards applicable to certain vehicle
insurance rates.
(a) This Section applies to insurance on risks in this
State described in clause (b) of Class 2 and clause (e) of
Class 3 of Section 4 of this Code.
(b) The following standards shall apply to the making and
use of rates pertaining to the classes of insurance to which
this Section applies:
(1) Rates shall not be excessive, inadequate, or

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unfairly discriminatory.
(2) An insurer shall use methods based on sound
actuarial principles.
(3) A rate is excessive if it is likely to produce a
profit that is unreasonably high for the insurance
provided.
(4) A rate is not inadequate unless the rate is
insufficient to sustain projected losses and expenses in
the class of insurance 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 in insurance rates is
prohibited. Unfair discrimination exists if, after
allowing for practical limitations, price differentials
fail to reflect equitably the differences in expected
losses and expenses. If unfair discrimination is found,
the Department of Insurance may require corrective action
from the insurance producer to take effect in the
following calendar year. The Department of Insurance may
also issue a fine of $5,000 per instance of unfair
discrimination.
(c) Nothing in this Section shall be construed as a
requirement on the Department to review or approve rating
information regularly filed with the Department or to limit or

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define the scope of the Department's authority to review that
rating information. Upon request, an insurance company is
required to provide the Department any information the
Department deems relevant to a company's compliance with this
Section.
(215 ILCS 5/143.19.5 new)
Sec. 143.19.5. The Automobile Insurance Affordability and
Availability Task Force.
(a) The Automobile Insurance Affordability and
Availability Task Force is created to study and report on the
Illinois automobile insurance marketplace and regulatory
environment and the impacts of current practices and
regulations on the overall availability and affordability of
automobile insurance. The report shall incorporate data and
conclusions from other jurisdictions, but shall focus on
providing analyses and recommendations specific to the
Illinois marketplace. The Task Force shall, at minimum,
consider the following issues and may make recommendations to
address any findings based on its consideration of those
issues:
(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

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availability, time and cost efficiency for regulators and
taxpayers, and expected impact on residual markets.
(3) Current automobile insurance rating practices in
Illinois and the impact a rate review mechanism would have
on premiums in that market.
(4) Inflationary pressures on insurance affordability,
including, but not limited to, the cost of vehicle parts,
vehicle repair labor, and medical costs.
(5) Driving behavior patterns as well as trends
relating to driving under the influence of alcohol,
speeding, distracted driving, red light enforcement, and
other enforcement, including, but not limited to, the
analysis and recommendations identified in the 2024
Roadmap to Safety by Advocates for Highway and Auto
Safety.
(6) Automobile-related tort and litigation trends,
including, but not limited to, the effect of assignments
of benefits.
(7) The impact prohibiting rate-making based on credit
score, gender, or lack of prior insurance would have on
automobile insurance premiums in Illinois.
(8) The impact that Section 143.19.6 has on the
automobile insurance marketplace.
The Task Force shall compile a report on its findings and
submit that report to the Governor and the General Assembly on
or before January 1, 2028.

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(b) The Task Force, with respect to consumer education,
shall review, assess, develop, and make available to consumers
educational materials based on Regulatory Resources for
Consumers on Personal Lines Pricing and Underwriting and the
Consumers Guide to Auto Insurance published by the National
Association of Insurance Commissioners.
(c) The Task Force shall include the following
individuals:
(1) The Director of Insurance or the Director's
designee.
(2) The Secretary of State or the Secretary's
designee.
(3) The Secretary of Transportation or the Secretary's
designee.
(4) One member of the Senate, appointed by the
President of the Senate.
(5) One member of the Senate, appointed by the Senate
Minority Leader.
(6) One member of the House of Representatives,
appointed by the Speaker of the House of Representatives.
(7) One member of the House of Representatives,
appointed by the Minority Leader of the House of
Representatives.
(8) One representative from a non-profit consumer
organization that serves to protect the interests of
Illinois consumers as it relates to the regulation of

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insurance, appointed by the Governor.
(9) One representative from an organization
representing the interests of minority or economically
disadvantaged populations, appointed by the Governor.
(10) One representative from a trade organization
representing the insurance industry in Illinois, appointed
by the Governor.
(11) One representative from a national trade
organization representing property and casualty insurers,
appointed by the Governor.
(12) One representative from a national trade
organization representing mutual insurance companies,
appointed by the Governor.
(13) One representative from a national trade
association representing insurance compliance
professionals, appointed by the Governor.
(14) One representative from a trade organization
representing insurance agents, appointed by the Governor.
The appointments under paragraphs (4) through (14) of this
subsection shall be made no later than December 31, 2025. The
Director of Insurance or the Director's designee shall serve
as the Chair of the Task Force.
(d) 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,

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including conducting market studies as requested by the Task
Force.
(e) Subject to appropriation, the Task Force shall engage
with a third-party actuarial firm to oversee the technical
analysis of the Illinois insurance market and the
determinations of what impacts, if any, rate review and the
prohibition of rate-making based on factors set forth in
paragraph (7) of subsection (a) would have on the Illinois
insurance market.
(f) 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.
(g) The Task Force shall meet at least quarterly but may
meet more often if needed to fulfill any of its duties.
(h) The Task Force is dissolved after it submits the
report required under subsection (a), and this Section is
repealed July 1, 2028.
(215 ILCS 5/143.19.6 new)
Sec. 143.19.6. Use of credit score and age in determining
rates or premiums for certain vehicle insurance; prohibited.
(a) An individual's credit score shall not be considered
when determining rates or premiums for insurance on risks in
this State described in clause (b) of Class 2 and clause (e) of
Class 3 of Section 4 of this Code.

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(b) A policy of automobile insurance, including any class
of motor vehicle coverage, may not be canceled by the insurer
solely because the insured has reached the age of 65 years so
long as the insured has a valid Illinois driver's license. An
insurer shall not refuse to issue a renewal policy or increase
the premium for any policy solely because an insured has
reached the age of 65 years.
(c) This Section is repealed January 1, 2028.
(215 ILCS 5/424) (from Ch. 73, par. 1031)
Sec. 424. Unfair methods of competition and unfair or
deceptive acts or practices defined. The following are hereby
defined as unfair methods of competition and unfair and
deceptive acts or practices in the business of insurance:
(1) The commission by any person of any one or more of
the acts defined or prohibited by Sections 134, 143.24c,
147, 148, 149, 151, 155.22, 155.22a, 155.42, 236, 237,
364, 469, and 513b1 of this Code.
(2) Entering into any agreement to commit, or by any
concerted action committing, any act of boycott, coercion
or intimidation resulting in or tending to result in
unreasonable restraint of, or monopoly in, the business of
insurance.
(3) Making or permitting, in the case of insurance of
the types enumerated in Classes 1, 2, and 3 of Section 4,
any unfair discrimination between individuals or risks of

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the same class or of essentially the same hazard and
expense element because of the race, color, religion, or
national origin of such insurance risks or applicants. The
application of this Article to the types of insurance
enumerated in Class 1 of Section 4 shall in no way limit,
reduce, or impair the protections and remedies already
provided for by Sections 236 and 364 of this Code or any
other provision of this Code.
(4) Engaging in any of the acts or practices defined
in or prohibited by Sections 154.5 through 154.8 of this
Code.
(5) Making or charging any rate for insurance against
losses arising from the use or ownership of a motor
vehicle which requires a higher premium of any person by
reason of his physical disability, race, color, religion,
gender, or national origin.
(6) Failing to meet any requirement of the Unclaimed
Life Insurance Benefits Act with such frequency as to
constitute a general business practice.
(Source: P.A. 102-778, eff. 7-1-22.)
Section 10. The Illinois Vehicle Code is amended by adding
Section 7-612 as follows:
(625 ILCS 5/7-612 new)
Sec. 7-612. Exemption upon demonstration of financial

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need. Upon a verified demonstration of financial need by the
owner, the Secretary may waive the reinstatement fee
established in Section 7-606.