Bill Text: IL HB3451 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Requires insurance policies to be written in language easily readable and understandable by a person of average intelligence and education. Provides the factors the Director of Insurance shall consider in making the determination that the policy is easily readable and understandable by a person of average intelligence and education.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-04-12 - Rule 19(a) / Re-referred to Rules Committee [HB3451 Detail]

Download: Illinois-2019-HB3451-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3451 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED:
215 ILCS 5/143.5 new
Amends the Illinois Insurance Code. Requires insurance policies to be written in language easily readable and understandable by a person of average intelligence and education. Provides the factors the Director of Insurance shall consider in making the determination that the policy is easily readable and understandable by a person of average intelligence and education.
LRB101 10531 SMS 55637 b
A BILL FOR
HB3451 LRB101 10531 SMS 55637 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by adding
Section 143.5 as follows:
(215 ILCS 5/143.5 new)
Sec. 143.5. Policy readability.
(a) On and after the effective date of this amendatory Act
of the 101st General Assembly, a policy issued, amended,
renewed, or delivered by an insurance company authorized to do
business in this State shall be written in language easily
readable and understandable by a person of average intelligence
and education.
(b) In determining whether a policy is readable within the
meaning of this Section, the Director shall consider, at least,
the following factors:
(1) the simplicity of the sentence structure and the
shortness of the sentences used;
(2) the extent to which commonly used and understood
words are employed;
(3) the extent to which legal terms are avoided;
(4) the extent to which references to other sections or
provisions of the contract are minimized;

HB3451 - 2 - LRB101 10531 SMS 55637 b
(5) the extent to which definitional provisions are
incorporated in the text of the policy or contract; and
(6) any additional factors relevant to the readability
or understandability of an insurance policy or contract
that the Director may prescribe by rule.