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

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Bill Title: Amends the Illinois Insurance Code. Provides that an insurer shall not, with regard to any motor vehicle liability insurance practice, (i) unfairly discriminate based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression or (ii) use any external consumer data and information sources in a way that unfairly discriminates based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression. Allows the Department of Insurance to examine and investigate an insurer's use of external consumer data and information sources, algorithms, or predictive models in any motor vehicle liability insurance practice. Specifies that the provisions shall not be construed to require an insurer to collect consumer's demographic data, to prohibit the use of a driver's history that has a direct relationship with risk, or to prohibit the use of or require testing of longstanding and well-established common industry practices in settling claims or traditional underwriting practices. Prohibits an insurer from canceling, refusing to renew, or increasing the premium for any policy of automobile insurance solely because an insured person has reached the age of 65 years if the insured has a valid Illinois driver's license. Defines terms.

Spectrum: Partisan Bill (Democrat 19-0)

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

Download: Illinois-2023-HB4611-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4611 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED:
215 ILCS 5/143.19.4 new
Amends the Illinois Insurance Code. Provides that an insurer shall not, with regard to any motor vehicle liability insurance practice, (i) unfairly discriminate based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression or (ii) use any external consumer data and information sources in a way that unfairly discriminates based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression. Allows the Department of Insurance to examine and investigate an insurer's use of external consumer data and information sources, algorithms, or predictive models in any motor vehicle liability insurance practice. Specifies that the provisions shall not be construed to require an insurer to collect consumer's demographic data, to prohibit the use of a driver's history that has a direct relationship with risk, or to prohibit the use of or require testing of longstanding and well-established common industry practices in settling claims or traditional underwriting practices. Prohibits an insurer from canceling, refusing to renew, or increasing the premium for any policy of automobile insurance solely because an insured person has reached the age of 65 years if the insured has a valid Illinois driver's license. Defines terms.
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A BILL FOR
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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 143.19.4 as follows:
(215 ILCS 5/143.19.4 new)
Sec. 143.19.4. Automobile insurance practices; prohibition
on discrimination.
(a) As used in this Section:
"Algorithm" means a computational or machine learning
process that informs human decision-making in insurance
practices.
"External consumer data and information source" means a
data or an information source that is used by an insurer to
supplement traditional underwriting or other insurance
practices or to establish lifestyle indicators that are used
in insurance practices.
"External consumer data and information source" includes
credit scores, social media habits, locations, purchasing
habits, home ownership, educational attainment, occupation,
licensures, civil judgments, and court records.
"Insurance practice" means marketing, underwriting,
pricing, utilization management, reimbursement methodologies,

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and claims management in the transaction of insurance.
"Predictive model" means a process of using mathematical
and computational methods that examine current and historical
data sets for underlying patterns and calculate the
probability of an outcome.
"Unfairly discriminate" includes the use of one or more
external consumer data and information sources, as well as
algorithms or predictive models using external consumer data
and information sources, that have a correlation to age, race,
color, national or ethnic origin, immigration or citizenship
status, sex, sexual orientation, disability, gender identity,
or gender expression of an individual and that uses results in
a disproportionately negative outcome for such classification
or classifications, which negative outcome exceeds the
reasonable correlation to the underlying insurance practice,
including losses and costs for underwriting.
(b) An insurer shall not, with regard to any motor vehicle
liability insurance practice:
(1) unfairly discriminate based on age, race, color,
national or ethnic origin, immigration or citizenship
status, sex, sexual orientation, disability, gender
identity, or gender expression; or
(2) use any external consumer data and information
sources, as well as any algorithm or predictive models
that use external consumer data and information sources,
in a way that unfairly discriminates based on age, race,

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color, national or ethnic origin, immigration or
citizenship status, sex, sexual orientation, disability,
gender identity, or gender expression.
(c) The Department of Insurance may examine and
investigate an insurer's use of external consumer data and
information sources, algorithms, or predictive models with
regard to any motor vehicle liability insurance practice.
Insurers shall cooperate with the Department of Insurance in
any examination or investigation under this Section.
(d) Nothing in this Section may be construed to:
(1) Require an insurer to collect from an applicant or
policyholder the age, race, color, national or ethnic
origin, immigration or citizenship status, sex, sexual
orientation, disability, gender identity, or gender
expression of an individual.
(2) Prohibit the use of a driver's history that has a
direct relationship to risk unless such information is
otherwise included in the testing of an algorithm or
predictive model that also uses external consumer data and
information sources.
(3) Prohibit the use of or require testing of
longstanding and well-established common industry
practices in settling claims or traditional underwriting
practices unless such practices or factors are otherwise
included in the testing of an algorithm or predictive
model that also uses external consumer data and

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