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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1 AN ACT concerning regulation.

2 Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:

4 Section 5. The Illinois Insurance Code is amended by 
5adding Section 143.19.4 as follows:

6 (215 ILCS 5/143.19.4 new)
7 Sec. 143.19.4. Automobile insurance practices; prohibition 
8on discrimination.
9 (a) As used in this Section:
10 "Algorithm" means a computational or machine learning 
11process that informs human decision-making in insurance 
12practices.
13 "External consumer data and information source" means a 
14data or an information source that is used by an insurer to 
15supplement traditional underwriting or other insurance 
16practices or to establish lifestyle indicators that are used 
17in insurance practices.
18 "External consumer data and information source" includes 
19credit scores, social media habits, locations, purchasing 
20habits, home ownership, educational attainment, occupation, 
21licensures, civil judgments, and court records.
22 "Insurance practice" means marketing, underwriting, 
23pricing, utilization management, reimbursement methodologies, 
 
 
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1and claims management in the transaction of insurance.
2 "Predictive model" means a process of using mathematical 
3and computational methods that examine current and historical 
4data sets for underlying patterns and calculate the 
5probability of an outcome.
6 "Unfairly discriminate" includes the use of one or more 
7external consumer data and information sources, as well as 
8algorithms or predictive models using external consumer data 
9and information sources, that have a correlation to age, race, 
10color, national or ethnic origin, immigration or citizenship 
11status, sex, sexual orientation, disability, gender identity, 
12or gender expression of an individual and that uses results in 
13a disproportionately negative outcome for such classification 
14or classifications, which negative outcome exceeds the 
15reasonable correlation to the underlying insurance practice, 
16including losses and costs for underwriting.
17 (b) An insurer shall not, with regard to any motor vehicle 
18liability insurance practice:
19  (1) unfairly discriminate based on age, race, color, 
20 national or ethnic origin, immigration or citizenship 
21 status, sex, sexual orientation, disability, gender 
22 identity, or gender expression; or
23  (2) use any external consumer data and information 
24 sources, as well as any algorithm or predictive models 
25 that use external consumer data and information sources, 
26 in a way that unfairly discriminates based on age, race, 
 
 
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1 color, national or ethnic origin, immigration or 
2 citizenship status, sex, sexual orientation, disability, 
3 gender identity, or gender expression.
4 (c) The Department of Insurance may examine and 
5investigate an insurer's use of external consumer data and 
6information sources, algorithms, or predictive models with 
7regard to any motor vehicle liability insurance practice. 
8Insurers shall cooperate with the Department of Insurance in 
9any examination or investigation under this Section.
10 (d) Nothing in this Section may be construed to:
11  (1) Require an insurer to collect from an applicant or 
12 policyholder the age, race, color, national or ethnic 
13 origin, immigration or citizenship status, sex, sexual 
14 orientation, disability, gender identity, or gender 
15 expression of an individual.
16  (2) Prohibit the use of a driver's history that has a 
17 direct relationship to risk unless such information is 
18 otherwise included in the testing of an algorithm or 
19 predictive model that also uses external consumer data and 
20 information sources.
21  (3) Prohibit the use of or require testing of 
22 longstanding and well-established common industry 
23 practices in settling claims or traditional underwriting 
24 practices unless such practices or factors are otherwise 
25 included in the testing of an algorithm or predictive 
26 model that also uses external consumer data and 
 
 
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