SB0269 104TH GENERAL ASSEMBLY

LRB104 08729 BAB 18783 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB0269

Introduced 1/24/2025, by Sen. Michael E. Hastings

SYNOPSIS AS INTRODUCED:

215 ILCS 5/Art. XLVIII heading new
215 ILCS 5/1801 new
215 ILCS 5/1805 new
215 ILCS 5/1810 new
215 ILCS 5/1815 new
215 ILCS 5/1820 new
215 ILCS 5/1825 new

Creates the Insurance Rate Transparency Law as an Article of the Illinois Insurance Code. Provides that, beginning January 1, 2026, each insurer offering automobile and homeowners insurance policies in Illinois shall maintain a publicly accessible website displaying a summary of the annual percentage increase or decrease in premium rates for homeowners insurance policies and automobile insurance policies. Requires the website to display the rate-change data for the previous 5 years, updated annually by no later than January 31 of each year, and specified other data. Sets forth provisions concerning the format of the renewal notice; enforcement of the requirements by the Department of Insurance; penalties; and rulemaking. Effective immediately.

A BILL FOR

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 the Article XLVIII as follows:

(215 ILCS 5/Art. XLVIII heading new)

ARTICLE XLVIII. INSURANCE RATE TRANSPARENCY

(215 ILCS 5/1801 new)

Sec. 1801. Short title. This Article may be cited as the Insurance Rate Transparency Law.

(215 ILCS 5/1805 new)

Sec. 1805. Purpose. The purpose of this Law is to increase transparency in the insurance market by requiring insurers to disclose year-over-year rate changes for automobile insurance policies and homeowners insurance policies both online and in mailed policy renewal notices and empowering consumers to make informed decisions.

(215 ILCS 5/1810 new)

Sec. 1810. Definitions. As used in this Law:

"Department" means the Department of Insurance.

"Director" means the Director of Insurance.

"Insurer" means an insurance company offering homeowners insurance policies or automobile insurance policies within the State.

(215 ILCS 5/1815 new)

Sec. 1815. Disclosure requirements.

(a) Beginning January 1, 2026, each insurer shall maintain a publicly accessible website displaying a summary of the annual percentage increase or decrease in premium rates for homeowners insurance policies and automobile insurance policies.

(b) The website must display the rate-change data for the previous 5 years, updated annually by no later than January 31 of each year.

(c) The disclosed data shall include the following information:

(1) the average annual percentage change in premium rates for all policyholders statewide;

(2) a breakdown of the rate changes for automobile insurance and homeowners insurance policies; and

(3) a clear explanation of the primary factors contributing to the rate changes.

(d) The disclosure must be presented in at least 14-point font size to ensure readability.

(e) Insurers must include the 5-year rate-change summary in all mailed renewal notices sent to policyholders, even if the insured has otherwise opted out of paper communications.

(f) No information other than the rate-change summary disclosure shall be included in the mailed renewal notice.

(g) The renewal notice must include the rate-change summary on a dedicated website titled "Important Rate Information" and use clear language to describe the changes.

(h) Insurers must provide downloadable reports containing the full data for consumers who request more detailed information.

(i) For the convenience of the insured, mailed renewal notices must include a QR code linking directly to the online rate-change history website.

(215 ILCS 5/1820 new)

Sec. 1820. Enforcement and penalties.

(a) The Department shall monitor compliance with this Law through periodic audits of insurer websites and mailed notices.

(b) Any insurer found in violation of this Law shall be subject to a fine of $25,000 for each month the required information is not displayed or is incomplete.

(c) Repeated violations may result in the suspension of the insurer's license to issue new policies in Illinois until compliance is achieved.

(d) Failure to include the disclosure in mailed renewal notices will result in an additional $50,000 fine per violation.

(215 ILCS 5/1825 new)

Sec. 1825. Rulemaking authority. The Department may adopt rules necessary to implement and enforce the requirements of this Law.

Section 99. Effective date. This Act takes effect upon becoming law.