Illinois General Assembly - Full Text of HB3804

LRB104 12274 JDS 22386 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3804

Introduced 2/18/2025, by Rep. Harry Benton

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.

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 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 104th 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;

(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.