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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3861 Introduced 2/17/2023, by Rep. Harry Benton SYNOPSIS AS INTRODUCED:
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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.
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| | A BILL FOR |
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| | HB3861 | | LRB103 29424 BMS 55815 b |
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| 1 | | AN ACT concerning regulation.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Insurance Code is amended by |
| 5 | | adding Section 143.5 as follows:
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| 6 | | (215 ILCS 5/143.5 new) |
| 7 | | Sec. 143.5. Policy readability. |
| 8 | | (a) On and after the effective date of this amendatory Act |
| 9 | | of the 103rd General Assembly, a policy issued, amended, |
| 10 | | renewed, or delivered by an insurance company authorized to do |
| 11 | | business in this State shall be written in language easily |
| 12 | | readable and understandable by a person of average |
| 13 | | intelligence and education. |
| 14 | | (b) In determining whether a policy is readable within the |
| 15 | | meaning of this Section, the Director shall consider, at |
| 16 | | least, the following factors: |
| 17 | | (1) the simplicity of the sentence structure and the |
| 18 | | shortness of the sentences used; |
| 19 | | (2) the extent to which commonly used and understood |
| 20 | | words are employed; |
| 21 | | (3) the extent to which legal terms are avoided; |
| 22 | | (4) the extent to which references to other sections |
| 23 | | or provisions of the contract are minimized; |