HB5138 104TH GENERAL ASSEMBLY

LRB104 18175 BAB 31614 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5138

Introduced 2/10/2026, by Rep. Kevin John Olickal

SYNOPSIS AS INTRODUCED:

215 ILCS 5/132.3a new
215 ILCS 5/1204.5 new

Amends the Illinois Insurance Code. Requires the Director of Insurance to examine and investigate the affairs of any company to determine whether the company has been or is engaged in any rate setting that is excessive, inadequate, or unfairly discriminatory regarding affordable housing developments. Requires the Director to submit a report concerning aggregated housing insurance market statistics for the prior calendar year on or before October 1 of each year to the Governor and the General Assembly that shall be posted on the publicly accessible websites of both the Governor and the General Assembly. Provides that submissions that constitute trade secrets or sensitive commercial information are confidential under the Freedom of Information Act. Requires the Department of Insurance to consult with excess line and Illinois property insurance underwriting associations regarding reporting formats that capture excess-line placements and assigned-risk activity without identifying individual insureds. Grants the Department authority to adopt rules or circular letters, harmonize data standards with the National Association of Insurance Commissioners and other states, limit the burden on small insurers, and ensure data quality. 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 Sections 132.3a and 1204.5 as follows:

(215 ILCS 5/132.3a new)

Sec. 132.3a. Power of the Director; affordable housing coverage. The Director shall examine and investigate the affairs of any company to determine whether the company has been or is engaged in any rate setting that is excessive, inadequate, or unfairly discriminatory regarding affordable housing developments as defined in Section 15 of the Affordable Housing Planning and Appeal Act. The examination and investigatory powers of the Director include any data calls and desk examinations to determine if different rates result for policyholders after any price differentials fail to reflect the difference in expected losses and expenses. The Director shall investigate whether policyholders who are owners of affordable housing developments as defined in Section 15 of the Affordable Housing Planning and Appeal Act are being subject to unfairly discriminatory rates as compared with similar types of market rate housing in Illinois.

(215 ILCS 5/1204.5 new)

Sec. 1204.5. Report on the housing insurance market for affordable rental housing.

(a) Definitions. In this Section:

"Affordable housing development" means a residential building with leased units required to be affordable by statute, regulation, regulatory agreement, or recorded covenant.

"Excess line insurance" has the meaning given to "surplus line insurance" in Sections 445, 445a, and 445.1 of this Code.

"Insurer" means an authorized insurer writing property or liability coverage on residential buildings and includes reporting by excess line placements through the Surplus Line Association of Illinois as provided by rule.

"Multifamily residential building" means a property containing 5 or more dwelling units.

"Nonprofit housing provider" means an organization described by Section 501(c)(3) of the United States Internal Revenue Code or an entity formed under the General Not For Profit Corporation Act of 1986 that constructs, owns, or operates residential housing in Illinois.

(b) Annual report.

(1) The Director shall submit a report detailed in subsection (c) on or before October 1 of each year to the Governor and the General Assembly that shall be posted on the publicly accessible websites of both the Governor and the General Assembly.

(2) The report shall analyze the availability, pricing, terms, and affordability of property and liability insurance for multifamily residential buildings owned or operated by nonprofit and mission-driven entities, including affordable housing developments.

(3) The report shall include statewide and regional results, with the City of Chicago reported separately from the rest of the State.

(c) Required contents. The report shall present, at a minimum, aggregated statistics for the prior calendar year on:

(1) Premium levels and changes, including the average and median premium per unit and square foot and premium as a share of operating expenses.

(2) Coverage availability and market channel, including nonrenewal and declination counts, the share placed in the excess line market, and use of the Illinois property insurance underwriting association.

(3) Deductibles by peril and trend.

(4) Common exclusions and limitations, including new or expanded exclusions introduced in the reporting year.

(5) Coverage limits relative to reported replacement cost.

(6) Claims frequency and severity for fire, water, wind, and liability, to the extent available.

(7) Risk-mitigation credits and building resiliency investments reported by owners and recognized by insurers.

(8) Regional heat-map summaries of market stress using the methodology set by the Department by bulletin or circular letter. The Department may align with the National Association of Insurance Commissioners' market intelligence data elements.

(d) Data collection and confidentiality.

(1) Submissions that constitute trade secrets or sensitive commercial information are confidential under the Freedom of Information Act. The published report shall contain only aggregated, de-identified statistics and analyses.

(2) The Department shall consult with excess line and Illinois property insurance underwriting associations regarding reporting formats that capture excess-line placements and assigned-risk activity without identifying individual insureds.

(e) Rulemaking. The Department may adopt rules or circular letters to implement this Section, harmonize data standards with the National Association of Insurance Commissioners and other states, limit the burden on small insurers, and ensure data quality.

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