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| | 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2691 Introduced 10/14/2025, by Sen. Michael E. Hastings and Meg Loughran Cappel SYNOPSIS AS INTRODUCED:
| | | Creates the Nondriving Factors in Insurance Rate-Setting Study Act. Requires the Department of Insurance to conduct a comprehensive study of the use of nondriving factors in the setting of automobile and homeowners insurance premiums in Illinois. By January 1, 2027, requires the Department of Insurance to prepare and submit a report of its findings and recommendations to the President of the Senate, the Speaker of the House of Representatives, the Minority Leader of the Senate, and the Minority Leader of the House of Representatives. Provides that the Act is repealed on January 1, 2028. Effective immediately. |
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| | A BILL FOR |
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| | SB2691 | | LRB104 15273 BAB 28426 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, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 1. Short title. This Act may be cited as the |
| 5 | | Nondriving Factors in Insurance Rate-Setting Study Act.
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| 6 | | Section 5. Findings. The General Assembly finds that: |
| 7 | | (1) Automobile and homeowners insurance premiums play |
| 8 | | a critical role in protecting Illinois families and |
| 9 | | communities. |
| 10 | | (2) There is growing concern that nondriving factors, |
| 11 | | such as a person's credit score, occupation, education |
| 12 | | level, and other socioeconomic criteria, may contribute to |
| 13 | | inequitable rate-setting practices. |
| 14 | | (3) A comprehensive data-driven analysis is necessary |
| 15 | | to evaluate the fairness and consumer impact of these |
| 16 | | practices and to determine whether legislative or |
| 17 | | regulatory reforms are warranted.
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| 18 | | Section 10. Department of Insurance study. |
| 19 | | (a) The Department of Insurance shall conduct a |
| 20 | | comprehensive study of the use of nondriving factors in the |
| 21 | | setting of automobile and homeowners insurance premiums in |
| 22 | | Illinois. |
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| | SB2691 | - 2 - | LRB104 15273 BAB 28426 b |
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| 1 | | (b) The study shall include, but not be limited to: |
| 2 | | (1) An examination of how a person's credit score, |
| 3 | | occupation, education level, and other nondriving factors |
| 4 | | are currently used by insurers. |
| 5 | | (2) An assessment of the relationship between these |
| 6 | | factors and the cost of claims loss ratios and the actual |
| 7 | | risk of insured parties. |
| 8 | | (3) A review of the extent to which reliance on |
| 9 | | nondriving factors may disproportionately impact |
| 10 | | low-income individuals, communities of color, veterans, |
| 11 | | seniors, or other protected classes. |
| 12 | | (4) A comparative analysis of practices in other |
| 13 | | states, including any restrictions or prohibitions on the |
| 14 | | use of nondriving factors. |
| 15 | | (5) Recommendations for statutory or regulatory |
| 16 | | changes to ensure that insurance rates are fair, |
| 17 | | equitable, and based primarily on risk of loss.
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| 18 | | Section 15. Reporting requirement. By January 1, 2027, the |
| 19 | | Department of Insurance shall prepare and submit a report of |
| 20 | | its findings and recommendations to the President of the |
| 21 | | Senate, the Speaker of the House of Representatives, the |
| 22 | | Minority Leader of the Senate, and the Minority Leader of the |
| 23 | | House of Representatives.
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| 24 | | Section 90. Repeal. This Act is repealed on January 1, |