104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2724
 
Introduced 10/28/2025, by Sen. Julie A. Morrison
 
SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/424  from Ch. 73, par. 1031
    Amends the Illinois Insurance Code. Provides that, unless certain conditions are met, it is an unfair method of competition and an unfair and deceptive act or practice in the business of insurance to solicit an individual who is over the age of 65, as described in provisions concerning an individual who has executed a health care power of attorney or has a medical condition, such as dementia, that reduces the person's capacity to make informed decisions independently, (instead of to solicit an individual who is over the age of 65) to purchase accident or health insurance. Effective January 1, 2026.


LRB104 16011 RPS 29263 b

 
 
A BILL FOR
 
SB2724LRB104 16011 RPS 29263 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by 
5changing Section 424 as follows:
 
6    (215 ILCS 5/424)  (from Ch. 73, par. 1031)
7    (Text of Section before amendment by P.A. 104-55)
8    Sec. 424. Unfair methods of competition and unfair or 
9deceptive acts or practices defined.  The following are hereby 
10defined as unfair methods of competition and unfair and 
11deceptive acts or practices in the business of insurance:
12        (1) The commission by any person of any one or more of 
13    the acts defined or prohibited by Sections 134, 143.24c, 
14    147, 148, 149, 151, 155.22, 155.22a, 155.42, 236, 237, 
15    364, 469, and 513b1 of this Code.
16        (2) Entering into any agreement to commit, or by any 
17    concerted action committing, any act of boycott, coercion 
18    or intimidation resulting in or tending to result in 
19    unreasonable restraint of, or monopoly in, the business of 
20    insurance.
21        (3) Making or permitting, in the case of insurance of 
22    the types enumerated in Classes 1, 2, and 3 of Section 4, 
23    any unfair discrimination between individuals or risks of 
 
 
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1    the same class or of essentially the same hazard and 
2    expense element because of the race, color, religion, or 
3    national origin of such insurance risks or applicants. The 
4    application of this Article to the types of insurance 
5    enumerated in Class 1 of Section 4 shall in no way limit, 
6    reduce, or impair the protections and remedies already 
7    provided for by Sections 236 and 364 of this Code or any 
8    other provision of this Code.
9        (4) Engaging in any of the acts or practices defined 
10    in or prohibited by Sections 154.5 through 154.8 of this 
11    Code.
12        (5) Making or charging any rate for insurance against 
13    losses arising from the use or ownership of a motor 
14    vehicle which requires a higher premium of any person by 
15    reason of his physical disability, race, color, religion, 
16    or national origin.
17        (6) Failing to meet any requirement of the Unclaimed 
18    Life Insurance Benefits Act with such frequency as to 
19    constitute a general business practice. 
20(Source: P.A. 102-778, eff. 7-1-22.)
 
21    (Text of Section after amendment by P.A. 104-55)
22    Sec. 424. Unfair methods of competition and unfair or 
23deceptive acts or practices defined.  The following are hereby 
24defined as unfair methods of competition and unfair and 
25deceptive acts or practices in the business of insurance:
 
 
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1        (1) The commission by any person of any one or more of 
2    the acts defined or prohibited by Sections 134, 143.24c, 
3    147, 148, 149, 151, 155.22, 155.22a, 155.42, 236, 237, 
4    364, 469, and 513b1 of this Code.
5        (2) Entering into any agreement to commit, or by any 
6    concerted action committing, any act of boycott, coercion 
7    or intimidation resulting in or tending to result in 
8    unreasonable restraint of, or monopoly in, the business of 
9    insurance.
10        (3) Making or permitting, in the case of insurance of 
11    the types enumerated in Classes 1, 2, and 3 of Section 4, 
12    any unfair discrimination between individuals or risks of 
13    the same class or of essentially the same hazard and 
14    expense element because of the race, color, religion, or 
15    national origin of such insurance risks or applicants. The 
16    application of this Article to the types of insurance 
17    enumerated in Class 1 of Section 4 shall in no way limit, 
18    reduce, or impair the protections and remedies already 
19    provided for by Sections 236 and 364 of this Code or any 
20    other provision of this Code.
21        (4) Engaging in any of the acts or practices defined 
22    in or prohibited by Sections 154.5 through 154.8 of this 
23    Code.
24        (5) Making or charging any rate for insurance against 
25    losses arising from the use or ownership of a motor 
26    vehicle which requires a higher premium of any person by 
 
 
SB2724- 4 -LRB104 16011 RPS 29263 b

1    reason of his physical disability, race, color, religion, 
2    or national origin.
3        (6) Failing to meet any requirement of the Unclaimed 
4    Life Insurance Benefits Act with such frequency as to 
5    constitute a general business practice. 
6        (7) Soliciting either an individual who is a resident 
7    of a nursing home or long-term care facility or an 
8    individual who is over the age of 65, as described in 
9    paragraph (8) of this Section, to purchase accident or 
10    health insurance, unless the person who is selling the 
11    insurance:
12            (A) advises the potential enrollee of the benefit 
13        of examining the potential enrollee's current 
14        insurance plan, discusses all proposed 
15        insurance-related changes with a family member, 
16        friend, or other advisor of the potential enrollee, 
17        and then waits 48 hours before making any 
18        insurance-related changes concerning the potential 
19        enrollee;
20            (B) provides a phone number that may be called if 
21        the potential enrollee or the potential enrollee's 
22        family members, friends, or other advisors have any 
23        questions; and
24            (C) allows the potential enrollee to opt out of 
25        any future communications with the person.
26        (8) Entering into or amending an accident or health 
 
 
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1    insurance policy with an individual who is over the age of 
2    65 and who has executed a health care power of attorney or 
3    has a medical condition, such as dementia, that reduces 
4    the person's capacity to make informed decisions 
5    independently, unless the potential enrollee's agent under 
6    a health care power of attorney executes the agreement and 
7    the agreement is reduced to writing.
8(Source: P.A. 104-55, eff. 1-1-26.)
 
9    Section 95. No acceleration or delay. Where this Act makes 
10changes in a statute that is represented in this Act by text 
11that is not yet or no longer in effect (for example, a Section 
12represented by multiple versions), the use of that text does 
13not accelerate or delay the taking effect of (i) the changes 
14made by this Act or (ii) provisions derived from any other 
15Public Act.
 
16    Section 99. Effective date. This Act takes effect January 
171, 2026.