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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5719 Introduced , by Rep. Jaime M. Andrade, Jr. SYNOPSIS AS INTRODUCED:
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Amends the Illinois Insurance Code. Provides that no insurance company authorized to do business in the State shall utilize price optimization to set policy rates. Effective immediately.
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| | A BILL FOR |
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| | HB5719 | | LRB099 15371 MLM 39632 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 adding |
| 5 | | Section 155.46 as follows:
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| 6 | | (215 ILCS 5/155.46 new) |
| 7 | | Sec. 155.46. Prohibition of price optimization. |
| 8 | | (a) As used in this Section: |
| 9 | | "Price optimization" means varying rates based on factors |
| 10 | | other than risk of loss, including, but not limited to: |
| 11 | | (1) the likelihood that a policyholder will engage in |
| 12 | | activities that result in policy turnover; and |
| 13 | | (2) the willingness of a policyholder to pay a higher |
| 14 | | premium compared to other policyholders. |
| 15 | | "Engage in activities that result in policy turnover" |
| 16 | | includes, but is not limited to: |
| 17 | | (1) shopping with other carriers for a lower premium; |
| 18 | | (2) canceling a policy before the expiration of the |
| 19 | | policy term; and |
| 20 | | (3) failing to renew a policy at the renewal of the |
| 21 | | policy term. |
| 22 | | (b) No insurance company authorized to do business in this |
| 23 | | State shall utilize price optimization to set policy rates.
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