Full Text of HB5140 102nd General Assembly
HB5140 102ND GENERAL ASSEMBLY
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
Introduced 1/27/2022, by Rep. Lamont J. Robinson, Jr.
SYNOPSIS AS INTRODUCED:
215 ILCS 5/143.26b new
215 ILCS 157/10
Amends the Illinois Insurance Code. Provides that no insurer shall
utilize, rate, or underwrite in whole or in part an applicant's or
insured's education level, employment, trade, business, occupation or
profession, or credit report or credit information to determine: whether
to issue, deny, cancel, or nonrenew an automobile insurance policy;
whether to renew an automobile insurance policy; the appropriate premium
for an automobile insurance policy; the appropriate tier for an automobile
insurance policy; or an insurance score for an applicant or insured.
Defines terms. Amends the Use of Credit Information in Personal Insurance
Act. Removes private passenger automobile insurance policies from the
definition of "personal insurance". Effective immediately.
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Illinois Insurance Code is amended by
adding Section 143.26b as follows:
(215 ILCS 5/143.26b new)
Automobile insurance; prohibited use of
(a) As used in this Section:
"Applicant" means an individual who has applied to be
covered by an automobile insurance policy with an insurer.
"Automobile insurance" means a contract of insurance
issued or delivered in this State on a risk located or a
resident in this State insuring against losses or liabilities
arising out of the ownership, operation, or use of a motor
vehicle predominantly used for non-business purposes if a
natural person is the named insured under the policy of
automobile insurance. The use or operation of a motor vehicle
by a transportation network company driver in accordance with
the Transportation Network Providers Act shall not be included
in determining whether the motor vehicle is being used
predominantly for non-business purposes.
"Credit information" means any credit-related information
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derived from a credit report, found on a credit report itself,
or provided on an application for automobile insurance.
"Credit information" does not include information that is not
credit-related regardless of whether it is contained in a
credit report or in an application or is used to calculate an
"Credit report" means any written, oral, or other
communication of information by a consumer reporting agency
bearing on a consumer's credit worthiness, credit standing, or
credit capacity that is used or expected to be used or
collected in whole or in part for the purpose of serving as a
factor to determine automobile insurance premiums, eligibility
for coverage, or tier placement.
"Insurance score" means a number or rating that is derived
from an algorithm, computer application, model, or other
process for the purposes of predicting the future insurance
loss exposure of an individual applicant or insured.
(b) No insurer shall utilize, rate, or underwrite in whole
or in part an applicant's or insured's education level,
employment, trade, business, occupation or profession, or
credit report or credit information to determine:
(1) whether to issue, deny, cancel, or nonrenew an
automobile insurance policy;
(2) whether to renew an automobile insurance policy;
(3) the appropriate premium for an automobile
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(4) the appropriate tier for an automobile insurance
(5) an insurance score for an applicant or insured.
The Use of Credit Information in Personal
Insurance Act is amended by changing Section 10 as follows:
(215 ILCS 157/10)
This Act applies to personal insurance and
insurance. For purposes of this Act,
"personal insurance" means
homeowners, motorcycle, mobile-homeowners and non-commercial
dwelling fire insurance policies, and boat, personal
recreational vehicle policies.
Such policies must be individually underwritten
family, or household use. No other type of insurance shall be
personal insurance for the purpose of this Act.
(Source: P.A. 102-558, eff. 8-20-21.)
This Act takes effect upon