Full Text of HB4611 103rd General Assembly
HB4611ham002 103RD GENERAL ASSEMBLY | Rep. Thaddeus Jones Filed: 4/9/2024 | | 10300HB4611ham002 | | LRB103 37111 RPS 71454 a |
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| 1 | | AMENDMENT TO HOUSE BILL 4611
| 2 | | AMENDMENT NO. ______. Amend House Bill 4611 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | adding Sections 143.19.4 and 417 as follows: | 6 | | (215 ILCS 5/143.19.4 new) | 7 | | Sec. 143.19.4. Standards applicable to vehicle insurance | 8 | | rates. | 9 | | (a) The following standards apply to insurance on risks | 10 | | described in Class 2(b) and Class 3(e) of Section 4: | 11 | | (1) An insurer shall use methods based on sound | 12 | | actuarial principles to calculate its rates. | 13 | | (2) A rate may not be excessive, inadequate, or | 14 | | unfairly discriminatory. | 15 | | (3) A rate is excessive if it is likely to produce a | 16 | | profit that is unreasonably high for the insurance |
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| 1 | | provided. A rate in a competitive market is not considered | 2 | | excessive. | 3 | | (4) A rate is not inadequate unless such rate is | 4 | | insufficient to sustain projected losses and expenses in | 5 | | the class of business to which it applies or the use of | 6 | | such rate has or, if continued, will endanger the solvency | 7 | | of the insurer using it or have the effect of | 8 | | substantially lessening competition or the tendency to | 9 | | create a monopoly in any market. | 10 | | (5) Unfair discrimination exists if, after allowing | 11 | | for practical limitations, price differentials fail to | 12 | | reflect equitably the differences in expected losses and | 13 | | expenses. A rate is not unfairly discriminatory because | 14 | | different premiums result for policyholders with like loss | 15 | | exposures but different expenses, or like expenses but | 16 | | different loss exposures, so long as the rate reflects the | 17 | | differences with reasonable accuracy. | 18 | | (b) With respect to rating for policies described in Class | 19 | | 2(b) and Class 3(e) of Section 4, the use of the following | 20 | | factors are prohibited: | 21 | | (1) Race. | 22 | | (2) Color. | 23 | | (3) Religion. | 24 | | (4) National origin. | 25 | | (5) Physical disability, as that term is defined in | 26 | | Section 143.24a. |
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| 1 | | (215 ILCS 5/417 new) | 2 | | Sec. 417. The Automobile Insurance Affordability and | 3 | | Availability Task Force. | 4 | | (a) The Auto Insurance Affordability and Availability Task | 5 | | Force is created to direct a study of Illinois' automobile | 6 | | insurance marketplace and regulatory environment and their | 7 | | impacts on overall availability and affordability of | 8 | | automobile insurance. The Task Force shall, at a minimum, | 9 | | consider the following issues and may make recommendations to | 10 | | address any findings: | 11 | | (1) national trends and data on availability and | 12 | | affordability of automobile insurance in Illinois and | 13 | | other jurisdictions; | 14 | | (2) rate approval regimes in other jurisdictions, | 15 | | including their relative impact on affordability and | 16 | | availability, time and cost efficiency for regulators and | 17 | | taxpayers, and expected impact on residual markets; | 18 | | (3) inflationary pressures on insurance affordability, | 19 | | including, but not limited to, the cost of vehicle parts, | 20 | | vehicle repair labor, and medical costs; | 21 | | (4) driving behavior patterns as well as driving under | 22 | | the influence of alcohol, speeding, distracted driving, | 23 | | red light enforcement, and enforcement trends, including, | 24 | | but not limited to, the analysis and recommendations | 25 | | identified in the 2024 Road Map to Safety by Advocates for |
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| 1 | | Highway and Auto Safety; and | 2 | | (5) automobile-related tort and litigation trends, | 3 | | including, but not limited to, the effect of assignments | 4 | | of benefits. | 5 | | (b) With respect to consumer education, the Task Force | 6 | | shall review, assess, develop, and make available to consumers | 7 | | educational materials based on the publications (i) Regulatory | 8 | | Resources for Consumers on Personal Lines Pricing and (ii) | 9 | | Underwriting and Consumers Guide to Auto Insurance, both | 10 | | published by the National Association of Insurance | 11 | | Commissioners. | 12 | | (c) The Director of Insurance or the Director's designee | 13 | | shall serve as the Chair of the Task Force. | 14 | | (d) The Task Force shall include: | 15 | | (1) the Secretary of State or the Secretary's | 16 | | designee; | 17 | | (2) the Secretary of Transportation or the Secretary's | 18 | | designee; and | 19 | | (3) one member of the Senate appointed by the | 20 | | President of the Senate, one member of the Senate | 21 | | appointed by the Senate Minority Leader, one member of the | 22 | | House of Representatives appointed by the Speaker of the | 23 | | House of Representatives, and one member of the House of | 24 | | Representatives appointed by the Minority Leader of the | 25 | | House of Representatives, all appointed on or before | 26 | | December 31, 2024. |
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| 1 | | (e) The Governor shall appoint the following individuals | 2 | | to the Task Force on or before December 31, 2024: | 3 | | (1) one representative from a nonprofit consumer | 4 | | organization that serves to protect the interests of | 5 | | Illinois consumers as it relates to the regulation of | 6 | | insurance; | 7 | | (2) one representative from an organization | 8 | | representing the interests of minority populations or | 9 | | economically disadvantaged populations, or both; | 10 | | (3) one representative from a trade organization | 11 | | representing the insurance industry in Illinois; | 12 | | (4) one representative from a national trade | 13 | | organization representing property and casualty insurers; | 14 | | (5) one representative from a national trade | 15 | | organization representing mutual insurance companies; | 16 | | (6) one representative from a national trade | 17 | | association representing insurance compliance | 18 | | professionals; and | 19 | | (7) one representative from a trade organization | 20 | | representing insurance agents. | 21 | | (f) Subject to appropriation, the Office of Risk | 22 | | Management and Insurance Research at the University of | 23 | | Illinois shall provide technical support and guidance to the | 24 | | Task Force on matters of insurance marketplace analysis, | 25 | | including conducting market studies as requested by the Task | 26 | | Force. |
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| 1 | | (g) A majority of the voting members of the Task Force | 2 | | constitutes a quorum for the transacting of business. Official | 3 | | action by the Task Force requires the approval of a majority of | 4 | | the members of the Task Force. | 5 | | (h) The Task Force shall conclude its business on or | 6 | | before July 1, 2027. The Task Force may issue a report to the | 7 | | General Assembly detailing its findings. | 8 | | (i) The Task Force is dissolved, and this Section is | 9 | | repealed, and on July 1, 2028. | 10 | | Section 10. The Illinois Vehicle Code is amended by | 11 | | changing Section 7-606 as follows: | 12 | | (625 ILCS 5/7-606) (from Ch. 95 1/2, par. 7-606) | 13 | | Sec. 7-606. Uninsured motor vehicles; suspension vehicles - | 14 | | suspension and reinstatement. The Secretary shall suspend | 15 | | the vehicle registration of any motor vehicle determined by | 16 | | the Secretary to be in violation of Section 7-601 of this Code, | 17 | | including any motor vehicle operated in violation of Section | 18 | | 3-707, 3-708 or 3-710 of this Code by an operator other than | 19 | | the owner of the vehicle. Neither the fact that, subsequent to | 20 | | the date of verification or conviction, the owner acquired the | 21 | | required liability insurance policy nor the fact that the | 22 | | owner terminated ownership of the motor vehicle shall have any | 23 | | bearing upon the Secretary's decision to suspend. | 24 | | The Secretary is authorized to suspend the registration of |
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| 1 | | any motor vehicle registered in this State upon receiving | 2 | | notice of the conviction of the operator of the motor vehicle | 3 | | in another State of an offense which, if committed in this | 4 | | State, would constitute a violation of Section 7-601 of this | 5 | | Code. | 6 | | Until it is terminated, the suspension shall remain in | 7 | | force after the registration is renewed or a new registration | 8 | | is acquired for the motor vehicle. The suspension also shall | 9 | | apply to any motor vehicle to which the owner transfers the | 10 | | registration. | 11 | | In the case of a first violation, the Secretary shall | 12 | | terminate the suspension upon payment by the owner of a | 13 | | reinstatement fee of $100 and submission of proof of insurance | 14 | | as prescribed by the Secretary. | 15 | | In the case of a second or subsequent violation by a person | 16 | | having ownership interest in a motor vehicle or vehicles | 17 | | within the preceding 4 years, or a violation of Section 3-708 | 18 | | of this Code, the Secretary shall terminate the suspension 4 | 19 | | months after its effective date upon payment by the owner of a | 20 | | reinstatement fee of $100 and submission of proof of insurance | 21 | | as prescribed by the Secretary. | 22 | | Upon a verified demonstration of financial need by the | 23 | | owner, the Secretary may waive a reinstatement fee under this | 24 | | Section. | 25 | | All fees collected under this Section shall be disbursed | 26 | | under subsection (g) of Section 2-119 of this Code. |
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| 1 | | (Source: P.A. 99-127, eff. 1-1-16 .) | 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.". |
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