99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5719

 

Introduced , by Rep. Jaime M. Andrade, Jr.

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/155.46 new

    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.


LRB099 15371 MLM 39632 b

 

 

A BILL FOR

 

HB5719LRB099 15371 MLM 39632 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 adding
5Section 155.46 as follows:
 
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
10other 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"
16includes, 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
23State shall utilize price optimization to set policy rates.
 

 

 

HB5719- 2 -LRB099 15371 MLM 39632 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.