HB5719 99TH GENERAL ASSEMBLY

LRB099 15371 MLM 39632 b

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.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Insurance Code is amended by adding Section 155.46 as follows:

(215 ILCS 5/155.46 new)

Sec. 155.46. Prohibition of price optimization.

(a) As used in this Section:

"Price optimization" means varying rates based on factors other than risk of loss, including, but not limited to:

(1) the likelihood that a policyholder will engage in activities that result in policy turnover; and

(2) the willingness of a policyholder to pay a higher premium compared to other policyholders.

"Engage in activities that result in policy turnover" includes, but is not limited to:

(1) shopping with other carriers for a lower premium;

(2) canceling a policy before the expiration of the policy term; and

(3) failing to renew a policy at the renewal of the policy term.

(b) No insurance company authorized to do business in this State shall utilize price optimization to set policy rates.

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