Bill Text: IL HB2425 | 2025-2026 | 104th General Assembly | Enrolled

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Bill Title: Amends the Illinois Insurance Code. Provides that, with respect to life insurance final expense policies, no life company authorized to issue those policies in the State shall refuse to insure an individual; refuse to continue to insure an individual; limit the amount, extent, or kind of coverage available to an individual; or charge an individual a different rate for the same coverage solely on the basis that an insured or applicant has been convicted of a felony. Provides that nothing in the provisions shall be construed to require a life company to issue or otherwise provide coverage for a life insurance policy to a person who is actively incarcerated pursuant to a felony conviction. Defines "final expense policy".

Sponsorship: Partisan Bill (Democrat 24)

Status: (Passed) 2025-08-15 - Public Act . . . . . . . . . 104-0224 [HB2425 Detail]

Download: Illinois-2025-HB2425-Enrolled.html

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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
changing Section 236 as follows:
(215 ILCS 5/236) (from Ch. 73, par. 848)
Sec. 236. Discrimination prohibited.
(a) No life company doing business in this State shall
make or permit any distinction or discrimination in favor of
individuals among insured persons of the same class and equal
expectation of life in the issuance of its policies, in the
amount of payment of premiums or rates charged for policies of
insurance, in the amount of any dividends or other benefits
payable thereon, or in any other of the terms and conditions of
the contracts it makes.
(b) No life company shall make or permit any distinction
or discrimination against individuals with disabilities in the
amount of payment of premiums or rates charged for policies of
life insurance, in the amount of any dividends or death
benefits payable thereon, or in any other terms and conditions
of the contract it makes unless the rate differential is based
on sound actuarial principles and a reasonable system of
classification and is related to actual or reasonably

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anticipated experience directly associated with the
disability.
(c) No life company shall refuse to insure, or refuse to
continue to insure, or limit the amount or extent or kind of
coverage available to an individual, or charge an individual a
different rate for the same coverage solely because of
blindness or partial blindness. With respect to all other
conditions, including the underlying cause of the blindness or
partial blindness, persons who are blind or partially blind
shall be subject to the same standards of sound actuarial
principles or actual or reasonably anticipated experience as
are sighted persons. Refusal to insure includes denial by an
insurer of disability insurance coverage on the grounds that
the policy defines "disability" as being presumed in the event
that the insured loses his or her eyesight. However, an
insurer may exclude from coverage disabilities consisting
solely of blindness or partial blindness when such condition
existed at the time the policy was issued.
(d) No life company shall refuse to insure or to continue
to insure an individual solely because of the individual's
status as a member of the United States Air Force, Army, Coast
Guard, Marines, or Navy or solely because of the individual's
status as a member of the National Guard or Armed Forces
Reserve.
(e) An insurer or producer authorized to issue policies of
insurance in this State may not make a distinction or

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otherwise discriminate between persons, reject an applicant,
cancel a policy, or demand or require a higher rate of premium
for reasons based solely upon an applicant's or insured's past
lawful travel experiences or future lawful travel plans. This
subsection (e) does not prohibit an insurer or producer from
excluding or limiting coverage under a policy or refusing to
offer the policy based upon past lawful travel or future
lawful travel plans or from charging a different rate for that
coverage when that action is based upon sound actuarial
principles or is related to actual or reasonably expected
experience and is not based solely on the destination's
inclusion on the United States Department of State's travel
warning list.
(f) With respect to life insurance final expense policies,
no life company authorized to issue these policies in this
State shall refuse to insure an individual; refuse to continue
to insure an indiviudal; limit the amount, extent, or kind of
coverage available to an individual; or charge an individual a
different rate for the same coverage solely on the basis that
an insured or applicant has been convicted of a felony.
Nothing in this subsection shall be construed to require a
life company to issue or otherwise provide coverage for a life
insurance policy to a person who is actively incarcerated
pursuant to a felony conviction. As used in this subsection,
"final expense policy" means a policy marketed and sold
exclusively to cover costs associated with funeral and burial

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expenses.
(Source: P.A. 99-143, eff. 7-27-15.)