Bill Text: IL HB3861 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Requires insurance policies to be written in language easily readable and understandable by a person of average intelligence and education. Provides the factors the Director of Insurance shall consider in making the determination that the policy is easily readable and understandable by a person of average intelligence and education.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced) 2024-04-19 - Rule 19(a) / Re-referred to Rules Committee [HB3861 Detail]

Download: Illinois-2023-HB3861-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3861 Introduced , by Rep. Harry Benton SYNOPSIS AS INTRODUCED:
215 ILCS 5/143.5 new
Amends the Illinois Insurance Code. Requires insurance policies to be written in language easily readable and understandable by a person of average intelligence and education. Provides the factors the Director of Insurance shall consider in making the determination that the policy is easily readable and understandable by a person of average intelligence and education.
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A BILL FOR
HB3861 LRB103 29424 BMS 55815 b
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 143.5 as follows:
(215 ILCS 5/143.5 new)
Sec. 143.5. Policy readability.
(a) On and after the effective date of this amendatory Act
of the 103rd General Assembly, a policy issued, amended,
renewed, or delivered by an insurance company authorized to do
business in this State shall be written in language easily
readable and understandable by a person of average
intelligence and education.
(b) In determining whether a policy is readable within the
meaning of this Section, the Director shall consider, at
least, the following factors:
(1) the simplicity of the sentence structure and the
shortness of the sentences used;
(2) the extent to which commonly used and understood
words are employed;
(3) the extent to which legal terms are avoided;
(4) the extent to which references to other sections
or provisions of the contract are minimized;

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(5) the extent to which definitional provisions are
incorporated in the text of the policy or contract; and
(6) any additional factors relevant to the readability
or understandability of an insurance policy or contract
that the Director may prescribe by rule.