Bill Text: IL HB4273 | 2025-2026 | 104th General Assembly | Enrolled

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Bill Title: Amends the Illinois Insurance Code. In provisions regarding the notice of intention not to renew a policy of insurance, provides that no company may impose renewal premium increases of more than 10% for policies of fire and extended coverage insurance that are subject to certain cancellation requirements, unless the company mails or delivers by electronic means to the named insured notice of the increase in renewal premium at least 60 days before the policy renewal or anniversary date. Creates the Rates for Fire and Extended Coverage Insurance Article. Contains provisions concerning the purpose and applicability of the Article. Prohibits rates from being excessive, inadequate, or unfairly discriminatory, as specified. Sets forth provisions concerning determinations and notice from the Department of Insurance and hearings on the notice. Provides that credible State-specific loss experience shall be used in the development of rates whenever that data is available and statistically reliable. Authorizes insurers, in order to meet actuarial standards of credibility, to supplement State-specific loss experience with countrywide, regional, or out-of-state loss experience. Effective July 1, 2027.

Sponsorship: Partisan Bill (Democrat 28)

Status: (Passed) 2026-08-04 - Public Act . . . . . . . . . 104-0752 [HB4273 Detail]

Download: Illinois-2025-HB4273-Enrolled.html

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AN ACT concerning business.
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 Sections 143.17 and 143.29 and by adding Article
XLVIII as follows:
(215 ILCS 5/143.17) (from Ch. 73, par. 755.17)
Sec. 143.17. Notice of intention not to renew.
a. No company shall fail to renew any policy of insurance,
as defined in subsections (a), (b), (c), and (h) of Section
143.13, to which Section 143.11 applies, unless it shall send
by mail to the named insured at least 30 days advance notice of
its intention not to renew. The company shall maintain proof
of mailing of such notice on a recognized U.S. Post Office form
or a form acceptable to the U. S. Post Office or other
commercial mail delivery service. The nonrenewal shall not
become effective until at least 30 days from the proof of
mailing date of the notice to the name insured. Notification
shall also be sent to the insured's broker, if known, or the
agent of record, if known, and to the last known mortgagee or
lien holder. For purposes of this Section, the mortgagee or
lien holder, insured's broker, or the agent of record may opt
to accept notification electronically. However, where

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cancellation is for nonpayment of premium, the notice of
cancellation must be mailed at least 10 days before the
effective date of the cancellation.
b. This Section does not apply if the company has
manifested its willingness to renew directly to the named
insured. Such written notice shall specify the premium amount
payable, including any premium payment plan available, and the
name of any person or persons, if any, authorized to receive
payment on behalf of the company. If no person is so
authorized, the premium notice shall so state.
b-5. This Section does not apply if the company manifested
its willingness to renew directly to the named insured.
However, no company may impose renewal premium increases of
more than 10% for lines of business enumerated in subsection
(b) of Section 143.13 to which Section 143.11 applies unless
the company mails or delivers by electronic means, in
compliance with Section 143.34, to the named insured the
increase in renewal premium at least 60 days prior to the
renewal or anniversary date. No no company may impose changes
in deductibles or coverage for any policy forms applicable to
an entire line of business enumerated in subsections (a), (b),
(c), and (h) of Section 143.13 to which Section 143.11 applies
unless the company mails or delivers by electronic means, in
compliance with Section 143.34, to the named insured written
notice of the change in deductible or coverage at least 60 days
prior to the renewal or anniversary date. For purposes of this

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subsection, "lines of business enumerated in subsection (b) of
Section 143.13 to which Section 143.11 applies" does not
include lines of business excluded under paragraph (1), (2),
(3), or (4) of Section 1802.
Notice shall also be sent to the insured's broker, if
known, or the agent of record. For purposes of this subsection
b-5, policyholder-initiated changes to coverage and exposure
changes are not included in the renewal premium increases that
require a company to provide notice to the insured.
c. Should a company fail to comply with (a) or (b) of this
Section, the policy shall terminate only on the effective date
of any similar insurance procured by the insured with respect
to the same subject or location designated in both policies.
d. Renewal of a policy does not constitute a waiver or
estoppel with respect to grounds for cancellation which
existed before the effective date of such renewal.
e. In all notices of intention not to renew any policy of
insurance, as defined in Section 143.11 the company shall
provide the named insured a specific explanation of the
reasons for nonrenewal.
f. For purposes of this Section, the insured's broker, if
known, or the agent of record and the mortgagee or lien holder
may opt to accept notification electronically.
g. The changes made to this Section by this amendatory Act
of the 104th General Assembly apply to renewal premium notices
sent on or after July 1, 2027.

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(Source: P.A. 100-475, eff. 1-1-18.)
(215 ILCS 5/Art. XLVIII heading new)
ARTICLE XLVIII. RATES FOR FIRE AND EXTENDED COVERAGE INSURANCE
(215 ILCS 5/1801 new)
Sec. 1801. Purpose. The purpose of this Article is to
promote the public welfare by regulating fire and extended
coverage insurance rates so that the rates will not be
excessive, inadequate, or unfairly discriminatory. Nothing in
this Article is intended to prohibit or discourage reasonable
competition or to authorize or encourage, except to the extent
necessary to accomplish the purpose of this Article,
uniformity in insurance rates, rating systems, rating plans,
or practices. This Article shall be liberally construed to
carry into effect the provisions of this Section.
(215 ILCS 5/1802 new)
Sec. 1802. Applicability.
(a) This Article applies to policies of fire and extended
coverage insurance, as defined in subsection (b) of Section
143.13 of this Code, to which Section 143.11 of this Code
applies. This Article does not apply to the following:
(1) policies for any commercial liability and property
insurance;
(2) policies for a structure, all or part of which is

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leased or rented, regardless of whether the insured
occupied all or part of the structure as a primary
residence;
(3) policies for a structure that is unoccupied and
intended by the insured to be sold, leased, or rented or
policies for a structure that is unoccupied and under
active construction, renovation, or substantial
improvement and that is intended by the insured to be
sold, leased, or rented; and
(4) policies for a home or dwelling that is part of a
farm policy, regardless of whether the insured owned the
dwelling or occupied the dwelling as a primary residence.
(b) The provisions of this Article apply only to filings
made on or after July 1, 2027.
(215 ILCS 5/1803 new)
Sec. 1803. Rate standards; excessive, inadequate, or
unfairly discriminatory.
(a) Rates shall not be excessive, inadequate, or unfairly
discriminatory.
(b) A rate is inadequate if it endangers the solvency of
the insurer.
(c) A rate is unfairly discriminatory if, after allowing
for practical limitations, the price differentials fail to
reflect the difference in expected losses and expenses. A rate
is not unfairly discriminatory if different rates result for

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policyholders with similar loss exposures but different
expenses, or similar expenses but different loss exposures, so
long as the rate reflects the differences with reasonable
accuracy.
(d) A rate is reasonable and not excessive, inadequate, or
unfairly discriminatory if it is an actuarially sound estimate
of the expected value of all future costs associated with an
individual risk transfer.
(215 ILCS 5/1804 new)
Sec. 1804. Determinations and notice; hearing.
(a) If the Department determines via actuarial review that
a filing is excessive, inadequate, or unfairly discriminatory
pursuant to Section 1803, the Department shall send the
company notice, within 60 days after receipt of a complete
filing, either via the System for Electronic Rates and Forms
Filing (SERFF) or another filing system determined by the
Department, specifying: (1) in what respects the filing fails
to meet the requirements of this Article and (2) if
applicable, any modifications that are required. The notice
shall specify a reasonable period after which the filing is no
longer effective if the company fails to timely request a
hearing under subsection (b). If the company timely requests a
hearing under subsection (b), the filing shall remain in
effect until the conclusion of the hearing and a final order is
issued. If the Department finds that a rate is excessive,

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inadequate, or unfairly discriminatory pursuant to this
Article, the final order may specify a reasonable period after
which the filing is no longer effective and any rebates that
must be remitted to affected consumers. Failure of the
Department to provide timely notice under this Section within
60 days after the receipt of a complete filing as defined in
subsection (d) shall result in the filing being deemed
compliant with this Article. The 60-day period in which the
Department is authorized under this Section to determine a
filing is excessive, inadequate, or unfairly discriminatory is
neither waivable nor subject to extension.
(b) The company may request a hearing on the notice within
30 days after receipt. Failure to request a hearing within 30
days shall be deemed the company's acceptance of the
Department's determination. Failure by the Department to hold
the requested hearing within 60 days of request, and to
resolve the outcome of the hearing within 90 days of the
hearing date or the filing of post-briefing submissions
allowed by the Hearing Officer, whichever is later, shall
result in the dismissal of the Department's notice and shall
cause the filing to remain in effect.
(c) The action of the Director in objecting to a filing
under this Article is subject to judicial review under the
Administrative Review Law.
(d) A complete filing consists of a rate filing that
contains all new or revised rates, a new or revised rate manual

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that includes new or revised rate manual rules, and any
experience, judgment, and interpretation of the statistical
data relied upon by the company. If the Department finds that
the filing is incomplete, then the Department must provide
notice to the company within 15 days after receipt of the
filing or the filing is deemed complete. The notice must set
forth the documents or other information that is required to
complete the filing. If such notice is provided, the filing is
deemed complete after the additional information specified by
the Department in its notice is provided by the company to the
Department.
(215 ILCS 5/1805 new)
Sec. 1805. Prohibition on cost-shifting. Credible
State-specific loss experience shall be used in the
development of rates whenever such data is available and
statistically reliable. To meet actuarial standards of
credibility, insurers may supplement State-specific loss
experience with countrywide, regional, or out-of-state loss
experience. Nothing in this Section shall apply to rating
relativity development during ratemaking. This Section shall
only apply to companies issuing policies that are subject to
this Article.
Section 99. Effective date. This Act takes effect July 1,
2027.