Bill Text: IL HB5260 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Administrative Procedure Act. Provides that, for any law implementing the federal Patient Protection and Affordable Care Act, the Department of Insurance may adopt rules that include incorporations by reference of federal rules and regulations without identifying the incorporated matter by date and without including a statement that the incorporation does not include later amendments. Amends the Illinois Insurance Code. Makes changes concerning the assignment or transfer of property and casualty policies; formatting requirements for the insurance company supplier diversity report; and insurance coverage for dependent parents. Provides that the Director of Insurance shall maintain as confidential any records or information received from the National Association of Insurance Commissioners or other state, federal, and international regulatory agencies (instead of insurance regulatory officials of other states) that are confidential in that other jurisdiction. Provides that the Department may waive registration and course certification fees if the pre-licensing or continuing education course is provided by a government entity free of charge. Amends the Network Adequacy and Transparency Act. In applicability provisions, removes language concerning exemptions for short-term, limited-duration health insurance coverage with a network plan. Repeals the Health Care Purchasing Group Act. Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2026-04-17 - Rule 19(a) / Re-referred to Rules Committee [HB5260 Detail]

Download: Illinois-2025-HB5260-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB5260 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED:
5 ILCS 100/5-75 from Ch. 127, par. 1005-75
215 ILCS 5/143.11b
215 ILCS 5/155.49
215 ILCS 5/356z.73
215 ILCS 5/404 from Ch. 73, par. 1016
215 ILCS 5/500-35
215 ILCS 123/Act rep.
215 ILCS 124/3
Amends the Illinois Administrative Procedure Act. Provides that, for any law implementing the federal Patient Protection and Affordable Care Act, the Department of Insurance may adopt rules that include incorporations by reference of federal rules and regulations without identifying the incorporated matter by date and without including a statement that the incorporation does not include later amendments. Amends the Illinois Insurance Code. Makes changes concerning the assignment or transfer of property and casualty policies; formatting requirements for the insurance company supplier diversity report; and insurance coverage for dependent parents. Provides that the Director of Insurance shall maintain as confidential any records or information received from the National Association of Insurance Commissioners or other state, federal, and international regulatory agencies (instead of insurance regulatory officials of other states) that are confidential in that other jurisdiction. Provides that the Department may waive registration and course certification fees if the pre-licensing or continuing education course is provided by a government entity free of charge. Amends the Network Adequacy and Transparency Act. In applicability provisions, removes language concerning exemptions for short-term, limited-duration health insurance coverage with a network plan. Repeals the Health Care Purchasing Group Act. Effective immediately.
LRB104 18373 BAB 31815 b
A BILL FOR
HB5260 LRB104 18373 BAB 31815 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 Administrative Procedure Act is
amended by changing Section 5-75 as follows:
(5 ILCS 100/5-75) (from Ch. 127, par. 1005-75)
Sec. 5-75. Incorporation by reference.
(a) An agency may incorporate by reference, in its rules
adopted under Section 5-35, rules, regulations, standards, and
guidelines of an agency of the United States or a nationally or
state recognized organization or association without
publishing the incorporated material in full. The reference in
the agency rules must fully identify the incorporated matter
by publisher address and date in order to specify how a copy of
the material may be obtained and must state that the rule,
regulation, standard, or guideline does not include any later
amendments or editions. An agency may incorporate by reference
these matters in its rules only if the agency, organization,
or association originally issuing the matter makes copies
readily available to the public. This Section does not apply
to any agency internal manual.
For any law imposing taxes on or measured by income, the
Department of Revenue may promulgate rules that include

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incorporations by reference of federal rules or regulations
without identifying the incorporated matter by date and
without including a statement that the incorporation does not
include later amendments.
For any law implementing the federal Patient Protection
and Affordable Care Act (Pub. L. 111-148), the Department of
Insurance may adopt rules that include incorporations by
reference of federal rules and regulations without identifying
the incorporated matter by date and without including a
statement that the incorporation does not include later
amendments.
(b) Use of the incorporation by reference procedure under
this Section shall be reviewed by the Joint Committee on
Administrative Rules during the rulemaking process as set
forth in this Act.
(c) The agency adopting a rule, regulation, standard, or
guideline under this Section shall maintain a copy of the
referenced rule, regulation, standard, or guideline in at
least one of its principal offices and shall make it available
to the public upon request for inspection and copying at no
more than cost. Requests for copies of materials incorporated
by reference shall not be deemed Freedom of Information Act
requests unless so labeled by the requestor. The agency shall
designate by rule the agency location at which incorporated
materials are maintained and made available to the public for
inspection and copying. These rules may be adopted under the

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procedures in Section 5-15. In addition, the agency may
include the designation of the agency location of incorporated
materials in a rulemaking under Section 5-35, but emergency
and peremptory rulemaking procedures may not be used solely
for this purpose.
(Source: P.A. 90-155, eff. 7-23-97.)
Section 10. The Illinois Insurance Code is amended by
changing Sections 143.11b, 155.49, 356z.73, 404, and 500-35 as
follows:
(215 ILCS 5/143.11b)
Sec. 143.11b. Assignment or transfer of property and
casualty policies. An assignment or transfer of a policy of
insurance to which Section 143.11 applies among or between
insurers within an insurance holding company system or
insurers under common management or control, or as a result of
a merger, acquisition, or restructuring of an insurance
company, is considered not a renewal nonrenewal for purposes
of the notification requirements under Sections 143.12 through
143.24. However, a in the event of an increase in the renewal
premium of 30% or more, change in deductibles or change in
coverage that materially alters any policy to which subsection
b of Section 143.17a applies, the company shall adhere to the
provisions set forth in subsection b of Section 143.17a. A
company making an assignment or transfer of a policy among or

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between insurers within an insurance holding company system or
insurers under common management or control, or as a result of
a merger, acquisition, or restructuring of an insurance
company, shall have delivered to the named insured notice of
such assignment or transfer at least 60 days prior to the
renewal date. An exact and unaltered copy of the notice shall
also be sent to the insured's producer, if known, and agent of
record. The assignment or transfer of a policy or policies of
insurance among or between insurers shall not occur without
the producer or agent of record, or both, having a signed
agency contract with the entity to which the policy or
policies are to be assigned or transferred. If there is not a
signed agency contract, all of the notice requirements of
Sections 143.17 and 143.17a shall apply. Nothing in this
Section shall contravene any existing producer and company
contract rights. For purposes of this Section, the insured's
producer, if known, and agent of record may opt to accept
notification of assignment or transfer of policies
electronically.
(Source: P.A. 93-713, eff. 1-1-05.)
(215 ILCS 5/155.49)
Sec. 155.49. Insurance company supplier diversity report.
(a) Every company authorized to do business in this State
or accredited by this State with assets of at least
$50,000,000 shall submit a 2-page report on its voluntary

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supplier diversity program, or the company's procurement
program if there is no supplier diversity program, to the
Department. The report shall set forth all of the following:
(1) The name, address, phone number, and email address
of the point of contact for the supplier diversity program
for vendors to register with the program.
(2) Local and State certifications the company accepts
or recognizes for minority-owned, women-owned, LGBT-owned,
or veteran-owned business status.
(3) On the second page, a narrative explaining the
results of the program and the tactics to be employed to
achieve the goals of its voluntary supplier diversity
program.
(4) The voluntary goals for the calendar year for
which the report is made in each category for the entire
budget of the company and the commodity codes or a
description of particular goods and services for the area
of procurement in which the company expects most of those
goals to focus on in that year.
Each company is required to submit the a searchable
report, in the format designated by the Department Portable
Document Format (PDF), to the Department on or before April 1,
2024 and on or before April 1 every year thereafter.
(b) For each report submitted under subsection (a), the
Department shall publish the results on its Internet website
for 5 years after submission. The Department is not

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responsible for collecting the reports or for the content of
the reports.
(c) The Department shall hold an annual insurance company
supplier diversity workshop in July of 2024 and every July
thereafter to discuss the reports with representatives of the
companies and vendors.
(d) The Department shall prepare a one-page template, not
including the narrative section, for the voluntary supplier
diversity reports.
(e) The Department may adopt such rules as it deems
necessary to implement this Section.
(Source: P.A. 103-426, eff. 8-4-23.)
(215 ILCS 5/356z.73)
Sec. 356z.73. Insurance coverage for dependent parents.
(a) A group or individual policy of accident and health
insurance issued, amended, delivered, or renewed on or after
January 1, 2026 that provides dependent coverage shall make
that dependent coverage available to the parent or stepparent
of the insured if the parent or stepparent meets the
definition of a qualifying relative under 26 U.S.C. 152(d) and
lives or resides within the accident and health insurance
policy's service area.
(b) This Section does not apply to specialized health care
service plans, including student health insurance coverage,
excepted benefits, or coverage under Article V of the Illinois

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Public Aid Code or under the Children's Health Insurance
Program Act. However, this Section applies to stand-alone
dental plans available through the Illinois Health Benefits
Exchange, including when the same policy form is offered
outside the Exchange. ; Medicare supplement insurance;
hospital-only policies; accident-only policies; or specified
disease insurance policies that reimburse for hospital,
medical, or surgical expenses.
(Source: P.A. 103-700, eff. 1-1-25; 104-189, eff. 8-15-25;
104-334, eff. 8-15-25; 104-417, eff. 8-15-25; revised
9-12-25.)
(215 ILCS 5/404) (from Ch. 73, par. 1016)
Sec. 404. Office of Director; a public office; destruction
or disposal of records, papers, documents, and memoranda.
(1)(a) The office of the Director shall be a public office
and the records, books, and papers thereof on file therein,
except those records or documents containing or disclosing any
analysis, opinion, calculation, ratio, recommendation, advice,
viewpoint, or estimation by any Department staff regarding the
financial or market condition of an insurer not otherwise made
part of the public record by the Director, shall be accessible
to the inspection of the public, except as the Director, for
good reason, may decide otherwise, or except as may be
otherwise provided in this Code or as otherwise provided in
Section 7 of the Freedom of Information Act.

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(b) Except where another provision of this Code expressly
prohibits a disclosure of confidential information to the
specific officials or organizations described in this
subsection, the Director may disclose or share any
confidential records or information in his custody and control
with any insurance regulatory officials of any state or
country, with the law enforcement officials of this State, any
other state, or the federal government, or with the National
Association of Insurance Commissioners, upon the written
agreement of the official or organization receiving the
information to hold the information or records confidential
and in a manner consistent with this Code.
(c) The Director shall maintain as confidential any
records or information received from the National Association
of Insurance Commissioners or other state, federal, or
international regulatory agencies insurance regulatory
officials of other states which that are is confidential in
that other jurisdiction.
(2) Upon the filing of the examination to which they
relate, the Director is authorized to destroy or otherwise
dispose of all working papers relative to any company which
has been examined at any time prior to that last examination by
the Department, so that in such circumstances only current
working papers of that last examination may be retained by the
Department.
(3) Five years after the conclusion of the transactions to

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which they relate, the Director is authorized to destroy or
otherwise dispose of all books, records, papers, memoranda and
correspondence directly related to consumer complaints or
inquiries.
(4) Two years after the conclusion of the transactions to
which they relate, the Director is authorized to destroy or
otherwise dispose of all books, records, papers, memoranda,
and correspondence directly related to all void, obsolete, or
superseded rate filings and schedules required to be filed by
statute; and all individual company rating experience data and
all records, papers, documents and memoranda in the possession
of the Director relating thereto.
(5) Five years after the conclusion of the transactions to
which they relate, the Director is authorized to destroy or
otherwise dispose of all examination reports of companies made
by the insurance supervisory officials of states other than
Illinois; applications, requisitions, and requests for
licenses; all records of hearings; and all similar records,
papers, documents, and memoranda in the possession of the
Director.
(6) Ten years after the conclusion of the transactions to
which they relate, the Director is authorized to destroy or
otherwise dispose of all official correspondence of foreign
and alien companies, all foreign companies' and alien
companies' annual statements, valuation reports, tax reports,
and all similar records, papers, documents and memoranda in

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the possession of the Director.
(7) Whenever any records, papers, documents or memoranda
are destroyed or otherwise disposed of pursuant to the
provisions of this section, the Director shall execute and
file in a separate, permanent office file a certificate
listing and setting forth by summary description the records,
papers, documents or memoranda so destroyed or otherwise
disposed of, and the Director may, in his discretion, preserve
copies of any such records, papers, documents or memoranda by
means of microfilming or photographing the same.
(8) This Section shall apply to records, papers,
documents, and memoranda presently in the possession of the
Director as well as to records, papers, documents, and
memoranda hereafter coming into his possession.
(Source: P.A. 97-1004, eff. 8-17-12.)
(215 ILCS 5/500-35)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-35. License.
(a) Unless denied a license pursuant to Section 500-70,
persons who have met the requirements of Sections 500-25 and
500-30 shall be issued a 2-year insurance producer license. An
insurance producer may receive qualification for a license in
one or more of the following lines of authority:
(1) Life: insurance coverage on human lives including
benefits of endowment and annuities, and may include

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benefits in the event of death or dismemberment by
accident and benefits for disability income.
(2) Variable life and variable annuity products:
insurance coverage provided under variable life insurance
contracts and variable annuities.
(3) Accident and health or sickness: insurance
coverage for sickness, bodily injury, or accidental death
and may include benefits for disability income.
(4) Property: insurance coverage for the direct or
consequential loss or damage to property of every kind.
(5) Casualty: insurance coverage against legal
liability, including that for death, injury, or disability
or damage to real or personal property.
(6) Personal lines: property and casualty insurance
coverage sold to individuals and families for primarily
noncommercial purposes.
(7) Any other line of insurance permitted under State
laws or rules.
(b) An insurance producer license shall remain in effect
unless revoked or suspended as long as the fee set forth in
Section 500-135 is paid and education requirements for
resident individual producers are met by the due date.
(1) Before each license renewal, an insurance producer
must satisfactorily complete at least 24 hours of course
study or participation in a professional insurance
association under paragraph (3) of this subsection in

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accordance with rules prescribed by the Director. Three of
the 24 hours of course study must consist of classroom or
webinar ethics instruction. The Director may not approve a
course of study unless the course provides for classroom,
seminar, webinar, or self-study instruction methods. A
course given in a combination instruction method of
classroom, seminar, webinar, or self-study shall be deemed
to be a self-study course unless the number of classroom,
seminar, or webinar certified hours meets or exceeds
two-thirds of total hours certified for the course. The
self-study material used in the combination course must be
directly related to and complement the classroom portion
of the course in order to be considered for credit. An
instruction method other than classroom or seminar shall
be considered as self-study methodology. Self-study credit
hours require the successful completion of an examination
covering the self-study material. The examination may not
be self-evaluated. However, if the self-study material is
completed through the use of an approved computerized
interactive format whereby the computer validates the
successful completion of the self-study material, no
additional examination is required. The self-study credit
hours contained in a certified course shall be considered
classroom hours when at least two-thirds of the hours are
given as classroom or seminar instruction.
(2) An insurance producer license automatically

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terminates when an insurance producer fails to
successfully meet the requirements of paragraph (1) of
this subsection. The producer must complete the course in
advance of the renewal date to allow the education
provider time to report the credit to the Department.
(3) An insurance producer's active participation in a
State or national professional insurance association may
be approved by the Director for up to 4 hours of continuing
education credit per biennial reporting period. Credit
shall be provided on an hour-for-hour basis. These hours
shall be verified and submitted by the association on
behalf of the insurance producer and credited upon timely
filing with the Director or his or her designee on a
biennial basis. Any association submitting continuing
education credit hours on behalf of insurance producers
must be registered as an education provider under Section
500-135. Credit granted under these provisions shall not
be used to satisfy ethics education requirements. Active
participation in a State or national professional
insurance association is defined by one of the following
methods:
(A) service on a board of directors of a State or
national chapter of the association;
(B) service on a formal committee of a State or
national chapter of the association; or
(C) service on a formal subcommittee or task force

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of a State or national chapter of the association.
(c) A provider of a pre-licensing or continuing education
course required by Section 500-30 and this Section must pay a
registration fee and a course certification fee for each
course being certified as provided by Section 500-135. The
Department may waive these fees if the pre-licensing or
continuing education course is provided by a government entity
free of charge.
(d) An individual insurance producer who allows his or her
license to lapse may, within 12 months after the due date of
the renewal fee, be issued a license without the necessity of
passing a written examination. However, a penalty in the
amount of double the unpaid renewal fee shall be required
after the due date.
(e) A licensed insurance producer who is unable to comply
with license renewal procedures due to military service may
request a waiver of those procedures.
(f) The license must contain the licensee's name, address,
and personal identification number, the date of issuance, the
lines of authority, the expiration date, and any other
information the Director deems necessary.
(g) Licensees must inform the Director by any means
acceptable to the Director of a change of address within 30
days after the change.
(h) In order to assist in the performance of the
Director's duties, the Director may contract with a

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non-governmental entity including the National Association of
Insurance Commissioners (NAIC), or any affiliates or
subsidiaries that the NAIC oversees, to perform any
ministerial functions, including collection of fees, related
to producer licensing that the Director and the
non-governmental entity may deem appropriate.
(Source: P.A. 104-417, eff. 8-15-25.)
(215 ILCS 123/Act rep.)
Section 15. The Health Care Purchasing Group Act is
repealed.
Section 20. The Network Adequacy and Transparency Act is
amended by changing Section 3 as follows:
(215 ILCS 124/3)
Sec. 3. Applicability of Act. This Act applies to an
individual or group policy of health insurance coverage with a
network plan amended, delivered, issued, or renewed in this
State on or after January 1, 2019. This Act does not apply to
an individual or group policy for excepted benefits or
short-term, limited-duration health insurance coverage with a
network plan. This Act does not apply to stand-alone dental
plans. If federal law establishes network adequacy and
transparency standards for stand-alone dental plans, the
Department shall enforce those applicable federal

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requirements.
(Source: P.A. 103-650, eff. 1-1-25; 103-777, eff. 1-1-25;
104-334, eff. 8-15-25; 104-417, eff. 8-15-25.)
Section 99. Effective date. This Act takes effect upon
becoming law.