Bill Text: IL HB5719 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-02-10 - Referred to Rules Committee [HB5719 Detail]
Download: Illinois-2015-HB5719-Introduced.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by adding | |||||||||||||||||||
5 | Section 155.46 as follows:
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6 | (215 ILCS 5/155.46 new) | |||||||||||||||||||
7 | Sec. 155.46. Prohibition of price optimization. | |||||||||||||||||||
8 | (a) As used in this Section: | |||||||||||||||||||
9 | "Price optimization" means varying rates based on factors | |||||||||||||||||||
10 | other than risk of loss, including, but not limited to: | |||||||||||||||||||
11 | (1) the likelihood that a policyholder will engage in | |||||||||||||||||||
12 | activities that result in policy turnover; and | |||||||||||||||||||
13 | (2) the willingness of a policyholder to pay a higher | |||||||||||||||||||
14 | premium compared to other policyholders. | |||||||||||||||||||
15 | "Engage in activities that result in policy turnover" | |||||||||||||||||||
16 | includes, but is not limited to: | |||||||||||||||||||
17 | (1) shopping with other carriers for a lower premium; | |||||||||||||||||||
18 | (2) canceling a policy before the expiration of the | |||||||||||||||||||
19 | policy term; and | |||||||||||||||||||
20 | (3) failing to renew a policy at the renewal of the | |||||||||||||||||||
21 | policy term. | |||||||||||||||||||
22 | (b) No insurance company authorized to do business in this | |||||||||||||||||||
23 | State shall utilize price optimization to set policy rates.
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1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.
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