Bill Text: IL SB0714 | 2025-2026 | 104th General Assembly | Enrolled

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Bill Title: Amends the Illinois Insurance Code. In provisions concerning 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 automobile 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 30 days before the policy renewal or anniversary date. Changes the number of hours required for the National Safety Council's Defensive Driving Course's classroom safety instruction program from 8 hours to 4 hours in provisions concerning insurance premium reductions. Creates the Rates for Automobile Insurance Article. Provides that the Article applies to specified policies of automobile insurance and filings made on or after July 1, 2027. Provides that rates shall not be excessive, inadequate, or unfairly discriminatory, as described. Sets forth provisions concerning determinations by the Department of Insurance that a filing is excessive, inadequate, or unfairly discriminatory and provisions prohibiting cost-shifting. Effective July 1, 2027.

Sponsorship: Partisan Bill (Democrat 26)

Status: (Passed) 2026-08-04 - Public Act . . . . . . . . . 104-0753 [SB0714 Detail]

Download: Illinois-2025-SB0714-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 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
(a) 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 30 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.

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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.
(Source: P.A. 100-475, eff. 1-1-18.)
(215 ILCS 5/143.29) (from Ch. 73, par. 755.29)
Sec. 143.29. (a) The rates and premium charges for every

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policy of automobile liability insurance shall include
appropriate reductions as determined by the insurer for any
insured over age 55 upon successful completion of the National
Safety Council's Defensive Driving Course or a motor vehicle
crash prevention course, including an eLearning course, that
is found by the Secretary of State to meet or exceed the
standards of the National Safety Council's Defensive Driving
Course's 4-hour 8 hour classroom safety instruction program or
eLearning course.
(b) The premium reduction shall remain in effect for the
qualifying insured for a period of 3 years from the date of
successful completion of the crash prevention course, except
that the insurer may elect to apply the premium reduction
beginning either with the last effective date of the policy or
the next renewal date of the policy if the reduction will
result in a savings as though applied over a full 3 year
period. An insured who has completed the course of instruction
prior to July 1, 1982 shall receive the insurance premium
reduction for only the period remaining within the 3 years
from course completion. The period of premium reduction for an
insured who has repeated the crash prevention course shall be
based upon the last such course the insured has successfully
completed.
(c) Any crash prevention course approved by the Secretary
of State under this Section shall be taught by an instructor
approved by the Secretary of State, shall consist of at least 4

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hours 8 hours of classroom or eLearning equivalent instruction
and shall provide for a certificate of completion. Records of
certification of course completion shall be maintained in a
manner acceptable to the Secretary of State.
(d) Any person claiming eligibility for a rate or premium
reduction shall be responsible for providing to his insurance
company the information necessary to determine eligibility.
(e) This Section shall not apply to:
(1) any motor vehicle which is a part of a fleet or is
used for commercial purposes unless there is a regularly
assigned principal operator.
(2) any motor vehicle subject to a higher premium rate
because of the insured's previous motor vehicle claim
experience or to any motor vehicle whose principal
operator has been convicted of violating any of the motor
vehicle laws of this State, until that operator shall have
maintained a driving record free of crashes and moving
violations for a continuous one year period, in which case
such driver shall be eligible for a reduction the
remaining 2 years of the 3 year period.
(3) any motor vehicle whose principal operator has had
his drivers license revoked or suspended for any reason by
the Secretary of State within the previous 36 months.
(4) any policy of group automobile insurance under
which premiums are broadly averaged for the group rather
than determined individually.

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(Source: P.A. 102-397, eff. 1-1-22; 102-982, eff. 7-1-23.)
(215 ILCS 5/Art. XLVIII heading new)
ARTICLE XLVIII. RATES FOR AUTOMOBILE INSURANCE
(215 ILCS 5/1801 new)
Sec. 1801. Purpose. The purpose of this Article is to
promote the public welfare by regulating automobile 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 automobile
insurance, as defined in subsection (a) of Section 143.13 of
this Code, to which Section 143.11 of this Code applies.
(b) The provisions of this Article apply only to filings
made on or after July 1, 2027.
(215 ILCS 5/1803 new)

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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
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 through actuarial review
that a filing is excessive, inadequate, or unfairly
discriminatory pursuant to Section 1803, the Department shall
send the company notice, within 40 days after receipt of a
complete filing, either through the System for Electronic

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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, 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
40 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 40-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 40 days after the request, and to

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resolve the outcome of the hearing within 60 days after 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, including 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 date 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

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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.