SB 2698

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Full Text of SB2698
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	SB2698 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2698
Introduced 10/14/2025, by Sen. Michael E. Hastings and Meg Loughran Cappel
SYNOPSIS AS INTRODUCED:
215 ILCS 5/Art. XLVIII heading new
215 ILCS 5/1801 new
215 ILCS 5/1805 new
215 ILCS 5/1810 new
215 ILCS 5/1815 new
215 ILCS 5/1830 new
215 ILCS 5/1835 new
215 ILCS 5/1840 new
215 ILCS 5/1845 new
Amends the Illinois Insurance Code. Creates the Rates Article. Provides that the Article may be cited as the Insurance Rate Fairness and Consumer Protection Law. Sets forth provisions requiring insurers to receive prior approval for rate changes from the Department of Insurance on and after January 1, 2028. Provides that no insurer shall increase premiums by more than 10% per year for any policyholder without exceptional justification. Requires the Department to conduct market conduct examinations of insurers at least once every 3 years to ensure compliance with the Article. Establishes penalty and enforcement provisions for violations of the Article. Provides that the Department may adopt rules necessary to implement and enforce the requirements of the Article. Effective January 1, 2028.
LRB104 15445 BAB 28601 b
A BILL FOR
		SB2698		LRB104 15445 BAB 28601 b
1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Insurance Code is amended by
5adding Article XLVIII as follows:
6    (215 ILCS 5/Art. XLVIII heading new)
7ARTICLE XLVIII.  RATES
8    (215 ILCS 5/1801 new)
9    Sec. 1801. Short title. This Article may be cited as the 
10Insurance Rate Fairness and Consumer Protection Law.
11    (215 ILCS 5/1805 new)
12    Sec. 1805. Purpose. The purpose of this Law is to limit 
13unjustified increases in homeowners and automobile insurance 
14premiums, ensure transparency in rate-setting practices, and 
15grant the Department of Insurance greater oversight authority 
16to protect consumers.
17    (215 ILCS 5/1810 new)
18    Sec. 1810. Definitions. As used in this Law:
19    "Department" means the Department of Insurance.
20    "Director" means the Director of Insurance.
		SB2698	- 2 -	LRB104 15445 BAB 28601 b
1    "Insurer" means an insurance company offering homeowners 
2insurance policies or automobile insurance policies within the 
3State.
4    (215 ILCS 5/1815 new)
5    Sec. 1815. Prior approval requirement for rate changes.
6    (a) This Section is operative on and after January 1, 
72028.
8    (b) Insurers must submit a request for approval to the 
9Department for any proposed rate increase for homeowners 
10insurance premiums or automobile insurance premiums.
11    (c) The Department shall review the rate request within 60 
12days after submission.
13    (d) If the Department does not make a determination within 
14the 60-day review period, the request shall be deemed denied 
15until further review.
16    (e) Insurers shall not implement any rate increase without 
17prior written approval from the Department.
18    (215 ILCS 5/1830 new)
19    Sec. 1830. Rate increase limitations.
20    (a) No insurer shall increase premiums by more than 10% 
21per year for any policyholder without exceptional 
22justification.
23    (b) Exceptional justification must include evidence of 
24increased claims related to natural disasters, regulatory 
		SB2698	- 3 -	LRB104 15445 BAB 28601 b
1changes, or unforeseen market shifts.
2    (c) The Department shall have sole discretion to determine 
3whether the exceptional justification is valid.
4    (215 ILCS 5/1835 new)
5    Sec. 1835. Regular market conduct examinations.
6    (a) The Department shall conduct market conduct 
7examinations of insurers at least once every 3 years to ensure 
8compliance with this Law.
9    (b) Examinations shall assess the fairness of rate-setting 
10practices, transparency of filings, and adherence to approved 
11rates.
12    (c) The Department may issue corrective actions, fines, or 
13sanctions for violations discovered during market conduct 
14examinations.
15    (215 ILCS 5/1840 new)
16    Sec. 1840. Penalties and enforcement.
17    (a) Any insurer that submits false or misleading 
18information in a rate request pursuant to Section 1815 shall 
19be subject to a penalty of $100,000 per offense.
20    (b) Any insurer that implements unapproved rate increases 
21or fails to comply with this Law shall be subject to penalties 
22of up to $250,000 per violation.
23    (c) Any insurer found in repeated noncompliance of this 
24Law shall be penalized $1,000,000, and the Department may 
		SB2698	- 4 -	LRB104 15445 BAB 28601 b
1suspend the insurer's license to operate for up to 12 months. 
2If an insurer's license to operate was suspended under this 
3subsection and the insurer continues to violate the provisions 
4of this Law, regardless of whether the violation occurs after 
5the insurer's license has been restored, the Department may 
6permanently revoke the insurer's license to operate.
7    (d) Policyholders affected by unapproved rate increases 
8shall be entitled to reimbursement by the insurer of any 
9overpaid premiums plus an additional penalty in an amount 
10equal to 30% of the amount of the overpaid premiums.
11    (215 ILCS 5/1845 new)
12    Sec. 1845. Rulemaking authority. The Department may adopt 
13rules necessary to implement and enforce the requirements of 
14this Law.
15    Section 99. Effective date. This Act takes effect January
161, 2028.