HB 5138

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Full Text of HB5138
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	HB5138 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5138
Introduced 2/10/2026, by Rep. Kevin John Olickal
SYNOPSIS AS INTRODUCED:
215 ILCS 5/132.3a new
215 ILCS 5/1204.5 new
Amends the Illinois Insurance Code. Requires the Director of Insurance to examine and investigate the affairs of any company to determine whether the company has been or is engaged in any rate setting that is excessive, inadequate, or unfairly discriminatory regarding affordable housing developments. Requires the Director to submit a report concerning aggregated housing insurance market statistics for the prior calendar year on or before October 1 of each year to the Governor and the General Assembly that shall be posted on the publicly accessible websites of both the Governor and the General Assembly. Provides that submissions that constitute trade secrets or sensitive commercial information are confidential under the Freedom of Information Act. Requires the Department of Insurance to consult with excess line and Illinois property insurance underwriting associations regarding reporting formats that capture excess-line placements and assigned-risk activity without identifying individual insureds. Grants the Department authority to adopt rules or circular letters, harmonize data standards with the National Association of Insurance Commissioners and other states, limit the burden on small insurers, and ensure data quality. Effective immediately.
LRB104 18175 BAB 31614 b
A BILL FOR
		HB5138		LRB104 18175 BAB 31614 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 Sections 132.3a and 1204.5 as follows:
6    (215 ILCS 5/132.3a new)
7    Sec. 132.3a. Power of the Director; affordable housing 
8coverage. The Director shall examine and investigate the 
9affairs of any company to determine whether the company has 
10been or is engaged in any rate setting that is excessive, 
11inadequate, or unfairly discriminatory regarding affordable 
12housing developments as defined in Section 15 of the 
13Affordable Housing Planning and Appeal Act. The examination 
14and investigatory powers of the Director include any data 
15calls and desk examinations to determine if different rates 
16result for policyholders after any price differentials fail to 
17reflect the difference in expected losses and expenses. The 
18Director shall investigate whether policyholders who are 
19owners of affordable housing developments as defined in 
20Section 15 of the Affordable Housing Planning and Appeal Act 
21are being subject to unfairly discriminatory rates as compared 
22with similar types of market rate housing in Illinois.
		HB5138	- 2 -	LRB104 18175 BAB 31614 b
1    (215 ILCS 5/1204.5 new)
2    Sec. 1204.5. Report on the housing insurance market for 
3affordable rental housing.
4    (a) Definitions. In this Section:
5    "Affordable housing development" means a residential 
6building with leased units required to be affordable by 
7statute, regulation, regulatory agreement, or recorded 
8covenant.
9    "Excess line insurance" has the meaning given to "surplus 
10line insurance" in Sections 445, 445a, and 445.1 of this Code.
11    "Insurer" means an authorized insurer writing property or 
12liability coverage on residential buildings and includes 
13reporting by excess line placements through the Surplus Line 
14Association of Illinois as provided by rule.
15    "Multifamily residential building" means a property 
16containing 5 or more dwelling units.
17    "Nonprofit housing provider" means an organization 
18described by Section 501(c)(3) of the United States Internal 
19Revenue Code or an entity formed under the General Not For 
20Profit Corporation Act of 1986 that constructs, owns, or 
21operates residential housing in Illinois.
22    (b) Annual report.
23        (1) The Director shall submit a report detailed in 
24    subsection (c) on or before October 1 of each year to the 
25    Governor and the General Assembly that shall be posted on 
26    the publicly accessible websites of both the Governor and 
		HB5138	- 3 -	LRB104 18175 BAB 31614 b
1    the General Assembly.
2        (2) The report shall analyze the availability, 
3    pricing, terms, and affordability of property and 
4    liability insurance for multifamily residential buildings 
5    owned or operated by nonprofit and mission-driven 
6    entities, including affordable housing developments.
7        (3) The report shall include statewide and regional 
8    results, with the City of Chicago reported separately from 
9    the rest of the State.
10    (c) Required contents. The report shall present, at a 
11minimum, aggregated statistics for the prior calendar year on:
12        (1) Premium levels and changes, including the average 
13    and median premium per unit and square foot and premium as 
14    a share of operating expenses.
15        (2) Coverage availability and market channel, 
16    including nonrenewal and declination counts, the share 
17    placed in the excess line market, and use of the Illinois 
18    property insurance underwriting association.
19        (3) Deductibles by peril and trend.
20        (4) Common exclusions and limitations, including new 
21    or expanded exclusions introduced in the reporting year.
22        (5) Coverage limits relative to reported replacement 
23    cost.
24        (6) Claims frequency and severity for fire, water, 
25    wind, and liability, to the extent available.
26        (7) Risk-mitigation credits and building resiliency 
		HB5138	- 4 -	LRB104 18175 BAB 31614 b
1    investments reported by owners and recognized by insurers.
2        (8) Regional heat-map summaries of market stress using 
3    the methodology set by the Department by bulletin or 
4    circular letter. The Department may align with the 
5    National Association of Insurance Commissioners' market 
6    intelligence data elements.
7    (d) Data collection and confidentiality.
8        (1) Submissions that constitute trade secrets or 
9    sensitive commercial information are confidential under 
10    the Freedom of Information Act. The published report shall 
11    contain only aggregated, de-identified statistics and 
12    analyses.
13        (2) The Department shall consult with excess line and 
14    Illinois property insurance underwriting associations 
15    regarding reporting formats that capture excess-line 
16    placements and assigned-risk activity without identifying 
17    individual insureds.
18    (e) Rulemaking. The Department may adopt rules or circular 
19letters to implement this Section, harmonize data standards 
20with the National Association of Insurance Commissioners and 
21other states, limit the burden on small insurers, and ensure 
22data quality.
23    Section 99. Effective date. This Act takes effect upon
24becoming law.