Illinois Bill 2691 Proposes Study on Nondriving Factors in Insurance Pricing

Illinois State Senator Michael E. Hastings has introduced Senate Bill 2691, aimed at investigating whether certain nondriving factors contribute to unfairly high insurance premiums for Illinois families. The bill targets factors such as credit scores, occupations, education levels, and other socioeconomic variables that may not correlate directly with actual risk in automobile and homeowners insurance.

The legislation mandates the Illinois Department of Insurance to conduct a comprehensive study on the use and impact of these nondriving criteria in rate setting. The study will analyze the correlation between these factors and claims data and assess the potential disproportionate effects on specific groups, including low-income families, communities of color, veterans, and seniors. The bill also calls for a comparison of Illinois insurance rate practices with those of states that have implemented restrictions or bans on the use of nondriving factors.

The Department of Insurance will report its findings and recommendations to the Illinois General Assembly by January 1, 2027, with the objective of enhancing rate transparency and fairness. This legislative initiative reflects ongoing efforts to ensure insurance premiums reflect actual risk and reduce the financial burden on consumers from extraneous factors unrelated to risk. Senator Hastings emphasizes the right to transparency and seeks to address potential disparities in insurance cost structures affecting Illinois families.