Proposed Illinois Rate-Setting Bill Opposed By Insurance Associations

The American Property Casualty Insurance Association (APCIA), the Illinois Insurance Association (IIA), and National Association of Mutual Insurance Companies (NAMIC) have together issued a statement decrying a newly announced Illinois bill which would limit the number of non-driving factors auto insurance companies can use in setting the rates of consumers.

House Bill 2203, announced yesterday and sponsored by state Senator Javier Cervantes and state Representative Will Guzzardi, would allow the Illinois Department of Insurance to reject or modify rate hikes submitted by auto insurers.

It also prohibits auto insurers from setting rates based on a customer’s credit score, gender, race, education level, employment, and other non-driving factors.

The bill’s aim to ban the use of non-driving factors in rate setting has been criticized by industry groups.