SB2684 104TH GENERAL ASSEMBLY

LRB104 14538 BAB 27679 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2684

Introduced 10/14/2025, by Sen. Laura Fine

SYNOPSIS AS INTRODUCED:

215 ILCS 5/143.10f new
215 ILCS 5/143.10g new

Amends the Illinois Insurance Code. Provides that no insurance company that is authorized to do business in the State and that issues policies for personal multiperil property coverage, commonly known as homeowners insurance, shall use premiums collected from policyholders for executive employee compensation and bonuses, including, but not limited to, Chief Executive Officer stock buy-backs; any marketing materials, including, but not limited to, any print, radio, television, electronic, or digital advertisements; costs associated with lobbying; and contributions to State candidates for elected office, federal candidates for elected office, or political committees. Provides that, if an insurer that sells homeowner insurance policies in the State cancels or refuses to renew a policyholder's insurance policy or if, upon renewal, a policyholder's premium will increase by 10% or more, the insurer shall automatically provide a written notice to the policyholder disclosing the causes of any policy cancellation, non-renewal, or premium increase. Sets forth requirements for the content of the required notice. Provides that an insurer shall, within a reasonable time after providing notice to a policyholder, file electronically with the Department of Insurance a copy of the notice and any supporting documentation provided to the policyholder. Provides that, on or before July 1, 2026, the Department of Commerce and Economic Opportunity shall establish a homeowners and renters insurance affordability assistance pilot program. Sets forth criteria for participating in the pilot program. Repeals the provisions concerning the pilot program on July 1, 2030.

A BILL FOR

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 adding Sections 143.10f and 143.10g as follows:

(215 ILCS 5/143.10f new)

Sec. 143.10f. Home property insurance; premiums and notice.

(a) No insurance company that is authorized to do business in this State and that issues policies for personal multiperil property coverage, commonly known as homeowners insurance, shall use premiums collected from policyholders for the following:

(1) executive employee compensation and bonuses, including, but not limited to, Chief Executive Officer stock buy-backs;

(2) any marketing materials, including, but not limited to, any print, radio, television, electronic, or digital advertisements;

(3) costs associated with lobbying; and

(4) contributions to State candidates for elected office, federal candidates for elected office, or political committees.

(b) If an insurer that issues homeowner insurance policies in this State cancels or refuses to renew a policyholder's insurance policy or if, upon renewal, a policyholder's premium will increase by 10% or more, the insurer shall automatically provide a written notice to the policyholder disclosing the causes of any policy cancellation, non-renewal, or premium increase.

(c) The notice required under this Section shall be provided to a policyholder no less than 60 calendar days before the effective date of the renewal, cancellation, or expiration of the policy. The notice shall include a reasonable explanation for and the primary factors contributing to any premium increase, non-renewal, or cancellation. The primary factors shall include the following categories:

(1) specific risk factors;

(2) claims history;

(3) market conditions;

(4) a summary of any changes to policy terms, conditions, or coverage; and

(5) a clear and concise breakdown of the premium calculation that identifies any administrative costs, loss reserves, reinsurance costs, and claims-related factors specific to the insured property.

The notice shall include the extent to which each of the categories in this subsection (c) contributes to the premium increase.

(d) An insurer shall include a statement in a notice provided under this Section that a policyholder may contact the insurer to request additional information about the policyholder's premium increase. The insurer shall respond to and provide additional information for the policyholder's subsequent requests for premium change transparency no more than 15 calendar days from the receipt of any request.

(e) An insurer shall send the notice to a policyholder in writing and may send either explanations or notices via postal mail or electronic mail if the policyholder has consented to receive notifications electronically.

(f) An insurer shall, within a reasonable time after providing notice to a policyholder, file electronically with the Department of Insurance a copy of the notice and any supporting documentation provided to the policyholder under this Section. An insurer's failure to send the notice required by this Section to the policyholder or file a copy with the Department of Insurance is a violation of this Section.

(215 ILCS 5/143.10g new)

Sec. 143.10g. Homeowners and renters insurance affordability assistance pilot program.

(a) As used in this Section:

"Department" means the Department of Commerce and Economic Opportunity.

"Eligible policyholder" means a homeowner or renter who can demonstrate:

(1) an increase of at least 20% in homeowners insurance or renters insurance premiums compared to the immediately preceding policy period; and

(2) meeting financial hardship criteria that includes, at a minimum:

(A) household income at or below 80% of the area median income as determined by the United States Department of Housing and Urban Development;

(B) recent unemployment or loss of significant income;

(C) high debt-to-income ratio or other extraordinary circumstances; or

(D) fixed-income status, including seniors or others relying on pension income, social security benefits, or similar income sources.

"Financial assistance" means a one-time assistance grant of up to $5,000 per household or a maximum of 50% of the insurance premium increase, whichever is less.

(b) Subject to appropriation, on or before July 1, 2026, the Department shall establish a homeowners and renters insurance affordability assistance pilot program for eligible policyholders to receive financial assistance. The pilot program shall provide direct financial assistance to eligible homeowners and renters to offset unexpected increases in homeowners insurance and renters insurance premiums.

(c) The Department shall submit an annual report with its recommendations and findings beginning July 1, 2027, including at least the following information:

(1) the number of pilot program applicants and recipients;

(2) total funds disbursed; and

(3) recommendations for extending or modifying the program.

(d) The Department may establish rules, as needed, to implement the procedures and requirements for this pilot program.

(e) This Section is repealed on July 1, 2030.