IllinoisIllinois law sets fire insurance rate and renewal notice rules
Starting July 1, 2027, insurers must give advance notice of certain renewal price increases, and covered fire insurance rates will be reviewed under new rules.
What it does
For covered fire insurance, insurers must give at least 60 days' notice of renewal price increases above 10% and certain coverage or deductible changes. The rules apply to renewal notices sent on or after July 1, 2027.
The Department of Insurance reviews covered fire insurance rate filings and can require changes to rates it finds excessive, too low to protect insurers, or unfairly discriminatory. Insurers can ask for a hearing, and deadlines affect whether a filing or objection remains in effect.
Insurers must use reliable state-specific loss data when developing covered rates. They may add countrywide, regional, or out-of-state data when needed to meet actuarial standards.
Argument forPolicyholders could have more time to prepare for certain large renewal price increases because insurers must give at least 60 days' notice.
Argument againstInsurers could face uncertainty when a filing stays in effect during a hearing, or when missed deadlines dismiss the Department's objection.
More detail
Insurers must give advance notice of certain renewal price increases and changes to coverage or deductibles. These rules cover fire insurance policies subject to the specified Insurance Code sections; some lines of business are excluded from the price increase notice rule. An increase above 10% requires notice at least 60 days before renewal or the policy anniversary. Changes to deductibles or coverage that apply to an entire covered line also require 60 days' notice. Policyholder-requested coverage changes and changes in the insured risk are excluded from the premium increases that require notice. The notice rules apply to renewal premium notices sent on or after July 1, 2027.
The Department of Insurance reviews covered rate filings and may find rates excessive, inadequate, or unfairly discriminatory. The rules cover eligible fire and extended coverage policies, but exclude commercial policies, certain rented or vacant properties, and homes covered by farm policies. If the Department objects, it must explain the problem and any required changes within 60 days after receiving a complete filing. An insurer may request a hearing within 30 days; if it does, the filing stays in effect until the hearing ends and a final order is issued. If the Department misses specified deadlines, the filing may be deemed compliant or the objection dismissed, as the law provides. These rate rules apply only to filings made on or after July 1, 2027.
Insurers must use reliable state-specific loss data to develop covered rates and may add other loss data when needed to meet actuarial standards. The rule applies to companies issuing policies covered by the fire insurance rate article. Insurers may supplement state-specific data with countrywide, regional, or out-of-state data to meet actuarial standards of credibility. This rule does not apply to developing rating differences between groups. The rule applies to filings made on or after July 1, 2027.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Aug 4Public Act . . . . . . . . . 104-0752Latest
- Aug 4Effective Date July 1, 2027
- Aug 4Governor J. B. Pritzker ApprovedBecame Law
- Jun 25Sent to the GovernorTo Governor
- Jun 10Added as Alternate Co-Sponsor Sen. Christopher Belt
- Jun 10Added as Alternate Co-Sponsor Sen. Suzy Glowiak Hilton
- Jun 9Added as Alternate Co-Sponsor Sen. Mary Edly-Allen
- Jun 9Added as Alternate Co-Sponsor Sen. Michael W. Halpin
- May 28Added as Alternate Co-Sponsor Sen. Elgie R. Sims, Jr.
- May 27Added Co-Sponsor Rep. Lilian Jiménez
- Vote recorded Concurrence, Amendment 1. Result: pass.Lower
- May 27Added Co-Sponsor Rep. Norma Hernandez
- May 27Added Co-Sponsor Rep. Barbara Hernandez
- May 27Added Co-Sponsor Rep. Justin Cochran
- May 27Passed Both Houses
- May 27Added Co-Sponsor Rep. Kelly M. Cassidy
- May 27Added Co-Sponsor Rep. Janet Yang Rohr
- May 27Added Co-Sponsor Rep. Debbie Meyers-Martin
- May 27Added Co-Sponsor Rep. Suzanne M. Ness
- May 27Added Chief Co-Sponsor Rep. Jawaharial Williams
- May 27House Concurs
- May 27Senate Floor Amendment No. 1 House Concurs 072-038-000
- May 27Added Co-Sponsor Rep. Michelle Mussman
- May 27Added Co-Sponsor Rep. Dagmara Avelar
- May 27Added Co-Sponsor Rep. Aarón M. Ortíz
- May 27Added Co-Sponsor Rep. Bob Morgan
- May 27Added Co-Sponsor Rep. Rita Mayfield
- May 21Added Co-Sponsor Rep. Maura Hirschauer
- Vote recorded Do Pass, Amendment 1. Result: pass.Lower
- May 21Senate Floor Amendment No. 1 Motion to Concur Recommends Be Adopted Executive Committee; 008-004-000
- May 20Senate Floor Amendment No. 1 Motion to Concur Rules Referred to Executive Committee
- May 20Senate Floor Amendment No. 1 Motion Filed Concur Rep. Thaddeus Jones
- May 14Chief Sponsor Changed to Rep. Thaddeus Jones
- May 14Added as Alternate Co-Sponsor Sen. Sara Feigenholtz
- May 14Added as Alternate Co-Sponsor Sen. Rachel Ventura
- May 14Added as Alternate Chief Co-Sponsor Sen. Meg Loughran Cappel
- May 13Added as Alternate Chief Co-Sponsor Sen. Cristina Castro
- Vote recorded Third Reading. Result: pass.Upper
- May 13Added as Alternate Chief Co-Sponsor Sen. Doris Turner
- May 13Placed on Calendar Order of Concurrence Senate Amendment(s) 1
- May 13Arrived in HouseMinor
- May 13Third Reading - Passed; 043-014-001Passed Senate
- May 13Placed on Calendar Order of 3rd Reading
- May 13Senate Floor Amendment No. 1 Adopted; HastingsMajor
- May 13Recalled to Second ReadingMinor
- May 13Senate Floor Amendment No. 1 Recommend Do Adopt Insurance; 009-003-000
- May 12Added as Alternate Chief Co-Sponsor Sen. Mike Porfirio
- Vote recorded Do Pass, Amendment 1. Result: pass.Upper
- May 12Placed on Calendar Order of 3rd Reading May 13, 2026
- May 12Second ReadingMinor
- May 12Senate Floor Amendment No. 1 Assignments Refers to Insurance
- May 11Senate Floor Amendment No. 1 Referred to Assignments
- May 11Senate Floor Amendment No. 1 Filed with Secretary by Sen. Michael E. HastingsMinor
- May 6Placed on Calendar Order of 2nd Reading May 7, 2026Minor
- Vote recorded Do Pass. Result: pass.Upper
- May 6Do Pass Judiciary; 009-000-000
- Apr 28Assigned to JudiciaryMinor
- Apr 15Referred to Assignments
- Apr 15First ReadingMinor
- Apr 15Chief Senate Sponsor Sen. Michael E. Hastings
- Apr 15Placed on Calendar Order of First ReadingMinor
- Apr 15Arrive in SenateMinor
- Apr 14Third Reading - Standard Debate - Passed 073-037-000Passed House
- Vote recorded Third Reading. Result: pass.Lower
- Apr 14Placed on Calendar Order of 3rd Reading - Standard Debate
- Apr 14Chair Rules Standard Debate
- Apr 14Placed on Calendar Order of 3rd Reading - Short Debate
- Apr 10Held on Calendar Order of Second Reading - Short DebateMinor
- Apr 10Second Reading - Short DebateMinor
- Mar 19Placed on Calendar 2nd Reading - Short DebateMinor
- Vote recorded Do Pass. Result: pass.Lower
- Mar 19Do Pass / Short Debate Judiciary - Civil Committee; 013-007-000
- Feb 11Assigned to Judiciary - Civil CommitteeMinor
- Jan 14Referred to Rules Committee
- Jan 14First ReadingMinor
- Jan 5Filed with the Clerk by Rep. Daniel DidechIntroduced
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