IllinoisIllinois will review auto insurers’ rates starting in 2027
Starting July 1, 2027, insurers must file covered auto rates under standards the Illinois Department of Insurance will review.
What it does
Illinois law sets standards for covered auto insurance rates and lets the Department review insurers’ rate filings. Rates must reflect expected costs and meet the law’s fairness and solvency standards.
When the Department finds that a filing fails the rate standards, it must notify the insurer. The insurer can ask for a hearing, and missed deadlines can leave the filing in effect.
Insurers must use reliable Illinois loss data when developing covered auto rates. They may add other data when needed to meet actuarial standards.
For covered policies, insurers must give advance notice of renewal premium increases over 10% and certain deductible or coverage changes. The required notice period depends on the change.
Argument forUsing reliable Illinois claims data could help tie auto rates to losses and costs in the state.
Argument againstA filing could remain in effect when the Department misses a deadline, even if it later raises concerns about the rates.
More detail
Illinois law sets standards for covered auto insurance rates and gives the Department of Insurance a process to review rate filings. The rules cover auto insurance policies covered by the Illinois Insurance Code provisions named in the law. Rates must not be excessive, inadequate in a way that endangers an insurer’s ability to pay claims, or unfairly discriminatory. A rate is considered reasonable under these rules if it is an actuarially sound estimate of the future costs tied to an individual risk. The article applies only to rate filings made on or after July 1, 2027.
The Department must notify an insurer if its review finds that a rate filing fails the standards, and the insurer may request a hearing. The process covers auto insurance rate filings under the article. The insurer has 30 days after receiving notice to request a hearing. If it does not, it is treated as accepting the Department’s finding. If the Department misses a required deadline, its notice is dismissed or the filing is treated as compliant, as applicable; a filing may therefore remain in effect. The Department generally has 40 days after receiving a complete filing to send notice. It must hold a requested hearing within 40 days and resolve it within 60 days after the hearing or allowed follow-up submissions.
Insurers must use reliable Illinois loss data when developing covered auto insurance rates and may supplement it with other loss data. The rule applies to companies issuing policies covered by the auto rate article. Insurers may add nationwide, regional, or out-of-state loss data to meet actuarial standards. The rule does not apply to work that compares how different rating factors affect rates. The article applies only to rate filings made on or after July 1, 2027.
Insurers must give advance notice of certain renewal premium increases and changes to deductibles or coverage. These notice rules cover the insurance lines and policies named in the Illinois Insurance Code provisions cited in the law. For covered lines, an increase over 10% requires notice at least 30 days before renewal or the policy anniversary. Changes to deductibles or coverage on forms used across an entire covered line require notice at least 60 days before renewal or the anniversary date. Policyholder-requested coverage changes and changes in exposure are excluded from the premium increase calculation. These renewal notice provisions apply to notices sent on or after July 1, 2027.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Aug 4Public Act . . . . . . . . . 104-0753Latest
- Aug 4Effective Date July 1, 2027
- Aug 4Governor J. B. Pritzker ApprovedBecame Law
- Jun 25Sent to the GovernorTo Governor
- Jun 10Added as Co-Sponsor Sen. Suzy Glowiak Hilton
- Jun 9Added as Co-Sponsor Sen. Mary Edly-Allen
- Jun 9Added as Co-Sponsor Sen. Michael W. Halpin
- May 28Added as Co-Sponsor Sen. Elgie R. Sims, Jr.
- May 27Added Alternate Co-Sponsor Rep. Rita Mayfield
- Vote recorded Third Reading. Result: pass.Lower
- May 27Added Alternate Co-Sponsor Rep. Hoan Huynh
- May 27Passed Both Houses
- May 27Third Reading - Short Debate - Passed 070-038-001Passed House
- May 22Third Reading/Final Action Deadline Extended-9(b) May 31, 2026
- May 22Added Alternate Co-Sponsor Rep. Lilian Jiménez
- May 21Added Alternate Co-Sponsor Rep. Maura Hirschauer
- May 21Added Alternate Co-Sponsor Rep. Camille Y. Lilly
- May 20Placed on Calendar Order of 3rd Reading - Short Debate
- May 19Held on Calendar Order of Second Reading - Short DebateMinor
- May 19Second Reading - Short DebateMinor
- May 19Added as Co-Sponsor Sen. Laura M. Murphy
- May 15Added Alternate Co-Sponsor Rep. Michael Crawford
- May 15Placed on Calendar 2nd Reading - Short DebateMinor
- May 14Do Pass / Short Debate Executive Committee; 008-004-000
- Vote recorded Do Pass. Result: pass.Lower
- May 14Motion to Suspend Rule 21 - Prevailed 070-036-000
- May 14Motion Filed to Suspend Rule 21 Executive Committee; Rep. Marcus C. Evans, Jr.
- May 14Committee Deadline Extended-Rule 9(b) May 15, 2026
- May 14Assigned to Executive CommitteeMinor
- May 14Added as Co-Sponsor Sen. Meg Loughran Cappel
- May 14Added as Co-Sponsor Sen. Emil Jones, III
- May 14Referred to Rules Committee
- May 14First ReadingMinor
- May 14Alternate Chief Sponsor Changed to Rep. Thaddeus Jones
- May 13Chief House Sponsor Rep. Emanuel "Chris" Welch
- Vote recorded Third Reading. Result: pass.Upper
- May 13Arrived in HouseMinor
- May 13Added as Co-Sponsor Sen. Lakesia Collins
- May 13Added as Chief Co-Sponsor Sen. Cristina Castro
- May 13Added as Chief Co-Sponsor Sen. Mike Simmons
- May 13Added as Chief Co-Sponsor Sen. Christopher Belt
- May 13Added as Chief Co-Sponsor Sen. Doris Turner
- May 13Added as Co-Sponsor Sen. Sara Feigenholtz
- May 13Third Reading - Passed; 042-014-001Passed Senate
- May 13Added as Co-Sponsor Sen. Karina Villa
- May 13Added as Co-Sponsor Sen. Patrick J. Joyce
- May 13Placed on Calendar Order of 3rd Reading
- May 13Senate Floor Amendment No. 2 Adopted; VillivalamMajor
- May 13Senate Floor Amendment No. 1 Adopted; VillivalamMajor
- May 13Recalled to Second ReadingMinor
- May 13Added as Co-Sponsor Sen. Mike Porfirio
- May 13Added as Co-Sponsor Sen. Mattie Hunter
- May 13Added as Co-Sponsor Sen. Rachel Ventura
- May 13Senate Floor Amendment No. 2 Be Approved for Consideration Assignments
- May 13Senate Floor Amendment No. 2 Referred to Assignments
- May 13Senate Floor Amendment No. 2 Filed with Secretary by Sen. Ram VillivalamMinor
- May 13Senate Floor Amendment No. 1 Recommend Do Adopt Insurance; 009-003-000
- May 12Chief Sponsor Changed to Sen. Ram Villivalam
- Vote recorded Do Pass, Amendment 1. Result: pass.Upper
- 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. Ram VillivalamMinor
- May 8Rule 2-10 Third Reading Deadline Established As May 15, 2026
- Apr 17Rule 2-10 Third Reading Deadline Established As May 8, 2026
- Apr 14Placed on Calendar Order of 3rd Reading April 15, 2026
- Apr 14Approved for Consideration Assignments
- 2025
- Jun 2Rule 3-9(a) / Re-referred to Assignments
- May 23Rule 2-10 Third Reading Deadline Established As June 1, 2025
- May 9Rule 2-10 Third Reading Deadline Established As May 23, 2025
- Apr 11Rule 2-10 Third Reading Deadline Established As May 9, 2025
- Apr 11Rule 2-10 Third Reading Deadline Established As May 9, 2025
- Mar 20Placed on Calendar Order of 3rd Reading April 1, 2025
- Mar 20Second ReadingMinor
- Mar 19Placed on Calendar Order of 2nd Reading March 20, 2025Minor
- Vote recorded Do Pass. Result: pass.Upper
- Mar 19Do Pass Executive; 011-000-000
- Mar 12Assigned to ExecutiveMinor
- Jan 24Referred to Assignments
- Jan 24First ReadingMinor
- Jan 24Filed with Secretary by Sen. Don HarmonIntroduced
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