103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3861

 

Introduced 2/17/2023, by Rep. Harry Benton

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/143.5 new

    Amends the Illinois Insurance Code. Requires insurance policies to be written in language easily readable and understandable by a person of average intelligence and education. Provides the factors the Director of Insurance shall consider in making the determination that the policy is easily readable and understandable by a person of average intelligence and education.


LRB103 29424 BMS 55815 b

 

 

A BILL FOR

 

HB3861LRB103 29424 BMS 55815 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5adding Section 143.5 as follows:
 
6    (215 ILCS 5/143.5 new)
7    Sec. 143.5. Policy readability.
8    (a) On and after the effective date of this amendatory Act
9of the 103rd General Assembly, a policy issued, amended,
10renewed, or delivered by an insurance company authorized to do
11business in this State shall be written in language easily
12readable and understandable by a person of average
13intelligence and education.
14    (b) In determining whether a policy is readable within the
15meaning of this Section, the Director shall consider, at
16least, the following factors:
17        (1) the simplicity of the sentence structure and the
18    shortness of the sentences used;
19        (2) the extent to which commonly used and understood
20    words are employed;
21        (3) the extent to which legal terms are avoided;
22        (4) the extent to which references to other sections
23    or provisions of the contract are minimized;

 

 

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1        (5) the extent to which definitional provisions are
2    incorporated in the text of the policy or contract; and
3        (6) any additional factors relevant to the readability
4    or understandability of an insurance policy or contract
5    that the Director may prescribe by rule.