103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4611

 

Introduced 1/31/2024, by Rep. Thaddeus Jones

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/143.19.4 new

    Amends the Illinois Insurance Code. Provides that an insurer shall not, with regard to any motor vehicle liability insurance practice, (i) unfairly discriminate based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression or (ii) use any external consumer data and information sources in a way that unfairly discriminates based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression. Allows the Department of Insurance to examine and investigate an insurer's use of external consumer data and information sources, algorithms, or predictive models in any motor vehicle liability insurance practice. Specifies that the provisions shall not be construed to require an insurer to collect consumer's demographic data, to prohibit the use of a driver's history that has a direct relationship with risk, or to prohibit the use of or require testing of longstanding and well-established common industry practices in settling claims or traditional underwriting practices. Prohibits an insurer from canceling, refusing to renew, or increasing the premium for any policy of automobile insurance solely because an insured person has reached the age of 65 years if the insured has a valid Illinois driver's license. Defines terms.


LRB103 37111 MXP 67230 b

 

 

A BILL FOR

 

HB4611LRB103 37111 MXP 67230 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 143.19.4 as follows:
 
6    (215 ILCS 5/143.19.4 new)
7    Sec. 143.19.4. Automobile insurance practices; prohibition
8on discrimination.
9    (a) As used in this Section:
10    "Algorithm" means a computational or machine learning
11process that informs human decision-making in insurance
12practices.
13    "External consumer data and information source" means a
14data or an information source that is used by an insurer to
15supplement traditional underwriting or other insurance
16practices or to establish lifestyle indicators that are used
17in insurance practices.
18    "External consumer data and information source" includes
19credit scores, social media habits, locations, purchasing
20habits, home ownership, educational attainment, occupation,
21licensures, civil judgments, and court records.
22    "Insurance practice" means marketing, underwriting,
23pricing, utilization management, reimbursement methodologies,

 

 

HB4611- 2 -LRB103 37111 MXP 67230 b

1and claims management in the transaction of insurance.
2    "Predictive model" means a process of using mathematical
3and computational methods that examine current and historical
4data sets for underlying patterns and calculate the
5probability of an outcome.
6    "Unfairly discriminate" includes the use of one or more
7external consumer data and information sources, as well as
8algorithms or predictive models using external consumer data
9and information sources, that have a correlation to age, race,
10color, national or ethnic origin, immigration or citizenship
11status, sex, sexual orientation, disability, gender identity,
12or gender expression of an individual and that uses results in
13a disproportionately negative outcome for such classification
14or classifications, which negative outcome exceeds the
15reasonable correlation to the underlying insurance practice,
16including losses and costs for underwriting.
17    (b) An insurer shall not, with regard to any motor vehicle
18liability insurance practice:
19        (1) unfairly discriminate based on age, race, color,
20    national or ethnic origin, immigration or citizenship
21    status, sex, sexual orientation, disability, gender
22    identity, or gender expression; or
23        (2) use any external consumer data and information
24    sources, as well as any algorithm or predictive models
25    that use external consumer data and information sources,
26    in a way that unfairly discriminates based on age, race,

 

 

HB4611- 3 -LRB103 37111 MXP 67230 b

1    color, national or ethnic origin, immigration or
2    citizenship status, sex, sexual orientation, disability,
3    gender identity, or gender expression.
4    (c) The Department of Insurance may examine and
5investigate an insurer's use of external consumer data and
6information sources, algorithms, or predictive models with
7regard to any motor vehicle liability insurance practice.
8Insurers shall cooperate with the Department of Insurance in
9any examination or investigation under this Section.
10    (d) Nothing in this Section may be construed to:
11        (1) Require an insurer to collect from an applicant or
12    policyholder the age, race, color, national or ethnic
13    origin, immigration or citizenship status, sex, sexual
14    orientation, disability, gender identity, or gender
15    expression of an individual.
16        (2) Prohibit the use of a driver's history that has a
17    direct relationship to risk unless such information is
18    otherwise included in the testing of an algorithm or
19    predictive model that also uses external consumer data and
20    information sources.
21        (3) Prohibit the use of or require testing of
22    longstanding and well-established common industry
23    practices in settling claims or traditional underwriting
24    practices unless such practices or factors are otherwise
25    included in the testing of an algorithm or predictive
26    model that also uses external consumer data and

 

 

HB4611- 4 -LRB103 37111 MXP 67230 b

1    information sources.
2    (e) No policy of automobile insurance, including any class
3of motor vehicle coverage, shall be canceled by the insurer
4solely because the insured has reached the age of 65 years so
5long as the insured has a valid Illinois driver's license. If
6the insured has a valid Illinois driver's license, an insurer
7shall not refuse to issue a renewal policy or increase the
8premium for any policy solely because an insured has reached
9the age of 65 years.