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90_SB1850
215 ILCS 5/155.17a new
215 ILCS 5/407.3 new
Amends the Illinois Insurance Code. Creates the Task
Force on Automobile Insurance. Provides for the Task Force
to consist of legislative and public members appointed by the
President and Minority Leader of the Senate and the Speaker
and Minority Leader of the House of Representatives. Directs
the Task Force to examine all aspects of the provision of
automobile insurance to consumers in this State and to place
major emphasis on the cost of automobile insurance. Provides
for the study of the effect of demographics and geography on
rates and identification of practices that have a
discriminatory effect on consumers. Requires the Task Force
to recommend whether the State should regulate premiums for
automobile insurance. Effective January 1, 1999.
LRB9011624JSgc
LRB9011624JSgc
1 AN ACT concerning automobile insurance rates, amending a
2 named Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Insurance Code is amended by
6 adding Sections 155.17a and 407.3 as follows:
7 (215 ILCS 5/155.17a new)
8 Sec. 155.17a. Interim rate freeze of automobile
9 insurance premiums. During the period beginning on the
10 effective date of this amendatory Act of 1998 through
11 December 31, 1999, an insurer may not increase the premium
12 charged to an insured for a policy of automobile insurance as
13 defined in Section 143.13. In addition, an insurer may not
14 cancel, nonrenew, or reduce coverage under a policy of
15 automobile insurance if that cancellation, nonrenewal, or
16 reduction in coverage would defeat the purpose of this
17 Section. This Section does not prohibit the cancellation of
18 a policy in compliance with Section 143.19 or the nonrenewal
19 of a policy in compliance with Section 143.19.1.
20 (215 ILCS 5/407.3 new)
21 Sec. 407.3. Task Force on Automobile Insurance.
22 (a) There is created the Task Force on Automobile
23 Insurance. The Task Force shall consist of 11 members
24 appointed as follows:
25 (1) Two members of the Senate appointed one each by
26 the President of the Senate and the Minority Leader of
27 the Senate.
28 (2) Two members of the House of Representatives
29 appointed one each by the Speaker of the House of
30 Representatives and the Minority Leader of the House of
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1 Representatives.
2 (3) Four members of the public appointed one each
3 by the President of the Senate, the Minority Leader of
4 the Senate, the Speaker of the House of Representatives,
5 and the Minority Leader of the House of Representatives.
6 (4) Two public members representing consumer
7 interests appointed one each by the President of the
8 Senate and the Speaker of the House of Representatives.
9 (5) The Director of Insurance or the Director's
10 designee shall serve as an ex officio member of the Task
11 Force.
12 All members of the Task Force on Automobile Insurance shall
13 be appointed no later than 90 days after the effective date
14 of this amendatory Act of 1998.
15 (b) The members of the Task Force shall serve without
16 compensation for their duties on the Task Force, but shall be
17 paid for their reasonable and necessary expenses incurred in
18 the performance of their duties. The Department of Insurance
19 shall provide support services to the Task Force. The
20 support services may include, but are not limited to, the
21 provision of office space and technical, advisory, clerical,
22 and operational support.
23 (c) The Task Force shall examine all aspects of the
24 provision of automobile insurance to consumers in State. The
25 Task Force shall place major emphasis on the cost of
26 insurance. The Task Force shall also study how premiums are
27 established and how geography and demographics affect the
28 premiums charged to consumers. The Task Force shall identify
29 any trends or practices that affect rates in a discriminatory
30 manner. In addition, the Task Force shall examine the
31 existing statutes and rules regulating automobile insurance
32 to determine whether they provide adequate protection for all
33 parties involved in automobile insurance transactions. The
34 Task Force shall also examine whether the premiums charged
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1 for automobile insurance should be regulated by the State.
2 (d) The Task Force shall report its findings and
3 recommendations to the General Assembly on or before October
4 1, 1999. The report must include a recommendation of whether
5 the rate freeze should be extended and whether the State
6 should regulate premiums charged for automobile insurance.
7 (e) The Section is repealed December 31, 1999.
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.