Pritzker signs rate-review law, July 1, 2027

Gov. J.B. Pritzker signed two Illinois insurance bills on Tuesday that will let the state review homeowners and auto rate changes, ending Illinois’ status as one of only two states without regulatory control over those rates, according to Capitol News Illinois and WTTW. The new laws take effect July 1, 2027, and bar companies from charging rates deemed “excessive, inadequate, or unfairly discriminatory.” Pritzker said at a Chicago bill-signing ceremony that insurers seeking higher premiums should be able to justify them. The measures are House Bill 4273 for homeowners coverage and Senate Bill 714 for auto coverage. ### What changes for Illinois policyholders under the new laws? House Bill 4273 requires homeowners insurers to give customers 60 days’ notice before raising premiums by more than 10%, and Senate Bill 714 requires auto insurers to give 30 days’ notice before increases above 10%, according to Capitol News Illinois and NBC Chicago. Both laws give the Illinois Department of Insurance authority to review rates and order rebates of excess premiums if rates are found to be excessive or unfairly discriminatory. (news.wttw.com) The Illinois General Assembly’s bill records show the measures create or amend Insurance Code provisions governing rate standards, hearings and department review. The department already maintains public access to company rate information and electronic rate filings through its website. ### What did Pritzker and state officials say at the signing? (southernillinoisnow.com) Pritzker said, “It’s not asking too much to say to insurance companies, if you’re telling your customers that rate hikes are necessary, you should be able to prove why,” according to WTTW and NPR Illinois. He also said the bills remove Illinois from a small group of states with very limited oversight of insurance pricing. (my.ilga.gov) Insurance Department Director Ann Gillespie said the laws are intended to make sure future increases are supported by reliable Illinois-specific data. Gillespie said the legislation requires rates to reflect “Illinois-specific losses and considerations,” while acknowledging that broader inflation, repair costs and extreme weather still affect premiums. (news.wttw.com) ### Why did this move gain traction now? State Farm announced a homeowners insurance increase averaging 27.2% statewide a little more than a year ago, according to Capitol News Illinois and WTTW. Secretary of State Alexi Giannoulias said Illinois motorists also saw an average 18% increase in auto rates two years ago. Those figures were cited by state officials and news outlets covering the signing as part of the backdrop for the legislation. (news.wttw.com) NBC Chicago reported state officials said more than 1 million Illinois homeowners were affected by the roughly 27% increase. Giannoulias’ office said Senate Bill 714 includes at least 30 days’ notice before auto renewal premium increases above 10%. ### What are the bills called, and where are they in state records? (news.wttw.com) Senate Bill 714 is the auto insurance measure, and House Bill 4273 is the homeowners bill, according to NBC Chicago, WTTW and Illinois legislative records. The General Assembly’s bill status pages describe HB 4273 as creating a rates article for fire and extended coverage insurance and SB 714 as adding notice requirements for auto renewal premium increases above 10%. (nbcchicago.com) The Illinois Department of Insurance says rate filings are available through its public company rate information portal and the SERFF filing system. Those systems are likely to be the public-facing records for future filings once the new oversight begins. That is an inference based on the department’s current filing-access pages. (nbcchicago.com) ### When does enforcement start? July 1, 2027 is the operative date cited in coverage of the signed laws, including Capitol News Illinois, WTTW and NPR Illinois. On that date, the Illinois Department of Insurance is set to begin using its new authority over homeowners and auto rate filings under HB 4273 and SB 714. (news.wttw.com) (insurance.illinois.gov)