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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5529

Introduced 2/13/2026, by Rep. Thaddeus Jones

SYNOPSIS AS INTRODUCED:

See Index

Amends the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois. Creates the Strengthen Illinois
Homes Fund. On or before July 1, 2028, and depending on availability of
funds, provides that the Department of Insurance shall identify areas of
need to administer a pilot grant program known as the Strengthen Illinois
Homes Program. Requires the Department of Commerce and Economic
Opportunity, in conjunction with the Department of Insurance, to develop a
standard application and grant award rubric for the eligible program
grantees. Establishes program requirements for contractors. Amends the
State Finance Act to make a conforming change. Amends the Illinois
Insurance Code. Establishes notice requirements for companies providing
flood coverage. Creates the Climate Risk Disclosure Article, which may be
referred to as the Climate Risk Disclosure Law. Requires all companies,
corporations, and organizations subject to the Article to, upon direction
from the Department, participate in climate surveys issued by the National
Association of Insurance Commissioners. Creates the Strengthen Illinois
Homes Article, which may be referred to as the Strengthen Illinois Homes
Act. Provides that, for homeowners insurance policies, an insurer shall
provide an actuarially justified premium discount or insurance rate
reduction to a specified owner. Provides that the Director of Insurance
may adopt rules that establish standard discount amounts, targets, or
benchmarks for the coverage of insurable property meeting the specified
mitigation program standards. Provides that an insurer writing homeowners
insurance policies that provide coverage of an insurable property that is
a nonfortified insurable property shall offer an optional rider,
endorsement, or supplemental policy provision that provides the insured a
right to receive claim payments for the cost to upgrade an insurable
property to mitigation program standards for a specified claim. Makes
other changes. Amends the Dental Service Plan Act, the Health Maintenance
Organization Act, and the Limited Health Service Organization Act to
establish conforming requirements.
LRB104 19839 BAB 33289 b

A BILL FOR

HB5529
LRB104 19839 BAB 33289 b
1

AN ACT concerning regulation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Department of Commerce and Economic
5
Opportunity Law of the Civil Administrative Code of Illinois
6
is amended by adding Section 871 as follows:

7

(20 ILCS 605/871 new)
8

Sec. 871.
Strengthen Illinois Homes Program.
9

(a) In this Section:
10

"Area of need" means regions throughout the State of
11
Illinois at the highest risk of catastrophic wind and hail
12
events based on historical data determined by the Department.
13

"County area median family income" means the
14
county-specific area median family income guidelines published
15
by the Illinois Housing Development Authority.
16

"Eligible grantee" means units of local government, local
17
and regional economic development corporations, and
18
not-for-profit organizations approved to receive grants under
19
the requirements of the Grant Accountability and Transparency
20
Act.
21

"IBHS" means the Insurance Institute for Business and Home
22
Safety.
23

"Low-income limit" means the low-income limit guidelines

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1
published by the Illinois Housing Development Authority.
2

"State median family income" means the State median family
3
income guidelines published by the Illinois Housing
4
Development Authority.
5

"Very low-income limit" means the very low-income limit
6
guidelines updated annually in the Federal Register by the
7
United States Department of Housing and Urban Development and
8
published by the Illinois Housing Development Authority.
9

(b) Terms not otherwise defined in this Section shall have
10
the meanings given to those terms under Article XLIX of the
11
Illinois Insurance Code.
12

(c) Subject to appropriation, the Department shall use
13
moneys deposited into the Strengthen Illinois Homes Fund to
14
make grants to eligible grantees for the purpose of providing
15
financial grants to insurable property owners to assist and
16
promote the mitigation of insurable property to resist losses
17
due to catastrophic wind and hail events in accordance with
18
mitigation program standards.
19

(d) The Strengthen Illinois Homes Fund is hereby created
20
as a special fund in the State treasury. The Department may
21
accept gifts, grants, donations, or other revenues or
22
transfers for deposit into the Strengthen Illinois Homes Fund.
23
Moneys in the fund shall be used by the Department for the
24
purpose of implementing and administering the program
25
established under this Section and may be used to contribute
26
toward administrative and staffing needs of administering the

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1
program.
2

(e) Moneys in the fund not expended at the close of a
3
fiscal year shall not lapse but shall be carried forward to the
4
next fiscal year.
5

(f) To the extent funding is available, the Director shall
6
implement and administer the program in accordance with this
7
Section.
8

(g) On or before July 1, 2028, and depending on
9
availability of funds, the Department of Insurance shall
10
identify areas of need to administer a pilot grant program
11
known as the Strengthen Illinois Homes Program. The Department
12
of Insurance shall identify the determined areas of need by
13
rule and by other communication to the public. Areas of need
14
shall be determined based on the following factors:
15

(1) areas that, based on historical data, have a
16

higher susceptibility of catastrophic wind and hail
17

events;
18

(2) areas where the average written premium exceeds
19

the median household income;
20

(3) areas where the average written premium exceeds
21

the insurable property value; or
22

(4) any other factors the Director of Insurance
23

determines to meet the purpose of the program.
24

(h) Individual grant awards shall be determined based on
25
availability of funds, the expected cost of the mitigation
26
project, and the percentage of family income relative to

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1
either the county area median family income or the State
2
median family income of the area of need, adjusted for family
3
size as published by the Illinois Housing Development
4
Authority, whichever is higher. Acceptance of individual grant
5
awards applications shall be determined by the eligible
6
grantee, in accordance with this Act. Applicants within an
7
area of need whose income is equal to or less than 80% of the
8
county area median family income adjusted for family size as
9
published by the Illinois Housing Development Authority shall
10
be prioritized by the eligible grantee. All other applications
11
within an area of need shall be accepted on a first-come,
12
first-served basis, depending on availability of funds by the
13
eligible grantee.
14

(i) The Department, in conjunction with the Department of
15
Insurance, shall develop a standard application and grant
16
award rubric for the eligible grantees. No individual grant
17
award shall exceed $15,000. If the cost of the mitigation
18
project exceeds the amount of the grant award, the remaining
19
cost of the mitigation project is the insurable property
20
owner's responsibility. Grant awards must not be used for
21
normal maintenance and repairs an insurable property owner is
22
expected to perform but may be used in conjunction with
23
repairs or reconstruction as necessitated by damages from a
24
catastrophic weather event. An individual grant application
25
must be approved by the eligible grantee before mitigation
26
work on the insurable property is commenced to be eligible to

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1
receive a grant under this Section. After a grant application
2
is approved by the eligible grantee, the contractor meeting
3
the requirements of this Section selected by the insurable
4
property owner may begin the work required to bring the
5
insurable property into compliance with mitigation program
6
standards.
7

(j) Once the mitigation work is completed, the contractor
8
must submit a copy of the signed contract to the eligible
9
grantee, along with an invoice seeking payment and an
10
affidavit stating the mitigation program standards were met by
11
the work completed. Grant money shall be disbursed by the
12
eligible grantee only after a certificate of compliance has
13
been issued for the insurable property and is provided to the
14
eligible grantee. The eligible grantee may, on behalf of the
15
insurable property owner, directly pay the contractor that
16
performed the mitigation work. The Department may delineate a
17
sliding scale of grant awards based on the requirements of
18
subsection (h).
19

(k) After the first operating year of the program, the
20
Department of Insurance may expand the program to additional
21
areas of need, depending on availability of funds, at the
22
Director of Insurance's discretion. If the program is
23
expanded, applications shall continue to be prioritized
24
according to subsection (h).
25

(l) Nothing in this Section shall be construed to create
26
an entitlement for property owners or obligate the State of

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1
Illinois to pay for residential property in Illinois to be
2
inspected or retrofitted. All mitigation under this Section is
3
contingent upon securing all required local permits and
4
applicable inspections to comply with local building codes and
5
applicable FORTIFIED program standards. A mitigation project
6
receiving a grant under this Section is subject to random
7
reinspection at a later date.
8

(m) To be eligible to work as a contractor on a project
9
funded by a grant under this Act, the contractor must meet all
10
of the following program requirements and must maintain a
11
current copy of all certificates, licenses, and proof of
12
insurance coverage. The eligible contractor must:
13

(1) hold a valid residential building contractor and
14

residential remodeler license issued by the appropriate
15

local or State authority for the jurisdiction where the
16

insurable property is located;
17

(2) not be subject to disciplinary action by the
18

contractor's licensing authority;
19

(3) hold any other valid State or jurisdictional
20

business license or work permits required by law;
21

(4) possess an in-force general liability policy with
22

$1,000,000 in liability coverage;
23

(5) possess an in-force workers compensation policy;
24

(6) register the contractor's business with the
25

Department of Revenue;
26

(7) register as a FORTIFIED certified contractor with

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1

the Department and maintain a valid email address on file
2

with the Department; and
3

(8) successfully complete the FORTIFIED Roof for High
4

Wind and Hail training provided by the IBHS and maintain
5

an active certification. The training may be offered as
6

separate courses.
7

(n) An eligible contractor must not have a financial
8
interest, other than payment on behalf of the insurable
9
property owner, in any project for which the eligible
10
contractor performs work toward a FORTIFIED designation under
11
the program. An eligible contractor is prohibited from acting
12
as the evaluator for a mitigation program standard designation
13
on any project funded by the program. An eligible contractor
14
must report to the Department regarding any potential conflict
15
of interest before work commences on any job funded by the
16
program.
17

(o) The Department shall maintain a certified contractor
18
database in order for eligible grantees to ensure
19
certification before individual grant application approval.
20

(p) To be eligible to work as an evaluator on a project
21
funded by a grant under this Act, the evaluator must meet all
22
program eligibility requirements and must maintain a copy of
23
all current certificates and licenses. The evaluator must:
24

(1) be in good standing with IBHS and maintain an
25

active certification as a FORTIFIED home evaluator for
26

high wind and hail or a successor certification;

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1

(2) possess an Illinois business license and be
2

registered with the Secretary of State; and
3

(3) successfully complete the program training.
4

(q) An evaluator must not have a financial interest in any
5
project that the evaluator inspects for designation purposes
6
for the program. An evaluator must not be an eligible
7
contractor or supplier of any material, product, or system
8
installed in any insurable property that the evaluator
9
inspects for designation purposes for the program. An
10
evaluator must not be a sales agent for any home being
11
designated for the program. An evaluator must inform the
12
Department of any potential conflict of interest impacting the
13
evaluator's participation in the program.
14

(r) The Department may adopt rules to implement this
15
Section.

16

Section 10.
The State Finance Act is amended by adding
17
Section 5.1038 as follows:

18

(30 ILCS 105/5.1038 new)
19

Sec. 5.1038.
The Strengthen Illinois Homes Fund.

20

Section 15.
The Illinois Insurance Code is amended by
21
changing Sections 143.16 and 143.17 and by adding Section
22
143.21e, Article XLVIII, and Article XLIX as follows:

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1

(215 ILCS 5/143.16)

(from Ch. 73, par. 755.16)
2

Sec. 143.16.
Mailing of cancellation notice.
All notices
3
of cancellation of insurance to which Section 143.11 applies
,
4
except for those defined in subsections (a), (b) and (c) of
5
Section 143.13
must be mailed at least 30 days prior to the
6
effective date of cancellation during the first 60 days of
7
coverage. After the coverage has been effective for 61 days or
8
more, all notices must be mailed at least 60 days prior to the
9
effective date of cancellation. However, where cancellation is
10
for nonpayment of premium, the notice of cancellation must be
11
mailed at least 10 days before the effective date of the
12
cancellation. All such notices shall include a specific
13
explanation of the reason or reasons for cancellation and
14
shall be mailed to the named insured at the last mailing
15
address known to the company. For purposes of this Section,
16
the mortgagee or lien holder, if known, may opt to accept
17
notification electronically.
18
(Source: P.A. 100-475, eff. 1-1-18
.)

19

(215 ILCS 5/143.17)

(from Ch. 73, par. 755.17)
20

Sec. 143.17.
Notice of intention not to renew.
21

a. No company shall fail to renew any policy of insurance,
22
as defined in subsections (a), (b), (c), and (h) of Section
23
143.13, to which Section 143.11 applies, unless it shall send
24
by mail to the named insured at least
60

30
days advance notice
25
of its intention not to renew. The company shall maintain

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1
proof of mailing of such notice on a recognized U.S. Post
2
Office form or a form acceptable to the U. S. Post Office or
3
other commercial mail delivery service. The nonrenewal shall
4
not become effective until at least
60

30
days from the proof
5
of mailing date of the notice to the name insured.
6
Notification shall also be sent to the insured's broker, if
7
known, or the agent of record, if known, and to the last known
8
mortgagee or lien holder. For purposes of this Section, the
9
mortgagee or lien holder, insured's broker, or the agent of
10
record may opt to accept notification electronically. However,
11
where cancellation is for nonpayment of premium, the notice of
12
cancellation must be mailed at least 10 days before the
13
effective date of the cancellation.
14

b. This Section does not apply if the company has
15
manifested its willingness to renew directly to the named
16
insured. Such written notice shall specify the premium amount
17
payable, including any premium payment plan available, and the
18
name of any person or persons, if any, authorized to receive
19
payment on behalf of the company. If no person is so
20
authorized, the premium notice shall so state.
21

b-5. This Section does not apply if the company manifested
22
its willingness to renew directly to the named insured.
23
However, no company may impose changes in deductibles or
24
coverage for any policy forms applicable to an entire line of
25
business enumerated in subsections (a), (b), (c), and (h) of
26
Section 143.13 to which Section 143.11 applies unless the

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1
company mails to the named insured written notice of the
2
change in deductible or coverage at least 60 days prior to the
3
renewal or anniversary date. Notice shall also be sent to the
4
insured's broker, if known, or the agent of record.
5

c. Should a company fail to comply with (a) or (b) of this
6
Section, the policy shall terminate only on the effective date
7
of any similar insurance procured by the insured with respect
8
to the same subject or location designated in both policies.
9

d. Renewal of a policy does not constitute a waiver or
10
estoppel with respect to grounds for cancellation which
11
existed before the effective date of such renewal.
12

e. In all notices of intention not to renew any policy of
13
insurance, as defined in Section 143.11 the company shall
14
provide the named insured a specific explanation of the
15
reasons for nonrenewal.
16

f. For purposes of this Section, the insured's broker, if
17
known, or the agent of record and the mortgagee or lien holder
18
may opt to accept notification electronically.
19
(Source: P.A. 100-475, eff. 1-1-18
.)

20

(215 ILCS 5/143.21e new)
21

Sec. 143.21e.
Flood coverage; notice.
22

(a) In response to all applications for a policy of fire
23
and extended coverage, before the applicant agrees to a
24
policy, the company shall provide, and the applicant and
25
insurance producer shall sign, a written notice regarding:

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1

(1) the flood coverage in the policy and the flood
2

coverage that is available to the applicant through the
3

company, including the coverage limits and costs thereof;
4

and
5

(2) the availability of flood coverage through the
6

National Flood Insurance Program, whether the company can
7

write such coverage, and how the applicant can obtain
8

coverage through the National Flood Insurance Program. The
9

notice must contain attestation language that flood
10

coverage options were explained to the applicant in plain
11

language.
12

(b) At least 30 days prior to each renewal of any policy of
13
fire and extended coverage, the company shall provide the
14
insured with a written notice containing the same information
15
required in subsection (a), except that a signature and the
16
attestation language are not required.
17

(c) The Department may require insurers to use a standard
18
form developed by the Department and published on the
19
Department's website.

20

(215 ILCS 5/Art. XLVIII heading new)
21
ARTICLE XLVIII.

CLIMATE RISK DISCLOSURE

22

(215 ILCS 5/1801 new)
23

Sec. 1801.
Short title.
This Article may be referred to as
24
the Climate Risk Disclosure Law.

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LRB104 19839 BAB 33289 b
1

(215 ILCS 5/1805 new)
2

Sec. 1805.
Purpose.
The purpose of this Article is to
3
enhance transparency about how insurers manage climate-related
4
risks and to clarify the Department's authority to require
5
companies to participate in climate surveys issued by
6
entities, including, but not limited to, the Department and
7
the National Association of Insurance Commissioners. This
8
Article shall be liberally interpreted to carry into effect
9
the intent of this Section.

10

(215 ILCS 5/1810 new)
11

Sec. 1810.
Applicability.
This Article applies to every
12
company licensed in Illinois under Classes 1, 2, or 3 of
13
Section 4 of this Code and every dental service plan
14
corporation, health maintenance organization, or limited
15
health service organization licensed in Illinois when such
16
company, corporation, or organization writes $100,000,000 or
17
more annually in direct premiums nationwide. This threshold
18
may be altered by rule.

19

(215 ILCS 5/1815 new)
20

Sec. 1815.
Climate disclosure survey participation.
All
21
companies, corporations, and organizations subject to this
22
Article shall, upon direction from the Department, participate
23
in climate surveys issued by the National Association of

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1
Insurance Commissioners.

2

(215 ILCS 5/Art. XLIX heading new)
3
ARTICLE XLIX.

STRENGTHEN ILLINOIS HOMES

4

(215 ILCS 5/1901 new)
5

Sec. 1901.
Short title.
This Article may be referred to as
6
the Strengthen Illinois Homes Act.

7

(215 ILCS 5/1902 new)
8

Sec. 1902.
Purpose.
The purpose of this Article is to
9
create the Strengthen Illinois Homes Program to assist in and
10
promote the mitigation of insurable property to resist losses
11
due to catastrophic wind and hail events.

12

(215 ILCS 5/1905 new)
13

Sec. 1905.
Applicability.
This Article applies to
14
applicable policies offered, issued, or renewed on or after
15
January 1, 2028.

16

(215 ILCS 5/1910 new)
17

Sec. 1910.
Definitions.
In this Article:

18

"Certificate of compliance" means a certificate of
19
compliance with the most recent version of mitigation program
20
standards or any certificate of compliance that may be issued
21
by other acceptable standards to be permitted by

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1
administrative rule.
2

"Homeowners insurance" means the personal multi-peril
3
property coverages commonly known as homeowners insurance.
4

"Insurable property" means an owner-occupied dwelling in
5
the State of Illinois that may be covered by homeowners
6
insurance.
7

"Mitigation program standards" means a designation of
8
either FORTIFIED Roof (Roof), FORTIFIED Silver (Silver),
9
FORTIFIED Gold (Gold), or a successor designation, including a
10
hail supplement, as administered by the Insurance Institute
11
for Business and Home Safety (IBHS) or a successor entity.
12
Other acceptable standards may be determined by the Director
13
of Insurance by rule.
14

"Nonfortified insurable property" means an insurable
15
property that does not otherwise comply with mitigation
16
program standards.

17

(215 ILCS 5/1920 new)
18

Sec. 1920.
Mitigation program insurance premium discounts.
19

(a) For homeowners insurance policies, an insurer shall
20
provide an actuarially justified premium discount or insurance
21
rate reduction to an owner who either:
22

(1) builds or locates a new insurable property in
23

Illinois that meets the mitigation program standards; or
24

(2) retrofits an existing insurable property in
25

Illinois to meet the mitigation program standards.

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1

(b) The Director may by rule permit other acceptable
2
standards by which insurers must provide a premium discount or
3
an insurance rate reduction.
4

(c) An insurer shall differentiate the premium discount or
5
insurance rate reduction according to which designation of
6
mitigation program standards the policyholder achieves.
7

(d) Nothing in this Section is intended to restrict an
8
insurer from implementing additional premium discounts or
9
insurance rate reductions related to mitigation efforts that
10
may not adhere to all mitigation program standards.
11

(e) An insurer shall provide the premium discount or
12
insurance rate reduction on the coverage of the insured's
13
insurable property after the insurer obtains or receives a
14
certificate of compliance for that insurable property. An
15
insurer is not required to obtain or receive a certificate of
16
compliance in order to provide a premium discount or insurance
17
rate reduction under subsection (a) of this Section.
18

(f) Upon initial implementation of this Section, companies
19
must file with the Department a stand-alone rate filing
20
showing compliance.
21

(g) The Director may adopt rules that establish standard
22
discount amounts, targets, or benchmarks for the coverage of
23
insurable property meeting the mitigation program standards
24
outlined in subsection (a) of this Section. Any standard
25
discount amounts, targets, or benchmarks adopted by rule shall
26
be:

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1

(1) optional; and
2

(2) primarily for the benefit of insurers that are
3

unable to obtain actuarially valid data to provide a
4

premium discount or rate reduction under subsection (a) of
5

this Section due to inadequate resources or experience.
6

(h) An insurer operating in the State of Illinois shall
7
make information regarding the availability of such a discount
8
accessible on its website in a manner that is searchable and
9
accessible to the general public without requiring an
10
individual to create any account.

11

(215 ILCS 5/1925 new)
12

Sec. 1925.
Mitigation program discount disclosure to
13
policyholder.
14

(a) Upon the premium discount or insurance rate reduction
15
described in subsection (a) of Section 1920 becoming effective
16
to an insured's policy, an insurer shall, in plain language,
17
provide the policyholder with information either in writing or
18
electronically regarding the following:
19

(1) the premium discount or insurance rate reduction
20

the policyholder will be receiving, either as a percentage
21

or dollar amount; and
22

(2) specific information regarding whether the premium
23

discount or insurance rate reduction was attributed to the
24

policyholder's homeowners insurance or the policyholder's
25

coverage for wind or hail damage or other peril-specific

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1

coverage as defined by the insurer.
2

(b) An insurer shall provide this disclosure in a separate
3
notification to the policyholder on initial implementation of
4
the premium discount or insurance rate reduction and maintain
5
the information on the policyholder's declarations page.
6

(c) Nothing in this Section shall be construed to require
7
an insurer to share proprietary information or trade secrets
8
with the policyholder in the disclosure required by subsection
9
(a) of this Section.

10

(215 ILCS 5/1930 new)
11

Sec. 1930.
Endorsement offer to upgrade insurable property
12
to mitigation program standards.
13

(a) An insurer writing homeowners insurance policies that
14
provide coverage of an insurable property that is a
15
nonfortified insurable property shall offer an optional rider,
16
endorsement, or supplemental policy provision that provides
17
the insured a right to receive claim payments for the cost to
18
upgrade an insurable property to mitigation program standards
19
for a claim that:
20

(1) is covered under the insurance policy contract;
21

and
22

(2) requires total replacement of the covered
23

insurable property's roof as defined by the insurance
24

policy or contract.
25

(b) The rider, endorsement, or supplemental policy

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1
provision must upgrade the nonfortified insurable property
2
consistent with any designation under mitigation program
3
standards.
4

(c) The rider, endorsement, or supplemental policy offer
5
must be made at the time that:
6

(1) a new policy on a nonfortified insurable property
7

is written; and
8

(2) upon first renewal of an existing policy on a
9

nonfortified insurable property.
10

(d) Upon initial implementation of this Section, companies
11
must file with the Department a stand-alone rate filing
12
showing compliance. Additional premiums associated with this
13
feature shall be based on actuarially sound methods.
14

(e) An insurer operating in the State of Illinois shall
15
make information regarding the availability of the rider,
16
endorsement, or supplemental policy provision option
17
accessible on its website in a manner that is searchable and
18
accessible to the general public without requiring an
19
individual to create any account.
20

(f) The Director may adopt rules necessary to implement
21
this Section.

22

(215 ILCS 5/143.15 rep.)
23

Section 20.
The Illinois Insurance Code is amended by
24
repealing Section 143.15.

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LRB104 19839 BAB 33289 b
1

Section 25.
The Dental Service Plan Act is amended by
2
changing Section 25 as follows:

3

(215 ILCS 110/25)

(from Ch. 32, par. 690.25)
4

Sec. 25.
Application of Insurance Code provisions.
Dental
5
service plan corporations and all persons interested therein
6
or dealing therewith shall be subject to the provisions of
7
Articles IIA, XI,
and
XII 1/2
, and XLVIII
and Sections 3.1,
8
133, 136, 139, 140, 143, 143.31, 143c, 149, 155.49, 355.2,
9
355.3, 367.2, 401, 401.1, 402, 403, 403A, 408, 408.2, and 412,
10
and subsection (15) of Section 367 of the Illinois Insurance
11
Code.
12
(Source: P.A. 103-426, eff. 8-4-23; 103-656, eff. 1-1-25
.)

13

Section 30.
The Health Maintenance Organization Act is
14
amended by changing Section 5-3 as follows:

15

(215 ILCS 125/5-3)

(from Ch. 111 1/2, par. 1411.2)
16

Sec. 5-3.
Illinois Insurance Code provisions.
17

(a) Health Maintenance Organizations shall be subject to
18
the provisions of Sections 133, 134, 136, 137, 139, 140,
19
141.1, 141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151,
20
152, 153, 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a,
21
155.49, 352c, 355.2, 355.3, 355.6, 355.7, 355b, 355c, 356f,
22
356g, 356g.5-1, 356m, 356q, 356u.10, 356v, 356w, 356x, 356z.2,
23
356z.3a, 356z.4, 356z.4a, 356z.5, 356z.6, 356z.8, 356z.9,

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1
356z.10, 356z.11, 356z.12, 356z.13, 356z.14, 356z.15, 356z.17,
2
356z.18, 356z.19, 356z.20, 356z.21, 356z.22, 356z.23, 356z.24,
3
356z.25, 356z.26, 356z.28, 356z.29, 356z.30, 356z.31, 356z.32,
4
356z.33, 356z.34, 356z.35, 356z.36, 356z.37, 356z.38, 356z.39,
5
356z.40, 356z.40a, 356z.41, 356z.44, 356z.45, 356z.46,
6
356z.47, 356z.48, 356z.49, 356z.50, 356z.51, 356z.53, 356z.54,
7
356z.55, 356z.56, 356z.57, 356z.58, 356z.59, 356z.60, 356z.61,
8
356z.62, 356z.63, 356z.64, 356z.65, 356z.66, 356z.67, 356z.68,
9
356z.69, 356z.70, 356z.71, 356z.72, 356z.73, 356z.74, 356z.75,
10
356z.76, 356z.77, 356z.78,
356z.79,
356z.80,
356z.81, 356z.82,
11
356z.83, 356z.84, 356z.85,
364, 364.01, 364.3, 367.2, 367.2-5,
12
367i, 368a, 368b, 368c, 368d, 368e, 370a, 370c, 370c.1, 401,
13
401.1, 402, 403, 403A, 408, 408.2, 409, 412, 444, and 444.1,
14
paragraph (c) of subsection (2) of Section 367, and Articles
15
IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI,
and

16
XXXIIB
, and XLVIII
of the Illinois Insurance Code.
17

(b) For purposes of the Illinois Insurance Code, except
18
for Sections 444 and 444.1 and Articles XIII and XIII 1/2,
19
Health Maintenance Organizations in the following categories
20
are deemed to be "domestic companies":
21

(1) a corporation authorized under the Dental Service
22

Plan Act or the Voluntary Health Services Plans Act;
23

(2) a corporation organized under the laws of this
24

State; or
25

(3) a corporation organized under the laws of another
26

state, 30% or more of the enrollees of which are residents

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LRB104 19839 BAB 33289 b
1

of this State, except a corporation subject to
2

substantially the same requirements in its state of
3

organization as is a "domestic company" under Article VIII
4

1/2 of the Illinois Insurance Code.
5

(c) In considering the merger, consolidation, or other
6
acquisition of control of a Health Maintenance Organization
7
pursuant to Article VIII 1/2 of the Illinois Insurance Code,
8

(1) the Director shall give primary consideration to
9

the continuation of benefits to enrollees and the
10

financial conditions of the acquired Health Maintenance
11

Organization after the merger, consolidation, or other
12

acquisition of control takes effect;
13

(2)(i) the criteria specified in subsection (1)(b) of
14

Section 131.8 of the Illinois Insurance Code shall not
15

apply and (ii) the Director, in making his determination
16

with respect to the merger, consolidation, or other
17

acquisition of control, need not take into account the
18

effect on competition of the merger, consolidation, or
19

other acquisition of control;
20

(3) the Director shall have the power to require the
21

following information:
22

(A) certification by an independent actuary of the
23

adequacy of the reserves of the Health Maintenance
24

Organization sought to be acquired;
25

(B) pro forma financial statements reflecting the
26

combined balance sheets of the acquiring company and

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1

the Health Maintenance Organization sought to be
2

acquired as of the end of the preceding year and as of
3

a date 90 days prior to the acquisition, as well as pro
4

forma financial statements reflecting projected
5

combined operation for a period of 2 years;
6

(C) a pro forma business plan detailing an
7

acquiring party's plans with respect to the operation
8

of the Health Maintenance Organization sought to be
9

acquired for a period of not less than 3 years; and
10

(D) such other information as the Director shall
11

require.
12

(d) The provisions of Article VIII 1/2 of the Illinois
13
Insurance Code and this Section 5-3 shall apply to the sale by
14
any health maintenance organization of greater than 10% of its
15
enrollee population (including, without limitation, the health
16
maintenance organization's right, title, and interest in and
17
to its health care certificates).
18

(e) In considering any management contract or service
19
agreement subject to Section 141.1 of the Illinois Insurance
20
Code, the Director (i) shall, in addition to the criteria
21
specified in Section 141.2 of the Illinois Insurance Code,
22
take into account the effect of the management contract or
23
service agreement on the continuation of benefits to enrollees
24
and the financial condition of the health maintenance
25
organization to be managed or serviced, and (ii) need not take
26
into account the effect of the management contract or service

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LRB104 19839 BAB 33289 b
1
agreement on competition.
2

(f) Except for small employer groups as defined in the
3
Small Employer Rating, Renewability and Portability Health
4
Insurance Act and except for medicare supplement policies as
5
defined in Section 363 of the Illinois Insurance Code, a
6
Health Maintenance Organization may by contract agree with a
7
group or other enrollment unit to effect refunds or charge
8
additional premiums under the following terms and conditions:
9

(i) the amount of, and other terms and conditions with
10

respect to, the refund or additional premium are set forth
11

in the group or enrollment unit contract agreed in advance
12

of the period for which a refund is to be paid or
13

additional premium is to be charged (which period shall
14

not be less than one year); and
15

(ii) the amount of the refund or additional premium
16

shall not exceed 20% of the Health Maintenance
17

Organization's profitable or unprofitable experience with
18

respect to the group or other enrollment unit for the
19

period (and, for purposes of a refund or additional
20

premium, the profitable or unprofitable experience shall
21

be calculated taking into account a pro rata share of the
22

Health Maintenance Organization's administrative and
23

marketing expenses, but shall not include any refund to be
24

made or additional premium to be paid pursuant to this
25

subsection (f)). The Health Maintenance Organization and
26

the group or enrollment unit may agree that the profitable

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LRB104 19839 BAB 33289 b
1

or unprofitable experience may be calculated taking into
2

account the refund period and the immediately preceding 2
3

plan years.
4

The Health Maintenance Organization shall include a
5
statement in the evidence of coverage issued to each enrollee
6
describing the possibility of a refund or additional premium,
7
and upon request of any group or enrollment unit, provide to
8
the group or enrollment unit a description of the method used
9
to calculate (1) the Health Maintenance Organization's
10
profitable experience with respect to the group or enrollment
11
unit and the resulting refund to the group or enrollment unit
12
or (2) the Health Maintenance Organization's unprofitable
13
experience with respect to the group or enrollment unit and
14
the resulting additional premium to be paid by the group or
15
enrollment unit.
16

In no event shall the Illinois Health Maintenance
17
Organization Guaranty Association be liable to pay any
18
contractual obligation of an insolvent organization to pay any
19
refund authorized under this Section.
20

(g) Rulemaking authority to implement Public Act 95-1045,
21
if any, is conditioned on the rules being adopted in
22
accordance with all provisions of the Illinois Administrative
23
Procedure Act and all rules and procedures of the Joint
24
Committee on Administrative Rules; any purported rule not so
25
adopted, for whatever reason, is unauthorized.
26
(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24;

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1
103-123, eff. 1-1-24; 103-154, eff. 6-30-23; 103-420, eff.
2
1-1-24; 103-426, eff. 8-4-23; 103-445, eff. 1-1-24; 103-551,
3
eff. 8-11-23; 103-605, eff. 7-1-24; 103-618, eff. 1-1-25;
4
103-649, eff. 1-1-25; 103-656, eff. 1-1-25; 103-700, eff.
5
1-1-25; 103-718, eff. 7-19-24; 103-751, eff. 8-2-24; 103-753,
6
eff. 8-2-24; 103-758, eff. 1-1-25; 103-777, eff. 8-2-24;
7
103-808, eff. 1-1-26; 103-914, eff. 1-1-25; 103-918, eff.
8
1-1-25; 103-1024, eff. 1-1-25; 104-1, eff. 6-9-25; 104-28,
9
eff. 1-1-26; 104-42, eff. 8-1-25; 104-68, eff. 1-1-26; 104-73,
10
eff. 1-1-26; 104-98, eff. 1-1-26; 104-289, eff. 1-1-26;
11
104-324, eff. 1-1-26; 104-334, eff. 8-15-25; 104-379, eff.
12
1-1-26; 104-417, eff. 8-15-25; revised 11-21-25.)

13

Section 35.
The Limited Health Service Organization Act is
14
amended by changing Section 4003 as follows:

15

(215 ILCS 130/4003)

(from Ch. 73, par. 1504-3)
16

Sec. 4003.
Illinois Insurance Code provisions.
Limited
17
health service organizations shall be subject to the
18
provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
19
141.2, 141.3, 143, 143.31, 143c, 147, 148, 149, 151, 152, 153,
20
154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 155.49, 352c,
21
355.2, 355.3, 355b, 355d, 356m, 356q, 356v, 356z.4, 356z.4a,
22
356z.10, 356z.21, 356z.22, 356z.25, 356z.26, 356z.29, 356z.32,
23
356z.33, 356z.41, 356z.46, 356z.47, 356z.51, 356z.53, 356z.54,
24
356z.57, 356z.59, 356z.61, 356z.64, 356z.67, 356z.68, 356z.71,

HB5529
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LRB104 19839 BAB 33289 b
1
356z.73, 356z.74, 356z.75, 356z.79, 356z.80,
356z.81, 356z.83,
2
356z.84, 356z.85,
364.3, 368a, 370a, 401, 401.1, 402, 403,
3
403A, 408, 408.2, 409, 412, 444, and 444.1 and Articles IIA,
4
VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI,
and
XXXIIB
,
5
and XLVIII
of the Illinois Insurance Code. Nothing in this
6
Section shall require a limited health care plan to cover any
7
service that is not a limited health service. For purposes of
8
the Illinois Insurance Code, except for Sections 444 and 444.1
9
and Articles XIII and XIII 1/2, limited health service
10
organizations in the following categories are deemed to be
11
domestic companies:
12

(1) a corporation under the laws of this State; or
13

(2) a corporation organized under the laws of another
14

state, 30% or more of the enrollees of which are residents
15

of this State, except a corporation subject to
16

substantially the same requirements in its state of
17

organization as is a domestic company under Article VIII
18

1/2 of the Illinois Insurance Code.
19
(Source: P.A. 103-84, eff. 1-1-24; 103-91, eff. 1-1-24;
20
103-420, eff. 1-1-24; 103-426, eff. 8-4-23; 103-445, eff.
21
1-1-24; 103-605, eff. 7-1-24; 103-649, eff. 1-1-25; 103-656,
22
eff. 1-1-25; 103-700, eff. 1-1-25; 103-718, eff. 7-19-24;
23
103-751, eff. 8-2-24; 103-758, eff. 1-1-25; 103-832, eff.
24
1-1-25; 103-1024, eff. 1-1-25; 104-1, eff. 6-9-25; 104-42,
25
eff. 8-1-25; 104-73, eff. 1-1-26; 104-98, eff. 1-1-26;
26
104-289, eff. 1-1-26; 104-324, eff. 1-1-26; 104-334, eff.

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LRB104 19839 BAB 33289 b
1
8-15-25; 104-379, eff. 1-1-26; 104-417, eff. 8-15-25; revised
2
11-21-25.)

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1

INDEX

2

Statutes amended in order of appearance

3

20 ILCS 605/871 new
4

30 ILCS 105/5.1038 new
5

215 ILCS 5/143.16
from Ch. 73, par. 755.16
6

215 ILCS 5/143.17
from Ch. 73, par. 755.17
7

215 ILCS 5/143.21e new
8

215 ILCS 5/Art. XLVIII
9

heading new
10

215 ILCS 5/1801 new
11

215 ILCS 5/1805 new
12

215 ILCS 5/1810 new
13

215 ILCS 5/1815 new
14

215 ILCS 5/Art. XLIX
15

heading new
16

215 ILCS 5/1901 new
17

215 ILCS 5/1902 new
18

215 ILCS 5/1905 new
19

215 ILCS 5/1910 new
20

215 ILCS 5/1920 new
21

215 ILCS 5/1925 new
22

215 ILCS 5/1930 new
23

215 ILCS 5/143.15 rep.
24

215 ILCS 110/25
from Ch. 32, par. 690.25
25

215 ILCS 125/5-3
from Ch. 111 1/2, par. 1411.2

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LRB104 19839 BAB 33289 b
1

215 ILCS 130/4003
from Ch. 73, par. 1504-3

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