FIRE & EXTENDED COVERAGE RATES

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2947

Introduced 1/27/2026, by Sen. Michael E. Hastings

SYNOPSIS AS INTRODUCED:

215 ILCS 5/143.17

from Ch. 73, par. 755.17
215 ILCS 5/Art. XLVIII heading new
215 ILCS 5/1801 new
215 ILCS 5/1802 new
215 ILCS 5/1803 new
215 ILCS 5/1804 new
215 ILCS 5/1805 new

Amends the Illinois Insurance Code. In provisions regarding the
notice of intention not to renew a policy of insurance, provides that no
company may impose renewal premium increases of more than 10% for policies
of fire and extended coverage insurance that are subject to certain
cancellation requirements, unless the company mails or delivers by
electronic means to the named insured notice of the increase in renewal
premium at least 60 days before the policy renewal or anniversary date.
Creates the Rates for Fire and Extended Coverage Insurance Article.
Contains provisions concerning the purpose and applicability of the
Article. Prohibits rates from being excessive, inadequate, or unfairly
discriminatory, as specified. Sets forth provisions concerning
determinations and notice from the Department of Insurance and hearings on
the notice. Provides that credible State-specific loss experience shall be
used in the development of rates whenever that data is available and
statistically reliable. Authorizes insurers, in order to meet actuarial
standards of credibility, to supplement State-specific loss experience
with countrywide, regional, or out-of-state loss experience. Effective
January 1, 2027.
LRB104 19637 BAB 33086 b

A BILL FOR

SB2947
LRB104 19637 BAB 33086 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 Illinois Insurance Code is amended by
5
changing Section 143.17 and by adding Article XLVIII as
6
follows:

7

(215 ILCS 5/143.17)

(from Ch. 73, par. 755.17)
8

Sec. 143.17.
Notice of intention not to renew.
9

a. No company shall fail to renew any policy of insurance,
10
as defined in subsections (a), (b), (c), and (h) of Section
11
143.13, to which Section 143.11 applies, unless it shall send
12
by mail to the named insured at least 30 days advance notice of
13
its intention not to renew. The company shall maintain proof
14
of mailing of such notice on a recognized U.S. Post Office form
15
or a form acceptable to the U. S. Post Office or other
16
commercial mail delivery service. The nonrenewal shall not
17
become effective until at least 30 days from the proof of
18
mailing date of the notice to the name insured. Notification
19
shall also be sent to the insured's broker, if known, or the
20
agent of record, if known, and to the last known mortgagee or
21
lien holder. For purposes of this Section, the mortgagee or
22
lien holder, insured's broker, or the agent of record may opt
23
to accept notification electronically. However, where

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LRB104 19637 BAB 33086 b
1
cancellation is for nonpayment of premium, the notice of
2
cancellation must be mailed at least 10 days before the
3
effective date of the cancellation.
4

b. This Section does not apply if the company has
5
manifested its willingness to renew directly to the named
6
insured. Such written notice shall specify the premium amount
7
payable, including any premium payment plan available, and the
8
name of any person or persons, if any, authorized to receive
9
payment on behalf of the company. If no person is so
10
authorized, the premium notice shall so state.
11

b-5. This Section does not apply if the company manifested
12
its willingness to renew directly to the named insured.
13
However,
no company may impose renewal premium increases of
14
more than 10% for lines of business enumerated in subsection
15
(b) of Section 143.13 to which Section 143.11 applies unless
16
the company mails or delivers by electronic means, in
17
compliance with Section 143.34, to the named insured notice of
18
the increase in renewal premium at least 60 days before the
19
renewal or anniversary date. No

no
company may impose changes
20
in deductibles or coverage for any policy forms applicable to
21
an entire line of business enumerated in subsections (a), (b),
22
(c), and (h) of Section 143.13 to which Section 143.11 applies
23
unless the company mails
or delivers by electronic means, in
24
compliance with Section 143.34,
to the named insured written
25
notice of the change in deductible or coverage at least 60 days
26
prior to the renewal or anniversary date.
For purposes of this

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LRB104 19637 BAB 33086 b
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subsection, "lines of business enumerated in subsection (b) of
2
Section 143.13 to which Section 143.11 applies" does not
3
include lines of business excluded under paragraph (1), (2),
4
(3), or (4) of Section 1802.

5

Notice shall also be sent to the insured's broker, if
6
known, or the agent of record.
For purposes of this subsection
7
b-5, policyholder-initiated changes to coverage and exposure
8
changes are not included in the renewal premium increases that
9
require a company to provide notice to the insured.

10

c. Should a company fail to comply with (a) or (b) of this
11
Section, the policy shall terminate only on the effective date
12
of any similar insurance procured by the insured with respect
13
to the same subject or location designated in both policies.
14

d. Renewal of a policy does not constitute a waiver or
15
estoppel with respect to grounds for cancellation which
16
existed before the effective date of such renewal.
17

e. In all notices of intention not to renew any policy of
18
insurance, as defined in Section 143.11 the company shall
19
provide the named insured a specific explanation of the
20
reasons for nonrenewal.
21

f. For purposes of this Section, the insured's broker, if
22
known, or the agent of record and the mortgagee or lien holder
23
may opt to accept notification electronically.
24
(Source: P.A. 100-475, eff. 1-1-18
.)

25

(215 ILCS 5/Art. XLVIII heading new)

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LRB104 19637 BAB 33086 b
1
ARTICLE XLVIII.

RATES FOR FIRE AND EXTENDED COVERAGE INSURANCE

2

(215 ILCS 5/1801 new)
3

Sec. 1801.
Purpose.
The purpose of this Article is to
4
promote the public welfare by regulating fire and extended
5
coverage insurance rates so that the rates will not be
6
excessive, inadequate, or unfairly discriminatory. Nothing in
7
this Article is intended to prohibit or discourage reasonable
8
competition or to authorize or encourage, except to the extent
9
necessary to accomplish the purpose of this Article,
10
uniformity in insurance rates, rating systems, rating plans,
11
or practices. This Article shall be liberally construed to
12
carry into effect the provisions of this Section.

13

(215 ILCS 5/1802 new)
14

Sec. 1802.
Applicability.
This Article applies to policies
15
of fire and extended coverage insurance, as defined in
16
subsection (b) of Section 143.13 of this Code, to which
17
Section 143.11 of this Code applies. This Article does not
18
apply to the following:
19

(1) policies for any commercial liability and property
20

insurance;
21

(2) policies for a structure, all or part of which is
22

leased or rented, regardless of whether the insured
23

occupied all or part of the structure as a primary
24

residence;

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LRB104 19637 BAB 33086 b
1

(3) policies for a structure that is unoccupied and
2

intended by the insured to be sold, leased, or rented or
3

policies for a structure that is unoccupied and under
4

active construction, renovation, or substantial
5

improvement and that is intended by the insured to be
6

sold, leased, or rented; and
7

(4) policies for a home or dwelling that is part of a
8

farm policy, regardless of whether the insured owned the
9

dwelling or occupied the dwelling as a primary residence.

10

(215 ILCS 5/1803 new)
11

Sec. 1803.
Rate standards; excessive, inadequate, or
12
unfairly discriminatory.

13

(a) Rates shall not be excessive, inadequate, or unfairly
14
discriminatory.
15

(b) A rate is inadequate if it endangers the solvency of
16
the insurer.
17

(c) A rate is unfairly discriminatory if, after allowing
18
for practical limitations, the price differentials fail to
19
reflect the difference in expected losses and expenses. A rate
20
is not unfairly discriminatory if different rates result for
21
policyholders with similar loss exposures but different
22
expenses, or similar expenses but different loss exposures, so
23
long as the rate reflects the differences with reasonable
24
accuracy.
25

(d) A rate is reasonable and not excessive, inadequate, or

SB2947
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LRB104 19637 BAB 33086 b
1
unfairly discriminatory if it is an actuarially sound estimate
2
of the expected value of all future costs associated with an
3
individual risk transfer.

4

(215 ILCS 5/1804 new)
5

Sec. 1804.
Determinations and notice; hearing.

6

(a) If the Department proves through independent actuarial
7
testing consistent with actuarial professional standards that
8
a filing is excessive, inadequate, or unfairly discriminatory
9
pursuant to subsection (d) of this Section and Section 1803,
10
the Department shall send the company notice within 60 days
11
after the filing specifying: (1) in what respects the filing
12
fails to meet the requirements of this Article, and (2) if
13
applicable, any modifications that are required. The notice
14
shall specify a reasonable period after which the filing is no
15
longer effective if the company fails to timely request a
16
hearing under subsection (b). If the company timely requests a
17
hearing under subsection (b), the filing shall remain in
18
effect until the conclusion of the hearing and a final order is
19
issued. If the Department finds that a rate is excessive,
20
inadequate, or unfairly discriminatory pursuant to this
21
Article, the final order may specify a reasonable period after
22
which the filing is no longer effective.
23

(b) The company may request a hearing on the notice within
24
30 days after receipt. Failure to request a hearing within
25
that 30-day period shall be deemed the company's acceptance of

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LRB104 19637 BAB 33086 b
1
the Department's determination. Failure by the Department to
2
hold the requested hearing within 60 days after the request
3
and to resolve the outcome of the hearing within 90 days after
4
the initial request shall result in dismissal of the
5
Department's objection and the filing will remain in effect.
6

(c) All material, testing, and communication regarding
7
activities outlined in subsections (a) and (b) of this Section
8
shall be regarded as confidential work papers.
9

(d) Subsections (a), (b), and (c) shall apply only to
10
filings submitted on or after January 1, 2027. Failure of the
11
Department to make timely objections as outlined in subsection
12
(a) shall result in the filing being deemed compliant with
13
this Article.
14

(e) Any party aggrieved by a final order under this
15
Article may seek judicial review in the Circuit Court of
16
Sangamon County under the Administrative Review Law.

17

(215 ILCS 5/1805 new)
18

Sec. 1805.
Prohibition on cost-shifting.
Credible
19
State-specific loss experience shall be used in the
20
development of rates whenever such data is available and
21
statistically reliable. To meet actuarial standards of
22
credibility, insurers may supplement State-specific loss
23
experience with countrywide, regional, or out-of-state loss
24
experience. Nothing in this Section shall apply to rating
25
relativity development during ratemaking. This Section shall

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LRB104 19637 BAB 33086 b
1
only apply to companies issuing policies that are subject to
2
this Article.

3

Section 99.
Effective date.
This Act takes effect January
4
1, 2027.

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