SPRINGFIELD, Ill. (WAND) — State lawmakers know everyone is struggling with the price of groceries, gas and energy. However, they also need to tackle rising insurance rates.
A suburban Senate Democrat has filed four bills to help address auto and homeowner insurance ratemaking.
Sen. Michael Hastings (D-Frankfort) wants Illinois to examine whether families are paying higher auto insurance premiums due to nondriving factors that have little to do with actual risk on the road.
His plan calls on the Illinois Department of Insurance to conduct thorough reviews of how insurers use credit scores, jobs, education level and other socioeconomic factors to set auto and homeowner insurance rates.
Hastings said this study is important to see how these factors disproportionately harm low-income families, communities of color, veterans and seniors.
"We have a healthy insurance industry in this state," Hastings said. "We have the headquarters of Allstate, State Farm and a lot of other companies. But, we need to balance consumer protection with the corporate actions."
Yet, the Illinois Insurance Association told WAND News that credit, zip code and age are essential to accurately assessing risk for drivers. The group said these tools help keep insurance premiums lower for the majority of Illinois consumers.
A separate plan would ban insurance companies from cost shifting, or passing the cost of out-of-state emergencies like hurricanes, wildfires, or floods onto Illinois customers.
"Are these insurance companies socializing the costs of other states' problems on Illinois residents? I don't think that's fair," Hastings said. "It's not explicitly prohibited in legislation or in statute."
Hastings also hopes to gain support for a bill to require insurers to provide advance written notice to customers before imposing significant rate increases on home or auto policies. Companies raising premiums by more than 10% would need to give auto policyholders 30 days' notice, and homeowners would receive 60 days' notice.
"Families deserve notice as to when something is going to affect them," Hastings said. "The system should work for them, not against them. If you work hard, pay your bills and play by the rules, this system shouldn't take advantage of you."
Another proposal could require insurance companies to file their rates with the state and give the Department of Insurance the power to step in if new rates are excessive or unreasonable.
Hastings told WAND News he wants to see all of these plans assigned to a committee when lawmakers return to Springfield next month.
The Illinois Senate and House are scheduled to be in session Oct. 14 to 16 and 28 to 30.
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