![](\"https:\/\/www.insurancejournal.com\/app\/uploads\/2026\/05\/Illinois-Capitol-Building-580x387.jpeg\")
<\/p>\nIllinois lawmakers this week passed a pair of bills that gives the insurance department the authority to review homeowners and auto rate filings to determine whether they are excessive.<\/p>\n
The insurance industry has heavily opposed the legislative measures, warning that expanded government control over insurance rates will reduce competition and drive prices up.<\/p>\n
HB 4273 and SB 714 give the Illinois Department of Insurance the ability to review and overturn rate increases that are deemed \u201cexcessive, inadequate or unfairly discriminatory.\u201d<\/p>\n
Brian Christenberry, regional vice president for NAMIC, said the bills add a tighter regulatory framework without addressing the underlying drivers of premium increases.<\/p>\n
\u201cIllinois has a competitive insurance market, but when policymakers focus on controlling rates instead of reducing costs and risk, consumers end up with fewer choices and a less stable market,\u201d Christenberry said.<\/p>\n
Illinois leaders for years have pushed lawmakers to pass legislation that would give the insurance department more power to reign in rate increases. Governor J.B. Pritzker said Wednesday he would sign the bills into law.<\/p>\n
\u201cToo many families have dealt with unexplained, unfair insurance price hikes on their homes and cares, so this legislation helps protect consumers while maintaining core principles the Illinois business community is built on,\u201d Pritzker said in a statement.<\/p>\n
Historically Illinois has operated under a use-and-file system, allowing insurance companies to implement premium changes without prior approval from the insurance department.<\/p>\n
Under HB 4273, homeowners insurers would still be allowed to implement new rates as soon as they are filed. If the insurance department determines via actuarial review that a filing is excessive, inadequate or unfairly discriminatory, the department would have 60 days to notify the insurer from the date of the filing.<\/p>\n
The insurer could then request a hearing, during which time the filing would remain in effect until the conclusion of the hearing and a final order is issued.<\/p>\n
If the department\u2019s finding stands following a hearing, the insurer would be required to rebate policyholders of premiums it had collected.<\/p>\n
Additionally, the requires insurers to provide at least 60 days\u2019 notice before raising premium renewals by 10% or more. Insurers<\/p>\n
The legislation places a prohibition on cost-shifting, requiring insurers to use state-specific loss data in the development of rates. State leaders have argued<\/a> that insurers such as State Farm are shifting out-of-state costs onto Illinois homeowners.<\/p>\n The bill is set to take effect on July 1, 2027.<\/p>\n SB 714 contains similar language for the regulation of auto insurance rate filings.<\/p>\n If the insurance department determines a filing fails to meet requirements, the department would notify the insurer within 40 days, upon which the insurer could request a hearing.<\/p>\n The bill mandates that auto insurers provide consumers with at least 30 days\u2019 notice before increasing renewal premiums by 10% or more. The legislation also contains a provision preventing insurers from shifting the costs of out-of-state risks onto Illinois drivers.<\/p>\n The bill takes effect on July 1, 2027.<\/p>\n Photo: Drone view of the Illinois State Capitol, in Springfield. Illinois State Capitol houses the legislative and executive branches of the government of the U.S. state of Illinois<\/em><\/p>\n Topics<\/span> Legislation<\/a> Illinois<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n