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HB 2425

Elections; Elections Act of 2025; effective date.

2025 Regular Session Introduced by Kyle Hilbert

Illinois life insurance may not deny, cancel, or raise premiums solely for a felony conviction; actuarial distinctions allowed; incarcerated individuals exempt; effective 1/1/2026.

Second Reading referred to Rules
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Bill Summary · HB 2425

Summary — HB 2425 (Public Act 104-0224)

Status: Enrolled and approved as Public Act 104‑0224 (Governor approved 8/15/2025). Effective date: January 1, 2026.

Purpose

HB 2425 amends Section 236 of the Illinois Insurance Code (215 ILCS 5/236) to limit insurers’ and producers’ ability to treat an applicant or insured differently solely because of a past felony conviction. The change is intended to reduce barriers to obtaining life insurance for people with felony convictions while preserving insurers’ ability to use actuarially sound underwriting.

Key provisions

  • Adds a new prohibition (subsection (f) in Section 236): an insurer or insurance producer authorized to issue policies in Illinois may not, for reasons based solely on an applicant’s or insured’s felony conviction, do any of the following:
    • make a distinction or otherwise discriminate between persons;
    • reject an applicant;
    • cancel a policy; or
    • demand or require a higher premium rate for the same coverage.
  • Continues existing anti‑discrimination rules in Section 236 addressing other bases (e.g., disability, blindness, military status, travel history) and previously enacted protections for “final expense” life insurance (as reflected elsewhere in the section).
  • Carves out (consistent with prior language) that insurers are not required to issue or provide life insurance coverage to persons who are actively incarcerated pursuant to a felony conviction.
  • Maintains the statutory standard that rate differentials and distinctions may be permissible when they are based on sound actuarial principles and a reasonable system of classification and are related to actual or reasonably anticipated experience.

Who is affected

  • Insurers and licensed producers issuing life insurance in Illinois: must revise underwriting and rating practices to ensure they do not treat felony conviction as the sole basis for adverse action.
  • Applicants and insureds with felony convictions: gain a statutory protection against being denied life insurance or charged higher premiums solely on that basis.
  • Regulators (Illinois Department of Insurance): responsible for oversight and enforcement under existing insurance regulatory authorities.

Procedural / timeline notes

  • Introduced: February 4, 2025 (Rep. Rita Mayfield, primary sponsor).
  • Passed both houses (House and Senate actions in Feb–May 2025).
  • Sent to Governor: June 24, 2025; approved August 15, 2025.
  • Effective January 1, 2026.

Potential impacts and considerations

  • Underwriting: insurers may need to document actuarial bases for any adverse action that references criminal history.
  • Market access: may expand access to life insurance, particularly in the final‑expense market and for individuals with felony convictions who are not incarcerated.
  • Enforcement: the amendment does not specify new penalties; enforcement will rely on existing insurance law complaint, investigation, and sanction mechanisms.

Compiled from official sources — confirm details with the bill’s official record.

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