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HB 1865

FRAUD-TARGETED INSURANCE SALES

104th Regular Session Introduced by Christopher Belt and 9 co-sponsors

Illinois law (PA 104-0055, effective Jan 1 2026) restricts deceptive insurance sales practices and establishes fraud-prevention standards for insurers marketing policies to consumers.

Public Act . . . . . . . . . 104-0055
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Bill Summary · HB 1865

Legislative bill overview

HB 1865 establishes new regulations in Illinois governing insurance sales practices targeting fraud prevention and consumer protection. The bill, now Public Act 104-0055, took effect on January 1, 2026, and creates standards for how insurers can market and sell insurance products, particularly targeting deceptive or predatory sales tactics.

Why is this important

Insurance fraud costs the industry billions annually, with costs ultimately passed to consumers through higher premiums. This legislation aims to protect Illinois residents from fraudulent insurance schemes and manipulative sales practices while maintaining market competition and consumer access to insurance products.

Potential points of contention

  • Industry burden: Insurance companies may argue compliance costs are substantial, potentially affecting smaller insurers differently than large carriers and raising operational expenses
  • Definition ambiguity: The bill's specific definitions of "fraud-targeted sales" may be unclear, creating uncertainty about what practices are prohibited versus permitted
  • Enforcement mechanism: Questions exist about how the state will enforce these provisions, which agency has authority, and what penalties apply to violations
  • Market impact: Restrictions on certain sales methods could limit how insurers reach consumers or market products, potentially reducing consumer choice in some segments

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

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