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Bill

SB 2412

INS-RATES CREDIT SCORE & AGE

104th Regular Session Introduced by Ram Villivalam

SB 2412 prohibits Illinois insurers from using credit scores and age as rate-setting factors to reduce discrimination and improve affordability for lower-income residents and seniors.

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WeVote Research Nonpartisan
Bill Summary · SB 2412

Legislative bill overview

SB 2412 would restrict Illinois insurance companies from using credit scores and age as factors in setting insurance rates. The bill aims to prevent insurers from charging higher premiums based on these demographic and credit-related criteria, which the sponsors argue constitute unfair discrimination against certain populations.

Why is this important

Insurance rates significantly affect household budgets, and using credit scores and age can disproportionately impact lower-income individuals and seniors. Proponents argue these factors perpetuate economic inequality, while this legislation could make insurance more accessible and affordable for vulnerable populations in Illinois.

Potential points of contention

  • Insurance industry opposition: Insurers argue credit scores and age are actuarially sound predictors of risk and claims frequency; restricting their use could force them to raise rates for all consumers or reduce coverage options
  • Rate implications: If risk assessment tools are limited, insurers may rely more heavily on other factors (like ZIP code or driving history), potentially shifting rather than eliminating discrimination concerns
  • Market competitiveness: Insurers operating in Illinois under stricter rating rules may face competitive disadvantages compared to out-of-state competitors, potentially reducing market options for consumers

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

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