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SB 2412

Insurance Holding Company Act; include NAIC Group Capital Calculation test requirements.

2025 Regular Session Introduced by Walter Michel

SB 2412 restricts use of credit scores, age, and telematics data in auto insurance ratings, requires explicit consent for data use, and protects drivers 65+ from cancellation or no

Approved by Governor
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Bill Summary · SB 2412

SB 2412 — Summary (Approved by Governor)

Status: Approved by Governor (signed March 6, 2025)
Bill introduced: Feb 7, 2025 (Sen. Ram Villivalam)
Citation added: 215 ILCS 5/143.19.6 (new)
Subject: Insurance — Automobile insurance underwriting and rating

Main purpose

SB 2412 restricts certain uses of an insured’s age, credit-based insurance score, and telematics/mobile-device data when insurers set rates, issue renewals, or cancel automobile insurance policies. The measure is intended to protect older drivers and to require explicit consent before telematics or mobile-app data can be used to set premiums.

Key provisions

  • Prohibition on use of credit score and age for certain vehicle policies:
    • When determining rates or premiums for vehicle insurance risks in this State described by Class 2 (clause b) and Class 3 (clause e) of Section 4 of the Illinois Insurance Code, insurers may not consider an individual’s credit-based insurance score or age if the insured is 50 years of age or older.
  • Protections for older drivers (age 65+):
    • An automobile insurance policy (any class of motor vehicle coverage) may not be canceled solely because the insured has reached age 65, so long as the insured holds a valid Illinois driver’s license.
    • An insurer cannot refuse to issue a renewal policy or increase a premium solely because an insured has attained age 65 or older.
  • Telematics and mobile-device data consent:
    • Insurers may not consider data obtained from applications on an insured’s cellular phone or from devices installed in the insured’s vehicle (either at manufacture or later) for rating or establishing premiums without the insured’s express written consent.
    • Insurers are prohibited from increasing rates or premiums because an insured withholds express written consent to use such data.

Who is affected

  • Insurers and other providers of automobile insurance operating in Illinois (subject to the referenced Code classifications).
  • Policyholders age 50 and older (protection from use of credit score and age in rates).
  • Policyholders age 65 and older (additional noncancellation and nonrenewal protections).
  • Drivers who are asked to participate in telematics programs or to provide mobile-app data (requires express written consent; cannot be penalized for withholding consent).

Procedural / timeline highlights

  • Introduced Feb 7, 2025 by Sen. Ram Villivalam.
  • Passed both chambers in late Feb 2025; enrolled and signed; approved by Governor on March 6, 2025.
  • Effective date not specified in the text provided; implementation will follow the statute’s general effective-date rules unless the enacted law sets a specific date.

Potential impacts (practical considerations)

  • Limits underwriting tools for insurers regarding older insureds — may prompt adjustments in pricing models or alternative risk factors.
  • Strengthens consumer protections for older drivers and for privacy regarding telematics and mobile-device data.
  • Could increase use of opt-in telematics programs (with explicit consent) rather than mandatory monitoring.

Sponsor: Sen. Ram Villivalam.

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

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