WeVote
Log In

Bill

Bill

SB 2698

INSURANCE RATE FAIRNESS

104th Regular Session Introduced by Meg Loughran Cappel and 1 co-sponsor

Illinois bill establishes fairness standards limiting insurance rate adjustments and restricting certain premium-setting factors to protect consumer affordability.

Added as Co-Sponsor Sen. Meg Loughran Cappel
0
WeVote Research Nonpartisan
Bill Summary · SB 2698

Legislative bill overview

SB 2698 aims to establish fairness standards for insurance rate-setting in Illinois by limiting how insurers can adjust premiums and potentially prohibiting or restricting certain rating factors. The bill was recently introduced and referred to committee assignments, where it will undergo initial review before substantive debate occurs.

Why is this important

Insurance rates directly affect household budgets across Illinois, and rate-setting practices significantly impact affordability for middle and lower-income residents. How insurers calculate premiums—whether based on driving records, credit scores, ZIP codes, or other factors—can create disparities in access and cost, making this a consumer protection issue affecting millions of policyholders.

Potential points of contention

  • Insurance industry opposition: Insurers may argue that current rating factors accurately reflect risk and that restrictions could increase costs for safe drivers or force companies to leave the market
  • Fairness vs. actuarial accuracy: Debate over which rating factors are legitimate risk predictors versus discriminatory proxies (particularly regarding ZIP code-based pricing that may correlate with race or socioeconomic status)
  • Market competition concerns: Questions about whether restrictions could reduce competition or lead to higher overall premiums for consumers if insurers cannot differentiate pricing

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

Sign in to ask a question.