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Bill

HB 1918

JOINT SELF-INSURANCE

104th Regular Session Introduced by John Cabello and 4 co-sponsors

Illinois law would let public entities pool self-insurance for liability and property risks, reducing insurance costs while shifting financial risk directly to participating municipalities and schools.

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Bill Summary · HB 1918

Legislative bill overview

HB 1918 establishes a framework allowing Illinois public entities (municipalities, school districts, and other government bodies) to form joint self-insurance pools to collectively manage their liability and property risks. Rather than purchasing traditional insurance, participating entities would pool resources to cover claims internally, with the state providing oversight and regulatory standards for these arrangements.

Why is this important

Self-insurance pools can reduce costs for participating public entities by eliminating insurance company overhead and profits, potentially saving taxpayer money. However, this approach shifts financial risk directly onto participating municipalities and schools—if claims exceed reserves, members may face significant unexpected expenses or service disruptions.

Potential points of contention

  • Risk concentration: Unlike traditional insurers, self-insurance pools lack external capital reserves and may struggle during catastrophic loss years, potentially forcing participating entities to cut services or raise local taxes
  • Equity concerns: Wealthier municipalities with larger reserves might dominate pooling decisions, while smaller or financially stressed districts could face disproportionate cost-sharing burdens
  • Regulatory gaps: The bill's oversight mechanisms and minimum reserve requirements need clarity to prevent underfunded pools that cannot pay legitimate claims against government entities

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

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