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SB 3448

NOT-FOR-PROFIT INSURANCE CAP

104th Regular Session Introduced by Dave Koehler

Not-for-profits in Illinois would have caps on certain insurance costs and rate increases, with oversight to prevent abusive pricing and protect essential coverage.

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Bill Summary · SB 3448

Summary of SB 3448 (104th Illinois General Assembly)

Title: NOT-FOR-PROFIT INSURANCE CAP

Sponsor: Primary sponsor (not specified); Co-sponsor: Dave Koehler

Note: This summary outlines the main purpose, key provisions, affected parties, and procedural/timeline aspects based on the bill's title and typical content for a “Not-for-Profit Insurance Cap” measure. If you have the bill’s full text, I can refine details precisely.

Purpose and intent

  • Establishes a cap related to insurance provisions affecting not-for-profit organizations within Illinois. The bill aims to regulate insurance-related costs or limits in order to support the financial stability and affordability of insurance for not-for-profit entities.

Key provisions and changes (typical elements likely to appear in a “Not-for-Profit Insurance Cap” bill)

  • Insurance cost cap: Imposes a maximum limit on certain insurance premiums or rate increases charged to not-for-profit organizations.
  • Rate adjustment safeguards: Requires that any premium rate changes for not-for-profit insurers or insureds undergo oversight, potential review, or approval to prevent excessive increases.
  • Coverage requirements: May specify minimum or standardized coverage levels that not-for-profits must secure, ensuring essential protections (e.g., general liability, directors and officers, property, workers’ compensation).
  • Competitive practices: Introduces prohibitions or restrictions on practices perceived as price gouging or anti-competitive behavior impacting not-for-profits’ access to affordable insurance.
  • Implementation mechanics: Could designate a regulatory body (e.g., Illinois Department of Insurance) to monitor compliance, collect data, and publish reports on premium trends for not-for-profits.
  • exemptions and definitions: Provides definitions for “not-for-profit,” “insurance cap,” and related terms; may carve out certain types of not-for-profit entities or lines of insurance from the cap.
  • Enforcement and penalties: Outlines enforcement mechanisms, potential penalties for violations, and processes for appealing determinations.

Who would be affected

  • Not-for-profit organizations in Illinois: Hospitals, charities, educational organizations, religious institutions, social service agencies, and other tax-exempt entities that purchase or renew insurance.
  • Insurance providers and brokers: Carriers and brokers who underwrite or sell policies to not-for-profits may be affected by caps, rate review requirements, and compliance obligations.
  • Regulatory agencies: Illinois Department of Insurance or other state authorities responsible for enforcement, reporting, and oversight.

Procedural and timeline aspects

  • Effective date: The bill would specify when the cap and related provisions take effect (e.g., upon enactment, phased-in over a period).
  • Compliance timeline: Entities may be granted a window to adjust existing policies, renewals, or premium billing practices to align with the cap.
  • Reporting requirements: Possible annual or periodic reporting by insurers on premiums charged to not-for-profits, with state oversight reviews.

Potential impacts

  • Financial relief for not-for-profits: By limiting rate increases or capping certain costs, the bill could reduce total insurance expenses for not-for-profit entities.
  • Market dynamics: May influence pricing strategies of insurers and brokers, potentially encouraging more affordable coverage options or more stringent underwriting for not-for-profits.
  • Access to coverage: Could improve access to essential insurance by reducing prohibitive premiums, although caps must be balanced against maintaining adequate risk protection.

If you can provide the full text or specific sections of SB 3448, I can adjust this summary to reflect precise language, numbers, timelines, and regulatory mechanisms.

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

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