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SB 2724

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2025 Regular Session Introduced by Rod Hickman

SB 2724 would restrict and require safeguards for soliciting and selling accident/health insurance to people over 65 or with diminished capacity.

Died In Committee
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Bill Summary · SB 2724

Summary — SB 2724 (104th General Assembly)

Status: Died in Committee (per provided record)
Introduced: March 13, 2025 (filed/first-read dates in record vary)
Sponsor: Sen. Julie A. Morrison
Subject: Insurance regulation; consumer protections for older adults and persons with diminished capacity
Effective date (if enacted): January 1, 2026

Purpose / Intent

SB 2724 would amend Section 424 of the Illinois Insurance Code to add specific consumer-protection rules governing the solicitation and sale of accident and health insurance to older adults and to individuals who have diminished decision-making capacity (for example, because they have executed a health care power of attorney or have dementia). The changes classify certain solicitations and sales practices as unfair or deceptive acts in the business of insurance.

Key provisions

  • Adds two new paragraphs to Section 424 of the Illinois Insurance Code:
    • New paragraph (7) limits solicitation of certain vulnerable individuals (residents of nursing homes or long-term care facilities and specified individuals over age 65). When solicitation occurs, the seller must:
    • Advise the potential enrollee of the benefit of reviewing the proposed insurance with the enrollee’s family member, friend, or other advisor (and allow such a review of the plan and any proposed changes);
    • Provide a phone number the potential enrollee or their family/advisors may call with questions; and
    • Allow the potential enrollee to opt out of any future communications from the seller.
    • New paragraph (8) prohibits entering into or amending an accident or health insurance policy with an individual over age 65 who has executed a health care power of attorney or who has a medical condition (e.g., dementia) that reduces capacity to make informed decisions — unless:
    • The individual’s agent under a health care power of attorney executes the insurance agreement on the individual’s behalf; and
    • The agreement is reduced to writing.
  • The practices above would be treated as unfair methods of competition and unfair or deceptive acts or practices under the Insurance Code (subject to the Code’s enforcement mechanisms).

Who would be affected

  • Protected class: individuals over age 65, particularly those who have executed a health care power of attorney or who have medical conditions that impair decision-making capacity, and residents of nursing homes/long‑term care facilities.
  • Affected industry parties: insurance companies, producers/agents/brokers, and any persons or entities engaged in soliciting or selling accident or health insurance in Illinois.
  • Agents or health care power of attorney designees who may be required to sign written agreements to permit certain transactions.

Potential impact

  • Strengthens consumer-protection guardrails for older adults and those with diminished capacity by restricting direct marketing and requiring safeguards (notice, option to consult advisors, opt-out).
  • May reduce unsolicited sales to vulnerable individuals and increase reliance on agents or authorized decision‑makers to finalize policies.
  • Would require insurers and producers to adopt new solicitation procedures, recordkeeping (written agreements), and communication channels (phone number, opt-out processes).
  • Enforcement would fall under existing regulatory remedies for unfair and deceptive acts in the Insurance Code.

Procedural / timeline notes

  • The bill text specifies an effective date of January 1, 2026.
  • Legislative action records provided are inconsistent (filing and referral dates vary; bill is shown as both introduced/first read in 2025 and filed in October 2025). The record supplied indicates the bill ultimately "Died In Committee."
  • Recommendation: consult the official Illinois General Assembly website or legislative clerk for the definitive procedural history and final status.

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

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