HB3482 would amend the Illinois Insurance Code to restrict how automobile insurers may use age, credit-based insurance scores, and certain device/app data when setting rates or premiums. For specified auto insurance risks, insurers could not consider an insured’s age if the insured is 50 or older, and they could not use a credit-based insurance score in setting rates or premiums for those policies. The bill also bars insurers from using age alone as a basis to cancel, refuse to renew, or increase premiums for an auto policy once the insured is 65 or older, so long as the person has a valid Illinois driver’s license.
The bill further limits the use of telematics and connected-device information. Auto insurers would be prohibited from considering data obtained from applications on an insured’s cellphone or from software installed in a vehicle, whether installed at manufacture or later, when establishing rates or premiums, even if the insured gives express written consent. Insurers also could not raise rates or premiums because the insured withheld that consent. In effect, the bill creates new consumer protections against age-based, credit-based, and certain data-driven underwriting practices in Illinois auto insurance.
Impact
HB3482 would add a new Section 143.19.6 to the Illinois Insurance Code and directly constrain underwriting and rating practices for certain automobile and motor vehicle insurance policies. It would limit insurers’ ability to use age, credit-based insurance scores, and connected-vehicle or cellphone app data in premium setting, and it would prohibit cancellation, nonrenewal, or premium increases based solely on an insured reaching age 65, provided the insured maintains a valid Illinois driver’s license. The bill would therefore affect insurers, policyholders age 50 and older, and drivers whose vehicles or phones generate data that could otherwise be used in pricing.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the available context suggests the measure is framed as a consumer-protection bill aimed at older drivers and privacy concerns in auto insurance pricing. The sponsor’s approach indicates support for limiting age and data-based rating factors, but there is no documented committee debate or voting history here to show broader legislative sentiment. The bill’s caption, “INS-RATES CREDIT SCORE & AGE,” also suggests its central policy focus is on restricting insurer discretion rather than expanding it.
Contention
The main points of contention likely involve insurer underwriting freedom versus consumer protection. Supporters would likely favor the bill for preventing age discrimination against older drivers, limiting the use of credit-based insurance scores, and restricting telematics or app-based data collection in pricing. Opponents, likely from the insurance industry, may argue that age, credit information, and connected-device data are relevant actuarial factors and that prohibiting their use could reduce pricing accuracy or increase costs for other policyholders. The express-consent provision for device data may also be debated because the bill bars rate increases even when consent is withheld, limiting insurers’ ability to incentivize data sharing.