HB3795 amends Section 155.23 of the Illinois Insurance Code, which governs insurance fraud reporting. The bill removes language that authorizes the Director of Insurance to promulgate rules requiring insurers to report certain factual information about suspected fraudulent claims, fraudulent applications, or premium fraud after the Director determines the information is needed to detect fraud or arson. It also removes the Director’s authority to designate data-processing organizations or other governmental agencies to help gather and compile fraud information.
In place of that framework, the bill requires insurers to report fraudulent activity to the Director or to the National Insurance Crime Bureau, the National Association of Insurance Commissioners, or a similar organization. It also broadens who may submit information by allowing any person with a reasonable belief that insurance fraud that is or may be a crime has occurred, is occurring, or is about to occur, as well as persons who analyze insurance-fraud information, to furnish information to the Director or to an authorized insurer representative for purposes of detecting, prosecuting, or preventing fraud. The bill is effective immediately.
Impact
The bill would revise the statutory procedures for insurance-fraud reporting in Illinois by narrowing and replacing portions of the Director of Insurance’s rulemaking and administrative coordination authority, while preserving and clarifying reporting obligations for insurers and other information holders. It would affect insurers doing business in Illinois, the Director of Insurance, and entities such as the National Insurance Crime Bureau and the National Association of Insurance Commissioners, and it would continue to support fraud detection and enforcement under the Insurance Code.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears to be framed as a technical and enforcement-oriented update to insurance-fraud reporting rules rather than a controversial policy overhaul. The overall tone of the proposal is administrative and anti-fraud focused.
Contention
The main potential point of contention is the shift away from the Director of Insurance’s existing authority to require and organize detailed fraud-reporting systems through rules and designated data-processing or governmental partners. Supporters may view the bill as simplifying reporting and strengthening fraud referrals, while critics could question whether removing the Director’s rulemaking and coordination tools reduces state control or oversight. Another possible issue is the bill’s expansion of who may report suspected fraud and to whom, which could raise concerns about confidentiality, reporting burdens, or the handling of sensitive claim information.