HB3804 amends the Illinois Insurance Code to require insurance policies issued, amended, renewed, or delivered by insurers authorized to do business in Illinois to be written in language that is easily readable and understandable by a person of average intelligence and education. The bill does not create a new type of coverage or change insurance rates; instead, it sets a readability standard for policy language.
The bill also directs the Director of Insurance to evaluate readability using specified factors. Those factors include sentence simplicity and length, use of commonly understood words, avoidance of legal terms, and minimizing cross-references to other sections or provisions of the contract. In effect, the measure would give the Department of Insurance a clearer basis for reviewing whether policy forms meet a plain-language standard.
Impact
If enacted, HB3804 would add a new Section 143.5 to the Illinois Insurance Code and apply to insurance policies issued, amended, renewed, or delivered after the effective date. It would affect insurers doing business in Illinois by requiring policy forms to be drafted in clearer, more accessible language and by giving the Director of Insurance a statutory framework for judging readability. The bill could also indirectly benefit policyholders by making coverage terms, exclusions, and obligations easier to understand.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears neutral to favorable toward consumer readability and transparency. The measure is framed as a consumer-protection and plain-language requirement rather than a substantive change to insurance benefits or obligations. No opposition is documented in the provided materials, and no vote history is available to indicate broader legislative support or resistance.
Contention
The main potential point of contention is the practical and regulatory burden on insurers, who may need to revise policy forms and ensure compliance with a subjective readability standard. Another possible issue is how strictly the Director of Insurance would interpret the factors, since terms like “average intelligence and education” and “easily readable and understandable” can leave room for administrative discretion. No specific objections, supporters, or negotiated compromises are reflected in the available committee or vote records.
Property Insurance Policies; notice required to be given a policyholder before the nonrenewal of his or her homeowners' insurance policy; increase the number of days