Governor JB Pritzker called for new legislation last year after Bloomington-based State Farm Insurance raised its rates in Illinois an average 27.2%.
“I am calling on the General Assembly to enact a legislative solution during veto session that prevents insurance companies from taking advantage of consumers through severe and unnecessary rate hikes like those proposed by State Farm.”
The legislative plan that Pritzker wants would allow insurers like State Farm to propose whatever premium increases they request, but Illinois state insurance regulators would be empowered to force consumer refunds if the price hikes are deemed “unfair or excessive.”
As it stands, Illinois only has the ability to voice objections against big insurance premium increases but not block them.
House Bill 3799 Sen. Michael Hastings (Frankfort) worked on to give the Illinois Department of Insurance authority to approve or reject insurance rate increases, passed the Senate during last fall’s veto session. But when it returned to the House for a vote to concur with changes the Senate had made, the amended bill fell four votes short of the 60 needed for passage. The following day, however, the bill’s chief House sponsor, Rep. Robyn Gabel, refiled a motion to concur, which is allowed under House rules. The Governor still wants the legislation to pass.
Now, State Rep. Sharon Chung, who represents parts of Bloomington-Normal, has introduced House Bill 5619 that would allow the Illinois Department of Insurance to approve or stop a rate change by an insurance company. Chung said insurance companies were not part of the discussion when lawmakers crafted the bill that failed to pass in the fall session.
Illinois is one of a few states that does not have authority to regulate insurance rates. This bill clarifies the requirements insurance companies need to meet to get approval on a rate change and does not require any reimbursement if the rate is denied.
Chung says the bill she introduced does not get rid of every regulation, but is more of a compromise to start the negotiation process, adding that Illinois legislature should look at other causes that are driving up rates like the “storm chasers” scam that could affect insurance rates. “As soon as a big storm comes in, people come, knocking on the door promising you a new roof. Those are the people that we’re trying to, regulate in a way, because, again, they’re the ones who are driving up costs, as well as climate change,” said Chung, noting the increased number of tornadoes last year.
Chung believes other industries should be regulated as well to help lower insurance rates and not just focus on insurance companies.
The post Bill Needed to Block State Farm Rate Hikes first appeared on SW Messenger Press.
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March 3, 2026 at 06:50PM
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