Illinois insurance laws
What Illinois has enacted on insurance, what each law requires, and what the bills still moving would do. Illinois is one of 51 states that enacted an insurance law in the 2025 and 2026 sessions.
23 new Illinois laws take effect in 2027, 6 on insurance
- Bills in scope
- 174bills in scope
- Past committee
- 40past committee
- Most recent action
- 21 August 2026most recent action
Insurance laws enacted in Illinois
27 insurance laws enacted in the Illinois Legislature in the 2025 and 2026 sessions, newest first. Each links to the legislature's own page.
What it requires: Insurance companies or their agents must provide applicants information about optional rental vehicle coverage availability, including coverage limits and costs, in response to all automobile insurance policy applications. Insurance companies or their agents must also provide insureds this same information at least 30 days before each policy renewal.
What it requires: Vision care organizations must not require eye care providers to provide noncovered services or materials at vision care plan-set fees. Vision care organizations must provide eye care providers with reasonable fee schedules before entering provider agreements and update them quarterly. Vision care organizations cannot require eye care provider participation in supplemental health plans or vision care discount plans as conditions of contracting.
Health coverage and plan regulation
What it requires: Every company licensed by the Illinois Department of Insurance and insuring employers' liabilities under the Workers' Compensation Act or Workers' Occupational Diseases Act must remit an annual surcharge to the Director based on direct written premium: 1.092% for 2024 and thereafter, plus an additional percentage of underwriting gain beginning in 2026, calculated to meet an annual funding target of $7,000,000 (increasing 3.5% yearly).
Workers' compensation, surety and specialty lines
What it requires: Insurance companies must not impose renewal premium increases exceeding 10% or change deductibles or coverage for fire and extended coverage policies without mailing or electronically delivering written notice at least 60 days before renewal. Companies must ensure rates are not excessive, inadequate, or unfairly discriminatory based on actuarially sound estimates of expected costs.
What it requires: Group or individual accident and health insurance plans and managed care plans amended, delivered, issued, or renewed on or after January 1, 2028 must provide coverage for medically prescribed seizure detection devices with no prior authorization requirement and no cost-sharing exceeding $50 per plan year.
What it requires: Pharmacy benefit managers providing services for health benefit plans must submit annual reports to the Department no later than September 1 containing detailed data on drugs, claims, spending, rebates, and unredacted contracts. Reports must be in plain language, contain only summary health information, and be filed in the Department-designated format.
What it requires: Health insurance issuers must ensure beneficiaries incur no greater out-of-pocket costs for emergency ground ambulance services and urgent ground ambulance services from nonparticipating ground ambulance service providers than they would from participating providers. Cost sharing shall be the lesser of the policy's copayment or coinsurance for an emergency room visit or 10% of the recognized amount. Nonparticipating ground ambulance service providers must file average gross charge rates annually with the Department of Public Health beginning October 1, 2026.
What it requires: Counties and municipalities that self-insure health coverage for employees must include mental health counseling for first responders at no cost starting June 1, 2025. First responders include police officers, firefighters, emergency medical services personnel, dispatchers, public safety telecommunicators, mental health professionals dispatched for crisis calls, and medical examiners or coroners.
Health coverage and plan regulation
What it requires: Subsections (3) through (8) of the Standard Nonforfeiture Law for Individual Deferred Annuities shall not apply to contingent deferred annuities. The Director of Insurance has authority to adopt rules establishing nonforfeiture benefits for contingent deferred annuities that are equitable to contract holders, appropriate given risks insured, and consistent with the general intent of the provisions.
Life insurance and annuities
What it requires: Insurers may not seek or use genetic or biomarker testing information for accident and health insurance except when an individual voluntarily submits favorable results. Employers, employment agencies, labor organizations, and licensing agencies must not solicit, require, or use genetic or biomarker testing information in employment decisions. Persons must not disclose genetic or biomarker test results identifying the subject except to authorized recipients.
What it requires: Insurers must include mine subsidence coverage in policies for residences, living units, and commercial buildings unless waived in writing, at separately stated premiums set by the Fund. For policies issued or renewed on or after January 1, 2027, there shall be no deductible or retention applicable to mine subsidence damage. Insurers must execute reinsurance agreements with the Fund and cede 100% of mine subsidence insurance up to established limits.
Property, catastrophe and climate risk
What it requires: Insurers offering group or individual accident and health insurance policies or managed care plans must provide coverage for habilitative services and, for children under 19 with speech-language disorders including stuttering, rehabilitative services. Services must be medically necessary, prescribed by a physician, and administered by licensed providers. Medical assistance programs must cover such services for individuals under 21 beginning July 1, 2026.
What it does: Amends the Regulatory Sunset Act to remove the Radiation Protection Act of 1990 from the list of acts repealed on January 1, 2027, and instead establishes its repeal date as January 1, 2037.
What it requires: Each insurer delivering, issuing, or renewing a fire and extended coverage policy that excludes flood loss must provide the insured a notice explaining the exclusion, whether the company offers flood coverage, and how to obtain National Flood Insurance Program coverage. The insurer must obtain written signature from the insured confirming these options were presented and the applicant is declining coverage.
What it requires: The Department of Insurance shall consider establishing ratios for providers of genetic medicine and genetic counseling as part of network adequacy standards for insurers providing network plans. Insurers must demonstrate minimum ratios of these providers to plan beneficiaries and maximum travel and distance standards for beneficiaries to access genetic medicine and genetic counseling services.
Health coverage and plan regulation
What it requires: Issuers of group or individual accident and health insurance policies must make dependent coverage available to the parent or stepparent of the insured if the parent or stepparent qualifies as a dependent under 26 U.S.C. 152(d) and resides within the policy's service area. This requirement applies to policies issued, amended, delivered, or renewed after January 1, 2026, but excludes student health insurance coverage and certain specialized policies.
Health coverage and plan regulation
What it requires: An insurer or producer authorized to issue policies of insurance in this State may not make a distinction or otherwise discriminate between persons, reject an applicant, cancel a policy, or demand or require a higher rate of premium for reasons based solely upon an applicant's or insured's past conviction of a felony.
What it requires: Carriers offering provider panels must file notice with the Department of Public Health before establishment, provide enrollees and providers at least 60 days' notice before terminating providers, establish procedures for continued care for pregnant, terminally ill, life-threatening condition, and hospitalized enrollees, maintain personnel for preauthorization at all times, and prohibit contracts requiring providers to deny medically necessary services or waive legal redress.
Health coverage and plan regulation
Health coverage and plan regulation
What it requires: Group or individual policies of accident and health insurance and managed care plans amended, delivered, issued, or renewed on or after January 1, 2026 must provide coverage for medically necessary anesthesia services regardless of duration for any covered procedure. Insurers are prohibited from denying payment or reimbursement for anesthesia services solely because duration exceeded a preset time limit.
What it requires: Sellers of accident or health insurance must not solicit nursing home residents or individuals over 65 unless they avoid requiring purchasing decisions in first contact, advise examining current plans with advisors, provide a phone number for questions, and allow opt-out. Sellers must not enter into or amend policies with persons over 65 who executed medical powers of attorney or persons with conditions like dementia reducing decision capacity, except where the power of attorney holder agrees.
Licensing, solvency and market conduct
What it requires: Health insurance issuers must ensure that patients incur no greater out-of-pocket costs for neonatal care at any hospital than they would with in-network providers, applying in-network cost-sharing based on the recognized amount. No health insurer may charge out-of-network rates for neonatal care at any hospital.
Health coverage and plan regulation
What it requires: Licensed surplus line producers must procure surplus line insurance only from unauthorized insurers meeting solvency and management standards, and must submit all contracts to the Surplus Line Association of Illinois for recording. Producers must file tax reports by February 1 and August 1 annually and pay surplus line taxes at 3.5% of gross taxable premiums.
What it requires: Insurers, health maintenance organizations, managed care plans, health care plans, preferred provider organizations, dental service plan corporations, dental insurers, and third party administrators must make direct payment to health care professionals, health care facilities, dental care providers, or dental care facilities when an enrollee or insured assigns a claim to them, including any interest required under Section 368a for failure to pay claims within 30 days after receipt of due proof of loss.
Health coverage and plan regulation
What it requires: Applicants for oil and gas well permits must file surety bonds, cash, certificates of deposit, or irrevocable letters of credit before drilling. Bond amounts range from $10,000 per well to $100,000 for blanket bonds covering up to 100 wells. Liquid oil field waste transporters must obtain permits and post $10,000 surety bonds.
Workers' compensation, surety and specialty lines
What it requires: Issuers of group and individual accident and health insurance policies, health maintenance organizations, and self-insuring counties, municipalities, and school districts must provide coverage for medically necessary services incorporating equine movement as part of therapeutic intervention, including hippotherapy as defined, in policies amended, delivered, issued, or renewed after January 1, 2027.
Insurance in Illinois, by topic
Health coverage and plan regulation
38 bills, 8 enacted. Enacted in 47 states.
Licensing, solvency and market conduct
17 bills, 1 enacted. Enacted in 47 states.
Workers' compensation, surety and specialty lines
15 bills, 2 enacted. Enacted in 45 states.
Auto insurance
14 bills. Enacted in 29 states.
AI and data in underwriting and claims
6 bills. Enacted in 12 states.
Property, catastrophe and climate risk
5 bills, 1 enacted. Enacted in 31 states.
Life insurance and annuities
2 bills, 1 enacted. Enacted in 24 states.
Insurance bills in Illinois
The bills not yet law, furthest along first, with what each would do.
27Enacted
13Past committee
134Introduced or inactive
174 bills in scope
Past committee
13
What it would do: Requires health insurance policies to cover abortifacients, hormonal therapy, and HIV pre-exposure and post-exposure prophylaxis drugs without cost-sharing, and prohibits prior authorization requirements for HIV pre-exposure, post-exposure, and treatment medications, effective January 1, 2028.
What it would do: Requires individual and group accident and health insurance policies amended, delivered, issued, or renewed on or after January 1, 2028 to cover medically necessary coronary calcium scans every 36 months for individuals over age 40. Makes conforming changes across state employee, county, municipal, school, HMO, and Medicaid programs.
What it would do: Establishes the Abortion Access Fund Grant Program to award grants for abortion services when federal funding is prohibited, funded by excess premiums collected by health insurance issuers through the Illinois Health Benefits Exchange.
What it would do: Prohibits individual and group accident and health insurance policies from imposing deductibles, coinsurance, copayments, or other cost-sharing on coverage for examination, testing, and treatment of victims of specified criminal sexual offenses, except to the extent necessary to maintain high-deductible health plan eligibility for health savings accounts.
What it would do: Creates the Educator Health Insurance Task Force to study the feasibility of regional health insurance purchasing pools for public educators in school districts with populations under 500,000, requiring a final report to the General Assembly by July 1, 2026.
What it would do: Requires group and individual health insurance policies and managed care plans to cover habilitative and rehabilitative services for children under 19 with congenital, genetic, or early acquired disorders, and requires Medicaid to cover speech-language rehabilitative and habilitative services for individuals under 21 with speech-language disorders beginning July 1, 2025.
What it would do: Requires the Secretary of State, in conjunction with the University of Illinois Office of Risk Management and Insurance Research, to conduct a study on automobile insurance affordability and availability, including examination of zip codes, credit scores, and age in ratemaking, with findings due to the Governor and General Assembly by July 1, 2026.
What it would do: Requires health insurance issuers to prohibit adverse consumer outcomes resulting solely from AI systems or predictive models without meaningful human review and override authority. Establishes Department of Insurance regulatory oversight of AI use in health insurance and requires compliance with applicable insurance laws.
What it would do: Amends the Managed Care Reform and Patient Rights Act to exclude intergovernmental joint self-insurance pools providing health benefits under Section 6 of the Intergovernmental Cooperation Act from the definition of 'health care plan'.
What it would do: Requires automobile insurance policies with comprehensive coverage to include theft coverage and prohibits excluding claims based on lack of forcible entry evidence, unlocked vehicles, or keys left in vehicles, though insurers may still deny fraudulent claims.
What it would do: Requires group and individual health insurance policies and managed care plans amended, delivered, issued, or renewed on or after January 1, 2027 to cover all medically necessary diagnostic testing and FDA-approved treatments or medications to slow Alzheimer's disease or related dementia progression, without step therapy requirements.
What it would do: Requires the Department of Insurance to study gaps in health insurance coverage for uninsured residents and report findings within 12 months. Requires all hospitals licensed under the Hospital Licensing Act and the University of Illinois Hospital to provide health insurance coverage to all workforce members.
What it would do: Amends the Prior Authorization Reform Act to define chronic health conditions and require health insurance issuers to keep prior authorization approvals valid for recurring services or maintenance medications treating chronic conditions for the lesser of 12 months or the treatment duration, unless treatment standards change.
Introduced or inactive
12 of 134 shown
What it would do: Amends the Illinois Health Insurance Portability and Accountability Act by making a technical change to Section 15 concerning the applicability and scope of the Act as it applies to health insurance policies and contracts.
What it would do: Creates a heart disease screening program providing Illinois residents aged 20+ free screenings every 6 years (ages 20-39) or every 2 years (40+), with no cost-sharing, implemented by the Department of Healthcare and Family Services through a voucher program by July 1, 2027.
What it would do: Creates an all-payer health care payment system requiring commercial payers to reimburse hospitals at standardized rates set by a new Illinois Health Care Cost and Payment Board, and implements prospective global hospital budgets beginning January 1, 2027.
What it would do: Requires insurance companies to provide 60 days notice before imposing renewal premium increases over 10% for automobile insurance and prohibits using zip code, credit scores, or age over 65 to increase premiums or deny renewal. Requires rates to be actuarially sound and mandates use of state-specific loss experience when available.
What it would do: Requires hospitals with net patient revenue of at least $1,000,000,000 annually to not charge covered hospital employees more than 10% of total health insurance premium costs, and imposes a $500 civil penalty per affected employee for violations.
What it would do: Creates a behavioral health crisis assessment requiring commercial health insurers and HMOs with $1,000,000+ in annual payments to contribute to the Statewide 9-8-8 Trust Fund, with initial total assessment of $100,000,000 allocated proportionally among surcharge payors.
What it would do: Prohibits health insurance issuers from using automated processes to downcode claims, from downcoding based solely on diagnosis codes, and from discriminatory downcoding targeting physicians treating complex conditions. Requires physician review, notification, and appeal rights for downcoded claims.
What it would do: Transfers enforcement of the Title Insurance Act and predatory lending database from the Department of Financial and Professional Regulation to the Department of Insurance, including all related powers, duties, books, records, and funds.
What it would do: Requires insurers to provide written notice to insureds before directing body shop repairs, informing them of the right to approve body part types (new OEM, new aftermarket, or used) and giving them opportunity to indicate preferences in writing. Violating these requirements constitutes an improper claims practice.
What it would do: Prohibits automobile insurers licensed in Illinois from refusing to accept insurance applications from people who hold legal title to a motor vehicle but cannot drive due to disability, provided they identify a primary driver or drivers.
What it would do: Amends the Title Insurance Act to require title insurance agents to obtain licenses from the Secretary of Financial and Professional Regulation and maintain errors and omissions insurance. Establishes licensing requirements, continuing education standards, and disciplinary procedures for title insurance agents and education providers.
What it would do: Requires managed care organizations to use a universal CAQH provider application for credentialing and mandates they provide provider network consultants. Requires remittance advice explaining recoupments and removes federal Medicaid requirement exception for recoupments. Effective January 1, 2027.
Showing the 25 furthest along of 147. Subscribers see all of them, filtered and searchable. Bill titles link to the Illinois Legislature's own page.
What counts as insurance legislation
In scope: Health coverage and plan regulation; auto; property and catastrophe; life and annuities; aI and data in underwriting; workers' compensation and specialty lines; and licensing, solvency and market conduct.
Questions
Does Illinois have an insurance law?
Yes. Illinois enacted 27 insurance laws in the 2025 and 2026 sessions, among them SB 3258, SB 3707 and HB 5228. Each is listed on this page with what it requires.
When do Illinois's insurance laws take effect?
SB 3258 on 1 July 2027, SB 3707 on 1 January 2027, HB 4273 on 1 July 2027, SB 3517 on 1 January 2027 and SB 2770 on 1 January 2027. The others have no single date in their text.
Which insurance bills are moving in Illinois?
13 bills not yet law have passed a committee or a chamber, the furthest along HB 2584 (passed chamber), HB 4207 (passed chamber) and HB 5408 (passed chamber).
What does Illinois legislate on most in insurance?
Health coverage and plan regulation (38 bills), Licensing, solvency and market conduct (17 bills) and Workers' compensation, surety and specialty lines (15 bills).
Are these summaries reviewed by a lawyer?
No. Which bills count as Insurance bills, and the line on what each law requires or each bill would do, are drafted by software from the bill's own text and not reviewed by an attorney. Every bill links to the legislature's own record: read the text before relying on it. The list covers bills from the 2025 and 2026 sessions.
Other practice areas in Illinois
- AI in Illinois90
- Alcohol in Illinois32
- Cannabis in Illinois53
- Children's Online Safety in Illinois19
- Cybersecurity in Illinois18
- Data center and energy in Illinois23
- Data Privacy in Illinois65
- Employment in Illinois163
- Healthcare in Illinois276
- Intellectual Property in Illinois5
- Packaging and PFAS in Illinois26
- Payments and fintech in Illinois18
- Rental housing in Illinois52
- Tobacco and nicotine in Illinois19
- Transportation in Illinois24
- All jurisdictions
Insurance legislation in other jurisdictions
52 more currently hold bills in this tracker
- New Jersey539
- New York481
- Texas314
- Massachusetts246
- Connecticut230
- Louisiana214
- Maryland208
- Missouri197
- Hawaii190
- Rhode Island188
- Mississippi187
- Florida185
- West Virginia175
- Virginia158
- Montana155
- Oklahoma152
- Pennsylvania152
- California146
- Michigan137
- Iowa127
- Georgia112
- Kentucky109
- Tennessee99
- Indiana93
- Arizona91
- South Carolina86
- North Carolina80
- Minnesota78
- Oregon74
- Ohio70
- Utah70
- Arkansas68
- Washington67
- Kansas66
- Maine66
- New Hampshire63
- Nebraska60
- New Mexico59
- Colorado56
- Nevada54
- Congress48
- Wisconsin48
- Idaho47
- Alaska38
- Alabama32
- Delaware30
- North Dakota29
- Vermont29
- South Dakota21
- District of Columbia8
- Puerto Rico6
- Wyoming4
Know when Illinois's insurance law changes
An alert when a bill moves, and one report a month on what changed in every state and Congress.