Text of IL HB 4611 (2024)

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4611 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED: 215 ILCS 5/143.19.4 new Amends the Illinois Insurance Code. Provides that an insurer shall not, with regard to any motor vehicle liability insurance practice, (i) unfairly discriminate based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression or (ii) use any external consumer data and information sources in a way that unfairly discriminates based on age, race, color, national or ethnic origin, immigration or citizenship status, sex, sexual orientation, disability, gender identity, or gender expression. Allows the Department of Insurance to examine and investigate an insurer's use of external consumer data and information sources, algorithms, or predictive models in any motor vehicle liability insurance practice. Specifies that the provisions shall not be construed to require an insurer to collect consumer's demographic data, to prohibit the use of a driver's history that has a direct relationship with risk, or to prohibit the use of or require testing of longstanding and well-established common industry practices in settling claims or traditional underwriting practices. Prohibits an insurer from canceling, refusing to renew, or increasing the premium for any policy of automobile insurance solely because an insured person has reached the age of 65 years if the insured has a valid Illinois driver's license. Defines terms. LRB103 37111 MXP 67230 b A BILL FOR HB4611LRB103 37111 MXP 67230 b 1 AN ACT concerning regulation. 2 Be it enacted by the People of the State of Illinois, 3represented in the General Assembly: 4 Section 5. The Illinois Insurance Code is amended by 5adding Section 143.19.4 as follows: 6 (215 ILCS 5/143.19.4 new) 7 Sec. 143.19.4. Automobile insurance practices; prohibition 8on discrimination. 9 (a) As used in this Section: 10 "Algorithm" means a computational or machine learning 11process that informs human decision-making in insurance 12practices. 13 "External consumer data and information source" means a 14data or an information source that is used by an insurer to 15supplement traditional underwriting or other insurance 16practices or to establish lifestyle indicators that are used 17in insurance practices. 18 "External consumer data and information source" includes 19credit scores, social media habits, locations, purchasing 20habits, home ownership, educational attainment, occupation, 21licensures, civil judgments, and court records. 22 "Insurance practice" means marketing, underwriting, 23pricing, utilization management, reimbursement methodologies, HB4611- 2 -LRB103 37111 MXP 67230 b 1and claims management in the transaction of insurance. 2 "Predictive model" means a process of using mathematical 3and computational methods that examine current and historical 4data sets for underlying patterns and calculate the 5probability of an outcome. 6 "Unfairly discriminate" includes the use of one or more 7external consumer data and information sources, as well as 8algorithms or predictive models using external consumer data 9and information sources, that have a correlation to age, race, 10color, national or ethnic origin, immigration or citizenship 11status, sex, sexual orientation, disability, gender identity, 12or gender expression of an individual and that uses results in 13a disproportionately negative outcome for such classification 14or classifications, which negative outcome exceeds the 15reasonable correlation to the underlying insurance practice, 16including losses and costs for underwriting. 17 (b) An insurer shall not, with regard to any motor vehicle 18liability insurance practice: 19 (1) unfairly discriminate based on age, race, color, 20 national or ethnic origin, immigration or citizenship 21 status, sex, sexual orientation, disability, gender 22 identity, or gender expression; or 23 (2) use any external consumer data and information 24 sources, as well as any algorithm or predictive models 25 that use external consumer data and information sources, 26 in a way that unfairly discriminates based on age, race, HB4611- 3 -LRB103 37111 MXP 67230 b 1 color, national or ethnic origin, immigration or 2 citizenship status, sex, sexual orientation, disability, 3 gender identity, or gender expression. 4 (c) The Department of Insurance may examine and 5investigate an insurer's use of external consumer data and 6information sources, algorithms, or predictive models with 7regard to any motor vehicle liability insurance practice. 8Insurers shall cooperate with the Department of Insurance in 9any examination or investigation under this Section. 10 (d) Nothing in this Section may be construed to: 11 (1) Require an insurer to collect from an applicant or 12 policyholder the age, race, color, national or ethnic 13 origin, immigration or citizenship status, sex, sexual 14 orientation, disability, gender identity, or gender 15 expression of an individual. 16 (2) Prohibit the use of a driver's history that has a 17 direct relationship to risk unless such information is 18 otherwise included in the testing of an algorithm or 19 predictive model that also uses external consumer data and 20 information sources. 21 (3) Prohibit the use of or require testing of 22 longstanding and well-established common industry 23 practices in settling claims or traditional underwriting 24 practices unless such practices or factors are otherwise 25 included in the testing of an algorithm or predictive 26 model that also uses external consumer data and HB4611- 4 -LRB103 37111 MXP 67230 b