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Illinois sets 60-day notice rule for steep fire premium hikes
The new law also creates a rate-review framework for fire and extended coverage, including 60-day Department of Insurance checks and potential refunds if filings are found improper.
Illinois has enacted a new rule for home insurers, requiring policyholders to get at least 60 days' notice before a renewal premium increase above 10% for covered fire policies. The requirement, set in House Bill 4273 as Public Act 104-0752, applies when notices are sent on or after July 1, 2027, and covers premium changes as well as certain changes to deductibles or coverage for an entire line of business.
The measure also reshapes how Illinois prices fire and extended coverage. Fire and extended coverage rates cannot be excessive, inadequate, or unfairly discriminatory, with a rate considered inadequate if it endangers an insurer's solvency, and it adds a new rate-review process in the Illinois Insurance Code.
Under the new regime, if the Illinois Department of Insurance believes a rate filing is incomplete or insufficient, it has 60 days from a complete filing to notify the carrier. If the Department misses that timeline, the filing is deemed compliant, and the law says that deemed compliance is neither waivable nor subject to extension.
If the Department finds a rate off-side, its final order can set when the filing stops working and spell out any rebates owed to affected consumers. Insurers are given 30 days to request a hearing, and the Director's objection can be taken to court under the Administrative Review Law, while insurers are also barred from relying on out-of-state loss experience when Illinois-specific data is available and statistically reliable, according to Insurance Business.