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Illinois sets 40-day objection window for auto rate filings
Insurers can challenge objections in a hearing, and if the Illinois Department of Insurance misses its own deadlines, the objections are dismissed and the rates stand.
Illinois has adopted new rules for how auto insurers file rate changes, tightening the standards and the timing for state review, according to Insurance Business.
The law sets a 40-day countdown for objections after an insurer submits new auto rates. If the Department of Insurance does not object within that window, the filing is deemed compliant, and the 40-day period is described as neither waivable nor extendable.
The statute defines when a rate is considered unacceptable, including rates deemed inadequate if they endanger insurer solvency, and rates deemed unfairly discriminatory if price differences do not reflect differences in expected losses and expenses. It also says a reasonable rate should be an actuarially sound estimate of expected future costs tied to an individual risk transfer.
The rules add procedural guardrails, including requirements to flag incomplete filings within 15 days and to rely on credible state-specific loss experience where available. Insurance Business also notes the law limits renewal premium increases, capping increases at 10% on covered lines unless policyholders receive at least 30 days' notice, with deductible or coverage changes requiring at least 60 days' notice.