HB4137 - Flood Insurance Act

• Creates regulatory framework for private flood insurance in Illinois by requiring Department of Insurance form approval for policies meeting federal requirements under 42 U.S.C. 4012a(b)

• Exempts flood insurance rates from prior Department approval but authorizes Department audits to ensure rates are based on actuarial data and are not excessive, inadequate, or unfairly discriminatory

• Requires authorized insurers to notify Department at least 30 days before writing flood insurance and to notify Department of rate changes within 30 days of effective date; insurers must maintain actuarial data for 2 years after rate changes

• Mandates insurance agents maintain written or electronic evidence signed by applicants acknowledging explanation of National Flood Insurance Program alternatives, that standard homeowner policies exclude flood coverage, and whether applicant declines flood coverage

• Authorizes Department of Insurance to certify that private flood policies meet or exceed National Flood Insurance Program coverage, and prohibits misrepresenting certification status as an unfair or deceptive trade practice