IL HB1252

Prohibits auto insurers from using 16 specified factors for underwriting or rating, including sex, marital status, race, age, employment, education, home ownership, credit scores, prior insurance history, income level, and zip code or smaller geographic designations

Allows insurers to consider years of driving experience despite the age prohibition, and permits territorial factors for rating purposes only if they have no more than 25% impact on premiums

Requires insurers to demonstrate that their marketing, underwriting, rating, claims handling, fraud investigations, and algorithms do not disparately impact customers based on protected characteristics including race, sex, sexual orientation, disability, and gender identity

Establishes a prior approval system requiring insurers to file rate change applications with the Director of Insurance, with mandatory public hearings for increases exceeding 7% for personal lines or 15% for commercial lines

Assesses insurers an annual fee of 0.05% of their total earned premium from the prior year, due by July 1, to fund implementation; requires the Department to adopt implementing rules within 90-180 days of the Act's effective date