IL SB3827

Creates new Article XLVIII in the Illinois Insurance Code establishing rate regulation for fire and extended coverage insurance policies, effective January 1, 2028.

Requires insurers to file all rates and supplementary rate information with the Director of Insurance 20 days before rates take effect; filings in competitive markets become effective after 20 days, while noncompetitive markets require 60 days.

Prohibits insurance rates that are excessive, inadequate, or unfairly discriminatory; rates in competitive markets are presumed not excessive, while noncompetitive market rates are excessive if they produce unreasonably high profits.

Defines a noncompetitive market as one where the Herfindahl-Hirschman Index (HHI) remains at 1800 or above consistently over a 3-year period; competitive markets are presumed unless the Director issues an order after a hearing.

Exempts commercial liability and property insurance, rental/leased structures, unoccupied structures intended for sale or under construction, and farm policy dwellings from the new rate regulation requirements.