(The Center Square) – Illinois Republicans say a state Senate proposal to regulate homeowners insurance rates failed to address the reasons for higher premiums.
House Bill 3799 would require home insurance providers to notify consumers at least 60 days in advance if they raise premiums 10% or more. The measure would also give the Illinois Department of Insurance the power to object to rates it finds excessive, inadequate or discriminatory.
HB 3799 passed in the state Senate but fell short in the Illinois House during fall veto session last Thursday.
State Rep. Jeff Keicher, R-Sycamore, said the bill did not address the costs that have angered consumers.
“There’s no public adjuster reform. There’s no litigation reform. Anything that causes insurance rates to be higher are not addressed in this bill,” Keicher said on the House floor.
Keicher said he has worked in the insurance business for 30 years. He said the bill would turn the industry on its head.
“Every single one of your constituents who has a homeowners policy will pay extra because of the uncertainty that it creates,” Keicher said.
State Rep. Robyn Gabel, D-Evanston, became the chief House sponsor of the bill earlier Thursday.
State Rep. Thaddeus Jones, D-Calumet City, told Gabel the bill should also regulate auto insurance rates.
“Why aren’t we attacking the auto industry and putting them into this bill as well? Would you support doing something like that?” Jones asked.
“I think we’re going to be looking at auto insurance next year,” Gabel responded.
Jones said auto rates should be included and urged a “no” vote.
“To hell with what the industry says. We want to protect consumers,” Jones insisted.
House members voted down the measure after the Senate approved it earlier in the day.
State Sen. Michael Hastings, D-Frankfort, supported the legislation and argued that homeowners have experienced 20 to 30% rate increases.
“These aren’t radical changes. They’re reasonable reforms. They protect consumers,” Hastings said.
State Sen. Dave Syverson, R-Cherry Valley, said Illinois consumers have more options than their counterparts in other states.
“This is about control, about controlling an industry that right now has been very competitive. Illinois is blessed with over 200 companies that sell these products,” Syverson said.
Lawmakers may revisit homeowners insurance next year, when they are also expected to consider a proposal to regulate auto insurance rates.
