Illinois insurance laws
Insurance regulations, rate filing requirements, department info, and recent bulletins for Illinois. Updated Mar 31, 2026.
Department of Insurance
Illinois maintains a balanced regulatory approach to insurance oversight, with the Department of Insurance led by Director Ann Gillespie since April 2024. The state operates under a File & Use rate system for most lines, though recent legislative efforts (SB 269, SB 1486) are moving toward enhanced prior approval requirements for auto and homeowners insurance. Illinois has been progressive in consumer protections, particularly in health insurance, having expanded Medicaid under the ACA and launching its own state-based marketplace (Get Covered Illinois) in 2026.
Auto Insurance
Notable Laws
- 625 ILCS 5/7-601: Mandatory liability insurance required for all vehicles registered in Illinois
- 215 ILCS 5/143a: Uninsured motorist (UM) coverage mandatory at minimum $25,000/$50,000 limits
- 215 ILCS 5/143a-2: Underinsured motorist (UIM) coverage required if UM limits exceed state minimums
- 625 ILCS 5/7-203: Minimum liability coverage set at $25,000/$50,000/$20,000 for BI/PD
- 215 ILCS 5/143.13: Motor vehicle insurance must provide property damage coverage for hit-and-run accidents
Homeowners Insurance
Notable Laws
- 215 ILCS 5/143.16: Requires 60-day advance notice for cancellation or non-renewal after policy effective 60+ days
- 215 ILCS 5/143.17: Prohibition on cancellation based on age of structure or single claim
- 215 ILCS 157/: Use of Credit Information in Personal Insurance Act regulates credit-based insurance scoring
- 215 ILCS 5/143.22: Notice to insured of eligibility for Illinois FAIR Plan upon cancellation
- 215 ILCS 5/155.49: Insurance supplier diversity reporting requirements for insurers
Recent Bulletins
CSR Load Data Call
Data request for development of Cost-Sharing Reduction (CSR) load for benefit year 2027. Insurance companies must provide enrollment breakouts for silver plans with CSR load and 2025 experience data for all Individual ACA Silver plans offered through the Exchange.
View bulletinUpdated Filing Instructions for Insurance Supplier Diversity Reports
Provides guidance to risk-bearing entities with updated filing instructions for submitting annual insurance supplier diversity reports required pursuant to 215 ILCS 5/155.49 for entities with assets exceeding $50,000,000. Specifies exemptions and provides detailed instructions on filing via SERFF.
View bulletinThird-Party Public Adjuster Lead Generators
Clarifies that public adjusters must ensure any third-party lead generators they use are properly licensed as Illinois public adjusters. Using unlicensed entities for solicitation violates the Public Adjuster Law and renders contracts void. Failure to comply may lead to regulatory action and criminal liability.
View bulletinPublic Adjuster as Co-Payee
The Department requests insurance companies review their claims handling practices and not make public adjusters co-payees on insurance claims checks unless the public adjuster contract contains such provisions. These practices undermine consumer rights provided in the Illinois Public Adjuster Law.
View bulletinReimbursement for Travel, Food, & Lodging for Treatment of Mental Health and Substance Use Disorders
Provides guidance to health insurance issuers subject to the Network Adequacy and Transparency Act (NATA) on their obligation to implement a process for beneficiaries to claim reasonable reimbursement for travel, food, and lodging when they must wait longer than 10 business days for in-network MHSUD appointments or travel beyond distance standards.
View bulletinRecent Law Changes
Mental Health and Substance Use Parity
Strengthens mental health and substance use disorder insurance coverage by improving mental health parity requirements, establishing reimbursement rates for mental health treatment services, and expanding behavioral health access for Illinoisans with private insurance. Amends the Illinois Insurance Code to enhance coverage parity and provider network adequacy.
Health insurance issuers must enhance coverage parity for mental health and substance use disorders, improving access to behavioral healthcare for insured individuals.
Effective: 2026-06-01
Neonatal Intensive Care Coverage
Requires health insurers to cover emergency neonatal intensive care from nonparticipating providers or facilities at no greater out-of-pocket cost to patients than if the services were provided by in-network providers. Addresses the critical need for immediate neonatal care regardless of network status.
Parents of newborns requiring emergency NICU care will not face out-of-network charges regardless of which hospital provides treatment.
Effective: 2026-01-01
Brand-Name Medication Coverage During Shortages
Requires insurance companies to cover brand-name medications when generic versions are unavailable due to shortages, ensuring patients maintain access to necessary medications without interruption. Prevents treatment gaps caused by generic drug shortages.
Patients will have access to brand-name drugs at no additional cost when generics are unavailable, preventing treatment interruptions during drug shortages.
Effective: 2026-01-01
Prescription Drug Affordability Act
Establishes the Prescription Drug Affordability Board and expands pharmacy benefit manager (PBM) regulations to control prescription drug costs, improve transparency, and ensure affordability for Illinois residents. Includes reporting requirements, fee structures for PBMs, and cost control mechanisms.
Pharmacy benefit managers face new reporting requirements and fee structures, aiming to reduce prescription drug costs for consumers through enhanced oversight.
Effective: 2026-01-01
Insurance Rate Transparency Law
Creates the Insurance Rate Transparency Law requiring insurers offering auto and homeowners insurance to maintain publicly accessible websites displaying annual percentage increases or decreases in premiums, beginning January 1, 2026. Enhances consumer transparency in insurance rate changes.
Consumers gain transparency into insurance rate changes as insurers must publicly disclose annual premium percentage increases or decreases on accessible websites.
Effective: 2026-01-01
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