Illinois lawmakers are preparing a second attempt to pass a bill giving state regulators greater authority over homeowners insurance rates, following major premium hikes by State Farm. Gov. JB Pritzker called for the legislation after State Farm raised Illinois premiums by an average of 27.2%, blaming weather-related losses.
A bill granting the Department of Insurance power to approve or reject rate increases passed the Senate last fall but fell four votes short in the House. Rep. Robyn Gabel, the bill’s sponsor, refiled a motion to concur, keeping the proposal alive. The bill could be called for another House vote as early as Tuesday, when the legislature’s 2026 session begins in earnest.
Illinois is unique in allowing insurers to set rates without prior approval—a “use-and-file” system. Advocates argue this leaves consumers vulnerable, as Illinois is the only state without protections against “inadequate, excessive or unfairly discriminatory” premiums.
The proposed bill would ban excessive or unfair rates, require 60 days’ notice for rate hikes over 10%, and prohibit insurers from shifting disaster costs from other states onto Illinois customers. It would let the state review and possibly modify rates after implementation, with the power to order rebates if rates are found unfair.
The insurance industry objects to retroactive reviews and late changes to the bill language. Legislative action is expected soon, with Pritzker set to address the General Assembly this week.