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SPRINGFIELD, IL — [Oct. 30] — The National Association of Mutual Insurance Companies today called on members of the Illinois House to vote “NO” on HB 3799.  The bill would hand the Illinois Department of Insurance unchecked power to retroactively and artificially suppress insurance rates, which will create chaos in the marketplace, drive up premiums, and jeopardize coverage for Illinois families.
“HB 3799 is being sold as consumer protection, but it will do the exact opposite,” said Jennifer Hammer, former director of the Illinois Department of Insurance and external counsel for NAMIC. “Research shows that premiums in prior-approval states average 20 percent more than states like Illinois.

If this bill passes, Illinois will walk straight into the same crisis we’ve seen play out in states like California and possibly worse because HB 3799 goes beyond every other state in price control.” Hammer continued. “The bill gives regulators unlimited authority to pull back approved rates at any time with no deadlines, no appeal process, and no accountability. That kind of uncertainty will force insurers to raise prices or stop writing business in Illinois altogether.”

Today, Illinois’ insurance market is a national success story where consumers benefit from competition, stability, and affordability of rates. More than 200 companies currently offer coverage, and auto insurance rates remain well below the national average. HB 3799 would undo decades of progress and send a chilling message to insurers: Illinois is no longer open for business.

“Governor J.B. Pritzker touted Illinois’ rise to 13th in CNBC’s Top States for Business this summer,” said Erin Collins, senior vice president of state and policy affairs for NAMIC. “But if HB 3799 passes, those gains will vanish fast. You can’t claim to be pro-business while advancing policies that drive investment and jobs out of the state. I hope the governor tells the legislature that HB 3799 is not in concert with his desire to continue Illinois’ rise in the rankings.”

NAMIC urges lawmakers to reject HB 3799 and instead work toward policies that preserve affordability, stability, and consumer choice in Illinois’ insurance market.