HB 3451

Abstract

Amends the Illinois Insurance Code. Requires insurance policies to be written in language easily readable and understandable by a person of average intelligence and education. Provides the factors the Director of Insurance shall consider in making the determination that the policy is easily readable and understandable by a person of average intelligence and education. Fiscal Note (Dept. of Insurance) Some states have requirements related to the Flesch Test Readability which could greatly assist in adhering to the requirements of this bill. However, the bill in its current form provides little guidance on what "understandable" means, which could vary greatly from individual to individual. To meet the requirements as described within HB 3451 the Department anticipates the need for, at minimum, eight (8) additional insurance analyst positions within three of our insurance compliance units, Life, Health and Property/Casualty, with a projected fiscal impact to the Illinois Department of Insurance of just over $978,500 in personal services and related expenditures. State Mandates Fiscal Note (Dept. of Commerce & Economic Opportunity) This bill does not create a State mandate.