Illinois Lawmakers Weigh Bill to Regulate Homeowners Insurance Rates

Proposed legislation would give state regulators more authority to review and modify rate increases.

Published on Feb. 17, 2026

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Illinois lawmakers are considering a bill that would give the state's Department of Insurance more authority to regulate homeowners insurance rates. The bill, which passed the Senate last year but fell short in the House, would prohibit 'excessive, inadequate, or unfairly discriminatory' rates and require companies to use state-specific loss data when setting rates. The insurance industry has objected to a provision that would allow the Department of Insurance to review and modify rates after they are implemented.

Why it matters

The proposed legislation comes in response to a 27.2% rate hike by State Farm Insurance last year, which the governor criticized as an attempt to shift the costs of weather-related disasters in other states onto Illinois consumers. Currently, Illinois is known as a 'use-and-file' state, meaning insurance companies can raise rates at any time without prior approval from regulators.

The details

The bill would leave the 'use-and-file' system in place but would require companies to give consumers at least 60 days' notice before raising rates by 10% or more. It would also give the Department of Insurance the authority to review rates after they are implemented and order rebates if the rates are found to be excessive, inadequate, or unfairly discriminatory. The insurance industry has objected to this provision, arguing that there should be a limit on how far back the agency can look in its review process.

  • The bill passed the Senate during last fall's veto session but fell four votes short of the 60 needed for passage in the House.
  • The House sponsor, Rep. Robyn Gabel, D-Evanston, refiled a motion to concur the following day, which is allowed under House rules.
  • The House and Senate are scheduled to return to the Statehouse on Tuesday, February 18, 2026 to begin the 2026 legislative session in earnest.

The players

JB Pritzker

The Governor of Illinois, who called for the legislation last summer after State Farm's rate hike and has said he still wants the bill to pass.

Robyn Gabel

The Democratic state representative from Evanston who is the chief House sponsor of the bill.

Illinois Department of Insurance

The state agency that currently has limited authority to review or approve insurance rates, but would be given more power under the proposed legislation.

Kevin Martin

The executive director of the Illinois Insurance Association, who has criticized the bill's provision allowing the Department of Insurance to review rates after they are implemented.

Douglas Heller

The director of insurance for the Washington-based Consumer Federation of America, who described Illinois' current insurance laws as 'among the most toothless in the nation.'

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What they’re saying

“We have never seen anything like that, and we would argue very strongly that that does not happen and cannot happen based on the actuarial data that the companies have to provide in Illinois on Illinois losses.”

— Kevin Martin, Executive Director, Illinois Insurance Association (Capitol News Illinois)

“As states across the country face even more extreme weather than we do, we need to make sure Illinois homeowners are not paying for losses that companies experience in other states.”

— JB Pritzker, Governor of Illinois (Chicago Tribune)

What’s next

The House and Senate are scheduled to return to the Statehouse on Tuesday, February 18, 2026 to begin the 2026 legislative session in earnest. The bill could be called for a second vote as early as that day.

The takeaway

This proposed legislation highlights the ongoing debate over the balance between consumer protection and industry interests when it comes to regulating the homeowners insurance market. The outcome of this bill could have significant implications for Illinois residents facing rising insurance costs, as well as the insurance companies operating in the state.