IllinoisSB2910104th General Assembly (2025–2026)SenateWALLET

INS-FAIR PLAN ASSOCIATION

Sponsored By: Julie A. Morrison (Democratic)

Signed by Governor

Summary

Amends the Illinois Insurance Code. Changes the title of the Urban Property Insurance Article to the Availability of Property Insurance Article. Provides for regulation of an association, commonly referred to as the Illinois FAIR Plan Association, of all admitted insurers engaged in writing in the State, on a direct basis, basic property insurance or any basic property insurance component in multi-peril policies, including, without limitation, excess and surplus insurers, but not including farm mutual companies. Replaces all references in the Article to Industry Placement Facility or Facility with Association and all references to Inspection Bureau with Inspector. Sets forth provisions concerning participation in and management of the Association. Makes changes to provisions concerning application procedures; authorized operations for issuing policies; approval of rates; the right to appeal; reporting requirements; making of assessments; and powers of the Director of Insurance. Provides that an insurer shall, for purposes of ratemaking submissions, include its proportionate share of the Association's deficit or surplus in underwriting results with the method of recognition determined from time to time by the Association's governing committee and the Director. Repeals provisions concerning the Industry Placement Program; premium financing; applications for coverage of risks by the Industry Placement Facility; the Illinois Insurance Development Fund; reimbursement of the Secretary through the Fund; insolvency of companies; and a task force that reviews policy forms and endorsements issued by the Industry Placement Facility. Effective immediately.

assignmentsinsurance

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

More ways to apply for property coverage

The FAIR Plan provides an evaluation route for Illinois property owners who cannot get basic insurance after at least 3 unsuccessful attempts. Owner-residents of one- to four-family homes can also apply when the regular market does not renew their coverage. Beginning January 1, 2027, a registered Illinois-licensed agent must submit each complete application; applicants can request their evaluation report in writing and may get one reevaluation starting 60 days after the first. Insurers must provide FAIR Plan contact information when they cancel or do not renew fire coverage, except for nonpayment or evidence of incendiarism. The Director can require programs to address redlining and improve access, but an evaluation does not guarantee a policy.

Appeals and limits on FAIR Plan claims

Applicants whose coverage is rejected and policyholders whose policies are canceled or not renewed can appeal to the Association’s committee within 30 days after notice. A party can appeal the committee’s decision to the Director within 30 days; Director orders are subject to judicial review. Claims under an Association policy can be brought only against the Association. Beginning January 1, 2027, specified officials, Association staff, and their representatives cannot be sued for certain inspection and evaluation-related conduct. Evaluation reports, records, and communications are not public documents.

Insurers share FAIR Plan costs

Admitted insurers that write basic property insurance in Illinois must join the Association; farm mutual companies are excluded. Participating insurers cover its expenses and liabilities, and the Association can assess members after a loss. Members’ shares depend on their portion of Illinois property insurance premiums, with adjustments under the Credit Depopulation Program; members must pay assessments within 30 days. If a member is insolvent, its share is redistributed among the remaining members. The Association can distribute profits to members or keep them for past or future losses, so any effect on household insurance costs is indirect and uncertain.

Rules for FAIR Plan insurance policies

The Association can issue basic property insurance and set rules for applications, inspections, rates, deductibles, claims, and other policy terms. Beginning January 1, 2027, it must file proposed rates for the Director’s review; the Director has 60 days to approve or reject them and can add 30 days after notifying the Association. Policies and endorsements cannot be issued until rates and forms are approved. The 11-member committee has 6 insurer-elected members, 4 public consumer representatives, and 1 licensed producer, serving 3-year terms; insurer votes on administrative matters are weighted by premiums. The Director oversees the Association, and may allow changes to fire policies for non-owner-occupied residences with more than 4 units to support fair settlements, deter arson, and encourage neighborhood renewal. The Association must also maintain a program that encourages policies to return to the standard market.

Sponsors & Cosponsors

Sponsor

  • Julie A. Morrison

    Democratic • Senate

Cosponsors

  • Bob Morgan

    Democratic • House

  • Jeff Keicher

    Republican • House

  • Seth Lewis

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 191 • No: 0

House vote • 5/21/2026

Third Reading - Short Debate - Passed

Yes: 107 • No: 0

House vote • 5/5/2026

Do Pass / Short Debate Insurance Committee;

Yes: 15 • No: 0

Senate vote • 4/16/2026

Third Reading - Passed;

Yes: 57 • No: 0

Senate vote • 2/18/2026

Do Pass as Amended Insurance;

Yes: 12 • No: 0

Actions Timeline

  1. Public Act . . . . . . . . . 104-0645

    7/24/2026Senate
  2. Effective Date January 1, 2027

    7/24/2026Senate
  3. Governor Approved

    7/24/2026Senate
  4. Sent to the Governor

    6/18/2026Senate
  5. Passed Both Houses

    5/21/2026Senate
  6. Third Reading - Short Debate - Passed 107-000-000

    5/21/2026House
  7. Placed on Calendar Order of 3rd Reading - Short Debate

    5/19/2026House
  8. Second Reading - Short Debate

    5/19/2026House
  9. Placed on Calendar 2nd Reading - Short Debate

    5/6/2026House
  10. Do Pass / Short Debate Insurance Committee; 015-000-000

    5/5/2026House
  11. Added Alternate Chief Co-Sponsor Rep. Jeff Keicher

    5/5/2026House
  12. Assigned to Insurance Committee

    4/27/2026House
  13. Referred to Rules Committee

    4/17/2026House
  14. First Reading

    4/17/2026House
  15. Chief House Sponsor Rep. Bob Morgan

    4/17/2026House
  16. Arrived in House

    4/17/2026House
  17. Third Reading - Passed; 057-000-000

    4/16/2026Senate
  18. Placed on Calendar Order of 3rd Reading ** April 15, 2026

    4/14/2026Senate
  19. Placed on Calendar Order of 3rd Reading March 5, 2026

    3/4/2026Senate
  20. Second Reading

    3/4/2026Senate
  21. Added as Co-Sponsor Sen. Seth Lewis

    2/18/2026Senate
  22. Placed on Calendar Order of 2nd Reading February 19, 2026

    2/18/2026Senate
  23. Do Pass as Amended Insurance; 012-000-000

    2/18/2026Senate
  24. Senate Committee Amendment No. 1 Adopted

    2/17/2026Senate
  25. Senate Committee Amendment No. 1 Assignments Refers to Insurance

    2/17/2026Senate

Bill Text

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