Illinois lawmakers are likely to make a second run at passing legislation that would give state regulators power to control homeowners' insurance premiums during their 2026 session.

Last summer, Governor J.B. Pritzker called for legislation to control insurance costs after State Farm increased homeowners' premiums in the state by an average of 27.2%.

"I am deeply concerned by State Farm's unfair and arbitrary insurance rate hike on Illinois homeowners," Pritzker said in a July 2025 release. "These increases are predicated on catastrophe loss numbers that are entirely inconsistent with the Illinois Department of Insurance's own analysis — indicating that State Farm is shifting out-of-state costs onto the homeowners in our state. Hard-working Illinoisans should not be paying more to protect beach houses in Florida."

State Farm denied Pritzker's accusations, claiming the premium increases came as the result of an unforgiving market where insurers struggle with severe weather losses and inflationary pressures, including rising home replacement costs.

In response to State Farm's premium hike, Pritzker called on the General Assembly to "enact a legislative solution during veto session that prevents insurance companies from taking advantage of consumers through severe and unnecessary rate hikes like those proposed by State Farm."

House Bill 3799 was introduced in response to the governor's concerns. The bill, which, among other provisions, would give the Illinois Department of Insurance authority to approve or reject insurance rate increases, passed the state Senate during an October 2025 veto session, but failed by four votes in the House of Representatives in its amended version. The bill's sponsor, Rep. Robyn Gabel, refiled a motion to concur the day after it failed, which will allow legislators to revisit it. Since the end of that veto session, Pritzker has also expressed a desire for the legislation to move forward.

In a statement from October, State Farm rallied against the passage of HB 3799, saying it would "undermine rate predictability, market stability, and reduce competition while ultimately leading to higher insurance prices for Illinois residents."

The major insurer said it is collaborating with lawmakers to forge a new bill that would still give the Illinois Department of Insurance the power of oversight, but would provide safeguards that prevent indefinite regulatory approvals and unpredictable retroactive refund demands.

"Lawmakers can strengthen oversight without destabilizing the market," State Farm's statement said.

As of publication, the last legislative update for HB 3799 is from December 2025, when the bill was re-referred to the House Rules Committee. While no official move has been made to reintroduce the bill yet, industry insiders expect HB 3799 may re-emerge within the coming days as Illinois' 2026 legislative session continues.

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