>> IT'S THE LAW.

IF YOU DRIVE A CAR, YOU HAVE TO HAVE AUTO INSURANCE.

CRITICS SAY DISCRIMINATION IS BAKED INTO INSURANCE RATES.

END OF ANY JOINS US NOW WITH MORE ON PROPOSED LEGISLATION THAT WOULD OVERHAUL HOW RATES ARE SET.

AMANDA, WHAT'S THE CONCEPT BEHIND THESE PROPOSALS?

SO DO YOU KNOW THERE IS A PAIR OF THEM AND REALLY WHAT THEY WANT TO DO IS FORBID COMPANIES FROM USING CRITERIA LIKE CITIZENSHIP, STATUS, RACE AND OTHER FACTORS IN SETTING AUTO INSURANCE RATES.

NOW ILLINOIS'S INSURANCE ALREADY PROHIBITS DISCRIMINATION.

STATE REPRESENTATIVE WILGUS ALREADY SAYS THAT HE BELIEVES INSURANCE AGENTS AREN'T DOING IT MALICIOUSLY, BUT HE SAYS REGARDLESS OF THAT INTENT, IT IS THE IMPACT OF ELDER IT ALGORITHMS THAT IS THAT USED ACTORS LIKE CREDIT SCORES HOMEOWNERSHIP AND EDUCATION LEVELS TO DETERMINE PREMIUMS.

>> WHEN YOU USE FACTORS, MY CREDIT SCORE LIKE EMPLOYMENT HISTORY, LIKE HOME OWNERSHIP LIKE ZIP CODE.

THESE FACTORS ARE SMUGGLING IN.

HISTORIES OF DISCRIMINATION, DECADES.

CENTURIES LEGACIES OF DISCRIMINATION.

>> THAT'S ALREADY A SPONSOR OF THE MEASURE THAT AS I SAID, IT WOULD FORBID INSURERS FROM USING CRITERIA, INCLUDING AGE RACE, ETHNICITY, IMMIGRATION STATUS.

IT WOULD ALSO GIVE THE STATE DEPARTMENT OF INSURANCE MORE AUTHORITY TO REVIEW HOW INSURERS USE EXTERNAL DATA IN THEIR PREDICTIVE MODELS.

>> SECRETARY OF STATE ALEXI GIANNOULIAS NOTES THAT DRIVERS CAN BE FINED OR HAVE THEIR LICENSES SUSPENDED IF THEY ARE FOUND TO BE WITHOUT INSURANCE.

>> SO IT ONLY STANDS TO REASON THAT WE REQUIRE YOU TO HAVE AUTO INSURANCE, THEN YOU SHOULDN'T HAVE TO JUMP THROUGH MULTIPLE HOOPS AND FACE JUDGMENT BASED ON A SERIES OF CRITERIA.

THAT HAVE ABSOLUTELY NO BEARING ON YOUR ABILITY TO DRIVE.

>> SAYS CAR INSURANCE RATES SHOULD BE BASED ONLY ON FACTORS RELATED TO DRIVING THINGS LIKE TICKETS.

ACCIDENTS, T WAYS.

BUT AUTO INSURANCE EXPERTS SAY THAT COMES WITH ITS OWN SET OF PROBLEMS.

FOR EXAMPLE, SOME POLICED.

THEY ALSO SAY TAKING OUT INFORMATION USED IN ALGORITHMS COULD BACKFIRE.

>> POLICYHOLDERS BENEFIT FROM RISK BASED PRICING AS INSURERS COMPETE FOR BUSINESS.

WE'VE HEARD ALREADY YOU CAN SHOP AROUND AND THEY ENSURE THAT LOWER-RISK POLICYHOLDERS ARE NOT SUBSIDIZING HIGHER RISK.

POLICYHOLDERS SO MORE SOUND FACTORS, MORE DATA ACTUALLY MAKES UNFAIR DISCRIMINATION AGAINST PROTECTED CLASSES, LESS LIKELY.

>> NOW THIS COMES AS INSURANCE RATES HAVE GONE UP IN RECENT YEARS.

YOU MAY HAVE NOTICED I THE DIRECTOR OF U OF I'S BUSINESS SCHOOL'S OFFICE OF RISK MANAGEMENT AND INSURANCE RESEARCH SAYS THAT'S BECAUSE THE COST OF CLAIMS HAS SKYROCKETED.

>> IF THE COST OF THOSE REPAIRS KEEP GOING UP, COSTS OF INSURANCE GOES UP.

SO WE GOT ALMOST 40% FOR MOTOR VEHICLE PARTS.

REPAIRS ARE GOING UP OVER.

21% AND THEN USED CAR VALUES HAVE GONE UP A LOT IN 5 YEARS.

>> SO THERE'S THIS DEBATE OVER RATES AND THEN ALSO THE PROPOSALS DEPARTMENT OF INSURANCE MORE AUTHORITY TO REVIEW RATES AND POTENTIALLY THE AUTHORITY TO LOWER THEM.

BUT HERE AGAIN, THERE IS A DISPUTE, JOANNA AND SHARICE SAY THAT WOMEN'S RIGHTS ARE ACTUALLY RELATIVELY LOW NATIONALLY.

IT WHEN YOU COMPARE IT WITH NATIONAL NATIONALLY BECAUSE THERE'S A LOT OF COMPETITION IN ILLINOIS AND THEY SAY THAT ADDING REGULATORS WOULD COME AT A COST THAT WOULD BE PAID FOR BY.

YOU GUESSED IT, CONSUMERS THROUGH THEIR PREVIEWS.

REALLY INTERESTING.

THANK YOU FOR