Lawmakers in Illinois are considering legislation that would reshape how auto glass claims and repairs operate, updating assignment-of-rights rules, adding new obligations for repair shops, and revising definitions to reflect driver-assistance technology.
House Bill 4373 would prohibit property and casualty insurance policyholders from assigning, delegating, or transferring duties, rights, or benefits under an insurance policy.
Any contract allowing a transfer of rights would become void if the bill becomes law, according to the text.
The proposal amends the Motor Vehicle Glass Repair Act to clarify policyholders cannot be forced to use a specific repair shop for auto glass work. Insurers and related parties would still retain the ability to recommend shops, preserving steerage boundaries without turning recommendations into mandates.
HB 4373 also targets referral practices. Repair shops, along with anyone soliciting business on their behalf, would be barred from offering anything of value in exchange for referrals involving policyholders, insurance producers, or other parties connected to a claim.
Definitions around repair and replacement would expand to include calibration or recalibration of advanced driver assistance systems.
That change reflects the growing number of windshields integrated with ADAS components and the risks tied to improper recalibration.
For claims involving ADAS-equipped windshields, repair shops would need to notify policyholders in advance if calibration or recalibration is required.
Shops would also have to disclose whether they can perform the work themselves or whether a certified dealership or qualified specialist must complete it. After repairs, shops would need to explain whether calibration succeeded and outline next steps if it did not.
The bill layers in additional restrictions on repair shop conduct.
It would prohibit attempts to induce policyholders to make false statements, ban unverified claims that repairs will be fully covered by insurance, and restrict shops from charging fees or costs above what is customarily charged in Illinois.
The legislation is sponsored by Thaddeus Jones, a Democrat representing District 29.
Separately, state lawmakers are also reviewing a proposal aimed at public adjusters. That measure would add new limits, including a ban on collecting the full fee from the first payment issued by an insurer, signaling a broader push to tighten claim-related practices across the auto and property insurance space.
