Reynolds v. State Farm Insurance Co.

2025 IL App (2d) 240399
CourtAppellate Court of Illinois
DecidedDecember 10, 2025
Docket2-24-0399
StatusPublished

This text of 2025 IL App (2d) 240399 (Reynolds v. State Farm Insurance Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reynolds v. State Farm Insurance Co., 2025 IL App (2d) 240399 (Ill. Ct. App. 2025).

Opinion

2025 IL App (2d) 240399 No. 2-24-0399 Opinion filed December 10, 2025 _____________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT ______________________________________________________________________________

MILTON REYNOLDS, Individually and ) Appeal from the Circuit Court on Behalf of Similarly Situated Individuals, ) of Kane County. ) Plaintiff-Appellant, ) ) v. ) No. 23-LA-465 ) STATE FARM LIFE INSURANCE ) COMPANY, and STATE FARM LIFE ) AND ACCIDENT ASSURANCE ) COMPANY, ) Honorable ) John G. Dalton Defendants-Appellees. ) Judge, Presiding. ______________________________________________________________________________

JUSTICE HUTCHINSON delivered the judgment of the court, with opinion. Justices McLaren and Birkett concurred in the judgment and opinion.

OPINION

¶1 At issue here is whether section 20(b) of the Genetic Information Privacy Act (Act) (410

ILCS 513/1 et seq. (West 2022)), applies to life insurance underwriting. Upon careful

consideration, we determine that it does not and therefore affirm.

¶2 I. BACKGROUND

¶3 A. Factual Background

¶4 On October 30, 2023, plaintiff Milton Reynolds filed this putative class action in the Kane

County Circuit Court. Reynolds’s complaint raised a single cause of action arising out of the Act’s 2025 IL App (2d) 240399

section 20(b). Id. § 20(b). Reynolds alleged that State Farm Life Insurance Company and State

Farm Life and Accident Assurance Company (collectively “State Farm”) required him (and other

similarly situated individuals) to undergo a physical exam and to provide genetic personal health

information (genetic PHI) to assess their eligibility for life insurance coverage. Reynolds’s

complaint alleged that this practice ran afoul of the Act’s section 20(b), which prohibits insurers

from using or disclosing “protected health information that is genetic information” for

“underwriting purposes.” Id.

¶5 On March 14, 2024, State Farm moved to dismiss Reynolds’s complaint under section 2-

615 of the Code of Civil Procedure (735 ILCS 5/2-615 (West 2024)). State Farm argued, inter alia,

that section 20(b) did not apply to life insurance underwriting but rather solely to health insurance

underwriting. On March 31, 2024, the trial court held a hearing on State Farm’s motion to dismiss.

Reasoning that section 20(b) “[t]aken as a whole, read in context, [and] giving affect [sic] to all of

its provisions” did not apply to life insurers, the trial court granted State Farm’s motion to dismiss

with prejudice. This timely appeal followed.

¶6 B. Summary of Parties’ Main Arguments

¶7 Reynolds advances numerous arguments in his brief in support of his theory that the Act’s

section 20(b) applies to life insurance underwriting. He points first to section 20(b)’s use of the

broad term “insurers”—rather than a more qualified term, such as “health insurers”—and

concludes that this section regulates life insurers insofar as they meet the statutory definition of

“insurer.” 1 Reynolds next contrasts section 20(b)’s language with that of adjacent subsections (a)

1 There was some question in the trial court whether life insurers meet the Act’s statutory definition

of “insurer.” State Farm chooses not to argue this point. Therefore, we proceed as if life insurers meet the

statutory definition.

-2- 2025 IL App (2d) 240399

and (c). 410 ILCS 513/20(a), (c) (West 2022). These latter subsections, Reynolds notes, explicitly

limit their application to accident and health insurance, while subsection (b) contains no similar

limitation. Following this, Reynolds anticipates State Farm’s argument that construes subsection

(b)(4) (id. § 20(b)(4)) as a “catch-all clause,” limiting the definition of “underwriting purposes” to

health insurance underwriting. See infra ¶¶ 17-23 (section II(C)). Reynolds stresses that, under the

“last antecedent rule,” the limiting language in one subpart ought to apply only to that subpart.

Thus, per Reynolds, the language of subsection (b)(4)—apparently limiting the definition of

“underwriting purposes”—should apply only to subsection (b)(4).

¶8 Reynolds’s brief dives into section 20(b)’s legislative history as well. Passed in 2014, he

notes that section 20(b) is unique alongside its 1998 counterparts in that it does not expressly limit

its application to health and accident insurers. Reynolds contends that this was an intentional

omission by the General Assembly, designed to widen section 20(b)’s applicability to all insurers.

Moreover, Reynolds argues, the General Assembly based section 20(b)’s text on a similar Health

Insurance Portability and Accountability Act of 1996 (HIPAA) (42 U.S.C. § 201 et seq. (2018))

regulation. When it did so, however, it replaced HIPAA’s “covered entity” terminology (a narrow

term meaning a health plan or health insurance company) with the broader term of “insurer,” which

likewise demonstrates the legislature’s intent to cast a broad regulatory net in passing this section.

¶9 In its brief, State Farm seeks to counter these arguments. It stresses that, while section 20(b)

regulates “insurers,” an entity’s status as an “insurer” is not enough to trigger section 20(b)’s

regulations. Rather, an entity must be both an insurer and engaged in underwriting. Section 20(b)’s

definition of underwriting, meanwhile, consists principally of health insurance vocabulary, such

as “deductibles” and “pre-existing conditions.” Terms specific to life insurance are notably absent.

-3- 2025 IL App (2d) 240399

¶ 10 In response to Reynolds’s analysis of section 20(b)(4), State Farm emphasizes section

20(b)’s syntax of “A, B, C and other D’s,” and notes that under standard grammatical rules, the

“other D’s” phrase modifies the entire series, not just the last item of the series. The “last

antecedent” rule that Reynolds forwards, State Farm points out, applies to a different type of

syntax.

¶ 11 Finally, State Farm examines the legislative history of section 20(b). It demonstrates that

the General Assembly added this section to modernize the Act in light of new federal regulations,

which applied solely to health insurers. It notes the life insurance industry’s conspicuous silence

when the General Assembly was considering section 20(b) in 2014—a notable contrast to 1998,

when the life insurance industry’s outcry forced changes to the original law. It points also to

recently introduced legislation which, if enacted, would regulate the use of genetic PHI for life

insurance underwriting. Such legislation would be unnecessary, State Farm notes, if section 20(b)

already applied to life insurance underwriting.

¶ 12 II. ANALYSIS

¶ 13 A. Standard of Review

¶ 14 When considering the sufficiency of a complaint under section 2-615, we must determine

whether the allegations in the complaint, construed in a light most favorable to the plaintiff, are

sufficient to set forth a cause of action upon which relief may be granted. Jost v. Bailey, 286 Ill.

App. 3d 872, 877 (1997). A claim should be dismissed on the pleadings only if “it clearly appears

that no set of facts can be proved under the pleadings which will entitle the plaintiff to recover.”

Bryson v. News America Publications, Inc.

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