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News & Press: State Legislative and Regulatory News

Illinois Governor Vetoes Unclaimed Life Insurance Act Amendment

Monday, August 28, 2017   (0 Comments)
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On Friday, Aug. 25, 2017, Illinois Gov. Bruce Rauner issued an amendatory veto of H.B. 302, legislation that would amend the state’s Unclaimed Life Insurance Benefits Act. 

 

According to an official statement, the governor took issue with the two-tiered Death Master File enforcement system that would be required by the law. H.B. 302 would require insurers to cross check policies that have lapsed or terminated. Those with electronically searchable records, records would be required to search back to 2000. Those without electronically searchable records would have to conduct searches back to only 2012. Rauner called this system “inequitable and potentially unconstitutional.”

 

Rauner also voiced his opposition to the “overreach of private auditing firms,” stating, “Throughout the country, including Illinois, states have retained private auditors with contingency fee arrangements for the identification of unclaimed property, including life insurance policies. The expansion of these private auditors, however, incentivizes behavior that rewards private companies at the expense of state taxpayers.

 



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