Leaders Tout Measure To Secure Life Insurance Payments
CHICAGO (CBS) -- Illinois State Treasurer Mike Frerichs and state legislators from both parties Tuesday asked Gov. Bruce Rauner to act quickly to sign legislation that would require insurance companies to notify beneficiaries of available death benefits.
Surprising as it might seem, current state law requires beneficiaries to contact insurers about benefits.
Frerichs said the CBS program "60 Minutes" reported, as a result, certain insurers have been holding onto millions of dollars that could easily be distributed.
"In one case, a woman's husband had two life insurance policies. She was only aware of one of them," Frerichs said. "She contacted the life insurance company, told them her husband died, sent a death certificate and she was paid off for one of them, but not the other, even though both insurance policies were with the same company."
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The measure passed the legislature unanimously, although it is vehemently opposed by the Kemper Companies. The proposal would require insurers to a good-faith effort to find beneficiaries if they don't file a claim within 120 days, and require insurers to check lists of policyholders against the Death Master File maintained by the federal government.
Rauner's office did not immediately comment.
