New Law Makes Insurance Companies Find, Pay Beneficiaries

Associated Press

CHICAGO (AP) – Illinois Gov. Bruce Rauner has signed legislation requiring insurance companies to locate beneficiaries of unclaimed life insurance policies and pay them money they’re owed.

The Republican said Friday the state also is launching a website to help Illinois residents find out if they are a beneficiary of an insurance policy or annuity left by someone who died.

Democratic Treasurer Michael Frerichs says his office has identified more than $550 million in unpaid benefits owed to Illinois residents.

The Legislature unanimously approved the bill. It requires insurers to use federal death records to identify deceased policyholders whose life insurance proceeds remain unpaid.

Business groups lobbied Rauner for a veto. They said using a private audit firm that earns a contingency fee for finding unpaid benefits has led to “overreaching audits.”

(Copyright 2016 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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