On November 2, 2018, Illinois proposed Administrative Rules (IL 17858 2018) that would amend its Unclaimed Life Insurance Benefits Act to, among other things, implement a Lost Policy Finder Service, establish the minimum standards for a “good faith effort” to locate beneficiaries, and define the term “electronic searchable files.”
Insurance (98 articles)
The unclaimed property landscape is rapidly evolving for insurance companies. States are adopting new regulations that require insurers to actively seek out and locate beneficiaries when proceeds are due, as well as conduct regular comparisons of their in-force policies against sources such as the Social Security Administration Death Master File.
The California Superior Court held that the guidance issued by the Controller’s Office in its unclaimed property holder handbook amounted to improperly promulgated regulations under the California Administrative Procedure Act, which requires a public comment period, and were therefore unenforceable.
With the override of the Governor’s Amendatory Veto of IL HB 302 on November 8, 2017, the Unclaimed Life Insurance Benefits Act was amended to include a modified definition of “policy” and new requirements for insurers to perform comparisons of their in-force policies, annuity contracts, and retained asset accounts against the Death Master File (DMF).
Three State legislatures introduced new bills that will effectively change aspects of their respective unclaimed life insurance benefits acts. Life insurance carriers that operate in Texas, one of the nation’s most populous states, should be advised of the potential operational impact of this newly proposed legislation.
Signed into law by Governor Rauner on August 26, 2016, IL HB 4633 creates the Illinois Uniform Unclaimed Life Insurance Benefits Act and amends the state Insurance Code. This bill will become effective on January 1, 2017 and details the requirements and procedures to which insurers must adhere to ensure compliance. This includes identifying deceased insureds and […]