Legislative Alert – IL 17858 2018 (State ID: 42 IR 19362):
Administrative Rules Adopted – Unclaimed Life Insurance Benefits
Adopted on August 16, 2019, the Administrative Rules have a retroactive effective date of July 30, 2019. This new rule impacts all life insurance companies and fraternal benefit societies authorized to do business in Illinois. As required under the Insurance Code, the rules provide additional guidance for life insurers, as related to specific provisions in the Unclaimed Life Insurance Benefits Act.
Insurers, upon death notice, must check for all policies related to the insured. Insurers must also make a good faith effort to locate the beneficiary or beneficiaries of the account following the state’s minimum standards:
- Search internal electronic searchable files, policy, annuity and retained asset account files for beneficiary information.
- If the beneficiary information is not located through these means the insurer must use external search methods.
- Two attempts to contact the beneficiary via first class mail must be made.
- If there is no response or if the mail is returned as undeliverable then the insurer must search for current information through external sources such as databases, internet search engine and outside companies.
- Contact attempts must continue until the insurer receives a response call or attempts made 2x via telephone number, 2x via email, 1x by first class mail
- Contact attempts must be completed within one year after the date of death.
Insurers must also register for the Lost Policy Finder service offered by the Department of Insurance by the later of September 1, 2019 or within 30 days after becoming authorized to offer life insurance products in Illinois.