Law requires insurance companies to locate beneficiaries
A recently signed law requires insurance companies to more quickly locate beneficiaries of unclaimed life insurance policies and distribute amounts they are owed by the policy.
The Treasurer’s office has been conducting hearings across the state after the office identified more than $550 million in unpaid benefits owed to Illinois residents since 2011. The General Assembly also responded, advancing a new law requiring companies to be more diligent about determining the death of a policyholder and distributing funds in a timely manner to beneficiaries.
Proponents of the law pointed out that people who have purchased life insurance policies expect the benefits to be paid out to the intended recipients. The new law requires insurers to utilize federal death records to identify deceased policyholders. Companies must conduct an initial check after January 1 and then twice each year moving forward in order to locate beneficiaries of the policies.