It’s just a bill
Monday, Apr 24, 2017 - Posted by Rich Miller
* Tribune editorial…
A bill in Springfield would expand on the Jan. 1 law by requiring life insurance companies to go through their records and cross-check the names of the insured against all deaths since 1996. The Social Security Administration already maintains what is called the Death Master File, a database of all deaths nationally.
If a death occurred and a benefit was unclaimed dating back to 1996, the insurance company would have to attempt to find the beneficiary. […]
Insurers who object to Martwick’s bill say the legislation is too onerous. It’s too heavy-handed. The American Council of Life Insurers says that while it supports efforts to cross-check records with the federal database going forward, retroactively asking companies to dig back to 1996 is a violation of contract law in the Illinois Constitution. The insurance industry is fighting the legislation in Springfield.
But keep in mind the legislation became necessary only when it was clear some insurance companies were looking the other way and hanging on to benefits. An audit within the treasurer’s office found roughly $550 million in benefits since 2011 had gone unclaimed, perhaps because beneficiaries didn’t know the money was there.
Some insurers have routinely matched the names of their insureds against Social Security’s death list. But this bill is for the ones that haven’t. Lawmakers ought to recognize that.
The insurance companies have been ramping up their lobster contingent against this bill, which is backed by Treasurer Frerichs, and it’s becoming quite the fight.
* AP…
Amid a national push by unions and worker advocates for a $15 minimum wage, Illinois Democrats hope to pass an ambitious hike during the spring legislative session, despite a warning from Republican Gov. Bruce Rauner that he opposes an increase of any kind.
The proposal would lift the state’s minimum wage from its current $8.25 to $15 over the next five years, a more accelerated leap than previous adjustments in Illinois. It also would constitute a larger jump than increases toward $15 approved last year in New York and California, where the rates had been $9 and $10, respectively.
But, as with previous efforts in Illinois, the measure is likely to be tied up in the state’s electoral politics.
Sponsors of the legislation acknowledge Rauner’s opposition but have signaled they want to force him to act on the measure ahead of next year’s gubernatorial election, in which he already faces half a dozen Democratic challengers.
* Illinois Review…
The known first bill addressing the United Airline passenger debacle was filed in Springfield Monday by State Rep. Peter Breen (R-Lombard).
Breen’s bill focuses on limiting law enforcement’s involvement in removing passengers and restricting the state from doing business with airlines that remove ticketed passengers. It also protects passengers from prosecution and provides for attorney fees.
Breen says the measure would prohibit that type of scenario from ever playing out again at Illinois airports. The self-proclaimed head of the “Frequent Flyer Caucus,” Breen is one of the most seasoned travelers in the General Assembly, logging tens of thousands of airline miles annually.
- ??? - Monday, Apr 24, 17 @ 1:50 pm:
Wonder how Batinick will vote on these bills? Oh…wait. I forgot he’s sitting this stuff out now.
- Cubs in '16 - Monday, Apr 24, 17 @ 1:54 pm:
“The Social Security Administration already maintains what is called the Death Master File…”
So should the Rauner Administration.
- Annonin' - Monday, Apr 24, 17 @ 1:58 pm:
Gotta love the small government guys solving our problems
- Anon Downstate - Monday, Apr 24, 17 @ 2:02 pm:
Re: Rep. Martwick’s Bill:
First off, what is being requested is not impossible to accomplish, BUT…..
1) Will Social Security provide a digital ‘match database’ in a readable format for insurance companies to match to? It would have to be a database covering everybody in the Social Security DB that hasn’t changed since 1996, and that’s a big question.
Assuming the DB is available back to 1996 (and not changed), the project is workable, but then each insurance company has to develop and implement solution(s) on their back office software to implement the process.
For example, if the Social Security DB has been altered every few years, then this whole project becomes a total nightmare, and to me, at least, becomes impractical.
A comparable effort would be something like performing a ‘cleaning’ of all statewide voter registration files to find ineligible voters.
Similar processing, just different end goals.
As far as searching for beneficiaries, that’s very similar to performing “Skip Tracing” type of work.
Not impossible, but not easy. And it can be expensive.
Just a few thoughts….
- Gooner - Monday, Apr 24, 17 @ 2:11 pm:
Breen’s bill is interesting.
While the concept is interesting, you have to wonder how any other business would respond to something similar.
“Police, there is a guy in here who refused to leave. We want him gone and can’t get him out.”
I suspect that more often than not, police would escort the person out.
- anon - Monday, Apr 24, 17 @ 2:14 pm:
Similar database already exists:
http://www.iii.org/article/how-can-i-locate-lost-life-insurance-policy
- BobO - Monday, Apr 24, 17 @ 2:15 pm:
Most human services agencies funded by the state would agree that the minimum wage needs to be increased.
However, for these organizations, wage legislation must be paired with sufficient increases in state funding. To not do so, would create another unfair, unfunded mandate.
Chicago and Cook County area agencies are (will be) stuck between the locally enacted minimum wage ordinances and the lack of funding coming from the State of Illinois. Rauner and the downstate legislators will sit back and wait as the Chicago/Cook social service agencies pressure their lawmakers to increase funding.
Unless they want to see a total collapse of the state funded human service infrastructure in northeast Illinois, Democrats may have to give in to Rauner and his TA agenda.
- On the other hand - Monday, Apr 24, 17 @ 2:22 pm:
Don’t insurance companies already use that same Social Security database for their annuity policies to see if policy holders have passed away so they can stop payments? You wouldn’t think it’d be too onerous to do the same thing to pay out insurance policies.
- DuPage - Monday, Apr 24, 17 @ 2:32 pm:
Frerichs and Martwick should start naming names of insurance companies that have not notified relatives and just kept the money. They should also name the companies that do check the index and diligently track down the people the money is supposed to go to. With the online databases they can track down people in just a couple minutes.
- lake county democrat - Monday, Apr 24, 17 @ 3:30 pm:
Has the United CEO been moonlighting for the insurance industry?
- Demoralized - Monday, Apr 24, 17 @ 4:10 pm:
Of course the insurance companies don’t want to be made to go back and look at their records. That’s money they’ve banked and they don’t want to lose it. I find it abhorrent that these companies would take premiums from people and then object to someone calling them out on it and asking them to pay what is rightfully owed.
- cdog - Monday, Apr 24, 17 @ 9:19 pm:
Life insurance companies that also write annuities are known to check the Death Master File and immediately cease paying annuitants.
So in the same building, maybe even the same hallway, a life insurance company has their cake and eats it too, by using the Death Master File when they feel like it. Win/Win.
When an industry can’t regulate itself, it needs regulated.
- RNUG - Monday, Apr 24, 17 @ 9:43 pm:
Have a friend who used to.fo skip tracing. In most cases, it isn’t that hard. She used to claim she could find almost anybody with a combination of the databases she had access to and 5 phones calls. This shouldn’t be that big of a deal for the insurance companies.
- Put the fun in unfunded - Tuesday, Apr 25, 17 @ 8:04 am:
To Martwick: Only if they amend the bill to require county clerks’ offices to check the database against their voter rolls.
- Anon221 - Tuesday, Apr 25, 17 @ 8:25 am:
ICYMI- http://www.cbsnews.com/news/60-minutes-life-insurance-investigation-lesley-stahl/