Capitol Fax.com - Your Illinois News Radar » Frerichs blasts Rauner’s AV
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Frerichs blasts Rauner’s AV

Wednesday, Aug 30, 2017

* Treasurer Frerichs’ office has some big problems with the governor’s amendatory veto of Frerichs’ life insurance bill, HB302…

* When trying to prohibit the use of contingent fee auditors by the Treasurer, the Governor proposes to amend the wrong Act.

    * The existing unclaimed property law is scheduled to be repealed and replace by a new law on January 1, 2018. HB 302 would also become effective on January 1, 2018.

    * So, the Governor is proposing to amend a law that will no longer exist.

* In support of his amendment to shorten the period that insurers must review to see if they owe benefits because their insured died, the Governor relies on 1) an Illinois insurance regulation; 2) a US Supreme Court case; 3) the unfairness of distinguishing between insurers

    * The insurance regulation was put in place in 2016 by the Rauner administration in order to help insurers destroy records; but, the underlying portion of the Insurance Code still provides for criminal penalties for insurers that destroy records. Further, the regulation still requires maintaining records with “legal or fiscal” value.

    * The US Supreme Court case cited does not say that you cannot distinguish between companies based on the condition of their records. The case is about artists who unsuccessfully challenged the NEA’s community standards for grants. It is about First Amendment rights – not due process rights. And, the government actually won the case by an 8 to 1 margin.

    * Further, the bill the Governor signed last year actually allows his Department of Insurance to differentiate between insurers based on their electronically searchable records. So, this wasn’t an issue for him last year.

Oops. BTIA™.

If you click here you’ll see the governor’s full AV language with commentary by the treasurer’s office. Click here for raw audio of Frerichs’ press conference.

* From Treasurer Frerichs’ press release

Currently, some life insurance companies do not pay death benefits when they know, or should have known, a customer died. Between 2011 and 2015, treasurer office audits found more than $550 million in death benefits that were not paid to grieving families in Illinois. Nationally, the figure is more than $7.4 billion, according to the Wall Street Journal.

Rauner’s veto outlaws the audits. Without this enforcement tool, life insurers can act with impunity. “This is clear evidence that Gov. Rauner is lining corporate pockets with this veto,” Frerichs said.

There are three commonsense reasons why Rauner’s veto is wrong and his focus on contingency-fee auditors is misplaced.

    1) Rauner’s amendatory veto makes Illinois the only state in the country to prohibit contingency-fee auditors and eliminates any hope that an unscrupulous company will pay 100 percent of what they owe to Illinois residents.
    2) Audits would not be necessary if life insurance companies made it a priority to pay death benefits when they know or should have known that a customer has died.
    3) Signing the legislation and requiring life insurance companies to review their records would move compliance away from the treasurer and into the Governor’s Department of Insurance, which has stronger enforcement tools, including the ability to suspend a company’s license to do business in Illinois. […]

Using contingency-fee auditors is a best-practice approach because it leverages expertise to maximize efficiency. Families receive every cent they are owed. Without the audits, insurance companies keep 100 percent of the death benefits.

“Rauner vetoed this bill because he wants to stop auditors who have successfully found hundreds of millions of dollars in unpaid life insurance benefits. However, auditors never get a penny of your loved one’s life insurance policy,” Frerichs said. “All Rauner did was take away the tool that allowed us to return $550 million to grieving families.”

More is at stake than just unpaid life insurance policies.

For example, without a veto override, the treasurer’s office would lose its ability to effectively look at the books of large banks, such as Wells Fargo, to confirm it did not inappropriately keep funds from bank customers. Or the ability to look at Sprint and Radio Shack to confirm each has paid out all rebate checks issued as an incentive to make a purchase.

- Posted by Rich Miller        

15 Comments
  1. - Harry - Wednesday, Aug 30, 17 @ 11:14 am:

    Is there any way to tell if GCR has a financial interrst in any life insurers doing business in Illinois?


  2. - Chicago Cynic - Wednesday, Aug 30, 17 @ 11:28 am:

    Best Team In America strikes again. This was kind of like the veto of the Comptroller’s transparency bill but with more incompetence.


  3. - Cubs in '16 - Wednesday, Aug 30, 17 @ 11:30 am:

    Assuming Frerichs is correct about Rauner’s motivation for the AV, an override ’should’ be a no-brainer.


  4. - How Ironic - Wednesday, Aug 30, 17 @ 11:34 am:

    Hmmmmmm….one has to wonder. Maybe GCR had it in with some unscrupulous insurance companies. Think of it, someone dies and it goes into some database. GCR collects 50% of the policy value, family (if any) gets 0%. No one the wiser….


  5. - How Ironic - Wednesday, Aug 30, 17 @ 11:36 am:

    @ myself at 11:34

    Meant to note that GCR had it in with the nursing homes they control. What better way to make a few bucks under the table, on top of what they had already hosed the families for.


  6. - nice - Wednesday, Aug 30, 17 @ 11:37 am:

    Great reporting, Rich. Really lets the reader get a sense of both sides of the issue.


  7. - thechampaignlife - Wednesday, Aug 30, 17 @ 11:41 am:

    “Sure, the effect may have been fleeting. But, for a brief moment one cold January morning, our prohibition on the use of contingent fee auditors was glorious.”

    -BTIA


  8. - Mama - Wednesday, Aug 30, 17 @ 11:50 am:

    “$550 million in death benefits that were not paid to grieving families in Illinois.”

    Is it to late for the legislature over-turn the governor’s AV on life insurance bill?

    It took me almost 5- years with the help of IL’s State Insurance Dept to get my parent’s life insurance. The legislature need to over-ride Rauner’s AV!


  9. - Norseman - Wednesday, Aug 30, 17 @ 11:56 am:

    Another goofy AV that will kill the bill.


  10. - 4 percent - Wednesday, Aug 30, 17 @ 12:40 pm:

    Serious question - contingency fee auditors generally receive a portion of the money that they identify and collect. Yet, the Treasurer’s release says that “families receive every cent they are owed.”

    Would the auditors receive a portion of the life insurance proceeds as payment or does the state assume that cost so the family receives the entire life insurance benefit?


  11. - nice - Wednesday, Aug 30, 17 @ 1:20 pm:

    @4 percent

    Great question! Unfortunately not the type of nuance that’s tolerated in a blog post containing a copy/pasted press release and a joke.


  12. - Rich Miller - Wednesday, Aug 30, 17 @ 1:24 pm:

    nice, nobody’s stopping you from commenting even though you’re masking your IP address via the Netherlands.


  13. - nice - Wednesday, Aug 30, 17 @ 2:12 pm:

    in amsterdam for the week. want me to bring some greenery back to springfield?


  14. - walker - Wednesday, Aug 30, 17 @ 2:24 pm:

    Nice: That type of “nuance” is obviously “tolerated” here or you wouldn’t have seen it above. Very common experience on this blog, where much detailed expertise is expressed.

    Would you like to occasionally add something of value?


  15. - impartialthinker - Thursday, Aug 31, 17 @ 8:59 am:

    Yes, there are some insurance companies that are holding death benefits while awaiting a claim. Not sure that is impunity. Let’s not forget that Illinois uses Unclaimed Property funds to fund the public employee’s pension trust which has a deficit recently reported at $251 Billion. Are all motivations/drivers of this legislation on the table and being discussed?


Sorry, comments for this post are now closed.


* Adventures in data governing
* Higher ed group to continue working this summer
* State Senate candidate once dressed up in blackface for Halloween
* Brady says GOP leveraged balanced budget from nervous Dems
* *** LIVE COVERAGE ***
* Politifact rates Rauner Legionnaires' claim 'False'
* Former 'Chicago Tonight' host Elizabeth Brackett has died
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............
<


Loading


* Illinois Budget Bill Makes Few Tax Changes exce.....
* Governor considering medical marijuana bill for.....
* Monday, June 18, 2018..
* Local hospital to spend $2.5M on improvements, .....
* Trending News Today: NIH Ends Study Evaluating .....
* State Journal-Register: Illinois pharmacies pus.....
* Rauner's Legionnaires' claim misses the.....
* Push To Bridge Gender Wage Gap Continues..
* Morning Spin: Emanuel tops $9.5M in fundraising.....
* Fact-check: Rauner's Legionnaires' weat.....


* Mother of man fatally shot by central Illinois police sues
* Cleanup of massive central Illinois rock slide begins
* Midwestern states endure flash flooding, heat wave
* New organization that honors black firefighters to open
* Rauner names curator for newly remodeled governor's mansion
* William Shatner captains bitcoin mining farm in Illinois
* Peoria man killed in auto race in Canada
* Plan would turn old Illinois library into craft distillery
* Chicago is in for a dangerously hot day
* EXCHANGE: Community reacts after college announces closing

* Rauner to consider allowing medical cannabis for opioid patients
* Bipartisan work yields gun bills, fate rests with Rauner
* Rauner names Justin Blandford curator of Governor's Mansion
* Rauner names Williamsville woman interim HFS director
* Both Rauner and Pritzker have donated to Mansion renovations
* Both candidates for governor have donated to Mansion renovations
* Illiopolis boy helps push bill to cover hearing aids for kids
* Under the Dome Podcast: AFSCME lawsuits everywhere, #MeToo fallout, governor ad war
* Rauner says more ads coming like one featuring other Republican governors
* Madigan aide ousted in harassment scandal responds to accuser

* Show us your office!
* PowerShares keeps growing—even as name prepares to die
* 4 ways a U.S.-China trade war could play out
* Roskam's intriguing immigration move
* Apple partners with Oprah for original content push


* Woman missing from South Shore since May found
* Because I’m pro-life, I am appalled to see children taken from parents at border
* FIFA charges Mexico after fans use anti-gay slur during game against Germany
* World Cup’s only black coach says soccer needs more diversity
* Apple aims to deliver pinpoint locations of iPhones when calling 911
* Mexico faces FIFA discipline after fans chant anti-gay slurs at World Cup
* Concealed carry permit holder scares off home invasion suspect in Riverside
* No definitive ruling from Supreme Court on partisan redistricting
* Homeland Security chief says no apology for separating families
* Trump adviser Roger Stone reveals new meeting with Russian


* Summer steak out — 30 days of Chicago's best steaks, steakhouses and steak dishes
* Glencoe school district approves nearly $200K for grade school security enhancements
* Justices: No definitive ruling on partisan districts
* Compulsive video-game playing now new mental health problem
* Strong earthquake near Osaka, Japan, kills 4, knocks over walls
* White House insists Democrats to blame for family separations, even as some in GOP urge Trump to reverse course
* Trades within the lottery could jolt an already intriguing NBA draft this week
* FIFA opens disciplinary proceedings vs. Mexico after fans chant anti-gay slur
* With controversial apartment proposal behind them, Arlington Heights trustees weigh future of undeveloped downtown area
* Dozens of baby seagulls found dead on South Loop street; wildlife experts suspect they were tossed from rooftop


» Push To Bridge Gender Wage Gap Continues
» Dad-isms: Jokes and Lessons Our Fathers Taught Us
» Parkland Survivors Join Chicago Youth, Celebrities At St. Sabina's Peace March
» Why Don’t Chicago Beaches Have A Poop Threshold?
» Furniture From Closed CPS Schools Ends Up In Surprising Places
» Students Go Back In Time To Record On Machine That Democratized Music
» State Week: AFSCME Contract; Abortion Court Fight; Former Madigan Staffer Responds To Accusations
» Durbin OKs State Senator McCarter for Kenya Ambassadorship
» Durbin Backs State Senator McCarter for Kenya Ambassadorship
» WBEZ’s Chicago And Illinois News Roundup: June 15, 2018


* Rauner to consider allowing medical cannabis for opioid patients
* George Will: Congress suffers arthritic knees from genuflecting to presidential power
* Bipartisan work yields gun bills, fate rests with Rauner
* Bernard Schoenburg: Gov. Rauner owns Sangamon farmland — with somebody
* Bernard Schoenburg: Rauner owns Sangamon farmland — with somebody
* Angie Muhs: New reporter will focus on local business coverage
* Our View: City should not put competing township referendum on ballot
* Faith Coalition for the Common Good: Leaders impact lives of homeless
* Statehouse Insider: Illinois second to Missouri again
* Thom Dammrich: The Modern Fish Act — Good for Illinois


* O'Fallon student among five valedictorians at Althoff
* Coroner releases ID of Illinois man killed in ATV crash
* Photo surfaces of GOP state Senate candidate Patton in blackface
* State senate candidate wore blackface for Halloween
* June 20 Illinois basketball chat
* Best of the week: 9 things to do this week
* Local hospital to spend $2.5M on improvements, including a new sleep clinic
* Touchette Regional Hospital renovations
* Road closure: Morris Ave. work closes northbound lane
* Hang in there! Relief from heat is on the way


* Craig Ferguson, Second City coming to Paramount Theatre
* Japan team at World Cup troubled by earthquake, hotel alarm
* The Latest: Panama holding off Belgium in World Cup debut
* Merkel, allies avert collision for now in German migrant row
* Correction: US Open story

* Groundbreaking for Mercer County's new...
* Heller, Rosen tangle over who can stop Yuc...
* Historic Trail Status Proposed for Route 66
* Why Are Millions Paying Online Tax Prepara...
* Millions of Americans pay unnecessary tax ...
* Veterans Corner 6/18/18
* Pravin Varughese murder: Indian-American m...
* Congressmen aim to give Route 66 Historic ...
* Rep. Lipinski Holds Lockport Senior Fair
* Parkland survivors, local students support...

* Rebellious Resistance Guide: How to Fight ......
* Monday, June 18, 2018...
* Lvm Capital Management LTD Decreased Its B......
* Great West Life Assurance Company Has Uppe......
* Trump tweets Dems and GOP should get toget......

* Rebellious Resistance Guide: How to Fight ......
* The Democrats' Myopic Reaction to the ......
* Tammy Duckworth for Senate Tammy......
* Our view: GOP group spot on in recent Blag......
* "Senator Tammy Duckworth …&quo......

* Dangerous People Are Teaching Your Kids
* Talking is better than war.
* Don Hellison.
* 50% oppose sanctuary communities in new Rasmussen poll
* The Weekend In Chicago Rock
* Dress Coded: Rules And Punishment For Black Girls Abound
* Ives-led group of GOP lawmakers and candidates call for Madigan to resign
* Gov Rauner marches in Aurora's First Gay Pride Parade
* Elonorail
* Reader sold to group led by Chicago Crusader publisher Dorothy Leavell


* Multi-State Salmonella Outbreak Linked To Cereal
* PHIL VASSAR AND LOVE AND THEFT ROUND OUT THE DU QUOIN STATE FAIR GRANDSTAND
* Illinois 89 Bridge in Spring Valley Opens to Traffic
* Gov. Rauner announces release of funding for Department of Agriculture programs
* Gov. Rauner, Lt. Gov. Sanguinetti provide update on efforts to combat opioid epidemic

  
* The Logitech Craft keyboard’s giant button is a tactile dream
* Pokémon GO now lets you befriend other animal kidnappers
* YouTube Music launches in 12 more countries, including the UK and Canada
* [Deal] Save $100 on the Nebula Mars II Portable Projector
* vivo will launch the NEX A and NEX S in India in the second half of July
* Oppo Find X may have the biggest screen-to-body ratio yet (Updated June 18)
* Nvidia’s AI creates amazing slow motion video by ‘hallucinating’ missing frames

* Cleveland Indians vs. Chicago White Sox series preview
* Sox is singular: Will the White Sox win more 'without a ...
* In My Words: With new players, Getz gets it
* Chicago White Sox: Three predictions for second half of season
* Chicago White Sox drink to Budweiser deal
* White Sox Provide James Shields With No Run Support in Serie...
* PenCities White Sox continue rivalry with Reno


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller