Capitol Fax.com - Your Illinois News Radar » Frerichs scores big win with override of Life Insurance Reform Act veto
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Frerichs scores big win with override of Life Insurance Reform Act veto

Thursday, Nov 9, 2017

* It’s kind of a long press release, but this is a big win for Treasurer Frerichs, so here you go…

Illinois families are the winners [yesterday] after the Senate voted to override Gov. Rauner’s veto of the Life Insurance Reform Act, State Treasurer Michael Frerichs said today. The act will require life insurance companies to pay death benefits in a timely manner. Some benefits had gone decades without payment.

“This override vote means a countless number of our families will keep their home and a child will not be forced to drop out of school to support their family after a loved one dies,” Frerichs said. “Today’s action makes it clear that the people of Illinois will no longer tolerate loopholes that allow greedy life insurance companies to pad their bottom line using death benefits that should have been paid to grieving families.”

“I offer a special thanks to Senate Sponsor Jacqueline Collins, House Sponsor Robert Martwick, the AARP, NAACP, Citizen Action Illinois, and the many beneficiaries who stood with us to share their personal stories,” Frerichs said. “I also thank the Senate and House Republicans who followed common sense and set aside partisanship to override this veto and do the right thing.”

The Illinois Senate vote to override Governor Rauner’s amendatory veto of House Bill 302 passed 38-16. The Senate vote follows the House vote to override, which passed 71-40. The bill becomes state law effective January 1, 2018, despite the Governor’s attempt to veto.

House Bill 302 requires life insurance companies to compare electronic records of policies in force since 2000 with the Social Security Administration’s Death Master File (DMF) to determine if policies should have been paid to grieving families.

With Governor Rauner’s proposed amendments to the legislation, life insurance companies would pocket millions of dollars rather than pay death benefits to grieving families.

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’s 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.

Opponents argued that life insurance companies would lose money if required to pay death benefits and that they are not required under the terms of the contract to notify beneficiaries. However, not every survivor knows about a policy, such as a spouse suffering from dementia, or has the capacity to determine if a policy exists, such as a child with a disability. There have also been instances of a person leaving money to a church or charity without telling the recipient, so the recipient would not know to pursue a claim.

In August, Governor Rauner issued an amendatory veto that outlawed the type of audits that found the billions that were owed to grieving families in Illinois and across America. Without this enforcement tool, life insurers would be able to act with almost complete impunity.

The use of contingency fee auditors ensures families receive every cent they are owed. Without the audits, insurance companies keep 100 percent of the death benefits.

With this veto override, the treasurer’s office retains 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. It also allows for the treasurer’s office to preserve its ability to look at large retailers, like Sprint and Radio Shack, to confirm they actually paid out rebates.

In Illinois, unpaid life insurance benefits are considered unclaimed property and returning unclaimed property to owners is among the duties of the Illinois State Treasurer. Illinois hold unclaimed property until the items or funds are claimed by the owner or heir.

Treasurer Frerichs’ office never charges money to search for, and return, unclaimed property.

- Posted by Rich Miller        

23 Comments »
  1. - Cubs in '16 - Thursday, Nov 9, 17 @ 9:38 am:

    The message sent with this and other veto overrides seems to be if Rauner won’t lead or follow let’s get him out of the way.


  2. - Oswego Willy - Thursday, Nov 9, 17 @ 9:45 am:

    Starting here…

    ===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’s 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.===

    Ending here…

    ===The use of contingency fee auditors ensures families receive every cent they are owed. Without the audits, insurance companies keep 100 percent of the death benefits===

    Cut.

    Cut to the chase seems appropriate.

    This is a big win for Frerichs, giving the play-by-play waters down the impact of this…

    ===With this veto override, the treasurer’s office retains 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. It also allows for the treasurer’s office to preserve its ability to look at large retailers, like Sprint and Radio Shack, to confirm they actually paid out rebates.===

    This I would care about knowing in this win.

    It also puts on notice a pattern of failures by the governor, be it consumer protection, transparency, and anti-consumer, be it consumer of unknown products or citizens learning things that the Rauner Administration wants hidden.

    It’s a troubling Rauner pattern.

    Good on Frerichs and the Treasurer’s Office.

    Don’t lose sight what the message is with the noise that precedes it.


  3. - Put the fun in unfunded - Thursday, Nov 9, 17 @ 9:46 am:

    Can we run a trailer bill to compare the social security database with voter rolls, and report the results?


  4. - Saluki - Thursday, Nov 9, 17 @ 9:49 am:

    Frerich is doing a good job.


  5. - Anon221 - Thursday, Nov 9, 17 @ 9:51 am:

    Rauner’s fit of pique with all of his vetoes, including this one, and reliance on the IPIes for “guidance” is really coming back to haunt and bite him. He’ll try to spin and backhand this into some kind of win for him, and it will be up to the Dems (and the media, too) to make sure he doesn’t. Kudos to Frerichs and all of the GA who stood with him (banned punctuation mark).


  6. - James the Intolerant - Thursday, Nov 9, 17 @ 9:56 am:

    I saw a corporate yahoo for Kemper on 60 Minutes trying to defend the practice, unbelievable. I would think if someone owed Kemper money they would find that person.


  7. - Anonymous - Thursday, Nov 9, 17 @ 9:58 am:

    Good government is good politics. Big Brain Bruce never caught or bought that truism. Frerich gets it. It’s not all that difficult to understand, really. If you do good and right, maybe you can bypass the need to beg and grovel before the billionaires throne. The little guys might just get you through.
    But I’m a dreamer…


  8. - kitty - Thursday, Nov 9, 17 @ 10:12 am:

    Well done Treasurer Frerichs. A victory for the citizens of Illinois despite Mr. Rauner’s predictable opposition on behalf of very large corporate insurance interests.


  9. - Tommydanger - Thursday, Nov 9, 17 @ 10:22 am:

    I’ve been in public service in one form or another for my entire adult life. I’m neither bragging or apologizing.

    Frerich’s initiative and Mendoza’s initiative on the Debt Transparency Act are examples of what government can and should do.

    The fact that these measures are now law is cause for both joy and sadness. Joy in that sound measures have been adopted that address a problem in a reasoned fashion to protect consumers and taxpayers. Sadness in that both had to be accomplished over the governor’s veto.

    Imagine how much more could be accomplished if the governor and the legislature could work together to solve more of our most pressing problems.


  10. - Streator Curmudgeon - Thursday, Nov 9, 17 @ 10:22 am:

    Insurance companies seem to get whatever they want in Illinois. This is a HUGE win for policyholders.

    Nice going, Treasurer Frerichs!


  11. - Anonymous - Thursday, Nov 9, 17 @ 10:22 am:

    Actually, I can’t wait for a D to make a video on what appears to be a heartless Rauner policy decision.

    Dear God, what is he thinking, with this being an election year.


  12. - downstate commissioner - Thursday, Nov 9, 17 @ 10:36 am:

    anonymous @ 10:22: You think he can think? Yeah, its a cheap shot at him, but what the hey…


  13. - cdog - Thursday, Nov 9, 17 @ 10:43 am:

    “Opponents argued that life insurance companies would lose money if required to pay death benefits and that they are not required under the terms of the contract to notify beneficiaries.”

    Not required to notify beneficiaries? What moral compass was used for that brain-dead statement?

    Between the House and Senate, 56 members carried water for an elitist robbery of normal folks.

    Here’s the m.o.–just goob-up the legal language and let the scams keep rollin’.

    Wake up GOP. There is nothing conservative or moral about this kind of protection which allows for a business line to do what is blatantly wrong.

    Thanks Frerichs. Thanks those that voted for override.


  14. - wordslinger - Thursday, Nov 9, 17 @ 10:49 am:

    In the private and public sectors, Rauner has been consistent in scheming to not pay people the money they’re owed.

    On that front, you can count on him, always.


  15. - DuPage - Thursday, Nov 9, 17 @ 11:06 am:

    Rauner’s veto gave new meaning to the term “fraud protection”. Not protecting FROM fraud. Protecting fraud itself.


  16. - Anonymous - Thursday, Nov 9, 17 @ 11:33 am:

    Rauner, by being who he is, has given Dems a truckload of ammunition for next election. A good ad campaign will simply rattle off 8-10 of the most egregious acts of this phony, deadbeat, (etc, etc, you’ve heard it all before). Just keep running it to death….it will stick, and hopefully, he will be gone.


  17. - RNUG - Thursday, Nov 9, 17 @ 11:43 am:

    What’s sad is that you need to legislate what should be common sense and morality.


  18. - JS Mill - Thursday, Nov 9, 17 @ 11:54 am:

    =In the private and public sectors, Rauner has been consistent in scheming to not pay people the money they’re owed.

    On that front, you can count on him, always.=

    Word, you may want to call the Biss, JB, whomever is running these days camps and offer that as a stand alone TV and radio spot.

    It is excellent, and an absolute hammer when you stare at it for 30 seconds and let the words sink in.

    Well done.


  19. - cdog - Thursday, Nov 9, 17 @ 12:38 pm:

    One of the most creepy things about this is that life insurance companies factored in to their business models that a certain dollar amount/percentage would be never claimed by beneficiaries.

    I’d love to know what percentage of their line of business they thought they would get away with not paying.


  20. - Thomas Paine - Thursday, Nov 9, 17 @ 12:53 pm:

    I am really looking forward to those “Rep Durkin voted with Governor Rauner and the insurance industry to…” flyers from Dan Proft, featuring quotes from the AARP and the Catholic Church.


  21. - Anonymous - Thursday, Nov 9, 17 @ 2:43 pm:

    I’d say, overall, an ‘up’ day for Mike.


  22. - Anonymous - Thursday, Nov 9, 17 @ 3:48 pm:

    I work for an insurance company who has been already comparing their clients to the SS DMF since 2015, since this started coming down the pike. Don’t lump all insurance companies together as evil. We would rather pay the beneficiaries than the State of Illinois who is just looking for a way to get more money. If people don’t know to look at IL Unclaimed Property they will never receive their family members benefit anyway. I assure you there are insurance companies who are doing all they can to get the funds to the proper parties. We do participate in the DOI Life Policy Locator so if you feel a family member may have had insurance please go and submit a request thru the Locator.


  23. - KyleMCD - Friday, Nov 17, 17 @ 12:12 pm:

    Contingent Fee Auditors are Predators looking to make dollar at the families expense. The Life Insurance companies should be on the hook to find the rightful beneficiary.


TrackBack URI

Post your comment... And please take a half second to come up with a nickname. It makes following the posts easier for everyone... Thanks

In other words, do your best to be civilized and smart.


* Reader comments closed for the weekend
* Brady makes some unusual appointments to discrimination and harassment task force
* Pritzker sues endorser, deletes ad she appeared in
* SUBSCRIBERS ONLY - Candidate announcement
* Best tweet of the day
* Question of the day
* Roskam race moved to "Toss Up" by Cook Political Report
* Kennedy lashes out at Emanuel, while Pritzker takes a softer approach
* Rauner refuses to weigh in on federal tax legislation
* Reports: Former Munger firm gets $12.5 million no-bid contract after a $12 million payment was frozen by Mendoza
* "Every time I see a little kid waving I always try to wave back"
* Londrigan, EMILY's List stand by their false statements
* In praise of Mary Ann Ahern
* George Will: Illinois "approaching a death spiral"
* Rauner urged to sign education funding "cleanup" bill
* Republican Party wants Durbin, Duckworth to give away Franken's cash
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Open thread
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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


Loading


* In Illinois, battle over bankrupting 'blue mode.....
* Opinion/Column: Battle looms over ruinous polit.....
* GEORGE WILL: In Illinois, a looming battle over.....
* George Will: In Illinois, a looming battle over.....
* George Will: In Illinois, a looming battle over.....
* George Will: In Illinois, a looming battle over.....


* Backers hope Route 66 historic designation can drive tourism
* EXCHANGE: UI lab has watched children grow for 75 years
* EXCHANGE: Hit by train, Highland teen has amazing recovery
* Chicago-area school chief who is to resign denies harassment
* Ex-Merrillville councilman admits guilt in bribery case
* Newspaper investigation finds Illinois raffle irregularities
* Newspaper investigation finds Illinois raffle irregularities
* $80M Mississippi River bridge opens from Illinois to Iowa
* $80M Mississippi River bridge opens from Illinois to Iowa
* New temporary US attorney named for central Illinois

* Electric cars, better fuel efficiency spell doom for Illinois gas tax
* Springfield wants out of legislation limiting payments for 5G antennas
* Fact check: Are Gov. Rauner's grandparents immigrants?
* Londrigan accused of attacking Davis for 'opposite' of remarks
* Gov. Rauner signs sex harassment legislation
* Under the Dome Podcast: Governor's race, sexual harassment, Rodney Davis
* Macoupin Co. highway renamed in honor of soldier who died in Vietnam
* Macoupin Co. highway renamed in honor of solder who died in Vietnam
* Schoenburg: Rep. Davis leads new caucus, pleased with White House access
* Rep. Davis leads new caucus, pleased with White House access

* Like our roundup? Share it around.
* Here's how Baker McKenzie profits from offshore tax system
* Cards Against Humanity works to maintain its naughtiness
* The either/or world of Cards Against Humanity: Funny or Die
* Why do people give? Not for the tax break.


* Police: 68-year-old man killed in hit-and-run crash in Logan Square
* Dear Abby: He can’t drive, but his grown children won’t visit, help
* Sheriff: Man battered firefighters trying to extinguish his car fire
* Woman, 24, wounded in drive-by shooting on South Side
* Georgia Nicols horoscopes for Nov. 19, 2017
* Spokeswoman: David Cassidy in hospital with organ failure
* ‘SNL’ host Chance the Rapper creates a new Thanksgiving anthem
* 4 wounded in Chicago weekend shootings
* MAP: Chicago weekend shootings tracker for Nov. 17 – 20
* Man charged with stabbing off-duty CPD officer in ‘domestic incident’


* Sandhill cranes bounce back from brink as migration over Illinois to peak next week
* Receptive Ryan: Scianna's TD catch lifts Lincoln-Way East into state finals
* Maine South proud, upbeat about future after loss in state semis
* 3 wounded in shootings on South, West sides
* Mar-a-Lago's new winter season: The Red Cross Ball is out, and 'Trumpettes USA' are in
* Zimbabweans say Mugabe must quit now, but more talks planned
* Argentina says it may have received signals from missing sub carrying 44 crew members
* LaToya Cantrell will become first woman mayor in New Orleans' history
* From scout team to leading rusher: Rhys Logan helps Loyola reach 8A final
* Lena Dunham under fire after defending 'Girls' writer accused of sexual assault


» State Week: Are Voters Thinking About 2018?
» Legislative Checklist: Veto Session
» How 3 Women Want To Make Illinois’ Political Future Female
» Illinois Supreme Court Weighing Seizure Of Woman’s Harley
» Illinois Supreme Court Weighing Seizure Of Woman's Harley
» Statehouse Ethical Issues Might Need Outside Oversight, Legislators Say
» Prosecutor: No More Indictments In Laquan McDonald Shooting
» Metra Board OKs Budget With Service Cuts, Fare Hikes In 2018
» For Illinois Sex Offenders, Six Years Can Turn Into Life In Prison
» State Week: Harassment Training, Veto Wins And Losses, Late Payments


* Bernard Schoenburg: Ives says Rauner joined 'ruling class' he was to fight
* Statehouse Insider: Republican primary for governor underway
* Doubek: For harassment and beyond, Springfield needs stronger accountability
* Jim Dixon: It is time for a fair tax for Illinois
* Our View: It’s time for decision on YWCA block
* Electric cars, better fuel efficiency spell doom for Illinois gas tax
* Ed Rogers: A Clinton special counsel won't help Republicans in 2018
* Guest View: Rural health care providers deserve our thanks
* Springfield wants out of legislation limiting payments for 5G antennas
* Fact check: Are Gov. Rauner's grandparents immigrants?


* Anselm: Quad-City Times prepares largest edition of the year - 100s of pages of deals, coupons
* UPDATED: waterway advisories remain for northern counties
* Michelle N. Rollins
* Max Owens
* Jody Spaniol
* Holiday obituary hours
* Merton Edward Thayer Jr.
* Nick D. Bartlow
* Billy Dean Gibbs
* Robert D. Bell


* Missouri wins fifth straight to become bowl eligible
* Mavericks stop 4-game slide with win against Bucks
* Herbert returns, Oregon beats Arizona 48-28
* Boys bowling: Scouting Lake County
* Officials: McHenry County jail inmate's death under investigation

* DOJ to ban US lawmakers should Duterte ord...
* Hultgren whishes McHenry County College a ...
* Hultgren and Ruppersberger: Protect infras...
* Shaun Alexander: I'm amazed by the authori...
* Hultgren, Roskam help deliver tax bill for...
* This RSS feed URL is deprecated
* Rep. Randy Hultgren congratulates McHenry ...
* 3 suburban GOP reps provide crucial votes ...
* US lawmakers to Duterte: 'Sovereignty does...
* Panel encourages women to consider careers...

* This RSS feed URL is deprecated...

* This RSS feed URL is deprecated...

* Meet Your 20th District Officers On Argyle in Sunday/Monday Events
* Randi Weingarten’s secret meeting with Steve Bannon.
* Believe women.
* SNL Watch Party at SMG-Chatham
* The Weekend Desk Report
* The Weekend In Chicago Rock
* The Week In Chicago Rock
* Sunday week in review.
* Keeping retirement weird. Our Miss Brooks.
* SportsMonday: Peak Bears


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* Google Pixel 2 bootloader issues, iPhone X fixes & more – Pocketnow Daily
* [Sponsored] Take advantage of Tomtop’s electric treadmill flash sale!
* NFL may expand match livestreaming away from Verizon phones
* Razer Hammerhead USB-C earbuds designed to compliment Razer Phone
* Honor V10 specs reportedly include headphone jack, slightly smaller battery
* The Razer Phone is now available at select Microsoft Stores
* HomePod unceremoniously delayed until early 2018

* Sporcle Saturday: Top player performances
* LIVE: MLB Awards unveiled on Network
* White Sox face roster call on Clarkin, 6 more
* Thyago Vieira brings missing heat to White Sox bullpen battle
* MLB Awards grand finale (7 CT, MLB Network)
* White Sox trade for hard-throwing Vieira
* White Sox acquire prospect Vieira from M's


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

Archives
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