summary
Introduced
01/30/2017
01/30/2017
In Committee
03/17/2017
03/17/2017
Crossed Over
Passed
Dead
01/09/2019
01/09/2019
Introduced Session
100th General Assembly
Bill Summary
Amends the Unclaimed Life Insurance Benefits Act. Provides that "policy" includes a policy that has lapsed or been terminated. Requires insurers to, at no later than the date of policy delivery or the establishment of an account, and upon any change of insured or beneficiary, request information sufficient to ensure that all benefits or proceeds are distributed to the appropriate persons upon the death of the insured. Allows insurers to contact insureds in certain circumstances for the information. Provides that the Act applies to policies, annuity contracts, and retained asset accounts in force at any time on or after January 1, 1996 (rather than on or after the effective date of the Act). Provides that the Act does not apply to a lapsed or terminated policy with no benefits payable that was compared against the Death Master File within the 18 months following the date of the lapse or termination of the applicable policy. Amends the Vital Records Act. Provides that any information contained in the vital records shall be made available at no cost to the State Treasurer for purposes related to the Uniform Disposition of Unclaimed Property Act. Amends the Uniform Disposition of Unclaimed Property Act. Removes provisions concerning certain fees and charges for unclaimed property. Provides that no person or company shall be entitled to a fee for discovering presumptively unclaimed property during the period beginning on the date the property was presumed abandoned and ending 24 months after the payment or delivery of the property to the State Treasurer (rather than until it has been in the custody of the State Treasurer for at least 24 months). Makes other changes.
AI Summary
This bill amends the Unclaimed Life Insurance Benefits Act, the Vital Records Act, and the Uniform Disposition of Unclaimed Property Act. The key provisions include:
1. Expanding the definition of "policy" to include lapsed or terminated policies, and requiring insurers to request information from policyholders to ensure proper distribution of benefits upon the insured's death.
2. Mandating insurers to compare their records against the Social Security Administration's Death Master File on a regular basis to identify potential matches of deceased insureds, annuitants, and retained asset account holders, and to make good faith efforts to locate and pay benefits to beneficiaries.
3. Allowing the State Treasurer to access vital records at no cost for administrative purposes related to the Uniform Disposition of Unclaimed Property Act.
4. Removing certain fees and charges for unclaimed property, and limiting the fees that can be charged for discovering presumptively abandoned property.
The goal of this bill is to ensure that life insurance benefits and other unclaimed property are properly distributed to the rightful owners or their beneficiaries, and to reduce the amount of unclaimed funds held by the state.
Committee Categories
Business and Industry
Sponsors (7)
Jacqueline Collins (D)*,
Daniel Biss (D),
Cristina Castro (D),
Napoleon Harris (D),
Linda Holmes (D),
Dave Koehler (D),
Patricia Van Pelt (D),
Last Action
Session Sine Die (on 01/09/2019)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | http://www.ilga.gov/legislation/BillStatus.asp?DocNum=735&GAID=14&DocTypeID=SB&SessionID=91&GA=100 |
| BillText | http://www.ilga.gov/legislation/100/SB/10000SB0735.htm |
| Bill | http://www.ilga.gov/legislation/100/SB/PDF/10000SB0735.pdf |
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