Unclaimed life insurance lapsed policies under House Bill 302
Todd Strong recently met with Illinois State Treasure Michael Frerichs for a briefing on a program that he has instituted in the Treasurer's Office for unclaimed life insurance lapsed policies under House Bill 302. This a very beneficial program to individual program to individuals who are beneficiaries of lapsed life insurance policies where the insurance carriers have not paid out life insurance proceeds because formal claims were not paid. This sounds unusual. However, this scenario is all too common. Oftentimes, surviving spouses may have been unaware that they were named on multiple insurance policies purchased by their spouse. Other times, surviving spouses may have undergone severe health issues, such as Alzheimer's or other debilitating diseases which disable them from making the appropriate formal request to life insurance companies to pay out life insurance proceeds that they are entitled to under purchased and paid for life insurance policies.
House Bill 302 enables the Treasurer's Office access to vital records maintained by the Illinois Department of Public Health, including death certificates, to assist in locating and paying owners and heirs their life insurance benefits and other unclaimed property. This bill also requires insurers to evaluate policies in lapsed or terminated status since 2012 to determine if the policyholder has died and, if so, whether death benefits have been paid. House Bill 302 has many other provisions that are beneficial to the consumer in assisting beneficiaries in locating and obtaining life insurance proceeds that they are rightfully entitled to.
More information about this program can be located on the State of Illinois Treasurer Michael Frerichs' website at www.illinoistreasurer.gov.