NEW LIFE INSURANCE LAW REQUIRING COMPANIES TO FIND AND PAY

On August 26, 2016, governor Bruce Rauner signed a new law that requires insurance companies to find/locate beneficiaries of life insurance policies that are unclaimed in Illinois and then they would be required to pay them money that they are owed.  About a dozen states already have similar laws requiring this.

The General Assembly unanimously approved the legislation in May, requiring insurers to use federal death records to identify deceased policy holders whose life insurance proceeds remain unpaid.  The companies must conduct the initial check after the law takes effect January 1, 2017, and then twice a year going forward.

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