•June 15, 2016•

Families will no longer be victimized by life insurance companies that refuse to pay death benefits, Illinois Treasurer Michael Frerichs said today. His remarks came after the General Assembly approved legislation pushed by Frerichs that requires insurers to use the federal Death Master File list to confirm if a policy holder has died and the death benefits have not been paid. The legislation is needed because not all life insurance companies pay death benefits when they know or should have known the policy holder has passed away.

“It is clear that the purpose of a life insurance policy is to offer a small bit of help to our families,” Frerichs said. “It also is clear that insurance companies are expected to pay on the policy when the time has come. The General Assembly’s action closes a loophole and helps our families.”

Rep. Robert Martwick, D-Norridge, and Sen. William Haine, D-Alton, are the chief sponsors of HB4633. After beating back attempts by life insurance lobbyists, the Senate approved the measure 54-0 and the House 118-0. It now goes to the Governor where he could sign it into law or veto the legislation.     Login or Subscribe to read the rest of this story.