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IL Unclaimed Property - Life Insurance Changes

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Following the lead of many other states enacting similar legislation, Illinois just recently passed HB 302 (Public Act 100-0543), which significantly amends the state’s Unclaimed Life Insurance Act. The new law is effective January 1, 2018, and places additional onerous requirements on life insurers to compare all of its policies, annuity contracts, and retained asset accounts to the full Social Security Death Master File. After the first mandated comparison is performed, insurers will be required to make similar comparisons on at least a semi-annual basis. There are additional time limitations and other requirements to conduct these searches in the event of an acquisition.

Governor Rauner of Illinois attempted an amendatory veto of this bill to suggest changes that would’ve included more reasonable requirements, but was overridden in both legislative houses by a 3/5 vote.

Stay tuned to the JMS blog for further developments in this area and elsewhere. Contact us with any questions you may have about these new requirements.

Tagged: illinois unclaimed property, life insurance escheat, illinois escheat, death master file