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Wallace Joins State Treasurer in Urging Governor to Sign Unclaimed Life Insurance Benefits Act

FROM THE OFFICE OF STATE REPRESENTATIVE LITESA WALLACE


For Immediate Release: For More Information:
June 21, 2016 State Rep. Litesa Wallace
815-987-7433

Wallace Joins State Treasurer in Urging Governor to Sign Unclaimed Life
Insurance Benefits Act

ROCKFORD, Ill. – State Rep. Litesa Wallace, D-Rockford, joined Illinois
Treasurer Michael Frerichs Tuesday to advocate the signing of
legislation that would require life insurance companies to review the
federal Death Master File and administer death benefits when a
policyholder passes away.

"Under current law, insurance companies can willfully ignore the fact
that a policyholder has passed away and hold on to money that otherwise
should have been paid to the family," Wallace said. "This bill, which
passed unanimously in the House and Senate, will help ensure that
Illinois residents receive the benefits that were promised to them in a
timely manner."

Wallace was a cosponsor for House Bill 4633, which requires insurance
companies to periodically review the federal Death Master File and
compare it to their current list of policyholders. If the company finds
that a policyholder has passed away, and that no beneficiaries have
filed a claim within 120 days, the insurer is responsible to make a good
faith effort to find the proper beneficiaries. After five years, if no
claims are made and no beneficiaries are located, the insurance company
is required to turn over the policy's benefits to the state treasurer's
office, which will continue to seek beneficiaries.

According to the state treasurer's office, audits since 2011 have
indicated that there has been more than $550 million in life insurance
benefits that should have been distributed to Illinois residents.

"This piece of legislation was supported by the AARP and Veterans of
Foreign Wars, and I call on the governor to join our seniors, veterans
and working families in supporting this common sense measure," Wallace
said. "We have an obligation to ensure that the final wishes of
policyholders are fulfilled in a responsible and timely manner."

For more information, please contact Wallace's full-time constituent
service office at 815-987-7433, or email Litesa@StateRepWallace.com.

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