Frerichs Wins Approval of Life Insurance Law

Frerichs Wins Approval of Life Insurance Law

Illinois state Treasurer Michael Frerichs has won approval of a law making it easier for survivors of deceased family members to claim life insurance benefits.

The Senate’s 38-16 vote Wednesday to override Gov. Bruce Rauner’s veto puts the proposal into law.

It requires life insurance companies to compare electronic records of its policies in force since 2000 with the Social Security Administration’s list of deaths to determine whether a policy should be paid.

Auditors hired by the Democratic treasurer found that life insurance companies held more than $550 million between 2011 and 2015 that should have been paid to a decedent’s family members.

Republican Rauner vetoed it as potentially unconstitutional. He says Illinois rules only require companies to keep lapsed policy records for a year. He says a state law that took effect this year is fair because it requires companies to keep track of such policies going forward.