Illinois General Assembly - Full Text of HB0302
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Full Text of HB0302  100th General Assembly


Sen. Jacqueline Y. Collins

Filed: 5/25/2017





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2    AMENDMENT NO. ______. Amend House Bill 302 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Unclaimed Life Insurance Benefits Act is
5amended by changing Sections 10, 15, 30, and 35 as follows:
6    (215 ILCS 185/10)
7    Sec. 10. Definitions. As used in this Act:
8    "Annuity contract" does not include an annuity contract
9used to fund an employment-based retirement plan or program
10where (1) the insurer does not perform the record keeping
11services or (2) the insurer is not committed by the terms of
12the annuity contract to pay death benefits to the beneficiaries
13of specific plan participants.
14    "Date of death" means the date on which an insured, annuity
15owner, or retained asset account holder died.
16    "Date of death notice" means the date the insurer first has



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1notice of the date of death of an insured, annuity owner, or
2retained asset account holder. "Date of death notice" includes,
3but is not limited to, the date the insurer received
4information or gained knowledge of a Death Master File match or
5any other source or record maintained or located in insurer
6records of the death of an insured, annuity owner, or retained
7asset account holder.
8    "Death Master File" means the United States Social Security
9Administration's Death Master File or any other database or
10service that is at least as comprehensive as the United States
11Social Security Administration's Death Master File for
12determining that a person has reportedly died.
13    "Death Master File match" means a match of the social
14security number or the name and date of birth of an insured,
15annuity owner, or retained asset account holder resulting from
16a search of the Death Master File.
17    "Department" means the Department of Insurance.
18    "Lost policy finder" means a service made available by the
19Department on its website or otherwise developed by the
20Department to assist consumers with locating unclaimed life
21insurance benefits.
22    "Policy" means any policy or certificate of life insurance
23that provides a death benefit, including a policy that has
24lapsed or been terminated. "Policy" does not include any policy
25or certificate of credit life or accidental death insurance or
26health coverages, including, but not limited to, disability and



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1long-term care arising from the reported death of a person
2insured under the coverage, or any policy issued to a group
3master policyholder for which the insurer does not provide
4record keeping services.
5    "Record keeping services" means services provided under
6circumstances in which the insurer has agreed with a group
7policy or annuity contract customer to be responsible for
8obtaining, maintaining, and administering its own or its
9agents' systems information about each individual insured
10under an insured's group insurance contract, or a line of
11coverage thereunder, including, but not limited to, the
12following: (1) social security number or name and date of
13birth, (2) beneficiary designation information, (3) coverage
14eligibility, (4) benefit amount, and (5) premium payment
16    "Retained asset account" means any mechanism whereby the
17settlement of proceeds payable under a policy or annuity
18contract is accomplished by the insurer or an entity acting on
19behalf of the insurer depositing the proceeds into an account
20with check or draft writing privileges, where those proceeds
21are retained by the insurer or its agent pursuant to a
22supplementary contract not involving annuity benefits other
23than death benefits.
24(Source: P.A. 99-893, eff. 1-1-17.)
25    (215 ILCS 185/15)



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1    Sec. 15. Insurer conduct.
2    (a) An insurer shall initially perform a comparison of its
3insureds', annuitants', and retained asset account holders'
4in-force policies, annuity contracts, and retained asset
5accounts in force on or after January 1, 2017 by using the full
6Death Master File. The initial comparison shall be completed on
7or before December 31, 2017, unless extended by the Department
8pursuant to administrative rule. An insurer required to perform
9a comparison of its insureds', annuitants', and retained asset
10account holders' in-force policies, annuity contracts, and
11retained asset accounts in force on or after January 1, 2012
12shall perform a comparison of policies, annuity contracts, and
13retained asset accounts in force between January 1, 2012 and
14December 31, 2016 on or before December 31, 2018 by using the
15full Death Master File. An insurer required to perform a
16comparison of electronic searchable files concerning its
17insureds', annuitants', and retained asset account holders'
18in-force policies, annuity contracts, and retained asset
19accounts in force on or after January 1, 2000 shall perform a
20comparison of policies, annuity contracts, and retained asset
21accounts in force between January 1, 2000 and December 31, 2016
22on or before December 31, 2018 by using the full Death Master
23File. Thereafter, an insurer shall perform a comparison on at
24least a semi-annual basis using the Death Master File update
25files for comparisons to identify potential matches of its
26insureds, annuitants, and retained asset account holders. In



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1the event that one of the insurer's lines of business conducts
2a search for matches of its insureds, annuitants, and retained
3asset account holders against the Death Master File at
4intervals more frequently than semi-annually, then all lines of
5the insurer's business shall conduct searches for matches
6against the Death Master File with the same frequency. Within 6
7months after acquisition of policies, annuity contracts, or
8retained asset accounts from another insurer, the acquiring
9insurer shall compare all newly acquired policies, annuity
10contracts, and retained asset accounts that were not searched
11by the previous insurer in compliance with this Act against the
12complete Death Master File to identify potential matches of its
13insureds, annuitants, and retained asset account holders. Upon
14any subsequent acquisition of policies, annuity contracts, or
15retained asset accounts from another insurer, when the previous
16insurer has already conducted a search of the newly acquired
17policies, annuity contracts, and retained asset accounts using
18the complete Death Master File, the acquiring insurer shall
19compare all newly acquired policies, annuity contracts, and
20retained asset accounts using all of the Death Master File
21updates since the time the previous insurer conducted the
22complete search to identify potential matches of its insureds,
23annuitants, and retained asset account holders.
24    An insured, an annuitant, or a retained asset account
25holder is presumed dead if the date of his or her death is
26indicated by the comparison required in this subsection (a),



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1unless the insurer has competent and substantial evidence that
2the person is living, including, but not limited to, a contact
3made by the insurer with the person or his or her legal
5    For those potential matches identified as a result of a
6Death Master File match, the insurer shall within 120 days
7after the date of death notice, if the insurer has not been
8contacted by a beneficiary, determine whether benefits are due
9in accordance with the applicable policy or contract and, if
10benefits are due in accordance with the applicable policy or
12        (1) use good faith efforts, which shall be documented
13    by the insurer, to locate the beneficiary or beneficiaries;
14    the Department shall establish by administrative rule
15    minimum standards for what constitutes good faith efforts
16    to locate a beneficiary, which shall include: (A) searching
17    insurer records; (B) the appropriate use of First Class
18    United States mail, e-mail addresses, and telephone calls;
19    and (C) reasonable efforts by insurers to obtain updated
20    contact information for the beneficiary or beneficiaries;
21    good faith efforts shall not include additional attempts to
22    contact the beneficiary at an address already confirmed not
23    to be current; and
24        (2) provide the appropriate claims forms or
25    instructions to the beneficiary or beneficiaries to make a
26    claim, including the need to provide an official death



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1    certificate if applicable under the policy or annuity
2    contract.
3    (b) Insurers shall implement procedures to account for the
4following when conducting searches of the Death Master File:
5        (1) common nicknames, initials used in lieu of a first
6    or middle name, use of a middle name, compound first and
7    middle names, and interchanged first and middle names;
8        (2) compound last names, maiden or married names, and
9    hyphens, blank spaces, or apostrophes in last names;
10        (3) transposition of the "month" and "date" portions of
11    the date of birth; and
12        (4) incomplete social security numbers.
13    (c) To the extent permitted by law, an insurer may disclose
14the minimum necessary personal information about the insured,
15annuity owner, retained asset account holder, or beneficiary to
16a person whom the insurer reasonably believes may be able to
17assist the insurer with locating the beneficiary or a person
18otherwise entitled to payment of the claims proceeds.
19    (d) An insurer or its service provider shall not charge any
20beneficiary or other authorized representative for any fees or
21costs associated with a Death Master File search or
22verification of a Death Master File match conducted pursuant to
23this Act.
24    (e) The benefits from a policy, annuity contract, or a
25retained asset account, plus any applicable accrued interest,
26shall first be payable to the designated beneficiaries or



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1owners and, in the event the beneficiaries or owners cannot be
2found, shall be reported and delivered to the State Treasurer
3pursuant to the Uniform Disposition of Unclaimed Property Act.
4Nothing in this subsection (e) is intended to alter the amounts
5reportable under the existing provisions of the Uniform
6Disposition of Unclaimed Property Act or to allow the
7imposition of additional statutory interest under Article XIV
8of the Illinois Insurance Code.
9    (f) Failure to meet any requirement of this Section with
10such frequency as to constitute a general business practice is
11a violation of Section 424 of the Illinois Insurance Code.
12Nothing in this Section shall be construed to create or imply a
13private cause of action for a violation of this Section.
14(Source: P.A. 99-893, eff. 1-1-17.)
15    (215 ILCS 185/30)
16    Sec. 30. Administrative rules. (a) The Department shall
17adopt rules to administer and implement this Act, including
18defining "electronic searchable files" for the purposes of this
20    (b) The Department may limit an insurer's Death Master File
21comparisons required under Section 15 of this Act to the
22insurer's electronic searchable files or approve a plan and
23timeline for conversion of the insurer's files to searchable
24electronic files upon a demonstration of hardship by the



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1(Source: P.A. 99-893, eff. 1-1-17.)
2    (215 ILCS 185/35)
3    Sec. 35. Application.
4    (a) Except as provided in subsections (b), (c), and (d),
5the The provisions of this Act apply to policies, annuity
6contracts, and retained asset accounts in force at any time on
7or after January 1, 2012 the effective date of this Act.
8    (b) For an insurer that has entered into a written
9agreement with the State Treasurer on or before December 31,
102018 to resolve an unclaimed property examination pursuant to
11the Uniform Disposition of Unclaimed Property Act, the
12provisions of this Act apply to policies, annuity contracts,
13and retained asset accounts in force on or after January 1,
15    (c) Notwithstanding subsection (a), the provisions of this
16Act shall apply to policies, annuity contracts, and retained
17asset accounts in force at any time on or after January 1, 2000
18to the extent that an insurer has electronic searchable files
19concerning such policies, annuity contracts, and retained
20asset accounts.
21    (d) This Act does not apply to a lapsed or terminated
22policy with no benefits payable that was compared against the
23Death Master File within the 18 months following the date of
24the lapse or termination of the applicable policy or that was
25searched more than 18 months prior to the most recent



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1comparison against the Death Master File conducted by the
3(Source: P.A. 99-893, eff. 1-1-17.)
4    Section 10. The Vital Records Act is amended by adding
5Section 24.6 as follows:
6    (410 ILCS 535/24.6 new)
7    Sec. 24.6. Access to records; State Treasurer. Any
8information contained in the vital records shall be made
9available at no cost to the State Treasurer for administrative
10purposes related to the Uniform Disposition of Unclaimed
11Property Act.
12    Section 15. The Uniform Disposition of Unclaimed Property
13Act is amended by changing Section 20 as follows:
14    (765 ILCS 1025/20)  (from Ch. 141, par. 120)
15    Sec. 20. Determination of claims.
16    (a) The State Treasurer shall consider any claim filed
17under this Act and may, in his discretion, hold a hearing and
18receive evidence concerning it. Such hearing shall be conducted
19by the State Treasurer or by a hearing officer designated by
20him. No hearings shall be held if the payment of the claim is
21ordered by a court, if the claimant is under court
22jurisdiction, or if the claim is paid under Article XXV of the



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1Probate Act of 1975. The State Treasurer or hearing officer
2shall prepare a finding and a decision in writing on each
3hearing, stating the substance of any evidence heard by him,
4his findings of fact in respect thereto, and the reasons for
5his decision. The State Treasurer shall review the findings and
6decision of each hearing conducted by a hearing officer and
7issue a final written decision. The final decision shall be a
8public record. Any claim of an interest in property that is
9filed pursuant to this Act shall be considered and a finding
10and decision shall be issued by the Office of the State
11Treasurer in a timely and expeditious manner.
12    (b) If the claim is allowed, and after deducting an amount
13not to exceed $20 to cover the cost of notice publication and
14related clerical expenses, the State Treasurer shall make
15payment forthwith.
16    (c) In order to carry out the purpose of this Act, no
17person or company shall be entitled to a fee for discovering
18presumptively abandoned property during the period beginning
19on the date the property was presumed abandoned under this Act
20and ending 24 months after the payment or delivery of the
21property to until it has been in the custody of the Unclaimed
22Property Division of the Office of the State Treasurer for at
23least 24 months. Fees for discovering property that has been in
24the custody of that division for more than 24 months shall be
25limited to not more than 10% of the amount collected.
26    (d) A person or company attempting to collect a contingent



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1fee for discovering, on behalf of an owner, presumptively
2abandoned property must be licensed as a private detective
3pursuant to the Private Detective, Private Alarm, Private
4Security, Fingerprint Vendor, and Locksmith Act of 2004.
5    (e) This Section shall not apply to the fees of an attorney
6at law duly appointed to practice in a state of the United
7States who is employed by a claimant with regard to probate
8matters on a contractual basis or to contest a denial of a
9claim for recovery of the property.
10    (f) Any person or company offering to identify, discover,
11or collect presumptively abandoned property or property which
12may become presumptively abandoned on behalf of the putative
13owner of such property in exchange for a fee, must provide the
14owner with a written disclosure. The disclosure shall be set
15forth in a clear and conspicuous manner and at a minimum shall
16state the following:
17        Each state maintains an office of unclaimed property.
18    Generally, if for a number of years an owner of property
19    has not communicated directly with the holder of the
20    property, and has not otherwise indicated an interest in or
21    claimed the property, the property will be delivered to a
22    state administered unclaimed property program. Upon such
23    delivery, the owner will be able to recover the property
24    from the state administered program without charge by the
25    state. The unclaimed asset referred to in this Agreement
26    has not yet been reported or remitted to any state



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1    unclaimed property office. Since you reside (or resided) in
2    Illinois, you may obtain information about the Illinois
3    unclaimed property program by logging onto its website at
5        A person or company may not charge a fee greater than
6    25% of the property's value for the recovery of that
7    property where the property is not yet reportable under
8    this Act and the designated owner of that property, as
9    reflected within the books and records of the holder, is
10    living.
11        A person or company may not charge a fee greater than
12    33% of the property's value for the recovery of that
13    property where the property is not yet reportable under
14    this Act and the recovery of that property involves
15    documentation of the owner's death or any elements of
16    estate or trust administration.
17(Source: P.A. 95-613, eff. 9-11-07; 95-1003, eff. 6-1-09.)".