SPRINGFIELD — “Thank you to the Illinois House of Representatives for siding with grieving families and overriding Governor Bruce Rauner’s amendatory veto of House Bill 302.
For decades, greedy life insurance companies have gotten away with using loopholes to pad their bottom line by avoiding paying grieving families.
Today’s action is a major step forward to help put a stop to this trend and require life insurance companies to pay what is owed to beneficiaries dating back to 2000.” “I want to offer a special thanks to the House sponsor, Rep. Robert Martwick, AARP, NAACP, the many beneficiaries who stood with us to share their personal stories, and the seven House Republicans who voted to override the Governor’s veto and put aside partisanship to do the right thing,” added Frerichs.
The Illinois House vote to override passed 71- 40. The motion to override the Governor’s amendatory veto now moves to the Senate where Sen. Jacqueline Collins is the lead sponsor. If Sen. Collins’ motion to override receives the required 3/5 vote in the Senate, then House Bill 302 will become law despite the Governor’s veto.
House Bill 302 requires life insurance companies to compare electronic records of policies in force since 2000 with the Social Security Administration’s Death Master File (DMF) to determine if policies should have been paid to grieving families. Between 2011 and 2015, outside auditors hired by the state treasurer identified more than $550 million held by life insurance companies that should be have been paid to grieving families in Illinois.
About the Illinois Treasurer The Illinois Treasurer is the state’s chief investment officer and Frerichs is a Certified Public Finance Officer. He protects consumers by encouraging savings plans for college or trade school, increasing financial education among all ages, and removing barriers to a secure retirement. As the state’s Chief Investment Officer, he actively manages approximately $25 billion. The portfolio includes $13 billion in state funds, $7 billion in college savings plans and $5 billion on behalf of local and state governments.
The investment approach is cautious to ensure the preservation of capital and returns $28 to the state for every $1 spent in operations. The Treasurer’s Office predates Illinois incorporation in 1818. Voters in 1848 chose to make it an elected office.