Walsh Urges Override Of Governor’s Veto Of Measure Protecting Life Insurance Beneficiaries

SPRINGFIELD, Ill. – State Rep. Larry Walsh Jr., D-Joliet, is urging his colleagues to override Gov. Rauner’s veto of legislation that helps ensure life insurance benefits are paid to the family members for whom they were intended.

“By vetoing this bill, the governor is letting huge insurance companies withhold the benefits rightfully owed to grieving families,” Walsh said. “Individuals paid into their policies diligently so their families would have security and assistance if they passed away, and the governor is trying to stop that from happening.”

Walsh’s House Bill 302 requires life insurance companies to compare the Social Security numbers of their policyholders dating back to 1996 to Social Security death records. The measure builds off of a new law signed last year requiring insurance companies to inspect Social Security death records for newly signed policies going forward.

Walsh’s legislation requires companies to also look back through their records and ensure the beneficiaries of these policies receive any funds owed to them. The Illinois treasurer’s office has identified $550 million in unpaid death benefits in Illinois since 2011. Walsh’s measure would also require insurance companies to request updated contact information from policyholders to keep policies from going unpaid.

“Paying out these benefits to the families owed money is the right thing to do,” Walsh said. “I encourage my colleagues in the House to hold huge insurance companies accountable and get these funds to those who deserve them.”

For more information, please contact Walsh’s full-time constituent service office at 815-730-8600.