CHICAGO — Gov. Bruce Rauner has used his amendatory veto powers to rewrite an unclaimed life insurance benefits proposal backed by the Illinois treasurer.
The measure would’ve required insurance companies to compare lapsed policies back to 2000 against federal death files to verify a policyholder has died and benefits have been paid.
Democratic Treasurer Michael Frerichs supported the plan. Proponents, including consumer advocates, say it’ll guard against insurance companies’ unscrupulous practices.
The Republican governor announced his rewrite Friday, saying he supports the intent but the plan is “inequitable and potentially unconstitutional.” He says it unfairly forces companies to search for policies and goes further than current law.
Frerichs said in a Saturday statement that Rauner sided with “greedy life insurance companies” and took away his office’s tool to “catch companies in the act.”
The legislation is HB302.