CHARITABLE ORG BFY-PROBATE

Illinois General Assembly - Full Text of HB4206

Select Language

×

The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.

Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.

The English language version is always the official and authoritative version of this website.

NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.

Choose Language

English

Afrikaans

Albanian

Arabic

Armenian

Azerbaijani

Basque

Bengali

Bosnian

Catalan

Croatian

Czech

Danish

Dutch

Esperanto

Estonian

Filipino

Finnish

French

Galician

Georgian

German

Greek

Gujarati

Haitian Creole

Hausa

Hawaiian

Hebrew

Hindi

Hungarian

Icelandic

Indonesian

Interlingua

Interlingue

Inuktitut

Irish

Italian

Japanese

Javanese

Kannada

Khmer

Korean

Latin

Latvian

Lithuanian

Luxembourgish

Macedonian

Malagasy

Malayalam

Maltese

Maori

Marathi

Myanmar

Nepali

Norwegian

Odia

Pashto

Punjabi

Romanian

Russian

Samoan

Sango

Sanskrit

Sardinian

Sindhi

Sinhala

Slovak

Slovenian

Somali

Southern Sotho

Spanish

Sundanese

Swahili

Swedish

Tamil

Telugu

Thai

Tigrinya

Tonga

Turkish

Ukrainian

Urdu

Vietnamese

Welsh

Xhosa

Yiddish

Yoruba

Zulu

Powered by
Translate

Close

Illinois General Assembly

Top Navigation Bar

Translate

Learn

Select General Assembly

Search the 104th General Assembly

Enter search terms for legislation, members, committees, or schedules.

ILGA.GOV

LEGISLATION & LAWS

Bills & Resolutions

Public Acts

Illinois Compiled Statutes

Illinois Constitution

Search Legislation

Glossary

Guide

Reports & Inquiry

Legislative Reports

Special Reports

FTP Site

Legislator Lookup

Capitol Complex Phone Numbers

Rules & Regulations

Illinois Register

Administrative Rules

Senate

Members

Schedules

Committees

Request for Remote Testimony

Journals

Transcripts

Rules

Audio/Video

FOIA Information

Senate Employment Opportunities

Media Guidelines

House

Members

Schedules

Committees

Submit testimony for House Committees

Journals

Transcripts

Rules

Audio/Video

FOIA Information

House Employment Opportunities

Log In

Mobile Top Bar

Search the 104th General Assembly

Enter keywords to search the Illinois General Assembly website.

Full Text of HB4206

Home

Legislation

Full Text

HB4206 - 104th General Assembly

Bill Status

Full Text

Votes

Witness Slips

Select Menu

Bill Status

Full Text

Votes

Witness Slips

Printer Friendly Version

Introduced

Engrossed

Enrolled

House Amendment 001

House Amendment 002

Public Act

Printer Friendly Version

Introduced

Engrossed

Enrolled

House Amendment 001

House Amendment 002

Public Act

Open PDF

HB4206 Enrolled
LRB104 16254 JRC 29638 b
1

AN ACT concerning civil law.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
5
Charitable Organization Beneficiary Act.

6

Section 5.
Definitions.
As used in this Act:
7

"Beneficiary designation" means the provision in an
8
instrument designating a beneficiary, other than in a will or
9
an instrument creating a trust, and may also mean the
10
instrument itself, including, but not limited to, any of the
11
following:
12

(1) a demand deposit, savings deposit, time deposit or
13

other account or instrument on which the holder is
14

directly liable with a designation for payment upon death
15

or other nonprobate designation making it transferable on
16

death;
17

(2) a security registered in beneficiary form; or
18

(3) a pension, profit-sharing plan, retirement account
19

such as an IRA, 401(k), 403(b), or other
20

employment-related benefit plan.
21

"Beneficiary designation" does not include designation of
22
a beneficiary made as part of an annuity or an insurance
23
policy.

HB4206 Enrolled
- 2 -
LRB104 16254 JRC 29638 b
1

"Charitable organization" means an entity that is exempt
2
from taxation under Section 501(c)(3) of the Internal Revenue
3
Code.
4

"Holder of property" means any entity that has possession
5
of or is responsible for property subject to a beneficiary
6
designation.

7

Section 10.
Notice of death of owner of property.
If the
8
holder of the property has verified the death of the owner of
9
the property, the holder of the property must, within 45
10
business days of the verification: provide notice to each
11
charitable organization listed under the beneficiary
12
designation that the charitable organization may have a right
13
to the property; provide the charitable organization with the
14
name of the owner of the property, contact information of the
15
holder of the property; and provide a general description of
16
the property held for the benefit of the charitable
17
organization; and provide the exact language of the
18
beneficiary designation, except that the names of any other
19
beneficiaries that are not charitable organizations may be
20
redacted.

21

Section 15.
Charitable organization affidavit of interest
22
in property.
23

(a) If a charitable organization is a beneficiary of an
24
interest in property created by beneficiary designation, that

HB4206 Enrolled
- 3 -
LRB104 16254 JRC 29638 b
1
charitable organization may present an affidavit to the holder
2
of the property or to any person with information about the
3
property to obtain the property or information regarding the
4
property. The affidavit must state all of the following:
5

(1) the decedent's name and last known address to the
6

extent known;
7

(2) a general description of the property to the
8

extent known;
9

(3) the charitable organization's name, address, and
10

primary contact information;
11

(4) the charitable organization is a charitable
12

organization;
13

(5) a request that the property be paid, delivered, or
14

transferred to the charitable organization or that
15

information about the property be given to the charitable
16

organization;
17

(6) the charitable organization has a right to the
18

interest in the property listed in the affidavit to the
19

extent known;
20

(7) the affidavit has been signed by an authorized
21

representative of the charitable organization under
22

penalty of perjury before a notary public as provided in
23

the Notary Public Act; and
24

(8) the information in the affidavit is true and
25

correct to the best of the affiant's knowledge or belief.
26

(b) The affidavit must be accompanied by all of the

HB4206 Enrolled
- 4 -
LRB104 16254 JRC 29638 b
1
following:
2

(1) a copy of the charitable organization's
3

determination letter from the Internal Revenue Service
4

recognizing its tax-exempt status;
5

(2) a copy of the charitable organization's
6

Certificate of Good Standing issued by the Secretary of
7

State;
8

(3) a death certificate of the decedent, probate
9

notice published by the personal representative of the
10

decedent's estate, proof of payment of the decedent's
11

funeral expenses, the decedent's obituary as verification
12

of the decedent's death, or any other reliable source or
13

record that verifies the decedent's death;
14

(4) a corporate resolution or similar statement of
15

authority of the affiant to act on behalf of the
16

charitable organization; and
17

(5) Internal Revenue Service Form W-9 completed by an
18

authorized representative of the charitable organization.

19

Section 20.
Duties of the holder of the property.
20

(a) Unless a court has ordered otherwise, the holder of
21
the property may not do any of the following:
22

(1) require the charitable organization to establish
23

an account with the holder of the property or otherwise
24

become a customer of the holder of the property;
25

(2) require co-beneficiaries to submit claims

HB4206 Enrolled
- 5 -
LRB104 16254 JRC 29638 b
1

simultaneously or impose coordination deadlines among
2

co-beneficiaries; or
3

(3) delay payment to any co-beneficiary if other
4

co-beneficiaries have not submitted their claim
5

documentation, except where a security registered in
6

beneficiary form is not readily divisible among multiple
7

beneficiaries and a co-beneficiary has not waived the
8

co-beneficiary's right to a partial share. In such a case,
9

the holder of the property and the charitable organization
10

shall make reasonable efforts to resolve divisibility
11

concerns.
12

(b) The holder of the property may not request any
13
additional personal information from any individual employed
14
by or serving on the board of the charitable organization,
15
including, but not limited to, any of the following:
16

(1) social security number;
17

(2) personal contact information, including home
18

address;
19

(3) personal financial information;
20

(4) date of birth;
21

(5) annual income;
22

(6) value of personal assets;
23

(7) credit checks;
24

(8) criminal background checks;
25

(9) marital status;
26

(10) number of dependents;

HB4206 Enrolled
- 6 -
LRB104 16254 JRC 29638 b
1

(11) spouse's maiden name; or
2

(12) government-issued identification card, such as a
3

passport, state identification card, or driver's license,
4

provided that if an individual delivers or presents an
5

affidavit under Section 15 for the purpose of claiming or
6

receiving property, the holder of the property may request
7

presentation of an unexpired government-issued
8

identification bearing a photograph or similar safeguard
9

solely to verify the identity of the individual presenting
10

the affidavit and the individual's authority to act on
11

behalf of the charitable organization.
12

(c) Nothing in this Section prohibits a charitable
13
organization from affirmatively requesting the establishment
14
of a new account with the holder of the property; only upon
15
such affirmative request may the holder of the property
16
require the minimum necessary information contained in
17
subsection (b) and as required by federal law or regulation
18
and the holder's internal account opening policies and
19
procedures to facilitate account establishment.
20

(d) If the holder of property maintains it is prohibited
21
from paying, delivering, or transferring the property listed
22
under a beneficiary designation to a charitable organization
23
in compliance with this Act due to requirements under federal
24
law, the holder of the property shall:
25

(1) explain in writing the reason why the property
26

cannot be paid, delivered, or transferred to the

HB4206 Enrolled
- 7 -
LRB104 16254 JRC 29638 b
1

charitable organization; and
2

(2) make good faith efforts in order to facilitate
3

payment, delivery, or transfer of the property in
4

compliance with this Act.
5

(e) Nothing in this Act alters the responsibilities or
6
duties of the beneficiary or holder of the property under the
7
Revised Uniform Unclaimed Property Act or the Illinois Trust
8
and Payable on Death Accounts Act or federal law or
9
regulation.

10

Section 25.
Transfer of property.
If the requirements of
11
this Act are satisfied by a charitable organization, and there
12
are no conflicting claims to the same shares or portion of a
13
property, the holder of the property must do either or both of
14
the following within 60 business days:
15

(1) pay, deliver, or transfer the property to or for
16

the benefit of the charitable organization if the
17

affidavit has requested the transfer, payment, or delivery
18

of the property to the charitable organization, complying
19

with the charitable organization's preference as to
20

whether the property is paid, delivered, or transferred,
21

to the extent that complying with such preference is
22

reasonably practicable for the holder; or
23

(2) deliver the information requested in the affidavit
24

to the charitable organization.

HB4206 Enrolled
- 8 -
LRB104 16254 JRC 29638 b
1

Section 30.
Good faith reliance on information given to
2
the holder.
The holder of the property and any person who in
3
good faith delivers the property or information requested in
4
reliance on the information a charitable organization provides
5
under this Act, who has no knowledge that representations
6
contained in the affidavit are incorrect, is not liable to any
7
person for so acting and may assume without inquiry the
8
existence of the facts contained in the affidavit.

9

Section 35.
Release.
Any payments, deliveries, or
10
transfers made by the holder of property in compliance with
11
this Act prior to the receipt of notice of an adverse claim or
12
a restraining order shall be a complete discharge of the
13
holder of property's obligations as to the payment, delivery,
14
or transfer, and the holder of property shall, to the extent of
15
each such payment, delivery, or transfer, be released from all
16
claims of any person, charitable organization, or entity
17
claiming an interest in the property for such payment,
18
delivery, or transfer so made.

19

Section 40.
Failure or refusal of holder of the property
20
to act.
If the holder of the property fails or refuses to
21
provide the requested property or information within 60
22
business days after receiving the affidavit, the charitable
23
organization may bring an action against the holder of the
24
property to receive the information about the property or

HB4206 Enrolled
- 9 -
LRB104 16254 JRC 29638 b
1
recover the property or compel the delivery of the property.
2
An action brought under this Act must be brought within one
3
year after the date of the act or failure to act. If the court
4
finds that the holder of the property acted unreasonably in
5
failing to provide the requested information or to pay,
6
deliver, or transfer the property in compliance with this Act,
7
the court may award to the charitable organization any or all
8
of the following:
9

(1) immediate delivery of the requested information or
10

delivery or recovery of the property or value of the
11

property;
12

(2) damages sustained by the charitable organization;
13

(3) costs of the action;
14

(4) a penalty in an amount determined by the court up
15

to $10,000 only if the court finds that the holder of the
16

property engaged in bad faith or willful misconduct; or
17

(5) reasonable attorney's fees based on the time
18

expended by the attorney to obtain the requested
19

information or payment, delivery, or transfer of the
20

property without regard to the amount of the recovery on
21

behalf of the charitable organization.

22

Section 45.
The Illinois Insurance Code is amended by
23
changing Section 224 as follows:

24

(215 ILCS 5/224)

(from Ch. 73, par. 836)

HB4206 Enrolled
- 10 -
LRB104 16254 JRC 29638 b
1

Sec. 224.
Standard provisions for life policies.
2

(1) After the first day of July, 1937, no policy of life
3
insurance other than industrial, group or annuities and pure
4
endowments with or without return of premiums or of premiums
5
and interest, may be issued or delivered in this State, unless
6
such policy contains in substance the following provisions:

7

(a) A provision that all premiums after the first
8

shall be payable in advance either at the home office of
9

the company or to an agent of the company, upon delivery of
10

a receipt signed by one or more of the officers who shall
11

be designated in the policy, when such receipt is
12

requested by the policyholder.

13

(b) A provision that the insured is entitled to a
14

grace period either of 30 days or of one month within which
15

the payment of any premium after the first may be made,
16

subject at the option of the company to an interest charge
17

not in excess of 6% per annum for the number of days of
18

grace elapsing before the payment of the premium, during
19

which period of grace the policy shall continue in force,
20

but in case the policy becomes a claim during the grace
21

period before the overdue premium is paid, or the deferred
22

premiums of the current policy year, if any, are paid, the
23

amount of such premium or premiums with interest thereon
24

may be deducted in any settlement under the policy.

25

(c) A provision that the policy, together with the
26

application therefor, a copy of which shall be endorsed

HB4206 Enrolled
- 11 -
LRB104 16254 JRC 29638 b
1

upon or attached to the policy and made a part thereof,
2

shall constitute the entire contract between the parties
3

and that after it has been in force during the lifetime of
4

the insured a specified time, not later than 2 years from
5

its date, it shall be incontestable except for nonpayment
6

of premiums and except at the option of the company, with
7

respect to provisions relative to benefits in the event of
8

total and permanent disability, and provisions which grant
9

additional insurance specifically against death by
10

accident and except for violations of the conditions of
11

the policy relating to naval or military service in time
12

of war or for violation of an express condition, if any,
13

relating to aviation, (except riding as a fare-paying
14

passenger of a commercial air line flying on regularly
15

scheduled routes between definitely established airports)
16

in which case the liability of the company shall be fixed
17

at a definitely determined amount not less than the full
18

reserve for the policy and any dividend additions;
19

provided that the application therefor need not be
20

attached to or made a part of any policy containing a
21

clause making the policy incontestable from date of issue.

22

(d) A provision that if it is found at any time before
23

final settlement under the policy that the age of the
24

insured (or the age of the beneficiary, if considered in
25

determining the premium) has been misstated, the amount
26

payable under the policy shall be such as the premium

HB4206 Enrolled
- 12 -
LRB104 16254 JRC 29638 b
1

would have purchased at the correct age or ages, according
2

to the company's published rate at date of issue.

3

(e) A provision that the policy shall participate
4

annually in the surplus of the company beginning not later
5

than the end of the third policy year; and any policy
6

containing
a
provision for annual participation beginning
7

at the end of the first policy year, may also provide that
8

each dividend be paid subject to the payment of the
9

premiums for the next ensuing year; and the insured under
10

any annual dividend policy shall have the right each year
11

to have the dividend arising from such participation
12

either paid in cash, or applied in reduction of premiums,
13

or applied to the purchase of paid-up additional
14

insurance, or be left to accumulate to the credit of the
15

policy, with interest at such rate as may be determined
16

from time to time by the company, but not less than a
17

guaranteed minimum rate specified in the policy, and
18

payable at the maturity of the policy, but withdrawable on
19

any anniversary date, subject to such further provisions
20

as the policy may provide regarding the application of
21

dividends toward the payment of any premiums unpaid at the
22

end of the grace period; and if the insured fails to notify
23

the company in writing of his election within the period
24

of grace allowed for the payment of premium, the policy
25

shall further provide which of such options are effective.

26

(f) A provision that after the policy has been in

HB4206 Enrolled
- 13 -
LRB104 16254 JRC 29638 b
1

force 3 full years the company at any time, while the
2

policy is in force, will advance, on proper assignment or
3

pledge of the policy and on the sole security thereof, at a
4

specified maximum fixed or adjusted rate of interest in
5

accordance with Section 229.5, a sum equal to, or at the
6

option of the insured less than the amount required by
7

Section 229.3 under the conditions specified thereby and
8

with notification as required by Section 229.5; and that
9

the company will deduct from such loan value any
10

indebtedness not already deducted in determining such
11

value and any unpaid balance of the premium for the
12

current policy year, and may collect interest in advance
13

on the loan to the end of the current policy year; and any
14

policy may also provide that if the interest on the loan is
15

not paid when due it shall be added to the existing loan
16

and shall bear interest at the same rate. No condition
17

other than as provided herein or in Sections 229.3 and
18

229.5 shall be exacted as a prerequisite to any such loan.
19

This clause shall not apply to term insurance.

20

(g) A provision for nonforfeiture benefits and cash
21

surrender values in accordance with the requirements of
22

paragraph (1) of Section 229.1 or, Section 229.2.

23

(h) A table showing in figures the loan values and the
24

options available under the policy each year, upon default
25

in premium payments, during at least the first 20 years of
26

the policy; the policy to contain a provision that the

HB4206 Enrolled
- 14 -
LRB104 16254 JRC 29638 b
1

company will furnish upon request an extension of such
2

table beyond the years shown in the policy.

3

(i) A provision that in event of default in premium
4

payments the value of the policy is applied to the
5

purchase of other insurance as provided in this Section,
6

and if such insurance is in force and the original policy
7

is not surrendered to the company and cancelled, the
8

policy may be reinstated within 3 years from such default,
9

upon evidence of insurability satisfactory to the company
10

and payment of arrears of premiums and the payment or
11

reinstatement of any other indebtedness to the company
12

upon the policy, with interest on the premiums at a rate
13

not exceeding 6% per annum payable annually and with
14

interest on the indebtedness at a rate not exceeding the
15

rate prescribed by Section 229.5.

16

(j) A provision that when a policy is a claim by the
17

death of the insured settlement shall be made upon receipt
18

of due proof of death and not later than 2 months after the
19

receipt of such proof. The policy may require that due
20

proof of the death of the insured shall consist of a
21

certified copy of the death certificate of the insured, or
22

other lawful evidence providing equivalent information,
23

and proof of the claimant's interest in the proceeds.
If
24

due proof of death requires a certified copy of the death
25

certificate, then no more than one beneficiary shall be
26

required to submit a certified copy of the death

HB4206 Enrolled
- 15 -
LRB104 16254 JRC 29638 b
1

certificate.

2

(k) If the policy provides for payment of its proceeds
3

in installments, a table showing the amount and period of
4

such installments shall be included in the policy.

5

(l) Interest shall accrue on the proceeds payable
6

because of the death of the insured, from date of death, at
7

the rate of 10% annually on the total amount payable or the
8

face amount if payments are to be made in installments
9

until the total payment or first installment is paid,
10

unless payment is made within 31 days from the latest of
11

the following to occur:
12

(1) the date that due proof of death is received by
13

the company;
14

(2) the date that the company receives sufficient
15

information to determine its liability, the extent of
16

the liability, and the appropriate payee legally
17

entitled to the proceeds; or
18

(3) the date that legal impediments to payment of
19

proceeds that depend on the action of parties other
20

than the company are resolved and sufficient evidence
21

of the same is provided to the company; legal
22

impediments to payment include, but are not limited
23

to, (A) the establishment of guardianships and
24

conservatorships, (B) the appointment and
25

qualification of trustees, executors, and
26

administrators, and (C) the submission of information

HB4206 Enrolled
- 16 -
LRB104 16254 JRC 29638 b
1

required to satisfy State and federal reporting
2

requirements.
3

This provision need not appear in the policy, however, the
4

company shall notify the beneficiary at the time of claim
5

of this provision. The payment of interest shall apply to
6

all policies now in force, as well as those written after
7

the effective date of this amendment.

8

(m) Title on the face and on the back of the policy
9

briefly describing its form.

10

(n) A provision, or a notice attached to the policy,
11

to the effect that during a period of ten days from the
12

date the policy is delivered to the policy owner, it may be
13

surrendered to the insurer together with a written request
14

for cancellation of the policy and in such event, the
15

insurer will refund any premium paid therefor, including
16

any policy fees or other charges. The Director may by rule
17

exempt specific types of policies from the requirements of
18

this subsection.
19

(2) In the case of the replacement of life insurance, as
20
defined in the rule promulgated by the Director, the replacing
21
insurer shall either (1) delay the issuance of its policy for
22
not less than 20 days from the date it has transmitted a policy
23
summary to the existing insurer, or (2) provide in a form
24
titled "Notice Regarding Replacement of Life Insurance", as
25
well as in its policy, or in a separate notice delivered with
26
the policy, that the insured has the right to an unconditional

HB4206 Enrolled
- 17 -
LRB104 16254 JRC 29638 b
1
refund of all premiums paid, and that such right may be
2
exercised within a period of 20 days commencing from the date
3
of delivery of such policy. Where option (2) is exercised, the
4
replacing insurer shall also transmit a policy summary to the
5
existing insurer within 3 working days after the date the
6
replacement policy is issued.
7

(3) Any of the foregoing provisions or portions thereof
8
not applicable to single premium or nonparticipating or term
9
policies shall to that extent not be incorporated therein.
10
This Section shall not apply to policies of reinsurance nor to
11
policies issued or granted pursuant to the nonforfeiture
12
provisions prescribed in subparagraph (g) of paragraph (1) of
13
this Section.
14
(Source: P.A. 97-527, eff. 8-23-11.)

15

Section 50.
The Unclaimed Life Insurance Benefits Act is
16
amended by changing Section 15 as follows:

17

(215 ILCS 185/15)
18

Sec. 15.
Insurer conduct.
19

(a) An insurer shall initially perform a comparison of its
20
insureds', annuitants', and retained asset account holders'
21
in-force policies, annuity contracts, and retained asset
22
accounts in force on or after January 1, 2017 by using the full
23
Death Master File. The initial comparison shall be completed
24
on or before December 31, 2017. An insurer required to perform

HB4206 Enrolled
- 18 -
LRB104 16254 JRC 29638 b
1
a comparison of its insureds', annuitants', and retained asset
2
account holders' in-force policies, annuity contracts, and
3
retained asset accounts in force on or after January 1, 2012
4
shall perform a comparison of policies, annuity contracts, and
5
retained asset accounts in force between January 1, 2012 and
6
December 31, 2016 on or before December 31, 2018 by using the
7
full Death Master File. An insurer required to perform a
8
comparison of electronic searchable files concerning its
9
insureds', annuitants', and retained asset account holders'
10
in-force policies, annuity contracts, and retained asset
11
accounts in force on or after January 1, 2000 shall perform a
12
comparison of policies, annuity contracts, and retained asset
13
accounts in force between January 1, 2000 and December 31,
14
2016 on or before December 31, 2018 by using the full Death
15
Master File. Thereafter, an insurer shall perform a comparison
16
on at least a semi-annual basis using the Death Master File
17
update files for comparisons to identify potential matches of
18
its insureds, annuitants, and retained asset account holders.
19
In the event that one of the insurer's lines of business
20
conducts a search for matches of its insureds, annuitants, and
21
retained asset account holders against the Death Master File
22
at intervals more frequently than semi-annually, then all
23
lines of the insurer's business shall conduct searches for
24
matches against the Death Master File with the same frequency.
25
Within 6 months after acquisition of policies, annuity
26
contracts, or retained asset accounts from another insurer,

HB4206 Enrolled
- 19 -
LRB104 16254 JRC 29638 b
1
the acquiring insurer shall compare all newly acquired
2
policies, annuity contracts, and retained asset accounts that
3
were not searched by the previous insurer in compliance with
4
this Act against the complete Death Master File to identify
5
potential matches of its insureds, annuitants, and retained
6
asset account holders. Upon any subsequent acquisition of
7
policies, annuity contracts, or retained asset accounts from
8
another insurer, when the previous insurer has already
9
conducted a search of the newly acquired policies, annuity
10
contracts, and retained asset accounts using the complete
11
Death Master File, the acquiring insurer shall compare all
12
newly acquired policies, annuity contracts, and retained asset
13
accounts using all of the Death Master File updates since the
14
time the previous insurer conducted the complete search to
15
identify potential matches of its insureds, annuitants, and
16
retained asset account holders.
17

An insured, an annuitant, or a retained asset account
18
holder is presumed dead if the date of his or her death is
19
indicated by the comparison required in this subsection (a),
20
unless the insurer has competent and substantial evidence that
21
the person is living, including, but not limited to, a contact
22
made by the insurer with the person or his or her legal
23
representative.
24

For those potential matches identified as a result of a
25
Death Master File match, the insurer shall within 120 days
26
after the date of death notice, if the insurer has not been

HB4206 Enrolled
- 20 -
LRB104 16254 JRC 29638 b
1
contacted by a beneficiary, determine whether benefits are due
2
in accordance with the applicable policy or contract and, if
3
benefits are due in accordance with the applicable policy or
4
contract:
5

(1) use good faith efforts, which shall be documented
6

by the insurer, to locate the beneficiary or
7

beneficiaries; the Department shall establish by
8

administrative rule minimum standards for what constitutes
9

good faith efforts to locate a beneficiary, which shall
10

include: (A) searching insurer records; (B) the
11

appropriate use of First Class United States mail, e-mail
12

addresses, and telephone calls; and (C) reasonable efforts
13

by insurers to obtain updated contact information for the
14

beneficiary or beneficiaries; good faith efforts shall not
15

include additional attempts to contact the beneficiary at
16

an address already confirmed not to be current;
17

If the beneficiary is a charitable organization as
18

defined in Section 5 of the Charitable Organization
19

Beneficiary Act, but excluding not-for-profit
20

organizations that are the irrevocable sole beneficiary of
21

a life insurance policy covered by Section 245.2 of the
22

Illinois Insurance Code, the insurer shall, within 120
23

days, including if the insurer has been contacted by the
24

charitable beneficiary:

25

(A) determine whether the charitable organization
26

has a right to the proceeds of the policy, annuity

HB4206 Enrolled
- 21 -
LRB104 16254 JRC 29638 b
1

contract, or a retained asset account;

2

(B) provide a general description of the policy,
3

annuity contract, or a retained asset account that may
4

be held for the benefit of the charitable
5

organization, and the exact language of the
6

beneficiary designation, in accordance with subsection
7

(c);

8

(C) include information that verifies whether the
9

insurer has already obtained the official death
10

certificate or documentation needed to verify the
11

death of the insured, annuitant, or retained asset
12

account holder;
and
13

(2) provide the appropriate claims forms or
14

instructions to the beneficiary or beneficiaries to make a
15

claim, including the need to provide an official death
16

certificate if applicable under the policy or annuity
17

contract.
18

If the beneficiary is a charitable organization as
19

defined in Section 5 of the Charitable Organization
20

Beneficiary Act, the insurer shall, within 120 days,
21

provide the forms and instructions pursuant to subsection
22

(a)(2), and the insurer has the same duties as a holder of
23

property under Section 20 of the Charitable Organization
24

Beneficiary Act, including if the insurer has been
25

contacted by the charitable beneficiary.

26

(b) Insurers shall implement procedures to account for the

HB4206 Enrolled
- 22 -
LRB104 16254 JRC 29638 b
1
following when conducting searches of the Death Master File:
2

(1) common nicknames, initials used in lieu of a first
3

or middle name, use of a middle name, compound first and
4

middle names, and interchanged first and middle names;
5

(2) compound last names, maiden or married names, and
6

hyphens, blank spaces, or apostrophes in last names;
7

(3) transposition of the "month" and "date" portions
8

of the date of birth; and
9

(4) incomplete social security numbers.
10

(c) To the extent permitted by law, an insurer may
11
disclose the minimum necessary personal information about the
12
insured, annuity owner, retained asset account holder, or
13
beneficiary to a person whom the insurer reasonably believes
14
may be able to assist the insurer with locating the
15
beneficiary or a person otherwise entitled to payment of the
16
claims proceeds.
17

(d) An insurer or its service provider shall not charge
18
any beneficiary or other authorized representative for any
19
fees or costs associated with a Death Master File search or
20
verification of a Death Master File match conducted pursuant
21
to this Act.
22

(e) The benefits from a policy, annuity contract, or a
23
retained asset account, plus any applicable accrued interest,
24
shall first be payable to the designated beneficiaries or
25
owners and, in the event the beneficiaries or owners cannot be
26
found, shall be reported and delivered to the State Treasurer

HB4206 Enrolled
- 23 -
LRB104 16254 JRC 29638 b
1
pursuant to the Revised Uniform Unclaimed Property Act.
2
Nothing in this subsection (e) is intended to alter the
3
amounts reportable under the existing provisions of the
4
Revised Uniform Unclaimed Property Act or to allow the
5
imposition of additional statutory interest under Article XIV
6
of the Illinois Insurance Code.
7

(f) Failure to meet any requirement of this Section with
8
such frequency as to constitute a general business practice is
9
a violation of Section 424 of the Illinois Insurance Code.
10
Nothing in this Section shall be construed to create or imply a
11
private cause of action for a violation of this Section.
12
(Source: P.A. 99-893, eff. 1-1-17; 100-22, eff. 1-1-18;
13
100-543, eff. 1-1-18; 100-863, eff. 8-14-18.)

Footer

Disclaimer

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.

Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.
Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn