Section 920.10  Scope

 

This Part applies to all life insurance companies and fraternal benefit societies authorized to transact in this State the kind or kinds of business that are described in Class 1(a) of Section 4 of the Code.  These rules provide guidance and instructions regarding specific provisions of the Act and may be supplemented in the future if additional clarification is required. They are intended to be consistent with the requirements of the Act and do not relieve insurers of their obligation to comply with any requirements of the Act not specifically addressed in this Part.

 

Section 920.20  Definitions

 

Unless the context requires otherwise, terms used in this Part have the meanings ascribed in Section 10 of the Act.

 

"Act" means the Unclaimed Life Insurance Benefits Act [215 ILCS 185].

 

"Affiliate" has the meaning ascribed in Section 131.1(a) of the Code.

 

"Beneficiary" or "Beneficiaries" means the party or parties entitled or contingently entitled to receive the proceeds from a policy, annuity contract, or retained asset account.

 

"Code" means the Illinois Insurance Code [215 ILCS 5].

 

"Department" means the Illinois Department of Insurance.

 

"Electronic Searchable File" means any electronic record stored in a format that, using the insurer's existing capabilities, can be read by an algorithm that electronically searches and retrieves alphanumeric data from the record that satisfy parameters specified by the end-user or administrator, or that are integrated into the algorithm or the program that runs it, or both. The term excludes any record that must be reconstructed before being searched, as well as any record that can only be searched by visually inspecting the physical attributes of the storage medium containing the record, such as paper or microform.

 

"In-Force" means a situation in which any policy, annuity contract, or retained asset account is in force, within the applicability parameters established in Section 35 of the Act.  This includes policies for which the insured or the insurer has exercised a non-forfeiture benefit option, policies that have lapsed due to nonpayment of premium, and policies with a cash value that has been depleted below the amount needed to keep the policy in force.

 

"Insured" means an individual identified in a policy, annuity contract or retained asset account whose death obligates the insurer to pay benefits or proceeds.

 

"Insurer" means a life insurance company or fraternal benefit society authorized to transact in this State the kind or kinds of life insurance products that are described in Class 1(a) of Section 4 of the Code.

 

"Subsidiary" has the meaning ascribed in Section 131.1(g) of the Code.

 

Section 920.30  Insurer Conduct

 

a)         Upon a date of death notice of an insured, the date of death notice is deemed to apply to all of the insurer's lines of business.  The insurer shall check its records to determine whether the insurer has any other policies, annuity contracts, or retained asset accounts for that insured.

 

b)         Upon a date of death notice of an insured, the insurer shall:

 

1)         Forward each United States affiliate, parent or subsidiary, as appropriate, and any entity with which the insurer contracts that might maintain or control records related to policies, annuity contracts, or retained asset accounts to which this Part applies, a copy of the information or record giving rise to the date of death notice; and

 

2)         Make a reasonable effort to ensure that each affiliate, parent, subsidiary or other entity performs a check of its records for purposes of subsection (a).

 

c)         The presumption of death and obligation to search for a beneficiary in Section 15(a) of the Act does not apply if the person indicated as dead is determined not to be an insured of the insurer.

 

d)         Minimum standards for good faith efforts to locate a beneficiary or beneficiaries under Section 15(a)(1) of the Act consist of the following:

 

1)         The insurer shall search at least its electronic searchable files, including records for which the insurer provides record keeping services, for the most current postal address of the beneficiary or beneficiaries.  If this information is absent from the electronic searchable files, then the insurer must search all policy, annuity contract and retained asset account files of any format that pertain to the insured who designated the beneficiary.  If the insurer finds within these records no postal address other than ones confirmed not to be current under subsection (d)(7), then the insurer shall search external sources for a current postal address as described in subsections (d)(3)(B)(i) and (ii).

 

2)         The insurer shall make at least two attempts to contact the beneficiary or beneficiaries in writing by first-class mail to the most current postal address obtained under subsection (d)(1).  If a postal address is confirmed not to be current, the insurer is not required to attempt to contact the beneficiary or beneficiaries again at that address.

 

3)         If the contact attempts under subsection (d)(2) yield no response, or if the postal address is confirmed not to be current, then the insurer shall search for the most current postal address, telephone number, and e-mail address of the beneficiary or beneficiaries by all of the following means:

 

A)        For the most current telephone number and e-mail address, the insurer shall search all policy, annuity contract and retained asset account files of any format that pertain to the insured who designated the beneficiary.  The insurer shall also search these records for the most current postal address if the insurer only searched its electronic searchable files during the phase described in subsection (d)(1).

 

B)        For the most current postal address, telephone number, and e-mail address, the insurer shall search external sources of records as follows:

 

i)          If the insurer already has access to a national online search or locator tool, such as LexisNexis Public Records, Accurint, PeopleMap on Westlaw, or other comparable databases, then the insurer shall use at least one of those tools in the search of external sources.

 

ii)         If the insurer does not already have access to any of the tools or databases covered in subsection (d)(3)(B)(i), or if the insurer has searched all those databases to which it already has access but does not find a more current postal address, telephone number or e-mail address than is found in the insurer's records, then the insurer shall make reasonable efforts in using an internet search engine and social media websites in the search of external sources.

 

4)         Insurer Contacts

 

A)        Using the most current contact information obtained from the search under subsection (d)(3), until either the insurer receives a response or all contact attempts have been exhausted without a response, the insurer shall attempt to contact the beneficiary or beneficiaries, in whatever order the insurer deems appropriate:

 

i)          at least twice at a current telephone number, leaving a voicemail if there is no answer and a voicemail option is presented;

 

ii)         at least twice at a current e-mail address; and

 

iii)        at least once by first-class mail at a current postal address.

 

B)        If any contact information is confirmed not to be current, the insurer is not required to attempt to contact the beneficiary or beneficiaries again using that information.

 

5)         An insurer is not required to undertake the search process in subsection (d)(3) more than once with respect to any of the three types of contact information.

 

6)         The insurer shall complete all efforts to locate the beneficiary or beneficiaries under this subsection (d) within one year after the date of death notice.

 

7)         A beneficiary's postal address, telephone number, or e-mail address is confirmed not to be current:

 

A)        when the insurer finds in its records that the beneficiary, the insured or the authorized representative of either has informed the insurer that the beneficiary's contact information is no longer current or is inaccurate;

 

B)        when one of the tools or databases covered in subsection (d)(3)(B)(i) affirmatively and directly indicates that the contact information is inaccurate or has been superseded by new contact information;

 

C)        for a postal address or e-mail address, when any writing that the insurer has sent there is returned as undeliverable; or

 

D)        for a telephone number, when the insurer has called the number and either finds it to have been disconnected or receives a response from an individual at that number who states that the number does not belong to the beneficiary.

 

e)         No later than the policy or annuity contract delivery or the establishment of a retained asset account, and upon any change of the insured or beneficiary, an insurer shall request information sufficient to ensure that all benefits or proceeds are distributed to the appropriate persons upon the death of an insured, including, at a minimum, the name, postal address, e-mail address, date of birth, social security number, and telephone number of every insured and beneficiary of the policy, annuity contract, or retained asset account, as applicable.

 

f)         Insurers shall update their records as they receive or gain knowledge of a change in an insured, beneficiary, or beneficiary's name, postal address, e-mail address, or telephone number.

 

g)         Insurers shall provide a statement to the Department regarding the extent to which policy, annuity contract, and retained asset account files currently are electronically searchable, and future plans regarding converting files into electronically searchable files.

 

Section 920.40  Lost Policy Finder − Insurer Requirements

 

a)         Insurers shall register for the Lost Policy Finder service offered by the Department within the later of 30 days after becoming authorized to offer life insurance products in this State or September 1, 2019.

 

b)         Each insurer must designate an individual as a Primary Policy Search Coordinator to manage the insurer's compliance with the requirements for the Lost Policy Finder service under this Part and Section 25 of the Act.  

 

1)         The Primary Policy Search Coordinator shall:

 

A)        ensure the proper execution of the insurer's responses to requestors and the insurer's reports to the Department; and

 

B)        have the ability to designate other employees as Secondary Coordinators to complete requests received by the insurer.

 

2)         Insurers must maintain at least one active Primary Policy Search Coordinator at all times.

 

3)         An insurer shall provide the Department with the name and contact information of its current Primary Policy Search Coordinator within 5 business days each time it designates an individual for that role.

 

c)         An insurer receiving a Lost Policy Finder request shall use all reasonable efforts to search for any In-Force policies, annuity contracts, or retained asset accounts for which the deceased identified in the request is an insured.

 

d)         Within 30 days after the final disposition of a Lost Policy Finder request, if the individual identified as deceased in the request is an insured of an In-Force policy, annuity contract, or retained asset account, the insurer shall report to the Department whether a claim was paid on the policy, annuity contract, or retained asset account and, if so, what were the amount of payment and the date of payment. If a claim was not paid, the report shall specify the reason why a claim was not paid.

 

Section 920.50  Lost Policy Finder − Inactive Insurers

 

Any insurer can request to be made inactive in the Lost Policy Finder System. The request must include certification by the insurer's President, Chief Executive Officer, or Chief Operating Officer that no In-Force policies, annuity contracts, or retained asset accounts exist in Illinois.

 

Section 920.60  Lost Policy Finder − Requestor Requirements

 

Requestors may submit Lost Policy Finder requests in paper using Illustration A or may use the Department's website (http://insurance.illinois.gov/Applications/LostPolicyFinder/). The Department, in its sole discretion, will reject any request it deems to be incomplete, frivolous or unduly burdensome.

 

Section 920.70  Enforcement/Penalties

 

a)         Failure of an insurer to meet any requirement of this Part with such frequency as to constitute a general business practice is considered an unfair method of competition and unfair or deceptive practice as defined in Section 424 of the Code and may result in disciplinary action by the Department.

 

b)         Failure of an insurer to accurately and completely respond to Lost Policy Finder requests received within the 30 or 45 day period, as applicable under Section 25 of the Act, is deemed to be a general business practice constituting an unfair method of competition and unfair or deceptive practice as defined in Section 424 of the Code and may result in disciplinary action by the Department.

 

Section 920.ILLUSTRATION A   Illinois Department of Insurance Lost Policy Finder Service Form

 

320 W. Washington Street

Springfield IL 62767

Main Phone 866-445-5364

Local 217-557-6955

TDD 217-524-4872

insurance.illinois.gov

 

 

Illinois Department of Insurance

Lost Policy Finder Service

 

The Illinois Department of Insurance can forward a consumer's request to locate and identify individual life insurance policies or annuity contracts of a deceased family member.

 

WHO IS ELIGIBLE FOR THE LOST POLICY FINDER SERVICE:		HOW TO SUBMIT A REQUEST: Please complete all information indicated on this form, and return your request in an envelope marked "CONFIDENTIAL" along with a COPY of a proof of death, such as the deceased's death certificate, to:
●	An executor or legal representative of a deceased individual who may have lived in Illinois when an individual life insurance policy or individual annuity was purchased, or
●	Individuals who have reason to believe they are beneficiaries.	IL DOI-Lost Policy Finder Service 320 W. Washington St. Springfield IL 62767
		You should keep the original death certificate. Insurers will require an original death certificate in the event that you are contacted to submit a claim.

 

*******IMPORTANT: Life insurers will respond directly to you ONLY IF they have reason to believe the deceased has individual policies or contracts with them

AND you are authorized to receive this information.*******

 

 

CONFIDENTIAL PERSONAL INFORMATION                PLEASE WRITE CLEARLY IN BLACK OR BLUE INK

Requestor's Name (Person completing the form) (Mr. Ms. Mrs. Dr., etc.)		Date of Request
Street Address	City	State	Zip Code
Phone Number(s)	E-mail Address

 

Deceased Person's Information

 

Name of Deceased Policyholder or Annuitant (Please include all previous legal names (i.e., maiden name))*				Deceased's Social Security Number
Policyholder/Annuitant's Most Recent Street Address		City		State	Zip Code
Policyholder/Annuitant's Previous Street Addresses*		City		State	Zip Code
Date of Birth	Date of Death		State of Purchase

*Please attach separate page if more space is needed

 

Relationship of Requestor to the Deceased Person (check all that apply)

Spouse	Child (18 or older)	Executor or Legal Representative	Attorney	Other (Please specify below)
□	□	□	□	□

 

Upon receipt of the fully completed request form and proof of death, such as a death certificate copy, the Department of Insurance will:

 

●      Forward the form and attachments, along with the proof of death, to all Illinois-licensed life insurers.

●      Ask that the insurers search their records to determine whether they have any individual life insurance policies or annuity contracts in the name of the deceased.

●     Ask that the insurers respond directly to the requestor only if they have any individual life insurance policies or annuity contracts naming the deceased, and if the requestor is authorized to receive this information.

 

REQUESTOR'S CERTIFICATION

 

I certify that I have made a diligent search of the deceased person's records and property, including bank statements and safety deposit boxes, and have asked family members to identify all individual life policies or individual annuity contracts that I have reason to believe covered the life of the deceased person named above. I understand that life insurers will respond directly to me only if they have reason to believe the deceased has any individual policies with them and I am authorized to receive this information.

 

I understand that the Department of Insurance's only role with this request is to forward to all Illinois licensed life insurers this completed form and the proof of death.  I understand that the Department may reject this request if the Department, in its sole discretion, deems it to be incomplete, frivolous, or unduly burdensome. I understand that an insurer may require additional information from me, including the original death certificate and documentation of my legal authority to request or obtain information about the deceased.

 

For privacy and protection of confidential personally identifiable information, I understand all original documents I submit to the Illinois Department of Insurance will not be returned. I further understand all original documents I submit with this request will be destroyed pursuant to Department retention schedules.

 

 

I certify that the information I have provided is complete and accurate.

 

 

Requestor's Signature:  ______________________________________________________