The Peoria Chapter of the NAACP is endorsing a piece of legislation that would require life insurance companies to pay out death benefits that have been unclaimed since the year 2000.
Illinois State Treasurer Michael Frerichs stopped in Peoria Tues. to join NAACP chapter president Rev. Marvin Hightower for a press conference touting measure, HB 302.
The Rev. Hightower says members of the African American community stand to benefit, including himself.
He recently checked the state’s death records and discovered his deceased mother’s policy, seven years after she died.
“It was a wow moment, and it opened my eyes that there are people like our family that had benefits, but just didn’t know,” Hightower said.
Treasurer Frerichs says some life insurance companies are notorious for preying upon low-income and African American communities, by selling cheap policies and not paying the claims when the policyholder died.
HB 302 passed both chambers of the state legislature, but most Republicans rejected it. Frerichs says the measure has been politicized because of pressure coming from the insurance lobby.
“We can wait ‘till there’s a Democratic governor and come back and fight this again, but families will have to wait another two years and that’s not something I want to envision,” Frerichs said.
Under the legislation, insurance companies would have to search their records and confirm that they’re not holding onto unclaimed policies that should have been paid to families or beneficiaries.
The Illinois Chamber of Commerce and the American Council of Life Insurers, a Washington, DC-based interest group, both oppose the bill.
HB 302 awaits a signature from Gov. Rauner.