Insurers sue Illinois over life insurance policy audit
CHICAGO (AP) — Three insurers have sued Illinois Treasurer Mike Frerichs over an attempt to seek records on life insurance policies.
Frerichs said Monday an audit was sought to find unpaid death benefits because returning unclaimed property is part of his office's mission. Frerichs says beneficiaries might be unaware policies exist. The information received would be checked against a federal death database.
The lawsuit filed last week in Sangamon County argues the treasurer doesn't have such authority; benefits are paid if there's a claim and proof of death.
The insurers are Chicago-based Kemper Corp. subsidiaries: United Insurance Company of America in Illinois, Reserve National Insurance Company in Oklahoma and The Reliable Life Insurance Company of Missouri.
Kemper said in a Monday statement that it's paid valid claims and followed state law for years.