SB2396 - Unclaimed Life Insurance Benefits Act

• Requires all Illinois-authorized insurers to make good faith efforts to locate and pay beneficiaries of unclaimed life insurance policies, annuity contracts, and retained asset accounts, or remit proceeds as unclaimed property.

• Mandates insurers compare policies and contracts against the Social Security Administration's Death Master File annually and quarterly thereafter, accounting for common data variations in names and dates.

• Requires a "thorough search" within 120 days of death notice, completed within one year, including at least 2 written contact attempts, 2 phone attempts, email contact, and use of online locator tools if mail is returned undeliverable.

• Prohibits insurers from charging fees for searches or verification activities and prevents policies or practices that would diminish beneficiary rights or payment amounts.

• Establishes failure to comply with Act requirements as an unfair trade practice under the Illinois Insurance Code, enforceable by the Department of Insurance.