A new bill threatens to take the benefits of life insurance policies away from Oklahomans, which in turn has State Treasurer Ken Miller threatening a lawsuit.
Last year, a proposed bill that could prevent thousands of Oklahomans from receiving millions of dollars in unclaimed life insurance benefits was withdrawn. Last week, a similar bill authored by Senator Marty Quinn was approved in committee and sent to the senate.
Ken Miller, Oklahoma state treasurer, said out-of-state insurance companies back the bill, according to NewsOK.
“It is shameful for anyone to support this who is fully informed about this bill,” Miller said to NewsOK.
The proposed bill would interrupt a current state program that is trying to reunite some 800 thousand Oklahomans with $500 million in unclaimed property and life insurance benefits.
“I do not agree with the bill being passed because it is unfair,” sophomore Danielle Jackson said. “There is a lot in the bill that is wrong, like if you change your address you could lose land that should be passed down to you.”
Oklahoma is not the only state that has had these types of bills pushed. According to NewsOK, Assistant Oklahoma Attorney General Lyn Martin-Diehl said the American Council of Life Insurers have pushed these bills in multiple states to generate confusion while looking like they are doing what the consumers want.
“The only people that are getting anything out of this bill are insurance companies and they are the only ones backing it up,” Jackson said.
Currently, insurance companies are under no obligation to check insurance records to see if people are able to receive life insurance benefits. The beneficiaries are supposed to notify the insurer when the insured person has died.
According to NewsOK, the new bill would require insurance companies to check the Social Security Administration’s Death Master File at least twice a year to see if any holders of life insurance policies sold after 2015 have died, in which case they should pay the policy beneficiary.
However, insurance companies would not have to check older policies under the new proposed bill.
“I feel like the insurance companies should have to contact you if the bill is passed regardless of when the insurance was purchased,” Jackson said. “As of right now, there’s a certain amount of days that they have until the land is theirs. … There should be a longer amount of time until the land becomes the insurance company’s and they should be required to contact you before claiming it.”
According to NewsOK, Miller said the bill was negligent toward consumers and he threatened to sue the state if it is passed.
“I think having a man like Ken Miller in office is a step in the right direction,” senior Jonathan Scheppegrell said.
There is a section of the bill that gives the state insurance commissioner discretion to waive the bill’s requirements for insurance companies to check death records. Insurance Commissioner John Doak supports the bill and offers to help people get information about lost life insurance policies.
“We assist consumers in making sure they are receiving the things that are due to them,” Doak said to NewsOK.
Miller also has proactive efforts to find people through the Unclaimed Property Fund, which does not benefit his office but is maintained for consumers.
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