Rick Green
The Oklahoman
Two insurance industry-backed measures that would disrupt the Unclaimed Property Fund appear dead for this legislative session.
The measures, which state Treasurer Ken Miller had described as “shameful,” are in two committees and leaders of each say these bills will not come to a vote.
Miller has said repeatedly the legislation would hinder his ability to link life insurance benefits to Oklahomans who didn’t realize the money was owed to them.
Forgotten life insurance benefits are among millions of dollars that flow into the Unclaimed Property Fund every year.
The treasurer’s office hires a private vendor to audit insurance company records on a contingency basis to find out if there are Oklahoma life insurance beneficiaries who haven’t claimed their money. If so, the money goes into the Unclaimed Property Fund and Miller tries to find beneficiaries.
House Bill 1741, which would prevent the state from using vendors in this manner, was sent to the Senate Appropriations Committee, chaired by Sen. Clark Jolley.
Jolley, R-Edmond, told The Oklahoman on Monday there’s no problem with the vendors.
“I have yet to see a response to my request to show me where something was improperly taken by one of these audits,” he said.
The other measure, Senate Bill 298, was sent to the House Appropriations and Budget Committee, chaired by Rep. Earl Sears, R-Bartlesville. It would require companies to check at least twice a year to see if holders of newly written life insurance policies have died. If they have died, the insurance company is to pay the policy beneficiary.
However, they would not have to check older policies as the state does now through its vendor. Insurance companies have succeeded elsewhere in receiving court rulings once such bills are passed that preclude the state from checking these older policies.
Sears said his committee would not hear the bill until the insurance industry and the treasurer “had worked out their differences” on the issue.
Miller expressed satisfaction at the sidetracking of the bills. He has been speaking out against the measures for weeks.
“I want to commend and thank Senator Clark Jolley and Rep. Earl Sears for putting Oklahoma consumers and taxpayers above out-of-state corporate interests by refusing to hear the bills in their respective committees,” he said. “I am most appreciative to both chairmen for the time and attention they dedicated to studying this complex issue so they could make the right decision for all Oklahomans.”
Rep. Lewis Moore, R-Arcadia, author of House Bill 1741, did not immediately return calls for comment. Sen. Marty Quinn, R-Claremore, author of Senate Bill 298, said Monday evening that it would be premature for him to comment.
They have said the insurance industry does a good job of providing life insurance benefits to the proper people and that this money represents a small percentage of the state’s unclaimed property fund, which also includes things like bank accounts and royalty payments.
They also have said that third-party audits of insurance companies in a quest for unclaimed benefits can be onerous for these businesses and that people who think they have unclaimed benefits should contact the state insurance commissioner’s office.
