CHICAGO (AP) — Gov. Bruce Rauner has used his amendatory veto powers to rewrite an unclaimed life insurance benefits proposal backed by the Illinois treasurer.
The measure would've required insurance companies to compare lapsed policies back to 2000 against federal death files to verify a policyholder has died and benefits have been paid.
Democratic Illinois Treasurer Michael Frerichs supported the plan. Proponents, including consumer advocates, say it'll guard against insurance companies' unscrupulous practices.
The Republican governor announced his rewrite Friday, saying he supports the plan's intent but it's "inequitable and potentially unconstitutional." He says it unfairly forces companies to search for policies and goes further than current law.
Frerich's spokeswoman didn't immediately return a message Saturday.
Lawmakers need three-fifths majorities in the House and Senate to override Rauner's changes.
The legislation is HB302.
Madigan says the proposal was intended to fight abuse and failures in the industry, part of an investigation and lawsuit her office brought against a loan servicing company. The measure would, among other things, require servicers to provide students detailed information, including their repayment options.
In rejecting the plan, Rauner said the intent is "laudable," but the bill "encroaches on the federal government's responsibilities" and would make the complex student loan process more confusing.
Madigan, a Democrat, accused the Republican governor of failing to "stand up" for students.
Backers plan to seek an override, which requires three-fifths majority House and Senate votes.
The legislation is SB1351.