State Treasurer John Perdue praised Gov. Earl Ray Tomblin's veto of a bill that, as originally drafted, would have reversed a 2015 state Supreme Court decision requiring insurance companies to seek out beneficiaries after life insurance policy holders die.
"I commend the governor for standing up for what is right for West Virginians," Perdue said. "Senate Bill 599 was an unconstitutional amendment to the Uniform Unclaimed Property Act that would have deprived my office of its inherent function of administering the Act."
The original version of the bill would have overturned the high court's finding that insurance companies are obligated to determine if life insurance policy holders have died, and to turn proceeds over to the state Unclaimed Property Fund if no beneficiaries come forward.
"Now, they're trying to find ways around the law so they can keep that money," Perdue said during a press conference in February to denounce the bill. "It's their gain and the family's loss."
Perdue complained that many West Virginians are unaware they are beneficiaries of life insurance policies taken out by parents or relatives, policies he said end up hidden away in a "safe deposit box or cigar box somewhere."
In 2015, Perdue noted, the Unclaimed Property division found beneficiaries for 1,092 abandoned life insurance policies, with payments totaling nearly $1 million - policies that would have gone unclaimed under the proposed legislation.
Insurance industry lobbyists had argued the legislation merely clarified existing laws and policies for resolving unclaimed life insurance policies.
Tomblin on Friday vetoed the bill, which had been significantly revised during the legislative session. It instead would have mandated the state Insurance Commissioner to come up with policies and requirements for insurance companies to determine beneficiaries of unclaimed life insurance policies.
In his veto message, Tomblin said state law is clear that the state Treasurer oversees the state Unclaimed Property Act, and said it would be "unwise to subdivide duties" under that law to other state officials.
Meanwhile, Perdue lauded the passage of a bill that originated in the House Judiciary Committee Feb. 27 - about a week after he called the press conference denouncing SB 599 and companion bill HB 4473 - that requires insurance companies to attempt to verify if life insurance policy holders have died by matching names with the Social Security Administration Death Master File (HB 4739).
Tomblin signed that bill into law on Friday.
"The issue is whether insurers have a responsibility to find out if a life insurance policy owner has died and the obligations that follow," Perdue said. "The State Supreme Court already ruled on this issue, and the insurance industry went to the state Legislature to circumvent that decision."
Reach Phil Kabler at philk@wvgazettemail.com, 304-348-1220, or follow @PhilKabler on Twitter.