Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Illinois Compiled Statutes

Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

INSURANCE
(215 ILCS 5/) Illinois Insurance Code.

215 ILCS 5/325

    (215 ILCS 5/325) (from Ch. 73, par. 937)
    Sec. 325. Officers bonds. The officer or officers of the association entrusted with the custody of its funds shall within thirty days after the effective date of this Code file with the Director a bond in favor of the association in the penalty of double the amount of its benefit account, as defined in the act mentioned in section 316, as of the end of a preceding calendar year, exclusive of such amount as the association may maintain on deposit with the Director, (but in no event a bond in a penalty of less than $2,000) with such officer or officers as principal and a duly authorized surety company as surety, conditioned upon the faithful performance of his or their duties and the accounting of the funds entrusted to his or their custody. If the penalty of any bond filed pursuant to this section shall at any time be less than twice the largest amount in the benefit fund of the association not maintained on deposit with the Director during the preceding calendar year, a new bond in the penalty of double the largest amount in the benefit fund during said preceding calendar year, with such officer or officers as principal and a duly authorized surety company as surety, conditioned as aforesaid, shall be filed with the Director within sixty days after the end of such calendar year.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/326

    (215 ILCS 5/326) (from Ch. 73, par. 938)
    Sec. 326. Membership fees.
    The association shall charge all applicants for membership a membership fee of not more than six dollars nor less than one dollar and shall place at least one dollar of such membership fee in the benefit fund of the association.
(Source: Laws 1937, p. 696.)

215 ILCS 5/327

    (215 ILCS 5/327) (from Ch. 73, par. 939)
    Sec. 327. Benefit fund.
    (1) An association shall maintain a benefit fund which shall be used solely for the payment of claims of members and no part thereof shall be used for defraying the expenses of the association. Such fund, any portion of which may be deposited with the Director, may be held in cash or invested in securities of the United States Government or of the State of Illinois, and not otherwise. All moneys or other assets of the benefit account, as defined in the Act mentioned in Section 316, of any association shall upon the effective date of this Code be deemed transferred to and become a part of its benefit fund. The minimum amount of such benefit fund at all times after one year from the effective date of this Code shall be $1,000, plus the sum of $200 for each 100 members in excess of 500. If the benefit fund of any association at any time after one year from the effective date of this Code shall be less than the minimum amount required by this Section and is not increased to such minimum within 90 days, the association shall be deemed insolvent and the Director shall proceed against it under Article XIII. The Director may release any required benefit fund deposit upon receipt of an order of a court having proper jurisdiction or upon: (i) certification by the association that it has no outstanding member creditors, member certificates, or member obligations in effect and no plans to engage in the business of insurance; (ii) receipt of a lawful resolution of the association's board of directors effecting the surrender of its charter and articles of incorporation for administrative dissolution by the Director; and (iii) receipt of the name and forwarding address for each of the final officers and directors of the company, together with a plan of dissolution approved by the Director.
    (2) Whenever the association shall have been notified of any loss under its certificate of membership, which exceeds in amount the benefit fund of the association, the president shall convene the directors of the association who shall levy an assessment against all members for an amount sufficient to pay all such losses of the association at the time said assessment is made and for an amount in excess thereof sufficient to maintain the minimum amount of the benefit fund as provided in this Section. Assessments provided for in this section shall be distributed equally against all members of the association except for children under 16 years of age. The board of directors shall assess each such child an amount not to exceed one half of the amount levied against each other member.
    (3) In order to provide for an unexpected number of deaths, an association shall have the right to levy additional assessments whenever in the discretion of the board of directors the same shall be deemed advisable except that no assessment may be levied if the amount in the benefit fund exceeds, or if such assessment will increase the amount of the benefit fund in excess of a sum equal to $25 per member in good standing. The entire proceeds of all such additional assessments shall be placed in the benefit fund.
(Source: P.A. 92-75, eff. 7-12-01.)

215 ILCS 5/328

    (215 ILCS 5/328) (from Ch. 73, par. 940)
    Sec. 328. Expense fund.
    Every mutual benefit association shall keep an expense fund out of which all salaries, fees, taxes, costs of defending or prosecuting suits and all other expenses relating to the management of the association shall be paid, and for the purpose of maintaining such fund each member may be assessed not to exceed 50 cents per month except on benefit certificates on lives of children under 16 years of age. The expense assessed against each such child shall be not more than one-half of the amount assessed against each other member.
(Source: Laws 1959, p. 619.)

215 ILCS 5/329

    (215 ILCS 5/329) (from Ch. 73, par. 941)
    Sec. 329. Record of assessments. A record of all assessments provided for by this article shall be entered in the minutes of the meetings of the board of directors and such record shall show the amounts assessed for the benefit fund and the expense fund separately.
(Source: P.A. 83-343.)

215 ILCS 5/330

    (215 ILCS 5/330) (from Ch. 73, par. 942)
    Sec. 330. Assessment notice.
    Whenever any assessment shall have been levied, it shall be the duty of the association to notify immediately each member of such association by a notice, mailed to each member, setting forth the amount of his share of such losses and expenses separately. Such notice shall also state that such assessment is to be paid within thirty days from the date of the notice and the name and address of the association to which the payment is to be made. Such notice, in case of benefit assessments, shall include the name of the deceased member, the name and address of such member's beneficiary, and the amount due on his certificate. Upon failure of any member to pay any assessment levied upon him pursuant to the provisions of this article, within the time named in such notice, the association may declare the certificate of such member cancelled upon a further notice sent by first class mail addressed to such member at his last known post office address stating that his certificate will be canceled if payment is not made to the association within ten days of the mailing of such cancellation notice.
(Source: Laws 1937, p. 696.)

215 ILCS 5/331

    (215 ILCS 5/331) (from Ch. 73, par. 943)
    Sec. 331. Payment of claims.
    All claims filed with the association shall be approved or disapproved within sixty days after receipt of due proof of death or disability and if approved, shall be paid within sixty days after such approval. If a claim is disapproved, the association shall forthwith notify the beneficiary or person filing the proof of death or disability of the reasons for such disapproval. The Director shall proceed under Article XIII to liquidate any association which shall conduct its business fraudulently, or is not carrying out its contracts in good faith, or shall be sixty days or more in arrears in payment of claims after the same have been allowed by the board of directors, or has violated any of the provisions of this article.
(Source: Laws 1937, p. 696.)

215 ILCS 5/332

    (215 ILCS 5/332) (from Ch. 73, par. 944)
    Sec. 332. Amount of death benefit.
    The benefit which shall be payable by an association upon the death of a member under a certificate issued after the effective date of this Code shall be the benefit for the age at entry of such member into the association, as set forth in the standard certificate form prescribed by section 333.
(Source: Laws 1937, p. 696.)

215 ILCS 5/333

    (215 ILCS 5/333) (from Ch. 73, par. 945)
    Sec. 333. Membership certificate.
    (1) Every association shall issue a certificate of membership to each member. The form of certificate shall be submitted to the Director for his approval before same shall be issued. Each certificate issued on and after January 1, 1950, shall contain the following provisions and no others and shall be printed in clear readable type of uniform sixes, except that the words in capital letters in the following form may be in larger type, and in the case of an association issuing certificates granting only death benefits, the provisions with regard to disability may be omitted:
..............................
(A Mutual Benefit Association)
..................., Illinois.
    IN CONSIDERATION OF the membership fee, the receipt of which is hereby acknowledged and the facts set out in the application executed by the member, and the further payment of all assessments required to be paid under the conditions of this certificate, on or before the time payable during the continuance of the certificate, the .... agrees to pay to ...., herein called the beneficiary, if living, or to a duly substituted beneficiary, otherwise to the estate of the member, upon receipt at its home office in the City of ...., Illinois, of due proof of death of ...., herein called the member, during continuance of this certificate in full force, subject, however, to the conditions and provisions hereinafter set forth, in accordance with the amounts scheduled below based on the age of the member at the time he or she became a member.
    In no case shall the association be liable for an amount in excess of $1 per member paying the assessment levied for a single claim, except to the extent of the amount in the benefit fund.
    Upon receipt of satisfactory evidence at the Home Office of the Association showing that the member has lost be severance, BOTH HANDS or BOTH FEET, or ONE HAND AND ONE FOOT, or has permanently lost the ENTIRE SIGHT OF BOTH EYES, through accidental means, independently and exclusively of all other causes, within 90 days from the date of the accident, during the continuance of this Certificate, then the sum set forth in the table of benefits herein provided to be paid and upon the same terms as above provided for a death benefit, will be paid to said member, subject to the provisions and conditions hereinafter set forth in lieu of all other benefits; and should the member lose by severance ONE HAND or ONE FOOT or permanently the ENTIRE SIGHT OF ONE EYE, through accidental means, independently and exclusively of all other causes, within 90 days from the date of the accident, during the continuance of this Certificate, then 1/2 of the sum set forth in the table of benefits herein provided will be paid to the member, subject to the provisions and conditions hereinafter set forth in lieu of all other benefits. Severance shall mean, in case of a foot, severance at or above the ankle; in case of a hand, severance at or above the wrist.
TABLE SHOWING AMOUNT PAYABLE AT
DEATH OF MEMBER ACCORDING TO
AGE AT TIME OF BECOMING A
MEMBER.
Age atMaximum
EntryBenefit
Nearest Birthday
0 to 15 yrs..........................$ 500.00
             Members in this class
             upon attaining the age
             of 16 automatically become
             members of the next
             succeeding class.
16 to 40 yrs. $500.00 for first four
             months increasing $25.00
             per month to................1,000.00
41 to 45 yrs. $400.00 for first four
             months increasing $20.00
             per month to................800.00
46 to 50 yrs. $300.00 for first four
             months increasing $10.00
             per month to................500.00
51 to 55 yrs. $100.00 for first four
             months increasing $10.00
             per month to................300.00
56 to 60 yrs. $100.00 for first four
             months increasing $5.00
             per month to................200.00
    The member who holds his or her certificate is subject to assessments for the payment of death claims of the association and to assessments for the payment of expenses of the association as provided for by paragraph 13 on a following page of this certificate.
    THE PROVISIONS under the heading "Additional Contract Provisions" (upon the following pages hereof) are a part of this contract as fully as if recited over the signature hereto affixed.
    IN WITNESS WHEREOF, the .... has caused this contract to be executed at its home office in the City of ...., Illinois, on (insert date).
............... (President)
............... (Secretary)

 
ADDITIONAL CONTRACT PROVISIONS
    1. Health and Age. The applicant for membership in this association must be in good health, of sound mind and must be between the ages of 0 and sixty years, nearest birthday.
    2. Misrepresentations. This certificate and the application therefor shall constitute the entire contract with the member. All statements by the member shall, in the absence of fraud, be deemed representations and not warranties, and no such statement shall void this certificate unless contained in the written application, and a copy of such application attached to or copied on this certificate when issued, or unless the fact misstated contributes to the loss.
    3. When Certificate Takes Effect. The association assumes no liability until the certificate is issued and actually delivered to the member during his or her lifetime and while he or she is alive and in good health and of sound mind.
    4. Not More Than One Certificate to a Member. Only one certificate of membership may be held by a member. Should any member have more than one uncancelled certificate only the earliest dated certificate shall be effective and all other certificates shall be void. All assessments paid on such void certificate shall be repaid to the member.
    5. Agent Cannot Waive Contract Provisions. No agent shall have authority to make any alterations or modifications in the conditions or the provisions of this certificate of membership, to extend the time of payment of assessments, to waive any forfeiture provision or to bind the association by any promises.
    6. Assignment. No assignment of this certificate shall be binding on the association, and the association assumes no responsibility for the validity of any assignment.
    7. Change of Beneficiary. The member may, by written notification to the association, change the beneficiary without the consent of such beneficiary.
    8. Change of Address. The member, when changing his or her address, shall at once notify the association of such change, giving the new address, and such change shall be noted upon the records of the association. Notice mailed to the last known address of the member, as shown by the records of the association, shall be considered in all respects as due and sufficient notice.
    9. Residence and Travel. This certificate is free from restrictions or limitations as to residence and travel.
    10. Incontestability. After this certificate shall have been kept in continuous force, during the life of the member, for 2 full years from date of issue, it shall be incontestable if assessments have been duly paid, except as to the limitations and exclusions set forth in paragraph eleven hereof. If the age of the member has been misstated, the amount payable under this certificate shall be such as the member would have been entitled to at the true age. If the age at entry is over sixty years the amount payable shall be the full amount of assessments paid in by the member.
    11. Limitations and Exclusions. If death results by the intentional act of any beneficiary of this certificate, the benefits hereunder shall be payable to the insured member's estate. No benefits will be payable under this certificate if death occurs as a result of any of the following: (1) Military or naval service in time of war; (2) Self-destruction while sane or insane, if within two years from the date of this certificate; (3) Violation by member of any criminal law.
    12. Reinstatement. After default in payment of any assessment this certificate may be reinstated at the discretion of the board of directors upon the member furnishing to the association satisfactory evidence of good health and paying the delinquent assessment. In case the certificate is lapsed for 30 days or more a one dollar reinstatement fee shall be charged in addition to any delinquent assessments. No certificate shall be reinstated nor a new certificate issued to any member within one year after this certificate is lapsed, except upon the payment by such member of an amount equal to all intervening assessments levied by the association.
    13. Assessments. The association shall establish a benefit fund to be used exclusively for the payment of claims of members and the board of directors shall levy assessments against all members of the association which, together with any balance in the benefit fund, shall be sufficient in amount to pay all claims in accordance with the schedule set out in this certificate. The association shall also keep an expense fund out of which all expenses of the association, including salaries of officers, shall be paid, and for the purpose of maintaining such fund each member may be assessed not to exceed the maximum amount provided in Section 328.
    14. Failure to Pay Assessment. Each assessment is due and payable at the principal office of the association at .... within 30 days from the date of the notice of the assessment. If the member fails to pay the assessment within the 30 days or fails to remit said assessment by depositing the amount thereof in an envelope properly addressed to the association in the United States mail by 12 o'clock noon on the 30th day after the date of such notice, his certificate may be cancelled by the association by the mailing to such member of a cancellation notice as required by the Insurance Code of the State of Illinois. If the member fails to pay the assessment within 10 days from the date of such cancellation notice or fails to remit said assessment by depositing the amount thereof in an envelope properly addressed to the association in the United States mail by 12 o'clock noon on the 10th day after the date of such cancellation notice, the member shall cease to have any further rights under the certificate issued to such member on which the assessment is levied, and said certificate shall then and there be regarded and accepted by the association and the member as cancelled, terminated and void, but such certificate shall be in full force until the expiration of the 10 day period following the cancellation notice.
    15. Notice of Death or Disability. The association shall be notified of the death or disability of a member within a reasonable time after such death or disability. The association shall immediately furnish a form of proof of death or disability to the beneficiary or other interested party. The information required by the proof of death or disability shall be given and it shall be returned to the office of the association. The board of directors shall approve or disapprove a claim within 60 days after the receipt by the association of the proof of death or disability. If the claim is approved the association shall pay in full the amount due according to this certificate within 60 days after approval of the claim. If the claim is disapproved, the association shall forthwith notify the beneficiary or person filing the proof of death or disability of the reasons for such disapproval.
    16. Annual Meeting. The annual meeting of the members of this association shall be held in the Home Office of the association in ...., Illinois, at .... o'clock ... m., on the .... day of .... of each year, unless such day falls on Sunday or a legal holiday, and in such event on the next business day succeeding, for the purpose of electing directors and the transaction of such other business as may be brought before the meeting. Members may vote at any annual meeting in person or by proxy. This certificate shall be considered sufficient notice of such meeting to all members.
    17. Election of Benefits. The filing of a claim for disability benefits and the payment thereof by the association shall constitute an election by the insured to accept such disability benefits in lieu and in full payment of all other benefits in the certificate provided.
    (2) Prior to January 1, 1950, every association may at its option adopt and use the certificate of membership hereinbefore set forth upon first submitting the form to the Director of Insurance and securing his or her approval thereof.
(Source: P.A. 91-357, eff. 7-29-99.)

215 ILCS 5/333.1

    (215 ILCS 5/333.1) (from Ch. 73, par. 945.1)
    Sec. 333.1. Each assessable certificate issued or delivered in this State after the effective date of this Amendatory Act of 1967 shall have the following statement printed in bold face type on the face of the certificate: "This is an assessable policy".
(Source: Laws 1967, p. 3544.)

215 ILCS 5/334

    (215 ILCS 5/334) (from Ch. 73, par. 946)
    Sec. 334. One certificate to a member.
    No association shall issue to any member more than one certificate and the certificate together with the application therefor, a copy of which application shall be endorsed upon or attached to the certificate and made a part thereof, shall constitute the entire contract between the association and the member.
(Source: Laws 1937, p. 696.)

215 ILCS 5/335

    (215 ILCS 5/335) (from Ch. 73, par. 947)
    Sec. 335. Advertising.
    (1) No association shall use any certificates or applications, unless the forms thereof be submitted to and approved in writing by the Director. No such association in any printed matter, stationery, circulars, certificates, applications, advertisement or other literature shall make any statements tending to create the impression or from which it may be implied or inferred, directly or indirectly, that the financial condition of the association or the payment of its claims is guaranteed by the State, by the United States Government or is secured by Government bonds; nor shall such association in any such advertisement or other printed matter use the name of the Director or the Department in such a way as to give the impression that such Director or Department approves or endorses the association or guarantees in any way its financial condition or the payment of its claims.
    (2) Any association or officer or agent of any association who violates any of the provisions of this section shall be guilty of a petty offense for each such offense.
(Source: P.A. 77-2699.)

215 ILCS 5/336

    (215 ILCS 5/336) (from Ch. 73, par. 948)
    Sec. 336. Does not apply to industrial associations.
    This article shall not apply to any mutual benefit association that limits its membership to the employees of a designated person, firm or corporation, or of a designated corporation and its subsidiaries and affiliated corporations.
(Source: Laws 1937, p. 696.)

215 ILCS 5/337

    (215 ILCS 5/337) (from Ch. 73, par. 949)
    Sec. 337. Application of other code provisions.
    Unless otherwise provided in this article, every mutual benefit association shall be subject to other applicable provisions of this Code.
(Source: Laws 1937, p. 696.)

215 ILCS 5/337.1

    (215 ILCS 5/337.1)
    Sec. 337.1. Data exchanges; administrative liens.
    (a) Any benefit association governed by this Article XVIII shall encumber or surrender accounts as defined in Section 10-24 of the Illinois Public Aid Code held by the benefit association on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or levy by the Department of Healthcare and Family Services (formerly Illinois Department of Public Aid) or its successor agency pursuant to Section 10-25.5 of the Illinois Public Aid Code, or upon notice of interstate lien from any other state's agency responsible for implementing the child support enforcement program set forth in Title IV, Part D of the Social Security Act.
    (b) This Section shall not prohibit the furnishing of information in accordance with the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Any benefit association governed by this Article XVIII shall enter into an agreement for data exchanges with the Department of Healthcare and Family Services provided the Department of Healthcare and Family Services pays to the benefit association a reasonable fee not to exceed its actual cost incurred. A benefit association providing information in accordance with this item shall not be liable to any owner of an account as defined in Section 10-24 of the Illinois Public Aid Code or other person for any disclosure of information to the Department of Healthcare and Family Services (formerly Department of Public Aid), for encumbering or surrendering any accounts held by the benefit association in response to a lien or order to withhold and deliver issued by the Department of Healthcare and Family Services (formerly Department of Public Aid), or for any other action taken pursuant to this item, including individual or mechanical errors, provided the action does not constitute gross negligence or willful misconduct. A benefit association shall have no obligation to hold, encumber, or surrender the accounts or portions thereof as defined in Section 10-24 of the Illinois Public Aid Code until it has been served with a subpoena, summons, warrant, court or administrative order, lien, or levy.
(Source: P.A. 95-331, eff. 8-21-07.)

215 ILCS 5/Art. XIX

 
    (215 ILCS 5/Art. XIX heading)
ARTICLE XIX. BURIAL SOCIETIES