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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 5/337.1

    (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

215 ILCS 5/338

    (215 ILCS 5/338) (from Ch. 73, par. 950)
    Sec. 338. Scope of Article.
    (1) This Article shall apply to:
        (a) all societies organized or operating, prior to
    
the effective date of this Code, under an Act entitled "An Act relating to burial insurance societies", approved June 10, 1911;
        (b) any person, firm, corporation, society, or
    
association of individuals engaged in the business of providing a burial benefit or award for the payment, in whole or in part, of funeral, burial or other expenses relating to deceased members, certificate holders or subscribers, by the levying of assessments, or by the charging of a fee or premium.
    (2) Each person, firm, corporation, society or association mentioned in subsection (1) is referred to in this Article as a "burial society" and subscribers to and certificate holders of such a society are referred to in this Article as "members."
(Source: P.A. 91-357, eff. 7-29-99.)

215 ILCS 5/339

    (215 ILCS 5/339) (from Ch. 73, par. 951)
    Sec. 339. Present authorized burial societies may transact business.
    Every society organized prior to the effective date of this amendatory Act of 1959 and which society on that date was transacting business under a certificate of authority issued by the Director may continue to transact such business subject to the provisions of this article, but except as provided in Section 336a no person, firm, corporation, society or association shall enter business as a burial society after the effective date of this amendatory Act of 1959.
(Source: Laws 1959, p. 1150.)

215 ILCS 5/340

    (215 ILCS 5/340) (from Ch. 73, par. 952)
    Sec. 340. Article of Incorporation. The articles of incorporation of a burial society shall state:
    (a) The corporate name which shall not resemble the name of any existing society or corporation organized under the laws of this State or authorized to transact business therein as to mislead the public or cause confusion, the purpose for which it is formed and the place in this State where its principal office is located;
    (b) The mode and manner in which the corporate powers of the society shall be exercised; the manner of electing directors; the number of directors which shall not be less than 3 nor more than 7; terms of office of directors which shall be not more than 4 years; the manner of electing officers and filling vacancies and such other particulars as may be necessary to explain and manifest the object and purpose of the society and the manner in which it is to be conducted.
    A copy of the by-laws and forms of applications for members and a copy of all forms of policies or certificates, literature and advertisements shall be filed with the Director.
    The Director shall examine the articles of incorporation and other papers so filed with him and if he finds no objection thereto he shall submit the articles of incorporation to the Attorney General for examination and if found by the Attorney General to be in accordance with the provisions of this Code and not inconsistent with the laws and constitution of this State and of the United States, he shall certify to the same and deliver it back to the Director who shall cause the articles to be recorded in his records and issue to the incorporators a certified copy thereof, and thereupon such incorporators and their associates shall become and be a body corporate with the power to sue and be sued, contract and be contracted with, adopt by-laws not in conflict with the provisions of this Code, adopt a seal and do such other acts, subject to the provisions and restrictions of this Code, as shall be needful to accomplish the purposes of its organization. The management of the affairs of the society shall at all times be vested in the board of directors.
(Source: P.A. 82-498.)

215 ILCS 5/341

    (215 ILCS 5/341) (from Ch. 73, par. 953)
    Sec. 341. Deposit required.
    (1) A burial society shall maintain with the Director a deposit of cash or securities in an amount of at least $1,000. A society having a membership of more than 2,500 members and less than 5,000 members shall maintain a deposit with the Director of $5,000. A society having a membership of more than 5,000 members and less than 10,000 members shall maintain a deposit with the Director of $10,000. A society having more than 10,000 members shall maintain a deposit with the Director of $10,000 and an additional $1,000 for each 1,000 members in excess of 10,000.
    (2) All deposits as required herein shall be in cash or in securities permitted by section 346.
    (3) The Director may release the required deposit of cash or securities upon receipt of an order of a court having proper jurisdiction or upon: (i) certification by the burial society that it has no outstanding creditors, policyholders, certificate holders, or member obligations in effect and no plans to engage in the business of insurance; (ii) receipt of a lawful resolution of the burial society's board of directors effecting the surrender of its 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 burial society, together with a plan of dissolution approved by the Director.
(Source: P.A. 92-75, eff. 7-12-01.)

215 ILCS 5/342

    (215 ILCS 5/342) (from Ch. 73, par. 954)
    Sec. 342. Officers bond.
    The officer or officers of the society entrusted with the custody of its funds shall give bond to the association in double the amount of the minimum deposit required by this article, but in no event less than Two Thousand ($2,000) Dollars or more than Five Thousand ($5,000) Dollars, conditioned upon the faithful performance of his or their duties and accounting for the funds entrusted to his or their custody.
(Source: Laws 1937, p. 696.)

215 ILCS 5/343

    (215 ILCS 5/343) (from Ch. 73, par. 955)
    Sec. 343. Certificate form.
    (1) Every burial society shall issue a certificate of membership to each member, agreeing to pay upon death a specified sum of money not to exceed $1,000, which specified amount shall not be diminished during the existence of the contract. The form of certificate shall be submitted to the Director for his or her approval before the same shall be issued. Each certificate issued after the effective date of this Code, shall contain the following provisions, and shall be printed in clear readable type of uniform size except that the words in capital letters in the following form may be in larger type:
............, Illinois.
Certificate Number
..................
..............................
(A Burial Insurance Society)
    Incorporated under the Illinois Insurance Code.
    HEREBY INSURES the life of ...., hereinafter called the Member.
    The society hereby agrees to pay to .... Beneficiary, the sum of $...., upon receipt of due proof of the death of the member, such payment to be paid only in lawful money of the United States.
    This certificate is issued in consideration of the application and the payment in advance of a first .... premium of .... which maintains this certificate in force for a period ending .... following its date of issue, and the payment of a like sum on the .... day of each .... thereafter during the lifetime of the member.
    CHANGE OF BENEFICIARY. The member may change the beneficiary at any time by giving notice at the principal office of the society.
    INCONTESTABLE CLAUSE. This certificate shall be incontestable after it has been in force during the life-time of the member for 2 years except for non-payment of premiums provided herein.
    GRACE PERIOD. A grace period of 30 days shall be allowed for the payment of any premium after the first, during which time this certificate shall be continued in full force. Should the member die during such grace period, the unpaid premium may be deducted from the amount otherwise payable. This certificate shall be regarded and accepted by the society and the member as cancelled and terminated upon failure to pay any premium before the expiration of the grace period.
    REINSTATEMENT. This certificate, after default in payment of any premium, may be reinstated at the discretion of the Board of Directors upon the member furnishing to the society satisfactory evidence of good health and paying the delinquent premiums.
    CONTRACT. This certificate and the application therefor, a copy of which is attached hereto, shall constitute the entire contract with the member.
    MISSTATEMENT OF AGE. If the age of the member has been misstated, the amount payable under the certificate shall be such as the member would have been entitled to at the true age.
    IN WITNESS WHEREOF, the society has caused this certificate to be signed by its duly authorized officers, on (insert date), which shall be the effective date of this certificate.
.................
(Secretary)
.................
(President)
    (2) If the society is operating on an assessment plan, it may substitute in lieu of the word premium the word assessment in each case and may substitute in lieu of the consideration clause contained in the form the following:
    This certificate is issued in consideration of the application and the payment in advance of the first .... assessment and the further payment of such assessments as may be levied from time to time during the lifetime of the member.
(Source: P.A. 91-357, eff. 7-29-99.)

215 ILCS 5/344

    (215 ILCS 5/344) (from Ch. 73, par. 956)
    Sec. 344. Burial benefit payable in lawful money.
    No society operating under or by virtue of this article shall pay a burial benefit or award other than in lawful money of the United States and any provision in any contract to the contrary shall be of no effect, nor shall any member of any society or representative or beneficiary of such member be required as a condition of his becoming a member, or otherwise, to purchase funeral supplies or burial services from any specified or designated person, firm or corporation so as to deprive the representative, beneficiary or family of any such member from procuring or purchasing said supplies and services in the open market.
(Source: Laws 1937, p. 696.)

215 ILCS 5/345

    (215 ILCS 5/345) (from Ch. 73, par. 957)
    Sec. 345. Society and directors or officers may not advertise funeral supplies.
    No burial society nor any officer, director or agent of any burial society shall offer or make any oral or written agreement to furnish, or shall distribute or cause to be distributed any literature or advertising of any kind whatsoever which offers or purports to offer, funeral supplies of any kind in lieu of the cash payment upon the death of a member. Upon any violation of this section by any society, or officer, director or agent thereof, the Director shall proceed to liquidate such society in accordance with the provisions of Article XIII.
(Source: Laws 1937, p. 689.)

215 ILCS 5/346

    (215 ILCS 5/346) (from Ch. 73, par. 958)
    Sec. 346. Benefit account and expense account. (1) All burial societies shall charge a premium or levy an assessment to be paid by the members. Unless the society maintains reserves meeting the standards of Article XIV on its benefit certificates, the society shall not use more than sixty-five per centum of such premium or assessment for the purpose of paying commissions, salaries and other expenses of operation, and the surplus and legal reserves shall constitute the benefit account of the society and shall be retained in cash or be invested in accordance with Article VIII.
    (2) No society shall invest in or loan upon any bond or note secured by mortgage or trust deed on real estate if an officer or director of such society has any financial interest in the real estate upon which the loan is made.
(Source: P.A. 86-753.)

215 ILCS 5/347

    (215 ILCS 5/347) (from Ch. 73, par. 959)
    Sec. 347. Failure to maintain deposit-Payment of claims.
    All claims filed with a society shall be approved or disapproved within sixty days after receipt of due proof of death and, if approved, shall be paid within thirty days after such approval. The Director shall proceed under Article XIII to liquidate any society which shall fail to maintain the deposit required by this article, or shall conduct its business fraudulently, or is not carrying out its contracts in good faith, or shall be thirty days or more in arrears in payment of death 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 5/348

    (215 ILCS 5/348) (from Ch. 73, par. 960)
    Sec. 348. Amendment of articles.
    The articles of incorporation of any society, subject to the provisions of this article, may be amended by proper resolutions adopted by the Board of Directors.
(Source: Laws 1937, p. 696.)

215 ILCS 5/349

    (215 ILCS 5/349) (from Ch. 73, par. 961)
    Sec. 349. Penalties.
    Any society or any officer or agent of any society who violates any of the provisions of this article shall be guilty of a petty offense.
(Source: P.A. 77-2699.)

215 ILCS 5/351

    (215 ILCS 5/351) (from Ch. 73, par. 963)
    Sec. 351. Application of article and other code provisions. (1) This article shall not apply to fraternal or fraternal benefit societies, assessment life and accident associations existing or operating under or by virtue of any statute of this State, societies that pay sick or disability benefits and limit their membership to a particular class of persons or to the employees of a designated person, firm or corporation nor shall this article apply to any burial insurance society composed exclusively of the employees of any department of any municipal, county, state or national government.
    (2) Unless otherwise provided in this article every burial society shall be subject to other applicable provisions of this Code. Unless specifically exempted by the Director of Insurance every society not operating on the true assessment plan shall adopt a standard of valuation approved by the Director.
(Source: P.A. 80-624.)

215 ILCS 5/Art. XIXA

 
    (215 ILCS 5/Art. XIXA heading)
ARTICLE XIXA.
LONG-TERM CARE INSURANCE