Bill Status of HB0295  102nd General Assembly


Short Description:  PREPAID FUNERAL/BURIAL

House Sponsors
Rep. Natalie A. Manley - Jonathan Carroll - Anthony DeLuca, Katie Stuart, Chris Miller, Joyce Mason and Amy Grant

Senate Sponsors
(Sen. Sara Feigenholtz - Jason Plummer, Laura Fine, Adriane Johnson, John Connor, Karina Villa and Jason A. Barickman)

Last Action
DateChamber Action
  5/21/2021SenateRule 3-9(a) / Re-referred to Assignments

Statutes Amended In Order of Appearance
215 ILCS 5/245.3 new
225 ILCS 45/2a
305 ILCS 5/3-1.2from Ch. 23, par. 3-1.2


Synopsis As Introduced
Amends the Illinois Insurance Code. Provides that no provision of the Illinois Insurance Code or any other law prohibits an insured under any policy of life insurance, or any other person who may be the owner of any rights under such policy, from making an irrevocable assignment of all or any part of his or her rights and privileges, not to exceed the purchase price of the prepaid burial contract, under the policy to a funeral home and to have an individual policy issued in accordance with specified provisions of the Illinois Insurance Code. Amends the Illinois Funeral or Burial Funds Act. Provides that nothing shall prohibit the purchaser of a life insurance policy or tax-deferred annuity contract for the purpose of funding a pre-need contract from irrevocably assigning ownership of the policy or annuity to a funeral home (rather than person) or trust for the purpose of obtaining favorable consideration for Medicaid, Supplemental Security Income, or another public assistance program, as permitted under federal law. Amends the Illinois Public Aid Code. In a provision requiring the Department of Healthcare and Family Services to exempt certain prepaid funeral or burial contracts from consideration when making an eligibility determination for medical assistance, provides that at any time after submitting an application for medical assistance and before the Department makes a final determination of eligibility, an applicant may use available resources to purchase one of the exempted prepaid funeral or burial contracts.

House Committee Amendment No. 1
Deletes reference to:
215 ILCS 5/245.3 new
225 ILCS 45/2a

Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill but without the amendatory changes made to the Illinois Insurance Code and the Illinois Funeral or Burial Funds Act.

House Floor Amendment No. 2
Adds reference to:
215 ILCS 5/245.3 new
225 ILCS 45/1afrom Ch. 111 1/2, par. 73.101a
225 ILCS 45/2a
225 ILCS 45/2b new

Replaces everything after the enacting clause. Amends the Illinois Insurance Code. Provides that an insured or any other person who may be the owner of rights under a policy of life insurance may make an irrevocable assignment of all or a part of his or her rights under the policy to a funeral home in accordance with a specified provision of the Illinois Funeral or Burial Funds Act. Provides that a policy owner who executes a designation beneficiary form irrevocably waives and cannot exercise certain rights, including the right to collect from the insurance company the net proceeds of the policy when it becomes a claim by death and the right to collect or receive income, distributions, or shares of surplus, dividend deposits, refunds of premium, or additions to the policy. Amends the Illinois Funeral or Burial Funds Act. In a provision concerning pre-need contracts funded through the purchase of a life insurance policy or tax-deferred annuity contract, provides that nothing shall prohibit the purchaser from irrevocably assigning ownership of the policy or annuity to a person or trust or from irrevocably assigning the benefits of the policy or annuity to a funeral home for the purpose of obtaining favorable consideration for Medicaid, Supplemental Security Income, or another public assistance program. Provides that the form prepared by the Department of Healthcare and Family Services or by the insurance company shall provide for an irrevocable designation of beneficiary of one or more life insurance policies. Requires the insured or any other person who may be the owner of rights under the policy of whole life insurance to sign a guaranteed pre-need contract with the provider that describes the cost of the funeral goods and services to be provided upon the person's death, up to $6,774, in addition to the purchase of burial spaces as defined under the Act. Requires the licensee to annually report certain information to the Comptroller. Requires the proceeds of the life insurance policy to be paid to the provider and disbursed in a certain order upon the death of the insured. Amends the Medical Assistance Article of the Illinois Public Aid Code. In a provision requiring the Department of Healthcare and Family Services to exempt certain prepaid funeral or burial contracts from consideration when making an eligibility determination for medical assistance, provides that at any time after submitting an application for medical assistance and before the Department makes a final determination of eligibility, an applicant may use available resources to purchase one of the exempted prepaid funeral or burial contracts. Exempts up to $6,774 (rather than $5,874) in funds under an irrevocable prepaid funeral or burial contract when determining an individual's resources and eligibility for medical assistance. Provides that existing life insurance policies are exempt if there has been an irrevocable declaration of proceeds at the death of the insured. Requires the insured person to sign an irrevocable designation of beneficiary form declaring that any amounts payable from the policies not used for funeral goods and services shall be received by the State up to an amount equal to the total medical assistance paid on behalf of the person with any remaining funds paid to a secondary beneficiary (if any) listed on the policy.

Actions 
DateChamber Action
  1/26/2021HouseFiled with the Clerk by Rep. Natalie A. Manley
  1/29/2021HouseFirst Reading
  1/29/2021HouseReferred to Rules Committee
  2/23/2021HouseAssigned to Insurance Committee
  3/10/2021HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. Natalie A. Manley
  3/10/2021HouseHouse Committee Amendment No. 1 Referred to Rules Committee
  3/11/2021HouseHouse Committee Amendment No. 1 Rules Refers to Insurance Committee
  3/15/2021HouseAdded Chief Co-Sponsor Rep. Jonathan Carroll
  3/15/2021HouseAdded Chief Co-Sponsor Rep. Anthony DeLuca
  3/15/2021HouseHouse Committee Amendment No. 1 Adopted in Insurance Committee; by Voice Vote
  3/15/2021HouseDo Pass as Amended / Short Debate Insurance Committee; 014-005-000
  3/18/2021HousePlaced on Calendar 2nd Reading - Short Debate
  4/14/2021HouseAdded Co-Sponsor Rep. Katie Stuart
  4/15/2021HouseHouse Floor Amendment No. 2 Filed with Clerk by Rep. Natalie A. Manley
  4/15/2021HouseHouse Floor Amendment No. 2 Referred to Rules Committee
  4/15/2021HouseAdded Co-Sponsor Rep. Chris Miller
  4/16/2021HouseAdded Co-Sponsor Rep. Joyce Mason
  4/20/2021HouseHouse Floor Amendment No. 2 Rules Refers to Insurance Committee
  4/20/2021HouseHouse Floor Amendment No. 3 Filed with Clerk by Rep. Natalie A. Manley
  4/20/2021HouseHouse Floor Amendment No. 3 Referred to Rules Committee
  4/21/2021HouseHouse Floor Amendment No. 3 Rules Refers to Insurance Committee
  4/21/2021HouseSecond Reading - Short Debate
  4/21/2021HouseHeld on Calendar Order of Second Reading - Short Debate
  4/21/2021HouseHouse Floor Amendment No. 2 Recommends Be Adopted Insurance Committee; 015-000-000
  4/22/2021HouseHouse Floor Amendment No. 2 Adopted
  4/22/2021HousePlaced on Calendar Order of 3rd Reading - Short Debate
  4/22/2021HouseThird Reading - Short Debate - Passed 114-000-002
  4/22/2021HouseHouse Floor Amendment No. 3 Tabled Pursuant to Rule 40
  4/22/2021HouseAdded Co-Sponsor Rep. Amy Grant
  4/23/2021SenateArrive in Senate
  4/23/2021SenatePlaced on Calendar Order of First Reading
  4/23/2021SenateChief Senate Sponsor Sen. Sara Feigenholtz
  4/23/2021SenateFirst Reading
  4/23/2021SenateReferred to Assignments
  4/28/2021SenateAdded as Alternate Chief Co-Sponsor Sen. Jason Plummer
  4/28/2021SenateAdded as Alternate Co-Sponsor Sen. Jacqueline Y. Collins
  4/29/2021SenateAdded as Alternate Co-Sponsor Sen. Laura Fine
  4/29/2021SenateAdded as Alternate Co-Sponsor Sen. Adriane Johnson
  4/29/2021SenateAdded as Alternate Co-Sponsor Sen. John Connor
  4/30/2021SenateAdded as Alternate Co-Sponsor Sen. Karina Villa
  5/4/2021SenateAssigned to Licensed Activities
  5/4/2021SenateAdded as Alternate Co-Sponsor Sen. Jason A. Barickman
  5/7/2021SenateSponsor Removed Sen. Jacqueline Y. Collins
  5/13/2021SenateTo Licensed Activities- Special Issues
  5/21/2021SenateRule 3-9(a) / Re-referred to Assignments