215 ILCS 5/300.1
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XVII - Fraternal Benefit Societies

 (from Ch. 73, par. 912.1)(Section scheduled to be repealed on January 1, 2027)Sec. 300.1. The benefit contract.(a) Every society authorized to do  business in this State shall issue to each owner of a benefit contract a  certificate specifying the amount of benefits provided thereby. The  certificate, together with any riders or endorsements attached thereto,  the laws of the society, the application for membership, the application  for insurance and declaration of insurability, if any, signed by the  applicant and all amendments to each thereof shall constitute the benefit  contract, as of the date of issuance, between the society and the owner,  and the certificate shall so state. A copy of the application for insurance  and declaration of insurability, if any, shall be endorsed upon or attached  to the certificate. All statements on the application shall be  representations and not warranties. Any waiver of this provision shall be void.(b) Any changes, additions or amendments to the laws of the society duly  made or enacted subsequent to the issuance of the certificate shall bind  the owner and the beneficiaries and shall govern and control the benefit  contract in all respects the same as though such changes, additions or  amendments had been made  prior to and were in force at the time of the  application for insurance, except that no change, addition or amendment  shall destroy or diminish benefits which the society contracted to give the  owner as of the date of issuance.(c) Any person upon whose life a benefit contract is issued prior to  attaining the age of majority shall be bound by the terms of the  application and certificate and by all the laws and rules of the society to  the same extent as though the age of majority had been attained  at the  time of application.(d) A society shall provide in its laws and its certificates that, if its  reserves as to all or any class of certificates become impaired, its board of  directors or corresponding body may require  that there shall be paid  by  the owner to the society an assessment in the amount of the owner's equitable proportion of  such deficiency as ascertained by its board, and that, if the payment is not  made, either (1) it shall stand as an indebtedness against the certificate  and draw interest not to exceed the rate specified for certificate loans  under the certificates; or (2) in lieu of or in combination with (1), the  owner may accept a proportionate reduction in benefits  under  the  certificate. However, in no event may an assessment obligation be forgiven, credited, or repaid by whatever means or however labeled by the society in lieu of     collection or reduction in benefits, unless provided to all society members and approved in writing by the Director, except that the forgiveness or repayment of any assessments issued by a society that remain outstanding as of January 1, 2015 (the effective date of Public Act 98-814) may be forgiven or repaid by any manner or plan certified by an independent actuary and filed with the Director to make reasonable and adequate provision for the forgiveness or repayment of the assessment to all society members. Notwithstanding the foregoing, a society may fully repay, credit, or forgive an assessment from the date of death of any life insured under a certificate so long as the plan to forgive or repay the assessment is certified by an independent actuary and filed with the Director to make reasonable and adequate provision for the forgiveness or repayment of the assessment to all assessed society members as a result of the death. The society may specify the manner of the election and which  alternative is to be presumed if no election is made. No such assessment shall take effect unless a 30-day notification has been provided to the Director, who shall have the ability to disapprove the assessment only if the Director finds that such assessment is not in the best interests of the benefit members of the domestic society. Disapproval by the Director shall be made within 30 days after receipt of notice and shall be in writing and mailed to the domestic society.  If the Director disapproves the assessment, the reasons therefor shall be stated in the written notice.(e) Copies of any of the documents mentioned in this Section, certified  by the secretary or corresponding officer of the society, shall be received  in evidence of the terms and conditions thereof.(f) No certificate shall be delivered or issued for delivery in this  State unless a copy of the form has been filed with the Director in the  manner provided for like policies issued by life insurers in this State.  Every life, accident, health or disability insurance certificate and every  annuity certificate issued on or after one year from January 1, 1986 (the effective date of Public Act 84-303)   shall meet the standard contract provision requirements not  inconsistent with Public Act 84-303 for like policies issued by life insurers in  this State except that a society may provide for a grace period for payment  of premiums of one full month in its certificates. The certificate shall  also contain a provision stating the amount of premiums which are payable  under the certificate and a provision reciting or setting forth the  substance of any sections of the society's laws  or rules in force at the  time of issuance of the certificate which, if violated, will result in the  termination or reduction of benefits payable under the certificate. If the  laws of the society provide for expulsion or suspension of a member, the  certificate shall also contain a provision that any member so expelled or  suspended, except for nonpayment of a premium or within the contestable  period for material misrepresentation in the application for membership or  insurance, shall have the privilege of maintaining the certificate in force  by continuing payment of the required premium.(g) Benefit contracts issued on the lives of persons below the society's  minimum age for adult membership may provide for transfer of control or  ownership to the insured at an age specified in  the certificate. A society  may require approval of an application for membership in order to effect  this transfer and may provide in all other respect for the regulation,  government and control of such certificates and all rights, obligations and  liabilities incident thereto and connected therewith. Ownership rights  prior to such transfer shall be specified in the certificate.(h) A society may specify the terms and conditions on which benefit  contracts may be assigned.  (Source: P.A. 101-81, eff. 7-12-19.)