2023 Illinois Compiled Statutes › Chapter 215 - INSURANCE › 215 ILCS 5/ - Illinois Insurance Code. › Article XIX - Burial Societies

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