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| [ Introduced ] | [ Senate Amendment 001 ] |
90_SB0165eng
225 ILCS 45/1a-1
760 ILCS 100/1 from Ch. 21, par. 64.1
815 ILCS 390/3 from Ch. 21, par. 203
Amends the Illinois Funeral or Burial Funds Act.
Provides that the booklet that the Comptroller is required to
develop under the Act shall be written in plain English and
shall describe all disclosures required under that Act (now
the booklet shall describe the statutory requirements, the
different funding mechanisms, and all disclosures required
under the Act). Amends the Cemetery Care Act and the
Illinois Pre-Need Cemetery Sales Act. Adds a caption and
makes technical changes to the short title Section of each of
those Acts.
LRB9000619LDdvA
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1 AN ACT in relation to burial practices, amending named
2 Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Funeral or Burial Funds Act is
6 amended by changing Section 1a-1 as follows:
7 (225 ILCS 45/1a-1)
8 Sec. 1a-1. Pre-need contracts.
9 (a) It shall be unlawful for any seller doing business
10 within this State to accept sales proceeds from a purchaser,
11 either directly or indirectly by any means, unless the seller
12 enters into a pre-need contract with the purchaser which
13 meets the following requirements:
14 (1) It states the name and address of the principal
15 office of the provider, or clearly discloses that the
16 provider will be selected by the purchaser or the
17 purchaser's survivor or legal representative at a later
18 date, except that no contract shall contain any provision
19 restricting the right of the contract purchaser during
20 his or her lifetime in making his or her own selection of
21 a provider.
22 (2) It clearly identifies the seller's name and
23 address, the purchaser and the beneficiary, if other than
24 the purchaser, and the provider, if different than the
25 seller or discloses that the provider will be selected at
26 a later date.
27 (3) It contains a complete description of the
28 funeral merchandise and services to be provided and the
29 price of the merchandise and services, and it clearly
30 discloses whether the price of the merchandise and
31 services is guaranteed or not guaranteed as to price.
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1 (A) Each guaranteed price contract shall
2 contain the following statement in 12 point bold
3 type:
4 THIS CONTRACT GUARANTEES THE BENEFICIARY THE
5 SPECIFIC GOODS AND SERVICES CONTRACTED FOR. NO
6 ADDITIONAL CHARGES MAY BE REQUIRED. FOR DESIGNATED
7 GOODS AND SERVICES, ADDITIONAL CHARGES MAY BE
8 INCURRED FOR UNEXPECTED EXPENSES INCLUDING, BUT NOT
9 LIMITED TO, CASH ADVANCES, SHIPPING OF REMAINS FROM
10 A DISTANT PLACE, OR DESIGNATED HONORARIA ORDERED OR
11 DIRECTED BY SURVIVORS.
12 (B) Each non-guaranteed price contract shall
13 contain the following statement in 12 point bold
14 type:
15 THIS CONTRACT DOES NOT GUARANTEE THE PRICE THE
16 BENEFICIARY WILL PAY FOR ANY SPECIFIC GOODS OR
17 SERVICES. ANY FUNDS PAID UNDER THIS CONTRACT ARE
18 ONLY A DEPOSIT TO BE APPLIED TOWARD THE FINAL PRICE
19 OF THE GOODS OR SERVICES CONTRACTED FOR. ADDITIONAL
20 CHARGES MAY BE REQUIRED.
21 (4) It provides that if the particular supplies and
22 services specified in the pre-need contract are
23 unavailable at the time of delivery, the provider shall
24 be required to furnish supplies and services similar in
25 style and at least equal in quality of material and
26 workmanship.
27 (5) It discloses any penalties or restrictions,
28 including but not limited to geographic restrictions or
29 the inability of the provider, if selected, to perform,
30 on the delivery of merchandise, services, or pre-need
31 contract guarantees.
32 (6) Regardless of the method of funding the
33 pre-need contract, the following must be disclosed:
34 (A) Whether the pre-need contract is to be
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1 funded by a trust, life insurance, or an annuity;
2 (B) The nature of the relationship among the
3 entity funding the pre-need contract, the provider,
4 if selected, and the seller;
5 (C) The impact on the pre-need contract of (i)
6 any changes in the funding arrangement including but
7 not limited to changes in the assignment,
8 beneficiary designation, or use of the funds; (ii)
9 any penalties to be incurred by the contract
10 purchaser as a result of failure to make payments;
11 (iii) penalties to be incurred or moneys or refunds
12 to be received as a result of cancellations; and
13 (iv) all relevant information concerning what occurs
14 and whether any entitlements or obligations arise if
15 there is a difference between the proceeds of the
16 particular funding arrangement and the amount
17 actually needed to pay for the funeral at-need; and
18 (D) The method of changing or selecting the
19 designation of the provider.
20 (b) All pre-need contracts are subject to the Federal
21 Trade Commission Rule concerning the Cooling-Off Period for
22 Door-to-Door Sales (16 CFR Part 429).
23 (c) No pre-need contract shall be sold in this State
24 unless there is a provider for the services and personal
25 property being sold, or unless disclosure has been made by
26 the seller as provided in subdivision (a)(1). If the seller
27 is not a provider and a provider has been selected, then the
28 seller must have a binding agreement with a provider, and the
29 identity of the provider and the nature of the agreement
30 between the seller and the provider shall be disclosed in the
31 pre-need contract at the time of the sale and before the
32 receipt of any sales proceeds. Any subsequent change made in
33 the identity of the provider shall be approved in writing by
34 the purchaser and beneficiary within 30 days after it occurs.
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1 The failure to disclose the identity of the provider, the
2 nature of the agreement between the seller and the provider,
3 or any changes thereto to the purchaser and beneficiary, or
4 the failure to make the disclosures required in subdivision
5 (a)(1), constitutes an intentional violation of this Act.
6 (d) All pre-need contracts must be in writing and no
7 pre-need contract form shall be used without prior filing
8 with the Comptroller. The Comptroller shall review all
9 pre-need contract forms and shall prohibit the use of
10 contract forms which do not meet the requirements of this Act
11 upon written notification to the seller. Any use or
12 attempted use of any oral pre-need contract or any written
13 pre-need contract in a form not filed with the Comptroller or
14 in a form which does not meet the requirements of this Act
15 shall be deemed a violation of this Act. Life insurance
16 policies, tax-deferred annuities, endorsements, riders, or
17 applications for life insurance or tax-deferred annuities are
18 not subject to filing with the Comptroller. The Comptroller
19 may by rule develop a model pre-need contract form which
20 meets the requirements of this Act.
21 (e) The State Comptroller shall by rule develop a
22 booklet for consumers in plain English describing which
23 describes the statutory requirements, the different funding
24 mechanisms, and the scope, application, and consumer
25 protections of all disclosures required under this Act.
26 After the adoption of these rules, no pre-need contract shall
27 be sold in this State unless the seller distributes to the
28 purchaser prior to the sale a booklet promulgated or approved
29 for use by the State Comptroller.
30 (f) All sales proceeds received in connection with a
31 pre-need contract shall be deposited into a trust account as
32 provided in Section 1b and Section 2 of this Act, or shall be
33 used to purchase a life insurance policy or tax-deferred
34 annuity as provided in Section 2a of this Act.
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1 (g) No pre-need contract shall be sold in this State
2 unless it is accompanied by a funding mechanism permitted
3 under this Act, and unless the seller is licensed by the
4 Comptroller as provided in Section 3 of this Act. Nothing in
5 this Act is intended to relieve sellers of pre-need contracts
6 from being licensed under any other Act required for their
7 profession or business, and being subject to the rules
8 promulgated to regulate their profession or business,
9 including rules on solicitation and advertisement.
10 (Source: P.A. 88-477.)
11 Section 10. The Cemetery Care Act is amended by changing
12 Section 1 as follows:
13 (760 ILCS 100/1) (from Ch. 21, par. 64.1)
14 Sec. 1. Short title. This Act may be cited shall be
15 known as the "Cemetery Care Act."
16 (Source: Laws 1947, p. 338.)
17 Section 15. The Illinois Pre-Need Cemetery Sales Act is
18 amended by changing Section 3 as follows:
19 (815 ILCS 390/3) (from Ch. 21, par. 203)
20 Sec. 3. Short title. This Act shall be known and may be
21 cited as the "Illinois Pre-Need Cemetery Sales Act".
22 (Source: P.A. 84-239.)