103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5627

 

Introduced 2/9/2024, by Rep. Jaime M. Andrade, Jr.

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 45/1  from Ch. 111 1/2, par. 73.101
225 ILCS 45/1a  from Ch. 111 1/2, par. 73.101a
225 ILCS 45/2c new
225 ILCS 45/10  from Ch. 111 1/2, par. 73.110

    Amends the Illinois Funeral or Burial Funds Act. Defines the term "transportation protection agreement". Provides that the Illinois Insurance Code does not apply to any transportation protection agreement sold by any seller. Provides that nothing in the Act shall be deemed to apply to (1) merchandise that is delivered within 30 days of purchase, (2) a transportation protection agreement, or (3) pre-need cemetery sales (currently only pre-need cemetery sales) under the Illinois Pre-Need Cemetery Sales Act. Makes a change to a provision concerning payments under pre-need contracts.


LRB103 37827 RTM 67957 b

 

 

A BILL FOR

 

HB5627LRB103 37827 RTM 67957 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Funeral or Burial Funds Act is
5amended by changing Sections 1, 1a, and 10 and by adding
6Section 2c as follows:
 
7    (225 ILCS 45/1)  (from Ch. 111 1/2, par. 73.101)
8    Sec. 1. Payment under pre-need contract. Except as
9otherwise provided in this Section, all sales proceeds paid to
10any person, partnership, association or corporation with
11respect to merchandise or services covered by this Act, upon
12any agreement or contract, or any series or combination of
13agreements or contracts, which has for a purpose the
14furnishing or performance of funeral services, or the
15furnishing or delivery of any personal property, merchandise,
16or services of any nature in connection with the final
17disposition of a dead human body, including, but not limited
18to, outer burial containers, urns, combination casket-vault
19units, caskets and clothing, for future delivery use at a time
20determinable by the death of the person or persons whose body
21or bodies are to be so disposed of, shall be held to be trust
22funds, and shall be placed in trust in accordance with
23Sections 1b and 2, or shall be used to purchase life insurance

 

 

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1or annuities in accordance with Section 2a. The person,
2partnership, association or corporation receiving said
3payments under a pre-need contract is hereby declared to be a
4trustee thereof until deposits of funds are made in accordance
5with Section 1b or 2a of this Act.
6    Nothing in this Act shall be construed to prohibit the
7inclusion of outer burial containers in sales contracts under
8the Illinois Pre-Need Cemetery Sales Act.
9(Source: P.A. 96-879, eff. 2-2-10.)
 
10    (225 ILCS 45/1a)  (from Ch. 111 1/2, par. 73.101a)
11    Sec. 1a. For the purposes of this Act, the following terms
12shall have the meanings specified, unless the context clearly
13requires another meaning:
14    "Beneficiary" means the person specified in the pre-need
15contract upon whose death funeral services or merchandise
16shall be provided or delivered.
17    "Licensee" means a seller of a pre-need contract who has
18been licensed by the Comptroller under this Act.
19    "Outer burial container" means any container made of
20concrete, steel, wood, fiberglass or similar material, used
21solely at the interment site, and designed and used
22exclusively to surround or enclose a separate casket and to
23support the earth above such casket, commonly known as a
24burial vault, grave box or grave liner, but not including a
25lawn crypt as defined in the Illinois Pre-need Cemetery Sales

 

 

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1Act.
2    "Parent company" means a corporation owning more than 12
3cemeteries or funeral homes in more than one state.
4    "Person" means any person, partnership, association,
5corporation, or other entity.
6    "Pre-need contract" means any agreement or contract, or
7any series or combination of agreements or contracts, whether
8funded by trust deposits or life insurance policies or
9annuities, which has for a purpose the furnishing or
10performance of funeral services or the furnishing or delivery
11of any personal property, merchandise, or services of any
12nature in connection with the final disposition of a dead
13human body. Nothing in this Act is intended to regulate the
14content of a life insurance policy or a tax-deferred annuity.
15    "Provider" means a person who is obligated for furnishing
16or performing funeral services or the furnishing or delivery
17of any personal property, merchandise, or services of any
18nature in connection with the final disposition of a dead
19human body.
20    "Purchaser" means the person who originally paid the money
21under or in connection with a pre-need contract.
22    "Sales proceeds" means the entire amount paid to a seller,
23exclusive of sales taxes paid by the seller, finance charges
24paid by the purchaser, and credit life, accident or disability
25insurance premiums, upon any agreement or contract, or series
26or combination of agreements or contracts, for the purpose of

 

 

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1performing funeral services or furnishing personal property,
2merchandise, or services of any nature in connection with the
3final disposition of a dead human body, including, but not
4limited to, the retail price paid for such services and
5personal property and merchandise.
6    "Purchase price" means sales proceeds less finance charges
7on retail installment contracts.
8    "Seller" means the person who sells or offers to sell the
9pre-need contract to a purchaser, whether funded by a trust
10agreement, life insurance policy, or tax-deferred annuity.
11    "Transportation protection agreement" means an agreement
12that primarily provides or arranges for services related to
13the preparation for the purpose of transportation and
14subsequent transportation of human remains or cremated
15remains.
16    "Trustee" means a person authorized to hold funds under
17this Act.
18(Source: P.A. 92-419, eff. 1-1-02.)
 
19    (225 ILCS 45/2c new)
20    Sec. 2c. Transportation protection agreements. The
21Illinois Insurance Code does not apply to any transportation
22protection agreement sold by any seller.
 
23    (225 ILCS 45/10)  (from Ch. 111 1/2, par. 73.110)
24    Sec. 10. Nothing in this Act shall be deemed to apply to

 

 

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1(1) merchandise that is delivered within 30 days of purchase,
2(2) a transportation protection agreement, or (3) pre-need
3cemetery sales under the "Illinois Pre-Need Cemetery Sales
4Act", enacted by the 84th General Assembly.
5(Source: P.A. 85-293.)