(215 ILCS 5/304.2) (from Ch. 73, par. 916.2)
(Section scheduled to be repealed on January 1, 2027)
Sec. 304.2.
Taxation.
Every society organized or licensed under this
amendatory Act is hereby declared to be a charitable and benevolent institution,
and all of its funds shall be exempt from all and every State, county,
district, municipal and school tax other than taxes on real estate and office equipment.
(Source: P.A. 84-303 .)
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(215 ILCS 5/305.1) (from Ch. 73, par. 917.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 305.1.
Valuation.
(a) Standards of valuation for certificates
issued prior to one year after the effective date of this amendatory Act shall be
those provided by the laws applicable immediately prior to the effective
date of this amendatory Act.
(b) The minimum standards of valuation for certificates issued on or
after one year from the effective date of this amendatory Act shall be based on
the following tables:
(1) For certificates of life insurance - the | ||
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(2) For annuity and pure endowment certificates, for | ||
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All of the above shall be under valuation methods and standards including,
but not limited to, interest assumptions in accordance with the laws of
this State applicable to life insurers issuing policies containing like benefits.
(c) The Director may, in his or her discretion, accept other standards
for valuation if the Director finds that the reserves produced thereby will
not be less in the aggregate than reserves computed in accordance with the
minimum valuation standard herein prescribed. The Director may, in his or
her discretion, vary the standards of mortality applicable to all benefit
contracts on substandard lives or other extra-hazardous lives by any
society authorized to do business in this State.
(d) Any society, with the consent of the Commissioner of Insurance of the
state of domicile of the society and under such conditions, if any, which
the Commissioner may impose, may establish and maintain reserves on its
certificates in excess of the reserves required thereunder, but the
contractual rights of any benefit member shall not be affected thereby.
(Source: P.A. 84-303 .)
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(215 ILCS 5/306.1) (from Ch. 73, par. 918.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 306.1.
Reports.
Every society transacting business in this State
shall annually, on or before the first day of March, unless for cause shown
such time has been extended by the Director, file with the Director a true
statement of its financial condition, transactions and affairs for the
preceding calendar year in accordance with Section 136 of this Code. The
statement shall be in general form and context as approved by the National
Association of Insurance Commissioners for fraternal benefit societies and
as supplemented by additional information required by the Director.
(Source: P.A. 84-303 .)
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(215 ILCS 5/307.1) (from Ch. 73, par. 919.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 307.1.
Annual license.
Societies which were authorized to transact
business in this State prior to the effective date of this amendatory Act may
continue such business until the first day of July next succeeding the
effective date of this amendatory Act. The authority of such societies and all
societies hereafter issued certificates of authority may thereafter be
renewed annually, but in all cases to terminate on the first day of the
succeeding July. A certified copy or duplicate of such certificate of
authority shall be prima facie evidence that the licensee is a fraternal
benefit society within the meaning of this amendatory Act.
(Source: P.A. 84-303 .)
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(215 ILCS 5/308.1) (from Ch. 73, par. 920.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 308.1.
Examination of societies - adverse publications.
(a) The
Director, or any person he or she may appoint, may examine any domestic,
foreign or alien society transacting or applying for admission to transact
business in this State in the same manner as authorized for examination of
domestic, foreign or alien insurance companies. Requirements of notice and
an opportunity to respond before findings are made public as provided in
the laws regulating insurance companies shall also be applicable to the
examination of societies.
(b) The expense of each examination and of each valuation, including
compensation and actual expense of examiners, shall be paid by the society
examined or whose certificates are valued, upon statements furnished by the Director.
(Source: P.A. 84-303 .)
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(215 ILCS 5/309.1) (from Ch. 73, par. 921.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 309.1.
Foreign or alien society - admission.
No foreign or alien
society shall transact business in this State without a certificate of
authority issued by the Director in accordance with Article VI of this
Code. Any such society desiring admission to this State shall comply
substantially with the requirements and limitations of this amendatory Act
applicable to domestic societies.
(Source: P.A. 84-303 .)
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(215 ILCS 5/310.1) (from Ch. 73, par. 922.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 310.1.
Suspension, revocation or refusal to renew certificate of
authority.
(a) Domestic Societies. When, upon investigation, the Director
is satisfied that any domestic society transacting business under this
amendatory Act has exceeded its powers or has failed to comply with any
provisions of this amendatory Act or is conducting business fraudulently or in
a
way hazardous to its members, creditors or the public or is not carrying
out its contracts in good faith, the Director shall notify the society of
his or her findings, stating in writing the grounds of his or her
dissatisfaction, and, after reasonable notice, require the society on a date
named to show cause why its certificate of authority should not be revoked
or suspended or why such society should not be fined as hereinafter
provided or why the Director should not proceed against the society under
Article XIII of this Code. If, on the date named in said notice, such
objections have not been removed to the satisfaction of the Director
or if the society does not present good and sufficient reasons why its
authority to transact business in this State should not at that time be
revoked or suspended or why such society should not be fined as
hereinafter provided, the Director may revoke the authority of the society to
continue business in this State and proceed against the society under
Article XIII of this Code or suspend such certificate of authority for any
period of time up to, but not to exceed, 2 years; or may by order require
such society to pay to the people of the State of Illinois a penalty in a
sum not exceeding $10,000, and, upon the failure of such
society to pay such penalty within 20 days after the mailing of such
order, postage prepaid, registered and addressed to the last known place
of business of such society, unless such order is stayed by an order of a
court of competent jurisdiction, the Director may revoke or suspend the
license of such society for any period of time up to, but not exceeding, a
period of 2 years.
(b) Foreign or alien societies. The Director shall suspend, revoke or
refuse to renew certificates of authority in accordance with Article VI of this
Code.
(Source: P.A. 93-32, eff. 7-1-03 .)
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(215 ILCS 5/311.1) (from Ch. 73, par. 923.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 311.1.
Injunction proceedings.
(a) Upon the refusal or neglect of
any society to make the annual report, as provided in this amendatory Act, or in
case any such society shall exceed its powers or shall conduct its business
fraudulently or is not carrying out its contracts in good faith or shall
be 30 days in arrears in the payment of death or disability claims,
endowments or annuities after the same have been allowed by the board of
directors or other person or persons whose duty it is to pass upon such
claims and after establishment of the interest and competency of the payee
to receive, receipt and acquit for payment, provided that such claim shall
be approved or disapproved within 60 days after receipt of due proof of
loss or death or, after one year's existence, shall have a membership of
less than 500 or shall determine to discontinue business or shall
fail to comply with any of the provisions of this amendatory Act, the Director shall
immediately commence, or cause to be commenced, an action against such society
under Article XIII of this Code and to enjoin the same from carrying on
any business, and an injunction may be granted, upon proper showing by the
Director, in any circuit court in this State; provided, however, that no
injunction against any society within this State or application for or
appointment of a receiver or action to prevent any society from carrying
on business in this State shall be made or granted by any court except on
the application of the Director and after written notice duly made and served
upon the chief executive officer of such society within this State, or, if
incorporated under the laws of another state, then such notice may be served
by sending the same to the president or secretary of the society by registered
mail at the home office of the society, and a full hearing before such court,
whether the party seeking such relief be the State, member of such society
or any other person whatsoever.
(b) If the court shall find that such society so enjoined was in default as
charged and the violation complained of shall have been corrected and the
injunction dissolved, the society may continue in business provided it
shall have satisfied the Director that it has paid the costs of the action.
Any officer, agent or person acting for any society or subordinate body
thereof within this State and who shall transact any business for such
society contrary to the provisions of such injunction or prohibition while
such society shall be so enjoined or prohibited from doing business
pursuant to this amendatory Act shall be deemed guilty of a Class A misdemeanor.
(Source: P.A. 84-303 .)
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(215 ILCS 5/312.1) (from Ch. 73, par. 924.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 312.1.
Salaries.
No domestic society shall pay any salary,
compensation or emolument to any officer, trustee or director thereof, nor
any salary, compensation or emolument amounting in any year to more than
$40,000 to any person, firm or corporation, unless such payment be
first authorized by the supreme governing body or the board of directors or
corresponding body. No such society shall make any agreement with any of
its officers, trustees or directors or salaried employees whereby it agrees
that for any service rendered or to be rendered he shall receive any
salary, compensation or emolument that will extend beyond a
period of 4 years from the date of such agreement, provided that payment of
an amount not in excess of 20% of the salary of any of its officers,
directors or salaried employees may by written agreement be deferred
beyond such period of 4 years, which agreement may include conditions to
be met by such officers, directors or salaried employees before payment
will be made, and provided further that a domestic society may enter
into contracts with its producer for the payment of renewal commissions. No
such society shall enter into a special contract which will compensate any
officer, trustee or director based on a percentage of premiums collected by
the society or on a percentage of the entire insurance business of the
society. No such society shall grant any pension to any officer, trustee or
director thereof or to any member of his family after his death except
that it may provide a pension pursuant to the terms of a uniform retirement
plan adopted by the board of directors.
(Source: P.A. 84-303 .)
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(215 ILCS 5/313.1) (from Ch. 73, par. 925.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 313.1.
Licensing of producers.
(a) Except as otherwise provided
in this Section, producers of societies shall be subject to the provisions
of Article XXXI of this Code.
(b) No examination or license shall be required of any regular salaried
officer, employee or member of a licensed society who devotes substantially
all of his or her services to activities other than the solicitation of
fraternal benefit contracts from the public and who receives for the
solicitation of such contracts no commission or other compensation
directly dependent upon the amount of business obtained.
(c) Any producer, representative or member of a society who devotes or
intends to devote less than 50% of such person's time to the
solicitation and procurement of benefit contracts for such society shall be
exempt from the requirements of subsection (a). Any person who in the
preceding calendar year has solicited and procured life insurance contracts
on behalf of any society in an amount of insurance in excess of $100,000
or, in the case of any other kind or kinds of insurance which the society
might write, on the persons of more than 25 individuals and who has
received or will receive a commission or other compensation therefor shall
be presumed to be devoting, or intending to devote, 50% of time
to the solicitation or
procurement of benefit contracts for such society.
(Source: P.A. 84- 303 .)
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(215 ILCS 5/314.1) (from Ch. 73, par. 926.1)
(Section scheduled to be repealed on January 1, 2027)
Sec. 314.1.
Unfair methods of competition and unfair and deceptive
acts and practices. Every society authorized to do business in this State
shall be subject to the provisions of Article XXVI of this Code, provided,
however, that nothing in such provisions shall be construed as applying to
or affecting the right of any society to determine its eligibility
requirements for membership or be construed as applying to or affecting
the offering of benefits exclusively to members or persons eligible for
membership in the society by a subsidiary corporation or affiliated
organization of the society.
(Source: P.A. 84-303 .)
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(215 ILCS 5/315.2) (from Ch. 73, par. 927.2)
(Section scheduled to be repealed on January 1, 2027)
Sec. 315.2.
Service of process.
(a) Every society authorized to do
business in this State shall appoint in writing the Director and each
successor in office to be its true and lawful attorney upon whom all lawful
process in any action or proceeding against it shall be served and shall
agree in such writing that any lawful process against it which is served on
said attorney shall be of the same legal force and validity as if served
upon the society and that the authority shall continue in force so long as
any liability remains outstanding in this State. Copies of such
appointment, certified by said Director, shall be deemed sufficient evidence
thereof and shall be admitted in evidence with the same force and effect as
the original thereof might be admitted.
(b) Service shall be made by delivering to and leaving with the Director
duplicate copies of such process with payment of the fee prescribed by this
Code and the service thereof shall constitute sufficient service upon the
society. When legal process against a society is served upon the Director,
the Director shall forthwith forward one of the duplicate copies, by
certified or registered mail prepaid, to the society. No such service shall
require a society to file its answer, pleading or defense in less than
30 days from the date of mailing the copy of the service to a society
unless otherwise ordered by the court. Legal process shall not be served
upon a society except in the manner herein provided.
(Source: P.A. 84-303 .)
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(215 ILCS 5/315.3) (from Ch. 73, par. 927.3)
(Section scheduled to be repealed on January 1, 2027)
Sec. 315.3.
Review.
The provisions of the Administrative Review Law,
and all amendments and modifications thereof, and the rules adopted
pursuant thereto shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the Department.
(Source: P.A. 84-303 .)
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(215 ILCS 5/315.4) (from Ch. 73, par. 927.4)
(Section scheduled to be repealed on January 1, 2027)
Sec. 315.4.
Penalties.
(a) Any person who willfully makes a false or
fraudulent statement in or relating to an application for membership or for
the purpose of obtaining money from, or a benefit in, any society shall upon
conviction be fined not less than $200 nor more than $10,000 or be subject to
imprisonment in the county jail not less than 30 days nor more than one
year, or both.
(b) Any person who willfully makes a false or fraudulent statement in any
verified report or declaration under oath required or authorized by this
amendatory Act, or of any material fact or thing contained in a sworn statement
concerning the death or disability of an insured for the purpose of
procuring payment of a benefit named in the certificate, shall be guilty of
perjury and shall be subject to the penalties therefor prescribed by law.
(c) Any person who solicits membership for, or in any manner assists in
procuring membership in, any society not licensed to do business in this
State shall upon conviction be fined not less than $100 nor more
than $400.
(d) Any person guilty of a willful violation of, or neglect or refusal
to comply with, the provisions of this amendatory Act for which a penalty is
not
otherwise prescribed shall upon conviction be subject to a fine
not exceeding $10,000.
(Source: P.A. 93-32, eff. 7-1-03 .)
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(215 ILCS 5/315.5) (from Ch. 73, par. 927.5)
(Section scheduled to be repealed on January 1, 2027)
Sec. 315.5.
Exemption of certain societies.
(a) Nothing contained in
this amendatory Act shall be so construed as to affect or apply to:
(1) grand or subordinate lodges of societies, orders | ||
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(2) orders, societies or associations which admit to | ||
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(3) domestic societies which limit their membership | ||
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(4) domestic societies or associations of a purely | ||
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(b) Any such society or association described in subsections (a)(3) or
(a)(4) supra which provides for death or disability benefits for which
benefit certificates are issued and any such society or association
included in subsection (a)(4) which has more than 1000 members
shall not be exempted from the provisions of this amendatory Act but shall
comply with all requirements thereof.
(c) No society which, by the provisions of this Section, is exempt from
the requirements of this amendatory Act, except any society described in
subsection (a)(2) supra, shall give or allow, or promise to give or allow,
to any person any compensation for procuring new members.
(d) Every society which provides for benefits in case of death or
disability resulting solely from accident and which does not obligate
itself to pay natural death or sick benefits shall have all of the
privileges and be subject to all the applicable provisions and regulations
of this amendatory Act except that the provisions thereof relating to medical
examination, valuations of benefit certificates and incontestability
shall not apply to such society.
(e) The Director may require from any society or association, by
examination or otherwise, such information as will enable the Director to
determine whether such society or association is exempt from the provisions
of this amendatory Act.
(f) Societies exempted under the provisions of this Section shall
also be exempt from all other provisions of the insurance laws of this State.
(Source: P.A. 86-187 .)
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(215 ILCS 5/315.6) (from Ch. 73, par. 927.6)
(Section scheduled to be repealed on January 1, 2027)
Sec. 315.6. Application of other Code provisions. Unless otherwise
provided in this amendatory Act, every fraternal benefit society shall be
governed
by this amendatory Act and shall be exempt from all other provisions of the
insurance laws of this State not only in governmental relations with the
State but for every other purpose, except for those provisions specified in
this amendatory Act and except as follows:
(a) Sections 1, 2, 2.1, 3.1, 117, 118, 132, 132.1, | ||
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(b) Articles VIII 1/2, XII, XII 1/2, XIII, XXIV, and | ||
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(Source: P.A. 98-814, eff. 1-1-15 .)
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(215 ILCS 5/315.7) (from Ch. 73, par. 927.7)
(Section scheduled to be repealed on January 1, 2027)
Sec. 315.7.
Severability.
If any provision of this amendatory Act or the
application of such provision to any circumstance is held invalid, the
remainder of the amendatory Act or the application of the provision to other
circumstances shall not be affected thereby.
(Source: P.A. 84-303 .)
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(215 ILCS 5/315.9) (Section scheduled to be repealed on January 1, 2027) Sec. 315.9. Voluntary dissolution. Upon application to the Director, a domestic society may request that it be dissolved and that its existence be terminated. The application shall demonstrate that the applicant has satisfied its members' certificate obligations or that it has transferred such obligations to another organization, domestic or foreign, by means of assumption or bulk reinsurance or otherwise, and that the domestic society's supreme governing body has approved the termination and dissolution. The application shall contain any other information required by the Director. Any limitation related to reinsurance by a domestic society shall not apply to reinsurance entered into in conjunction with the transfer of members' certificate obligations as a part of a voluntary dissolution. Upon approval of the application by the Director, the domestic society shall be deemed dissolved and its existence terminated as of the date set forth in the application.
(Source: P.A. 98-814, eff. 1-1-15 .) |
(215 ILCS 5/Art. XVIII heading) ARTICLE XVIII.
MUTUAL BENEFIT ASSOCIATIONS
(Repealed by P.A. 98-969, eff. 1-1-15)
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