There is a newer version of the Illinois Compiled Statutes
2012 Illinois Compiled Statutes
Chapter 815 - BUSINESS TRANSACTIONS
Act 815 ILCS 390/ - Illinois Pre-Need Cemetery Sales Act.
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(2) Following authorization by a purchaser under a | ||
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(3) Following authorization by a purchaser under a | ||
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All warehouse facilities to which sellers deliver | ||
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(i) be either located in the State of Illinois or | ||
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(ii) submit to the Comptroller not less than | ||
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(iii) permit the Comptroller or his designee at | ||
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(iv) submit evidence satisfactory to the | ||
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(v) demonstrate to the Comptroller that the | ||
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(C) "Cemetery merchandise" means items of personal property normally sold by a cemetery authority not covered under the Illinois Funeral or Burial Funds Act, including but not limited to: (1) memorials, (2) markers, (3) monuments, (4) foundations, and (5) outer burial containers. (D) "Undeveloped interment, entombment or inurnment spaces" or "undeveloped spaces" means any space to be used for the reception of human remains that is not completely and totally constructed at the time of initial payment therefor in a: (1) lawn crypt, (2) mausoleum, (3) garden crypt, (4) columbarium, or (5) cemetery section. (E) "Cemetery services" means those services customarily performed by cemetery or crematory personnel in connection with the interment, entombment, inurnment or cremation of a dead human body. (F) "Cemetery section" means a grouping of spaces intended to be developed simultaneously for the purpose of interring human remains. (G) "Columbarium" means an arrangement of niches that may be an entire building, a complete room, a series of special indoor alcoves, a bank along a corridor or part of an outdoor garden setting that is constructed of permanent material such as bronze, marble, brick, stone or concrete for the inurnment of human remains. (H) "Lawn crypt" means a permanent underground crypt usually constructed of reinforced concrete or similar material installed in multiple units for the entombment of human remains. (I) "Mausoleum" or "garden crypt" means a grouping of spaces constructed of reinforced concrete or similar material constructed or assembled above the ground for entombing human remains. (J) "Memorials, markers and monuments" means the object usually comprised of a permanent material such as granite or bronze used to identify and memorialize the deceased. (K) "Foundations" means those items used to affix or support a memorial or monument to the ground in connection with the installation of a memorial, marker or monument. (L) "Person" means an individual, corporation, partnership, joint venture, business trust, voluntary organization or any other form of entity. (M) "Seller" means any person selling or offering for sale cemetery merchandise, cemetery services or undeveloped interment, entombment, or inurnment spaces in accordance with a pre-need sales contract. (N) "Religious cemetery" means a cemetery owned, operated, controlled or managed by any recognized church, religious society, association or denomination or by any cemetery authority or any corporation administering, or through which is administered, the temporalities of any recognized church, religious society, association or denomination. (O) "Municipal cemetery" means a cemetery owned, operated, controlled or managed by any city, village, incorporated town, township, county or other municipal corporation, political subdivision, or instrumentality thereof authorized by law to own, operate or manage a cemetery. "Municipal cemetery" also includes a cemetery placed in receivership pursuant to this Act while such cemetery is in receivership. (O-1) "Outer burial container" means a container made of concrete, steel, wood, fiberglass, or similar material, used solely at the interment site, and designed and used exclusively to surround or enclose a separate casket and to support the earth above such casket, commonly known as a burial vault, grave box, or grave liner, but not including a lawn crypt. (P) "Sales price" means the gross amount paid by a purchaser on a pre-need sales contract for cemetery merchandise, cemetery services or undeveloped interment, entombment or inurnment spaces, excluding sales taxes, credit life insurance premiums, finance charges and Cemetery Care Act contributions. (Q) (Blank). (R) "Provider" means a person who is responsible for performing cemetery services or furnishing cemetery merchandise, interment spaces, entombment spaces, or inurnment spaces under a pre-need sales contract. (S) "Purchaser" or "buyer" means the person who originally paid the money under or in connection with a pre-need sales contract. (T) "Parent company" means a corporation owning more than 12 cemeteries or funeral homes in more than one state. (U) "Foreign warehouse facility" means a warehouse facility now or hereafter located in any state or territory of the United States, including the District of Columbia, other than the State of Illinois. A foreign warehouse facility shall be deemed to have appointed the Comptroller to be its true and lawful attorney upon whom may be served all legal process in any action or proceeding against it relating to or growing out of this Act, and the acceptance of the delivery of stored merchandise under this Act shall be signification of its agreement that any such process against it which is so served, shall be of the same legal force and validity as though served upon it personally. Service of such process shall be made by delivering to and leaving with the Comptroller, or any agent having charge of the Comptroller's Department of Cemetery and Burial Trusts, a copy of such process and such service shall be sufficient service upon such foreign warehouse facility if notice of such service and a copy of the process are, within 10 days thereafter, sent by registered mail by the plaintiff to the foreign warehouse facility at its principal office and the plaintiff's affidavit of compliance herewith is appended to the summons. The Comptroller shall keep a record of all process served upon him under this Section and shall record therein the time of such service. (Source: P.A. 96-879, eff. 2-2-10.) |
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(2) A detailed statement of applicant's assets and | ||
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(2.1) The name and address of the applicant's | ||
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(2.2) The name and address of the applicant's branch | ||
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(3) For each individual listed under (1) above, a | ||
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(4) The name of the trustee and, if applicable, the | ||
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(5) Where applicable, the name of the corporate | ||
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(6) Such other information as the Comptroller may | ||
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(b) Applications for license shall be accompanied by a fidelity bond executed by the applicant and a security company authorized to do business in this State in such amount, not exceeding $10,000, as the Comptroller may require. The Comptroller may require additional bond from time to time in amounts equal to one-tenth of such trust funds but not to exceed $100,000, which bond shall run to the Comptroller for the use and benefit of the beneficiaries of such trust funds. Such licensee may by written permit of the Comptroller be authorized to operate without additional bond, except such fidelity bond as may be required by the Comptroller for the protection of the licensee against loss by default by any of its employees engaged in the handling of trust funds. (c) Any application not acted upon within 90 days may be deemed denied. (Source: P.A. 97-593, eff. 8-26-11.) |
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(2) examine under oath any person in connection with | ||
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(3) examine any books and records of the licensee, | ||
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(4) require the production of a copy of any record, | ||
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(Source: P.A. 92-419, eff. 1-1-02.) |
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(2) by mailing by certified mail a duly executed copy | ||
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(Source: P.A. 89-615, eff. 8-9-96.) |
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(2) In addition, such contracts must contain a | ||
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"Notwithstanding anything in this contract to the | ||
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(3) All pre-need sales contracts shall be sold on a | ||
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(4) Each contract shall clearly disclose that the | ||
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"THIS CONTRACT GUARANTEES THE BENEFICIARY THE | ||
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(5) The pre-need sales contract shall provide that if | ||
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(6) The pre-need contract shall also disclose any | ||
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(7) The pre-need contract shall disclose the nature | ||
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(8) Each pre-need contract that authorizes the | ||
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"THIS CONTRACT AUTHORIZES THE DELIVERY OF MERCHANDISE TO | ||
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The purchaser shall initial the statement at the time | ||
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(9) Each pre-need contract that authorizes the | ||
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"THIS CONTRACT AUTHORIZES THE PLACEMENT OF MERCHANDISE AT | ||
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The purchaser shall initial the statement at the time | ||
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(10) Each pre-need contract that is funded by a trust | ||
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(b) Every pre-need sales contract must be in writing. The Comptroller may by rule develop a model pre-need sales contract form that meets the requirements of this Act. (c) To the extent the Rule is applicable, every pre-need sales contract is subject to the Federal Trade Commission Rule concerning the Cooling-Off Period for Door-to-Door Sales (16 CFR Part 429). (d) No pre-need sales contract may be entered into in this State unless there is a provider for the cemetery merchandise, cemetery services, and undeveloped interment, inurnment, and entombment spaces being sold. If the seller is not the provider, then the seller must have a binding agreement with a provider, and the identity of the provider and the nature of the agreement between the seller and the provider must be disclosed in the pre-need sales contract at the time of sale and before the receipt of any sale proceeds. The failure to disclose the identity of the provider, the nature of the agreement between the seller and the provider, or any changes thereto to the purchaser and beneficiary, or the failure to make the disclosures required by this Section constitutes an intentional violation of this Act. (e) No pre-need contract may be entered into in this State unless it is accompanied by a funding mechanism permitted under this Act and unless the seller is licensed by the Comptroller as provided in this Act. Nothing in this Act is intended to relieve providers or sellers of pre-need contracts from being licensed under any other Act required for their profession or business or from being subject to the rules promulgated to regulate their profession or business, including rules on solicitation and advertisement. (f) No pre-need contract may be entered into in this State unless the seller explains to the purchaser the terms of the pre-need contract prior to the purchaser signing and the purchaser initials a statement in the contract confirming that the seller has explained the terms of the contract prior to the purchaser signing. (g) The State Comptroller shall develop a booklet for consumers in plain English describing the scope, application, and consumer protections of this Act. After the booklet is developed, no pre-need contract may be sold in this State unless the seller distributes to the purchaser prior to the sale a booklet developed or approved for use by the State Comptroller. (Source: P.A. 96-879, eff. 2-2-10.) |
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(3) A brief description of the event of bankruptcy, | ||
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(4) The case name or other identifying title of any | ||
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(5) The name and address of the court in which the | ||
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(6) A description of any action the purchaser must | ||
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(Source: P.A. 91-7, eff. 6-1-99.) |
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(2) An accounting of any withdrawal of principal or | ||
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(3) An accounting at the end of each fiscal year, of | ||
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(d) The annual report shall be filed by the licensee with the Comptroller within 75 days after the end of the licensee's fiscal year. An extension of up to 60 days may be granted by the Comptroller, upon a showing of need by the licensee. Any other reports shall be in the form furnished or specified by the Comptroller. If a licensee fails to submit an annual report to the Comptroller within the time specified in this Section, the Comptroller shall impose upon the licensee a penalty of $5 per day for the first 15 days past due, $10 per day for 16 through 30 days past due, $15 per day for 31 through 45 days past due, and $20 per day for the 46th day and every day thereafter the licensee remains delinquent in submitting the annual report. The Comptroller may abate all or part of the $5 daily penalty for good cause shown. Each report shall be accompanied by a check or money order in the amount of $10 payable to: Comptroller, State of Illinois. (e) On and after the effective date of this amendatory Act of the 91st General Assembly, a licensee may report all required information concerning the sale of outer burial containers on the licensee's annual report required to be filed under this Act and shall not be required to report that information under the Illinois Funeral or Burial Funds Act, as long as the information is reported under this Act. (Source: P.A. 97-593, eff. 8-26-11.) |
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(b) The Comptroller may order additional audits or examinations as he or she may deem necessary or advisable to ensure the safety and stability of the trust funds and to ensure compliance with this Act. These additional audits or examinations shall only be made after good cause is established by the Comptroller in the written order. The grounds for ordering these additional audits or examinations may include, but shall not be limited to: (1) material and unverified changes or fluctuations | ||||||||||
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(2) the licensee changing trustees more than twice in | ||||||||||
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(3) any withdrawals or attempted withdrawals from the | ||||||||||
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(4) failure to maintain or produce documentation | ||||||||||
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Prior to ordering an additional audit or examination, the Comptroller shall request the licensee to respond and comment upon the factors identified by the Comptroller as warranting the subsequent examination or audit. The licensee shall have 30 days to provide a response to the Comptroller. If the Comptroller decides to proceed with the additional examination or audit, the licensee shall bear the full cost of that examination or audit up to a maximum of $7,500. The Comptroller may elect to pay for the examination or audit and receive reimbursement from the licensee. Payment of the costs of the examination or audit by a licensee shall be a condition of receiving or maintaining a license under this Act. All moneys received by the Comptroller for examination or audit fees shall be maintained in a separate account to be known as the Comptroller's Administrative Fund. This Fund, subject to appropriation by the General Assembly, may be utilized by the Comptroller for enforcing this Act and other purposes that may be authorized by law. (Source: P.A. 88-477; 89-615, eff. 8-9-96.) |
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(ii) any delinquency existing in the trust funds has | ||
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(iii) the Comptroller issues a license upon | ||
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For purposes of this Section, a person, firm, corporation, partnership, or institution that acquires the licensee through a real estate foreclosure is subject to the provisions of this Section. (Source: P.A. 92-419, eff. 1-1-02.) |
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