2005 Illinois 215 ILCS 5/ Illinois Insurance Code. Article XVIII - Mutual Benefit Associations
(215 ILCS 5/Art. XVIII heading)
ARTICLE XVIII.
MUTUAL BENEFIT ASSOCIATIONS
(215 ILCS 5/316) (from Ch. 73, par. 928)
Sec. 316.
Scope of
article.
(1) This article shall apply to
(a) all companies incorporated under "An Act to incorporate mutual
benefit associations on the assessment plan, intended to benefit the
widows, orphans, heirs and legatees of deceased members
thereof and members
who have received a permanent disability and to provide for and regulate
the control of such associations and to provide penalties for violation of
the provisions thereof," approved June 27, 1927; and
(b) all associations or corporations not organized under the act
mentioned in clause (a), transacting business in this State and insuring
the lives of its members and providing money benefits payable on the death
or permanent disability of its members and which provide for the payment of
death or disability benefits and the expenses of the management of the
business by payments to be made upon assessments as required, by members
holding similar contracts and where the members' liability to contribute to
the payment of losses, accrued or to accrue, is not a fixed sum.
(2) Each company, association or corporation referred to in subsection
(1) shall be deemed to be a mutual benefit association engaged in the
business of life and disability insurance upon a mutual benefit assessment
plan and is referred to in this article as a "mutual benefit association"
or as an "association."
(Source: P.A. 84‑549.)
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(215 ILCS 5/317) (from Ch. 73, par. 929)
Sec. 317.
Present
authorized associations may transact business.
Every association organized prior to the effective date of this Code and
which association on said effective date is transacting business under a
certificate of authority issued by the Director may continue to transact
such business subject to the provisions of this article.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/318) (from Ch. 73, par. 930)
Sec. 318.
No new
mutual benefit associations may be organized.
No mutual benefit association shall be formed after the effective date
of this Code nor shall the Director after said effective date issue a
permit to organize such an association to, or approve any articles of
incorporation of, any group of individuals desiring to do a mutual benefit
business.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/319) (from Ch. 73, par. 931)
Sec. 319.
Principal
office and place of business.
Every association, within thirty days after the effective date of this
Code, shall file with the Director a declaration in writing sworn to by one
of its officers setting forth the address, including street and number, if
any, of its principal office and place of business at the effective date of
this Code.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/320) (from Ch. 73, par. 932)
Sec. 320.
Amendment
of charter.
The articles of incorporation of any association may be amended by
proper resolution adopted by the board of directors and approved by the
Director. The location of the principal place of business of any
association shall not be changed, except in cases of merger or
consolidation, to any county other than the county or adjoining county in
which the principal place of business of the association is located at the
effective date of this Code.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/321) (from Ch. 73, par. 933)
Sec. 321.
Service of
process‑Director as attorney.
(1) Every association within thirty days after the effective date of
this Code, shall file with the Director a duly executed instrument whereby
the association shall appoint and constitute the Director and his successor
or successors in office the true and lawful attorney of such association
upon whom all lawful process in any action or legal proceeding against it
may be served and shall agree that any lawful process against it which may
be served upon its said attorney as provided in this section shall be of
the same force and validity as if served upon the association and that the
authority thereof shall continue in force irrevocably so long as any
liability of the association shall remain outstanding.
(2) Service upon such attorney shall be made and the effect of such
service shall be the same as in cases of service upon the Director as
attorney for a reciprocal authorized to transact business in this State.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/322) (from Ch. 73, par. 934)
Sec. 322.
Power of
association.
Every association shall have the power by the name stated in its
certificate of authority to sue and be sued, make contracts, have a common
seal, and to change or alter said seal at pleasure. It may, by its board of
directors adopt by‑laws not inconsistent with the Constitution and laws of
this State or of the United States, which by‑laws shall define the manner
of electing directors and officers of the association and their duties and
terms of office, and the qualifications and privileges of the members
thereof. Such by‑laws may or may not require a medical examination of an
applicant for membership.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/323) (from Ch. 73, par. 935)
Sec. 323.
Directors.
(1) The affairs of all associations shall be governed by not less than
three nor more than seven directors, residents of the State of Illinois,
who shall be elected from and by the members at such time and place and for
such period not exceeding three years, as may be provided in the by‑laws.
Such directors may be eligible for reelection. As near as practicable an
equal number of directors shall be elected each year. Vacancies in the
board of directors shall be filled in the manner provided in the by‑laws.
(2) Within fifteen days after any director shall be elected, a
certificate under the seal of the association giving the name and residence
of the person elected and the term of his office, shall be filed in the
office of the Director.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/324) (from Ch. 73, par. 936)
Sec. 324.
Membership.
Every mutual benefit association shall have and maintain a membership of
at least five hundred members. If any association shall not have collected
any one assessment levied pursuant to this article from at least five
hundred members, after the levy of such assessment, it shall be subject to
liquidation and the Director may proceed against such association under
Article XIII.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/325) (from Ch. 73, par. 937)
Sec. 325.
Officers bonds.
The officer or officers of the association entrusted with the custody of
its funds shall within thirty days after the effective date of this Code
file with the Director a bond in favor of the association in the penalty of
double the amount of its benefit account, as defined in the act mentioned
in section 316, as of the end of a preceding calendar year, exclusive of
such amount as the association may maintain on deposit with the Director,
(but in no event a bond in a penalty of less than $2,000)
with such officer or officers as principal and a duly authorized surety
company as surety, conditioned upon the faithful performance of his or
their duties and the accounting of the funds entrusted to his or their
custody. If the penalty of any bond filed pursuant to this section shall at
any time be less than twice the largest amount in the benefit fund of the
association not maintained on deposit with the Director during the
preceding calendar year, a new bond in the penalty of double the largest
amount in the benefit fund during said preceding calendar year, with such
officer or officers as principal and a duly authorized surety company as
surety, conditioned as aforesaid, shall be filed with the Director within
sixty days after the end of such calendar year.
(Source: P.A. 93‑32, eff. 7‑1‑03.)
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(215 ILCS 5/326) (from Ch. 73, par. 938)
Sec. 326.
Membership
fees.
The association shall charge all applicants for membership a membership
fee of not more than six dollars nor less than one dollar and shall place
at least one dollar of such membership fee in the benefit fund of the
association.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/327) (from Ch. 73, par. 939)
Sec. 327.
Benefit
fund.
(1) An association shall maintain a benefit fund which shall
be used
solely for the payment of claims of members and no part thereof shall be
used for defraying the expenses of the association. Such fund, any portion
of which may be deposited with the Director, may be held in cash or
invested in securities of the United States Government or of the State of
Illinois, and not otherwise. All moneys or other assets of the benefit
account, as defined in the Act mentioned in Section 316, of any
association shall upon the effective date of this Code be deemed
transferred to and become a part of its benefit fund. The minimum amount of
such benefit fund at all times after one year from the effective date of
this Code shall be $1,000, plus the sum of $200 for each 100 members in
excess of 500. If the benefit fund of any association at any time after one
year from the effective date of this Code shall be less than the minimum
amount required by this Section and is not increased to such minimum within
90 days, the association shall be deemed insolvent and the Director shall
proceed against it under Article XIII. The Director may release any required
benefit fund deposit
upon receipt of
an order of a court having proper jurisdiction or
upon: (i) certification by the association
that it has no outstanding member creditors, member certificates, or member
obligations in effect and no plans to engage in the business of insurance; (ii)
receipt of a lawful resolution of the association's board of directors
effecting the surrender of its charter and 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 company,
together with a plan of dissolution approved by the Director.
(2) Whenever the association shall have been notified of any loss under
its certificate of membership, which exceeds in amount the benefit fund of
the association, the president shall convene the directors of the
association who shall levy an assessment against all members for an amount
sufficient to pay all such losses of the association at the time said
assessment is made and for an amount in excess thereof sufficient to
maintain the minimum amount of the benefit fund as provided in this
Section. Assessments provided for in this section shall be distributed
equally against all members of the association except for children under 16
years of age. The board of directors shall assess each such child an amount
not to exceed one half of the amount levied against each other member.
(3) In order to provide for an unexpected number of deaths, an
association shall have the right to levy additional assessments whenever in
the discretion of the board of directors the same shall be deemed advisable
except that no assessment may be levied if the amount in the benefit fund
exceeds, or if such assessment will increase the amount of the benefit fund
in excess of a sum equal to $25 per member in good standing. The entire
proceeds of all such additional assessments shall be placed in the benefit
fund.
(Source: P.A. 92‑75, eff. 7‑12‑01.)
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(215 ILCS 5/328) (from Ch. 73, par. 940)
Sec. 328.
Expense
fund.
Every mutual benefit association shall keep an expense fund out of which
all salaries, fees, taxes, costs of defending or prosecuting suits and all
other expenses relating to the management of the association shall be paid,
and for the purpose of maintaining such fund each member may be assessed
not to exceed 50 cents per month except on benefit certificates on lives of
children under 16 years of age. The expense assessed against each such
child shall be not more than one‑half of the amount assessed against each
other member.
(Source: Laws 1959, p. 619.)
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(215 ILCS 5/329) (from Ch. 73, par. 941)
Sec. 329.
Record of assessments.
A record of all assessments provided
for by this article shall be entered in the minutes of the meetings
of the board of directors and such record
shall show the amounts assessed for the benefit fund and the expense fund
separately.
(Source: P.A. 83‑343.)
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(215 ILCS 5/330) (from Ch. 73, par. 942)
Sec. 330.
Assessment
notice.
Whenever any assessment shall have been levied, it shall be the duty of
the association to notify immediately each member of such association by a
notice, mailed to each member, setting forth the amount of his share of
such losses and expenses separately. Such notice shall also state that such
assessment is to be paid within thirty days from the date of the notice and
the name and address of the association to which the payment is to be made.
Such notice, in case of benefit assessments, shall include the name of the
deceased member, the name and address of such member's beneficiary, and the
amount due on his certificate. Upon failure of any member to pay any
assessment levied upon him pursuant to the provisions of this article,
within the time named in such notice, the association may declare the
certificate of such member cancelled upon a further notice sent by first
class mail addressed to such member at his last known post office address
stating that his certificate will be canceled if payment is not made to the
association within ten days of the mailing of such cancellation notice.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/331) (from Ch. 73, par. 943)
Sec. 331.
Payment of
claims.
All claims filed with the association shall be approved or disapproved
within sixty days after receipt of due proof of death or disability and if
approved, shall be paid within sixty days after such approval. If a claim
is disapproved, the association shall forthwith notify the beneficiary or
person filing the proof of death or disability of the reasons for such
disapproval. The Director shall proceed under Article XIII to liquidate
any association which shall conduct its business fraudulently, or is not
carrying out its contracts in good faith, or shall be sixty days or more in
arrears in payment of 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.)
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(215 ILCS 5/332) (from Ch. 73, par. 944)
Sec. 332.
Amount of
death benefit.
The benefit which shall be payable by an association upon the death of a
member under a certificate issued after the effective date of this Code
shall be the benefit for the age at entry of such member into the
association, as set forth in the standard certificate form prescribed by
section 333.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/333) (from Ch. 73, par. 945)
Sec. 333.
Membership certificate.
(1) Every association shall issue a certificate of membership to each
member. The form of certificate shall be submitted to the Director for his
approval before same shall be issued. Each certificate issued on and after
January 1, 1950, shall contain the following provisions and no others and
shall be printed in clear readable type of uniform sixes, except that the
words in capital letters in the following form may be in larger type, and
in the case of an association issuing certificates granting only death
benefits, the provisions with regard to disability may be omitted:
..............................
(A Mutual Benefit Association)
..................., Illinois.
IN CONSIDERATION OF the membership fee, the receipt of which is hereby
acknowledged and the facts set out in the application executed by the
member, and the further payment of all assessments required to be paid
under the conditions of this certificate, on or before the time payable
during the continuance of the certificate, the .... agrees to pay to ....,
herein called the beneficiary, if living, or to a duly substituted
beneficiary, otherwise to the estate of the member, upon receipt at its
home office in the City of ...., Illinois, of due proof of death of ....,
herein called the member, during continuance of this certificate in full
force, subject, however, to the conditions and provisions hereinafter set
forth, in accordance with the amounts scheduled below based on the age of
the member at the time he or she became a member.
In no case shall the association be liable for an amount in excess of
$1 per member paying the assessment levied for a single claim,
except to the extent of the amount in the benefit fund.
Upon receipt of satisfactory evidence at the Home Office of the
Association showing that the member has lost be severance, BOTH HANDS or
BOTH FEET, or ONE HAND AND ONE FOOT, or has permanently lost the ENTIRE
SIGHT OF BOTH EYES, through accidental means, independently and exclusively
of all other causes, within 90 days from the date of the accident,
during the continuance of this Certificate, then the sum set forth in the
table of benefits herein provided to be paid and upon the same terms as
above provided for a death benefit, will be paid to said member, subject to
the provisions and conditions hereinafter set forth in lieu of all other
benefits; and should the member lose by severance ONE HAND or ONE FOOT or
permanently the ENTIRE SIGHT OF ONE EYE, through accidental means,
independently and exclusively of all other causes, within 90 days from
the date of the accident, during the continuance of this Certificate, then
1/2 of the sum set forth in the table of benefits herein provided will
be paid to the member, subject to the provisions and conditions hereinafter
set forth in lieu of all other benefits. Severance shall mean, in case of a
foot, severance at or above the ankle; in case of a hand, severance at or
above the wrist.
TABLE SHOWING AMOUNT PAYABLE AT
DEATH OF MEMBER ACCORDING TO
AGE AT TIME OF BECOMING A
MEMBER.
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Age at |
Maximum |
Entry |
Benefit |
Nearest Birthday |
|
0 to 15 yrs....................................... |
$ 500.00 |
Members in this class |
|
upon attaining the age |
|
of 16 automatically become |
|
members of the next |
|
succeeding class. |
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16 to 40 yrs. $500.00 for first four |
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months increasing $25.00 |
|
per month to......................... |
1,000.00 |
41 to 45 yrs. $400.00 for first four |
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months increasing $20.00 |
|
per month to......................... |
800.00 |
46 to 50 yrs. $300.00 for first four |
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months increasing $10.00 |
|
per month to......................... |
500.00 |
51 to 55 yrs. $100.00 for first four |
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months increasing $10.00 |
|
per month to......................... |
300.00 |
56 to 60 yrs. $100.00 for first four |
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months increasing $5.00 |
|
per month to......................... |
200.00 |
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The member who holds his or her certificate is subject to assessments for
the payment of death claims of the association and to assessments for the
payment of expenses of the association as provided for by paragraph 13 on a
following page of this certificate.
THE PROVISIONS under the heading "Additional Contract Provisions" (upon
the following pages hereof) are a part of this contract as fully as if
recited over the signature hereto affixed.
IN WITNESS WHEREOF, the .... has caused this contract to be executed at
its home office in the City of ...., Illinois, on (insert date).
............... (President)
............... (Secretary)
ADDITIONAL CONTRACT PROVISIONS
1. Health and Age. The applicant for membership in this association
must be in good health, of sound mind and must be between the ages of 0 and
sixty years, nearest birthday.
2. Misrepresentations. This certificate and the application therefor
shall constitute the entire contract with the member. All statements by the
member shall, in the absence of fraud, be deemed representations and not
warranties, and no such statement shall void this certificate unless
contained in the written application, and a copy of such application
attached to or copied on this certificate when issued, or unless the fact
misstated contributes to the loss.
3. When Certificate Takes Effect. The association assumes no
liability until the certificate is issued and actually delivered to the
member during his or her lifetime and while he or she is alive and in good
health and of sound mind.
4. Not More Than One Certificate to a Member. Only one certificate of
membership may be held by a member. Should any member have more than one
uncancelled certificate only the earliest dated certificate shall be
effective and all other certificates shall be void. All assessments paid on
such void certificate shall be repaid to the member.
5. Agent Cannot Waive Contract Provisions. No agent shall have
authority to make any alterations or modifications in the conditions or the
provisions of this certificate of membership, to extend the time of payment
of assessments, to waive any forfeiture provision or to bind the
association by any promises.
6. Assignment. No assignment of this certificate shall be binding on
the association, and the association assumes no responsibility for the
validity of any assignment.
7. Change of Beneficiary. The member may, by written notification to the
association, change the beneficiary without the consent of such beneficiary.
8. Change of Address. The member, when changing his or her address,
shall at once notify the association of such change, giving the new
address, and such change shall be noted upon the records of the
association. Notice mailed to the last known address of the member, as
shown by the records of the association, shall be considered in all
respects as due and sufficient notice.
9. Residence and Travel. This certificate is free from restrictions
or limitations as to residence and travel.
10. Incontestability. After this certificate shall have been kept in
continuous force, during the life of the member, for 2 full years from
date of issue, it shall be incontestable if assessments have been duly
paid, except as to the limitations and exclusions set forth in paragraph
eleven hereof. If the age of the member has been misstated, the amount
payable under this certificate shall be such as the member would have been
entitled to at the true age. If the age at entry is over sixty years the
amount payable shall be the full amount of assessments paid in by the member.
11. Limitations and Exclusions. If death results by the intentional
act of any beneficiary of this certificate, the benefits hereunder shall be
payable to the insured member's estate. No benefits will be payable under
this certificate if death occurs as a result of any of the following: (1)
Military or naval service in time of war; (2) Self‑destruction while sane
or insane, if within two years from the date of this certificate; (3)
Violation by member of any criminal law.
12. Reinstatement. After default in payment of any assessment this
certificate may be reinstated at the discretion of the board of directors
upon the member furnishing to the association satisfactory evidence of good
health and paying the delinquent assessment. In case the certificate is
lapsed for 30 days or more a one dollar reinstatement fee shall be
charged in addition to any delinquent assessments. No certificate shall be
reinstated nor a new certificate issued to any member within one year after
this certificate is lapsed, except upon the payment by such member of an
amount equal to all intervening assessments levied by the association.
13. Assessments. The association shall establish a benefit fund to be
used exclusively for the payment of claims of members and the board of
directors shall levy assessments against all members of the association
which, together with any balance in the benefit fund, shall be sufficient
in amount to pay all claims in accordance with the schedule set out in this
certificate. The association shall also keep an expense fund out of which
all expenses of the association, including salaries of officers, shall be
paid, and for the purpose of maintaining such fund each member may be
assessed not to exceed the maximum amount provided in Section 328.
14. Failure to Pay Assessment. Each assessment is due and payable at
the principal office of the association at .... within 30 days from the
date of the notice of the assessment. If the member fails to pay the
assessment within the 30 days or fails to remit said assessment by
depositing the amount thereof in an envelope properly addressed to the
association in the United States mail by 12 o'clock noon on the
30th day after the date of such notice, his certificate
may be cancelled by the association by the mailing to such member of a
cancellation notice as required by the Insurance Code of the State of
Illinois. If the member fails to pay the assessment within 10 days from
the date of such cancellation notice or fails to remit said assessment by
depositing the amount thereof in an envelope properly addressed to the
association in the United States mail by 12 o'clock noon on the 10th
day after the date of such cancellation notice, the member shall cease to
have any further rights under the certificate issued to such member on
which the assessment is levied, and said certificate shall then and there
be regarded and accepted by the association and the member as cancelled,
terminated and void, but such certificate shall be in full force until the
expiration of the 10 day period following the cancellation notice.
15. Notice of Death or Disability. The association shall be notified
of the death or disability of a member within a reasonable time after such
death or disability. The association shall immediately furnish a form of
proof of death or disability to the beneficiary or other interested party.
The information required by the proof of death or disability shall be
given and it shall be returned to the office of the association. The board
of directors shall approve or disapprove a claim within 60 days after
the receipt by the association of the proof of death or disability. If the
claim is approved the association shall pay in full the amount due
according to this certificate within 60 days after approval of the
claim. If the claim is disapproved, the association shall forthwith notify
the beneficiary or person filing the proof of death or disability of the
reasons for such disapproval.
16. Annual Meeting. The annual meeting of the members of this
association shall be held in the Home Office of the association in ....,
Illinois, at .... o'clock ... m., on the .... day of .... of each
year, unless such day falls on Sunday or a legal holiday, and in such event on
the next business day succeeding, for the purpose of electing directors and
the transaction of such other business as may be brought before the meeting.
Members may vote at any annual meeting in person or by proxy. This certificate
shall be considered sufficient notice of such meeting to all members.
17. Election of Benefits. The filing of a claim for disability
benefits and the payment thereof by the association shall constitute an
election by the insured to accept such disability benefits in lieu and in
full payment of all other benefits in the certificate provided.
(2) Prior to January 1, 1950, every association may at its option
adopt and use the certificate of membership hereinbefore set forth
upon first submitting the form to the Director of Insurance and
securing his or her approval thereof.
(Source: P.A. 91‑357, eff. 7‑29‑99.)
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(215 ILCS 5/333.1) (from Ch. 73, par. 945.1)
Sec. 333.1.
Each assessable certificate issued or delivered in this State
after the effective date of this Amendatory Act of 1967 shall have the
following statement printed in bold face type on the face of the
certificate: "This is an assessable policy".
(Source: Laws 1967, p. 3544.)
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(215 ILCS 5/334) (from Ch. 73, par. 946)
Sec. 334.
One
certificate to a member.
No association shall issue to any member more than one certificate and
the certificate together with the application therefor, a copy of which
application shall be endorsed upon or attached to the certificate and made
a part thereof, shall constitute the entire contract between the
association and the member.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/335) (from Ch. 73, par. 947)
Sec. 335.
Advertising.
(1) No association shall use any certificates or applications, unless
the forms thereof be submitted to and approved in writing by the Director.
No such association in any printed matter, stationery, circulars,
certificates, applications, advertisement or other literature shall make
any statements tending to create the impression or from which it may be
implied or inferred, directly or indirectly, that the financial condition
of the association or the payment of its claims is guaranteed by the State,
by the United States Government or is secured by Government bonds; nor
shall such association in any such advertisement or other printed matter
use the name of the Director or the Department in such a way as to give the
impression that such Director or Department approves or endorses the
association or guarantees in any way its financial condition or the payment
of its claims.
(2) Any association or officer or agent of any association who violates
any of the provisions of this section shall be guilty of a petty offense
for each such offense.
(Source: P. A. 77‑2699.)
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(215 ILCS 5/336) (from Ch. 73, par. 948)
Sec. 336.
Does not
apply to industrial associations.
This article shall not apply to any mutual benefit association that
limits its membership to the employees of a designated person, firm or
corporation, or of a designated corporation and its subsidiaries and
affiliated corporations.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/337) (from Ch. 73, par. 949)
Sec. 337.
Application of other code provisions.
Unless otherwise provided in this article, every mutual benefit
association shall be subject to other applicable provisions of this Code.
(Source: Laws 1937, p. 696.)
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(215 ILCS 5/337.1)
Sec. 337.1.
Data exchanges;
administrative liens.
(a) Any benefit association governed by this Article XVIII shall
encumber or surrender accounts as defined in Section 10‑24 of the Illinois
Public Aid Code held by the
benefit association on behalf of any responsible relative who is
subject to a child support lien, upon notice of the lien or levy by the
Illinois Department of Public Aid or its successor agency pursuant to Section
10‑25.5 of the Illinois Public Aid Code, or upon notice of
interstate lien from any other state's agency responsible
for implementing the child support enforcement program set
forth in Title IV, Part D of the Social Security Act.
(b) This Section shall not prohibit the furnishing of information in
accordance
with the federal
Personal Responsibility and Work Opportunity Reconciliation Act of 1996.
Any benefit association governed by this Article XVIII shall enter into an
agreement for data
exchanges with the Department of Public Aid provided the Department of Public
Aid pays to the benefit association a reasonable fee not to exceed its
actual cost incurred. A benefit association providing
information in accordance with this item shall not be liable to any owner of an
account as defined in Section 10‑24 of the Illinois Public Aid Code or other
person for any disclosure of information to the Department of Public Aid, for
encumbering or surrendering any accounts held by the benefit association in
response to a lien
or order to withhold and deliver issued by the Department of Public Aid, or for
any other
action taken pursuant to this item, including individual or mechanical errors,
provided the action does not constitute gross negligence or willful misconduct.
A benefit association shall have no obligation to hold, encumber, or
surrender the accounts or portions thereof as defined in Section 10‑24 of the
Illinois Public Aid Code until it has been served with a subpoena, summons,
warrant, court or administrative order,
lien, or levy.
(Source: P.A. 90‑18, eff. 7‑1‑97.)
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