Current through Register Vol. 47, No. 52, December 29, 2023
a) Pre-need contracts required to be filed
with the Comptroller must meet the criteria set forth in this Section. All
pre-need contracts submitted between January 1, 1994 and July 3, 1996 shall be
deemed to have been submitted on the effective date of this Part.
b) Required Contents:
1) Name and address of the principal office
of the seller and, if applicable, the parent company of the seller.
2) Name of purchaser and contract
beneficiary, if different from the purchaser and known.
3) Name and address of provider's principal
office, but if the provider has branch locations, the name and address of the
branch at which the funeral will be performed, if specified by the
purchaser.
4) Complete description
and price of funeral merchandise and services.
5) Disclosure of whether the contract is
guaranteed or non-guaranteed as to the price or if the contract contains both
guaranteed price items and non-guaranteed price items a clear statement of
which goods and services are guaranteed and which are not.
A) Each contract for goods and services for
which the price is guaranteed, or which contains both guaranteed and
non-guaranteed items, shall contain the following statement in 12 point bold
type:
THIS CONTRACT GUARANTEES THE BENEFICIARY THE SPECIFIC GOODS AND
SERVICES CONTRACTED FOR. NO ADDITIONAL CHARGES MAY BE REQUIRED FOR DESIGNATED
GOODS AND SERVICES. ADDITIONAL CHARGES MAY BE INCURRED FOR UNEXPECTED EXPENSES
INCLUDING, BUT NOT LIMITED TO, CASH ADVANCES, SHIPPING OF REMAINS FROM A
DISTANT PLACE, OR DESIGNATED HONORARIA ORDERED OR DIRECTED BY SURVIVORS.
[225 ILCS
45/1a-1(a)(3)(A) ]
B) Except as provided in subsection
(b)(5)(C), each contract for goods or services for which the price is not
guaranteed, or which contains both guaranteed and non-guaranteed items, shall
contain the following statement in 12 point bold type:
THIS CONTRACT DOES NOT GUARANTEE THE PRICE THE BENEFICIARY WILL
PAY FOR ANY SPECIFIC GOODS OR SERVICES. ANY FUNDS PAID UNDER THIS CONTRACT ARE
ONLY A DEPOSIT TO BE APPLIED TOWARD THE FINAL PRICE OF THE GOODS OR SERVICES
CONTRACTED FOR. ADDITIONAL CHARGES MAY BE REQUIRED. [225
ILCS 45/1a-1(a)(3)(B) ]
C) If a non-guaranteed price
contract may subsequently become guaranteed, the contract shall clearly
disclose the nature of the guarantee and the time, occurrence, or event upon
which the contract shall become a guaranteed price contract.
6) Where the particular goods and
services specified are unavailable at the time of delivery, the contract shall
state that supplies and services similar in style and equal quality will be
provided.
7) Any penalties or
restrictions in performing the contract must be fully stated.
8) The method of funding the pre-need
contract must be stated along with the following information:
A) The relationship among the funding person,
the provider, and the seller.
B)
The impact on the pre-need contract if the following occurs:
i) Changes in the funding arrangements or use
of funds.
ii) Penalties to be
incurred if the purchaser fails to make payments.
iii) Penalties to be incurred or moneys or
refunds to be received as a result of the cancellation.
iv) A difference between the proceeds of the
funding arrangement and the amount actually needed for the funeral
at-need.
9)
The method for changing the designation of the provider must be fully
described.
10) Unless the pre-need
contract provides for more liberal cancellation terms, every pre-need contract
sold outside of the seller's principal place of business is subject to the
Federal Trade Commission rule ( 16 CFR 429 ) concerning the Cooling-Off Period
for Door-to-Door Sales. The FTC Rule provides that with any door-to-door sale
the seller must furnish the purchaser a completed receipt or copy of any
contract pertaining to the sale at the time the contract is signed. The seller
must comply with the following terms:
A) A
completed receipt or copy of the pre-need contract at the time of signing must
be furnished to the purchaser.
B)
The same language must be used in both the oral sales presentation and the
written contract to the purchaser.
C) Notice of purchaser's right to cancel
within 3 days after signing pre-need contract. The notice must be as follows:
i) Located close to the signature
line.
ii) Printed in 12 point bold
type.
iii) State that "YOU, THE
BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD
BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION."
D) All monies must be refunded without
penalty within 10 days after cancellation.
11) In addition to the cancellation
provisions of subsection (b)(10) of this Section, each pre-need contract shall
include a statement that the purchaser has the right to cancel the pre-need
contract prior to need and receive a refund as authorized or required by the
Illinois Funeral or Burial Funds Act within 30 days after written demand.
Nothing in this Section shall prohibit a purchaser who is or may become
eligible for public assistance from making a guaranteed price contract
irrevocable in an amount prescribed by rule of the Illinois Department of
Public Aid to the extent that federal law or regulations require that such a
contract be irrevocable for purposes of the purchaser's eligibility for
Supplemental Social Security Income benefits, Medicaid, or other public
assistance program, as permitted under federal law.
c) Where a pre-need contract has been made
irrevocable in an amount prescribed by rule by the Illinois Department of
Public Aid for the purpose of maintaining eligibility for Supplemental Security
Income benefits (SSI), Medicaid or other public assistance, a licensee is
required to provide written notification to the Illinois Department of Public
Aid whenever the licensee knows or reasonably should know that the amount in
trust or the death benefit under a life insurance policy or annuity contract
exceeds the cost of the funeral merchandise or services by more than 25%, at
the time the merchandise is provided and the services are performed.
Amended at 26 Ill. Reg. 5772, effective April 10,
2002
