Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 610 - ILLINOIS FUNERAL OR BURIAL FUNDS ACT
Section 610.60 - Trust Investment in Life Insurance or Annuities
Universal Citation: 38 IL Admin Code ยง 610.60
Current through Register Vol. 48, No. 12, March 22, 2024
a) A Trustee of a trust account shall not invest trust funds in life insurance policies or tax deferred annuities unless the following requirements are met:
1) The
company issuing the life insurance policies or tax-deferred annuities is
licensed by the Illinois Department of Insurance and the insurance producer or
annuity seller is licensed to do business in the State of Illinois;
2) Prior to the investment, the purchaser
approves, in writing, the investment in life insurance policies or tax-deferred
annuities;
3) Prior to the
investment, the purchaser is notified by the seller in writing about the
disclosures required for all pre-need contracts under Section 1a-1 of the Act,
and the purchase of life insurance or a tax-deferred annuity is subject to the
requirements of Section 2a of the Act;
4) Prior to the investment, the trustee
informs the comptroller that trust funds shall be removed from the trust
account to purchase life insurance or a tax-deferred annuity upon the written
consent of the purchaser;
5) The
purchaser retains the right to refund provided for in the Act, unless the
pre-need contract is sold on an irrevocable basis as provided in Section 4 of
the Act; and
6) Notice must be
given in writing that the cash surrender value of a life insurance policy may
be less than the amount provided for by the refund provisions of the trust
account.
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