Illinois § 245.3

§ 245.3.

Irrevocable assignment of life insurance to a funeral home. An insured or any other person who may be the owner of rights under a policy of life insurance may make an irrevocable assignment of all or a part of his or her rights under the policy to a funeral home in accordance with Section 2b of the Illinois Funeral or Burial Funds Act. Subject to the terms of the policy or a contract relating to the policy, including, but not limited to, a prepaid funeral or burial contract, an irrevocable assignment by an insured or other owner of rights under a policy made before or after the effective date of this amendatory Act of the 102nd General Assembly is valid for the purpose of vesting in the assignee, in accordance with the policy or contract as to the time at which it is effective, all rights assigned. That irrevocable assignment is, however, without prejudice to the company on account of any payment it makes. The insurance company shall within 15 business days notify the funeral home and owner of the policy of its receipt of the form. A policy owner who executes a designation of beneficiary form pursuant to Section 2b of the Illinois Funeral or Burial Funds Act also irrevocably waives and cannot exercise the following rights: (1) The right to collect from the insurance company the net proceeds of the policy when it becomes a claim by death. (2) The right to surrender the policy and receive the cash surrender value of the policy. (3) The right to obtain a policy loan. (4) The right to designate as primary beneficiary of the policy anyone other than as provided in that Act. (5) The right to collect or receive income, distributions, or shares of surplus, dividend deposits, refunds of premium, or additions to the policy. This amendatory Act of the 102nd General Assembly acknowledges, declares, and codifies the existing right of assignment of interests under life insurance policies. (Source: P.A. 102-959, eff. 5-27-22.)