Amends the Illinois Insurance Code. Provides that 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 a specified provision of the Illinois Funeral or Burial Funds Act. Provides that a policy owner who executes a designation beneficiary form irrevocably waives and cannot exercise certain rights. Amends the Illinois Funeral or Burial Funds Act. In a provision concerning pre-need contracts funded through the purchase of a life insurance policy or tax-deferred annuity contract, provides that nothing shall prohibit the purchaser from irrevocably assigning ownership of the policy or annuity to a person or trust or from irrevocably assigning the benefits of the policy or annuity to a funeral home for the purpose of obtaining favorable consideration for Medicaid, Supplemental Security Income, or another public assistance program. Requires the insured or any other person who may be the owner of rights under the policy of whole life insurance to sign a guaranteed pre-need contract with the provider that describes the cost of the goods and services to be provided upon the person's death, up to $6,774, except that any portion of a contract that clearly represents the purchase of burial space is exempt regardless of value. Amends the Aid to the Aged, Blind or Disabled Article of the Illinois Public Aid Code. In a provision requiring the Department of Human Services to exempt certain prepaid funeral or burial contracts from consideration when making an eligibility determination for medical assistance, provides that at any time after submitting an application for medical assistance and before the Department makes a final determination of eligibility, an applicant may use available resources to purchase one of the exempted prepaid funeral or burial contracts. Exempts up to $6,774 (rather than $5,874) in funds under an irrevocable prepaid funeral or burial contract when determining an individual's resources and eligibility for medical assistance. Contains provisions concerning exemptions; irrevocable designation of beneficiary forms; and other matters.

Statutes affected:
Introduced: 215 ILCS 5/245, 225 ILCS 45/2, 305 ILCS 5/3
Engrossed: 305 ILCS 5/3
Enrolled: 215 ILCS 5/245, 225 ILCS 45/2, 305 ILCS 5/3