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Illinois Cemetery Authorities New Bond Requirements

by Surety Admin 1. September 2010 14:52
Illinois HB 1188 provides for the oversight of cemeteries, requiring cemetery authorities to be licensed. Unless the cemetery authority has obtained a full or partial exemption from the licensing requirement, the new law requires the licensee to obtain a fidelity bond, proof of self-insurance, or letter of credit in an amount that would be required through rules. The bond secures the care funds that the cemetery authority holds for the cemetery’s maintenance. The bond must be from a bonding company authorized to do business in the State. The new law provides that the bond may be terminated with 60 days notice. If the funds were held by an entity authorized to do a trust business under the Corporate Fiduciary Act or held by an investment company, then the bond is not required. The new law became effective on March 1, 2010. ENACTED: 01/19/2010
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