The Governors Task Force Association The Illinois Funeral Directors Association has reported and has recommended that the Illinois Department of Financial and Professional Regulation handle preneed regulation.
Up to regulation of Funeral Preneed funds has been handled by the comptrollers office of the State of Illinois. 100 million dollars is now gone from the preneed fund mainly because of funky and maybe fraudelant insurance investments. There was also extracurricular use of the Preneed fund including the Setup and administration of the Museum Of Funeral Customs by the now NFDA Treasurer Randal L Earl. There was also loans to board members through IFDA Services.
To the greatest extent possible, Illinois should have a fully consolidated regulatory scheme,” the report’s authors wrote.
In addition, the task force recommended:
*Restrictions on what investments can be made with money in pre-need funeral trusts.
“The investment of those funds should be strictly limited to U.S. government-backed securities or other investments of equal creditworthiness,” the authors wrote.
*A ban on pre-need funeral trustees engaging in business unrelated to pre-need funerals.
The IFDA made loans to funeral directors from the pre-need trust fund and also operated a museum, which is now closed. The task force wrote that the IFDA “may have deviated from its original purpose” and may have made investments and loans that “further detracted from its core mission.”
*A requirement for transparency in the administration of pre-need funeral trusts.
Duane Marsh, IFDA executive director, could not be reached for comment.
*Illinois Department of Financial and Professional Regulation oversee pre-need funeral industry
*Limits on how pre-need funds be invested
*Bar trustees from engaging in unrelated businesses*More transparency in administration of pre-need trustsvia www.sj-r.com
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