100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1667

 

Introduced 2/9/2017, by Sen. William R. Haine

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 155/6  from Ch. 73, par. 1406
215 ILCS 155/8  from Ch. 73, par. 1408

    Amends the Title Insurance Act. In provisions concerning reinsurance, provides that a title insurance company may obtain reinsurance for all or any part of its liability under one or more of its title insurance policies from an assuming insurer with a financial strength rating of A- or better from A.M. Best Company, Inc., or with an alternative rating the Department of Insurance may approve that the Department determines is an equivalent rating by another recognized rating organization. In provisions concerning retained liability, provides that the net retained liability of a title insurance company for a single risk on property located in the State, whether assumed directly or as reinsurance, may not exceed the total surplus (rather than 50% of the total surplus) to policyholders as shown in the most recent annual statement of the title insurance company on file with the Department. Provides that each title insurance company shall file annually with the Department a notice describing its professional reinsurance business, if any, and describing how risks are placed through reinsurance outside of the title insurance industry.


LRB100 10711 SMS 20940 b

 

 

A BILL FOR

 

SB1667LRB100 10711 SMS 20940 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Title Insurance Act is amended by changing
5Sections 6 and 8 as follows:
 
6    (215 ILCS 155/6)  (from Ch. 73, par. 1406)
7    Sec. 6. Reinsurance.
8    (a) A title insurance company may obtain reinsurance for
9all or any part of its liability under one or more of its title
10insurance policies or reinsurance agreements and may also
11reinsure title insurance policies issued by other title
12insurance companies on risks located in this State or
13elsewhere.
14    (a-5) Notwithstanding any other provision of this Act, a
15title insurance company may obtain reinsurance for all or any
16part of its liability under one or more of its title insurance
17policies from an assuming insurer with a financial strength
18rating of A- or better from A.M. Best Company, Inc., or with an
19alternative rating the Department may approve that the
20Department determines is an equivalent rating by another
21recognized rating organization.
22    (b) A title insurance company licensed to do business in
23this State shall retain at least $100,000 of primary liability

 

 

SB1667- 2 -LRB100 10711 SMS 20940 b

1for policies it issues, unless a lesser sum is authorized by
2the Secretary. A lesser sum may be retained at the request of
3an insured for a particular policy. This subsection (b) applies
4only to policies issued on or after the effective date of this
5amendatory Act of the 94th General Assembly.
6(Source: P.A. 94-893, eff. 6-20-06.)
 
7    (215 ILCS 155/8)  (from Ch. 73, par. 1408)
8    Sec. 8. Retained liability.
9    (a) The net retained liability of a title insurance company
10for a single risk on property located in this State, whether
11assumed directly or as reinsurance, may not exceed 50% of the
12total surplus to policyholders as shown in the most recent
13annual statement of the title insurance company on file with
14the Department.
15    (b) The Secretary may waive the limitation of this Section
16for a particular risk upon application of the title insurance
17company and for good cause shown.
18    (c) Each title insurance company shall file annually with
19the Department a notice describing its professional
20reinsurance business, if any, and describing how risks are
21placed through reinsurance outside of the title insurance
22industry.
23(Source: P.A. 94-893, eff. 6-20-06.)