101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0215

 

Introduced 1/31/2019, by Sen. John G. Mulroe

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Title Insurance Act. Provides for enforcement of the Act by the Department of Insurance (rather than the Department of Financial and Professional Regulation). Provides that all powers, duties, rights, and responsibilities of the Department of Financial and Professional Regulation and the Secretary of Financial and Professional Regulation under the Act are transferred to the Department of Insurance and Director of Insurance, respectively. Provides for the transfer of books, records, papers, documents, property, contracts, causes of action, pending business, and certain funds from the Department of Financial and Professional Regulation to the Department of Insurance. Provides that rules and proposed rules by the Department of Financial and Professional Regulation under the Act shall become rules and proposed rules of the Department of Insurance. Provides that all moneys received by the Department of Insurance under the Act shall be deposited into the Insurance Financial Regulation Fund (rather than the Financial Institution Fund). Makes conforming and grammatical changes throughout the Act and in the State Finance Act.


LRB101 04676 SMS 49685 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB0215LRB101 04676 SMS 49685 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 State Finance Act is amended by changing
5Section 6z-26 as follows:
 
6    (30 ILCS 105/6z-26)
7    Sec. 6z-26. The Financial Institution Fund. All moneys
8received by the Department of Financial and Professional
9Regulation under the Safety Deposit License Act, the Foreign
10Exchange License Act, the Pawners Societies Act, the Sale of
11Exchange Act, the Currency Exchange Act, the Sales Finance
12Agency Act, the Debt Management Service Act, the Consumer
13Installment Loan Act, the Illinois Development Credit
14Corporation Act, the Title Insurance Act, the Debt Settlement
15Consumer Protection Act, the Debt Management Service Consumer
16Protection Fund, and any other Act administered by the
17Department of Financial and Professional Regulation as the
18successor of the Department of Financial Institutions now or in
19the future (unless an Act specifically provides otherwise)
20shall be deposited in the Financial Institution Fund
21(hereinafter "Fund"), a special fund that is hereby created in
22the State Treasury.
23    Moneys in the Fund shall be used by the Department, subject

 

 

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1to appropriation, for expenses incurred in administering the
2above named and referenced Acts.
3    The Comptroller and the State Treasurer shall transfer from
4the General Revenue Fund to the Fund any monies received by the
5Department after June 30, 1993, under any of the above named
6and referenced Acts that have been deposited in the General
7Revenue Fund.
8    As soon as possible after the end of each calendar year,
9the Comptroller shall compare the balance in the Fund at the
10end of the calendar year with the amount appropriated from the
11Fund for the fiscal year beginning on July 1 of that calendar
12year. If the balance in the Fund exceeds the amount
13appropriated, the Comptroller and the State Treasurer shall
14transfer from the Fund to the General Revenue Fund an amount
15equal to the difference between the balance in the Fund and the
16amount appropriated.
17    Nothing in this Section shall be construed to prohibit
18appropriations from the General Revenue Fund for expenses
19incurred in the administration of the above named and
20referenced Acts.
21    Moneys in the Fund may be transferred to the Professions
22Indirect Cost Fund, as authorized under Section 2105-300 of the
23Department of Professional Regulation Law of the Civil
24Administrative Code of Illinois.
25(Source: P.A. 96-1420, eff. 8-3-10.)
 

 

 

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1    Section 10. The Title Insurance Act is amended by changing
2Sections 3, 4, 4.1, 5, 6, 7, 8, 9, 12, 13, 14.1, 16, 16.1, 17,
317.1, 18, 19, 20, 21, 21.1, 21.2, and 23 and by adding Section
43.5 as follows:
 
5    (215 ILCS 155/3)  (from Ch. 73, par. 1403)
6    Sec. 3. As used in this Act, the words and phrases
7following shall have the following meanings unless the context
8requires otherwise:
9    (1) "Title insurance business" or "business of title
10insurance" means:
11        (A) Issuing as insurer or offering to issue as insurer
12    title insurance; and
13        (B) Transacting or proposing to transact one or more of
14    the following activities when conducted or performed in
15    contemplation of or in conjunction with the issuance of
16    title insurance;
17            (i) soliciting or negotiating the issuance of
18        title insurance;
19            (ii) guaranteeing, warranting, or otherwise
20        insuring the correctness of title searches for all
21        instruments affecting titles to real property, any
22        interest in real property, cooperative units and
23        proprietary leases, and for all liens or charges
24        affecting the same;
25            (iii) handling of escrows, settlements, or

 

 

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1        closings;
2            (iv) executing title insurance policies;
3            (v) effecting contracts of reinsurance;
4            (vi) abstracting, searching, or examining titles;
5        or
6            (vii) issuing insured closing letters or closing
7        protection letters;
8        (C) Guaranteeing, warranting, or insuring searches or
9    examinations of title to real property or any interest in
10    real property, with the exception of preparing an
11    attorney's opinion of title; or
12        (D) Guaranteeing or warranting the status of title as
13    to ownership of or liens on real property and personal
14    property by any person other than the principals to the
15    transaction; or
16        (E) Doing or proposing to do any business substantially
17    equivalent to any of the activities listed in this
18    subsection, provided that the preparation of an attorney's
19    opinion of title pursuant to paragraph (1)(C) is not
20    intended to be within the definition of "title insurance
21    business" or "business of title insurance".
22    (1.5) "Title insurance" means insuring, guaranteeing,
23warranting, or indemnifying owners of real or personal property
24or the holders of liens or encumbrances thereon or others
25interested therein against loss or damage suffered by reason of
26liens, encumbrances upon, defects in, or the unmarketability of

 

 

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1the title to the property; the invalidity or unenforceability
2of any liens or encumbrances thereon; or doing any business in
3substance equivalent to any of the foregoing. "Warranting" for
4purpose of this provision shall not include any warranty
5contained in instruments of encumbrance or conveyance. Title
6insurance is a single line form of insurance, also known as
7monoline. An attorney's opinion of title pursuant to paragraph
8(1)(C) is not intended to be within the definition of "title
9insurance".
10    (2) "Title insurance company" means any domestic company
11organized under the laws of this State for the purpose of
12conducting the business of title insurance and any title
13insurance company organized under the laws of another State,
14the District of Columbia or foreign government and authorized
15to transact the business of title insurance in this State.
16    (3) "Title insurance agent" means a person, firm,
17partnership, association, corporation or other legal entity
18registered by a title insurance company and authorized by such
19company to determine insurability of title in accordance with
20generally acceptable underwriting rules and standards in
21reliance on either the public records or a search package
22prepared from a title plant, or both, and authorized by such
23title insurance company in addition to do any of the following:
24act as an escrow agent pursuant to subsections (f), (g), and
25(h) of Section 16 of this Act, solicit title insurance, collect
26premiums, or issue title insurance commitments, policies, and

 

 

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1endorsements of the title insurance company; provided,
2however, the term "title insurance agent" shall not include
3officers and salaried employees of any title insurance company.
4    (4) "Producer of title business" is any person, firm,
5partnership, association, corporation or other legal entity
6engaged in this State in the trade, business, occupation or
7profession of (i) buying or selling interests in real property,
8(ii) making loans secured by interests in real property, or
9(iii) acting as broker, agent, attorney, or representative of
10natural persons or other legal entities that buy or sell
11interests in real property or that lend money with such
12interests as security.
13    (5) "Associate" is any firm, association, partnership,
14corporation or other legal entity organized for profit in which
15a producer of title business is a director, officer, or partner
16thereof, or owner of a financial interest, as defined herein,
17in such entity; any legal entity that controls, is controlled
18by, or is under common control with a producer of title
19business; and any natural person or legal entity with whom a
20producer of title business has any agreement, arrangement, or
21understanding or pursues any course of conduct the purpose of
22which is to evade the provisions of this Act.
23    (6) "Financial interest" is any ownership interest, legal
24or beneficial, except ownership of publicly traded stock.
25    (7) "Refer" means to place or cause to be placed, or to
26exercise any power or influence over the placing of title

 

 

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1business, whether or not the consent or approval of any other
2person is sought or obtained with respect to the referral.
3    (8) "Escrow Agent" means any title insurance company or any
4title insurance agent, including independent contractors of
5either, acting on behalf of a title insurance company, which
6receives deposits, in trust, of funds or documents, or both,
7for the purpose of effecting the sale, transfer, encumbrance or
8lease of real property to be held by such escrow agent until
9title to the real property that is the subject of the escrow is
10in a prescribed condition. An escrow agent conducting closings
11shall be subject to the provisions of paragraphs (1) through
12(4) of subsection (e) of Section 16 of this Act.
13    (9) "Independent Escrowee" means any firm, person,
14partnership, association, corporation or other legal entity,
15other than a title insurance company or a title insurance
16agent, which receives deposits, in trust, of funds or
17documents, or both, for the purpose of effecting the sale,
18transfer, encumbrance or lease of real property to be held by
19such escrowee until title to the real property that is the
20subject of the escrow is in a prescribed condition. Federal and
21State chartered banks, savings and loan associations, credit
22unions, mortgage bankers, banks or trust companies authorized
23to do business under the Illinois Corporate Fiduciary Act,
24licensees under the Consumer Installment Loan Act, real estate
25brokers licensed pursuant to the Real Estate License Act of
262000, as such Acts are now or hereafter amended, and licensed

 

 

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1attorneys when engaged in the attorney-client relationship are
2exempt from the escrow provisions of this Act. "Independent
3Escrowee" does not include employees or independent
4contractors of a title insurance company or title insurance
5agent authorized by a title insurance company to perform
6closing, escrow, or settlement services.
7    (10) "Single risk" means the insured amount of any title
8insurance policy, except that where 2 or more title insurance
9policies are issued simultaneously covering different estates
10in the same real property, "single risk" means the sum of the
11insured amounts of all such title insurance policies. Any title
12insurance policy insuring a mortgage interest, a claim payment
13under which reduces the insured amount of a fee or leasehold
14title insurance policy, shall be excluded in computing the
15amount of a single risk to the extent that the insured amount
16of the mortgage title insurance policy does not exceed the
17insured amount of the fee or leasehold title insurance policy.
18    (11) "Department" means the Department of Insurance
19Financial and Professional Regulation.
20    (12) "Director" means the Director of Insurance.
21"Secretary" means the Secretary of Financial and Professional
22Regulation.
23    (13) "Insured closing letter" or "closing protection
24letter" means an indemnification or undertaking to a party to a
25real property transaction, from a principal such as a title
26insurance company, setting forth in writing the extent of the

 

 

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1principal's responsibility for intentional misconduct or
2errors in closing the real property transaction on the part of
3a settlement agent, such as a title insurance agent or other
4settlement service provider, or an indemnification or
5undertaking given by a title insurance company or an
6independent escrowee setting forth in writing the extent of the
7title insurance company's or independent escrowee's
8responsibility to a party to a real property transaction which
9indemnifies the party against the intentional misconduct or
10errors in closing the real property transaction on the part of
11the title insurance company or independent escrowee and
12includes protection afforded pursuant to subsections (f), (g),
13and (h) of Section 16, Section 16.1, subsection (h) of Section
1417, and Section 17.1 of this Act even if such protection is
15afforded by contract.
16    (14) "Residential real property" means a building or
17buildings consisting of one to 4 residential units or a
18residential condominium unit where at least one of the
19residential units or condominium units is occupied or intended
20to be occupied as a residence by the purchaser or borrower, or
21in the event that the purchaser or borrower is the trustee of a
22trust, by a beneficiary of that trust.
23    (15) "Financial institution" means any bank subject to the
24Illinois Banking Act, any savings and loan association subject
25to the Illinois Savings and Loan Act of 1985, any savings bank
26subject to the Savings Bank Act, any credit union subject to

 

 

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1the Illinois Credit Union Act, and any federally chartered
2commercial bank, savings and loan association, savings bank, or
3credit union organized and operated in this State pursuant to
4the laws of the United States.
5(Source: P.A. 100-485, eff. 9-8-17.)
 
6    (215 ILCS 155/3.5 new)
7    Sec. 3.5. Transfer of enforcement of Act to the Department
8of Insurance. On and after the effective date of this
9amendatory Act of the 101st General Assembly:
10        (1) All powers, duties, rights, and responsibilities
11    of the Department of Financial and Professional Regulation
12    under this Act are transferred to the Department of
13    Insurance.
14        (2) All powers, duties, rights, and responsibilities
15    of the Secretary of Financial and Professional Regulation
16    under this Act are transferred to the Director of
17    Insurance.
18        (3) All books, records, papers, documents, property
19    (real and personal), contracts, causes of action, and
20    pending business of the Department of Financial and
21    Professional Regulation for the purposes of this Act shall
22    be transferred to the Department of Insurance.
23        (4) All unexpended appropriations and balances and
24    other funds available for use by the Department of
25    Financial and Professional Regulation deposited into the

 

 

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1    Financial Institution Fund from funds received under this
2    Act shall be transferred for use by the Department of
3    Insurance for the purposes of this Act into the Insurance
4    Financial Regulation Fund. Unexpended balances so
5    transferred shall be expended only for the purpose for
6    which the appropriations were originally made.
7        (5) Any rules of the Department of Financial and
8    Professional Regulation for the purposes of this Act that
9    are in full force on the effective date of this amendatory
10    Act of the 101st General Assembly shall become the rules of
11    the Department of Insurance. This Section does not affect
12    the legality of any such rules in the Illinois
13    Administrative Code.
14        (6) Any proposed rules filed with the Secretary of
15    State by the Department of Financial and Professional
16    Regulation for the purposes of this Act that are pending in
17    the rulemaking process on the effective date of this
18    amendatory Act of the 101st General Assembly, and that
19    pertain to the powers, duties, rights, and
20    responsibilities transferred under this Section, shall be
21    deemed to have been filed by the Department of Insurance.
22    As soon as practicable, the Department of Insurance shall
23    revise and clarify the rules transferred to it under this
24    Section using the procedures for recodification of rules
25    available under the Illinois Administrative Procedure Act,
26    except that existing title, part, and section numbering for

 

 

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1    the affected rules may be retained. The Department of
2    Insurance may propose and adopt under the Illinois
3    Administrative Procedure Act such other rules of the
4    Department of Financial and Professional Regulation for
5    the purposes of this Act that will now be administered by
6    the Department of Insurance.
 
7    (215 ILCS 155/4)  (from Ch. 73, par. 1404)
8    Sec. 4. Deposits.
9    (a) Before doing business in the State of Illinois, a title
10insurance company must file with and have approved by the
11Director Secretary cash or bonds of the United States, this
12State or any body politic of this State in amounts as specified
13in subsection (b). The deposit is not to be otherwise pledged
14or subject to distribution among creditors or stockholders
15until all claims of escrow depositors, claims of policyholders,
16and claims under reinsurance contracts have been paid in full
17or discharged, reinsured, or otherwise assumed by a title
18insurance company authorized to do business under this Act. The
19cash, bonds, and securities so deposited may be exchanged for
20other such securities. No such cash, bond, or security shall be
21sold or transferred by the Director Secretary except on order
22of the circuit court or as provided in subsection (d). As long
23as the company depositing such securities remains solvent, the
24company shall be permitted to receive from the Director
25Secretary the interest on such deposit.

 

 

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1    (b) The deposit required under subsection (a) must have a
2then current value of $1,000,000. All deposits shall be held
3for the benefit of any insured under a policy the title
4insurance company issued or named party to a written escrow it
5accepted. The deposit is not to be otherwise pledged or subject
6to distribution among creditors or stockholders.
7    (c) The Director Secretary may provide for custody of the
8deposits by any trust company or bank located in this State and
9qualified to do business under the Corporate Fiduciary Act, as
10now or hereafter amended. The compensation, if any, of such
11custodian shall be paid by the depositing company. When the
12required deposits have been made by a title insurance company,
13the Director Secretary shall certify that the company has
14complied with the provisions of this Section and is authorized
15to transact the business of insuring and guaranteeing titles to
16real estate.
17    (d) If, at any time, a title insurance company causes all
18of its unexpired policies, escrow deposits, and reinsurance
19obligations in Illinois to be paid in full, cancelled,
20discharged, reinsured, or otherwise assumed by another title
21insurance company authorized to do business under this Act, the
22Director Secretary shall, upon application of the company,
23verified by the oath of its president or secretary and on being
24satisfied by an examination of its books and its officers under
25oath that all of its policies are paid in full, cancelled,
26discharged, reinsured, or otherwise assumed, authorize the

 

 

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1release of any bond or deposit posted under this Section.
2    (e) The Director Secretary may revoke the certificate of
3authority of a company that fails to maintain the deposit
4required by this Section. The Director Secretary shall give
5notice of that revocation to the company as provided by this
6Act, and during the time of the revocation, the company may not
7conduct a title insurance business. A company may complete
8contractual obligations, such as issuing a policy where the
9obligations have already been assumed. However, it may not
10solicit new business, complete new searches or examinations, or
11close transactions. A revocation shall not be set aside until a
12good and sufficient deposit has been filed with the Director
13Secretary and the company is otherwise in compliance with this
14Act.
15(Source: P.A. 94-893, eff. 6-20-06.)
 
16    (215 ILCS 155/4.1)
17    Sec. 4.1. Minimum capital and surplus. Before doing
18business in the State of Illinois, a title insurance company
19must satisfy the Director Secretary that it has a minimum
20capital and surplus of $2,000,000. The Director Secretary may
21provide the forms and standards for this purpose by rule.
22(Source: P.A. 94-893, eff. 6-20-06.)
 
23    (215 ILCS 155/5)  (from Ch. 73, par. 1405)
24    Sec. 5. Certificate of authority required. It is unlawful

 

 

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1for any company to engage or to continue in the business of
2title insurance without first procuring from the Director
3Secretary a certificate of authority stating that the company
4has complied with the requirements of Section 4 of this Act. An
5insurer that transacts any class of insurance other than title
6insurance anywhere in the United States is not eligible for the
7issuance of a certificate of authority to transact title
8insurance in this State nor for a renewal of a certificate of
9authority.
10(Source: P.A. 94-893, eff. 6-20-06.)
 
11    (215 ILCS 155/6)  (from Ch. 73, par. 1406)
12    Sec. 6. Reinsurance.
13    (a) A title insurance company may obtain reinsurance for
14all or any part of its liability under one or more of its title
15insurance policies or reinsurance agreements and may also
16reinsure title insurance policies issued by other title
17insurance companies on risks located in this State or
18elsewhere.
19    (a-5) Notwithstanding any other provision of this Act, a
20title insurance company may obtain reinsurance for all or any
21part of its liability under one or more of its title insurance
22policies from an assuming insurer with a financial strength
23rating of A- or better from A.M. Best Company, Inc., or with an
24alternative rating the Department may approve that the
25Department determines is an equivalent rating by another

 

 

SB0215- 16 -LRB101 04676 SMS 49685 b

1recognized rating organization.
2    (b) A title insurance company licensed to do business in
3this State shall retain at least $100,000 of primary liability
4for policies it issues, unless a lesser sum is authorized by
5the Director Secretary. A lesser sum may be retained at the
6request of an insured for a particular policy. This subsection
7(b) applies only to policies issued on or after the effective
8date of this amendatory Act of the 94th General Assembly.
9(Source: P.A. 100-570, eff. 6-1-18.)
 
10    (215 ILCS 155/7)  (from Ch. 73, par. 1407)
11    Sec. 7. Investments.
12    (a) Subject to the specific provisions of this Section, the
13Director Secretary may, after a notice and hearing, order a
14domestic title insurance company to limit or withdraw from
15certain investments, or discontinue certain investment
16practices, to the extent the Director Secretary finds that such
17investments or investment practices endanger the solvency of
18the company. The Director Secretary may consider the general
19investment provisions of the Illinois Insurance Code, as now or
20hereafter amended, in exercising the authority granted under
21this subsection (a).
22    (b) A domestic title insurance company may invest in title
23plants. For determination of the financial condition of such
24title insurance company, a title plant shall be treated as an
25asset valued at actual cost except that the combined value of

 

 

SB0215- 17 -LRB101 04676 SMS 49685 b

1all title plants owned shall be limited for asset valuation
2purposes to 50% of the surplus as regards policyholders as
3shown on the most recent annual statement of the title
4insurance company.
5    (c) Any investment of a domestic title insurance company
6acquired before the effective date of this Act and which, under
7this Section, would be considered ineligible as an investment
8on that date shall be disposed of within 2 years of the
9effective date of this Act. The Director Secretary, upon
10application and proof that forced sale of any such investment
11would be contrary to the best interests of the title insurer or
12its policyholders, may extend the period for disposal of the
13investment for a reasonable time.
14(Source: P.A. 94-893, eff. 6-20-06.)
 
15    (215 ILCS 155/8)  (from Ch. 73, par. 1408)
16    Sec. 8. Retained liability.
17    (a) The net retained liability of a title insurance company
18for a single risk on property located in this State, whether
19assumed directly or as reinsurance, may not exceed the total
20surplus to policyholders as shown in the most recent annual
21statement of the title insurance company on file with the
22Department.
23    (b) The Director Secretary may waive the limitation of this
24Section for a particular risk upon application of the title
25insurance company and for good cause shown.

 

 

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1(Source: P.A. 100-570, eff. 6-1-18.)
 
2    (215 ILCS 155/9)  (from Ch. 73, par. 1409)
3    Sec. 9. Impairment of capital; discontinuance of issuance
4of new policies; penalty.
5    (a) Whenever the capital of any title insurance company
6authorized to do business under this Act is determined by the
7circuit court, upon the application of the Director Secretary,
8to be impaired to the extent of 25% of its capital, or to have
9otherwise become unsafe, the Director Secretary shall cancel
10the authority of the company to do business.
11    (b) The Director Secretary shall give notice as provided by
12this Act to the company to discontinue doing business until its
13capital has been made good. The title insurance company may
14continue to issue policies and perform other actions that are
15required to complete contractual obligations undertaken prior
16to the notice.
17    (c) Any officer or management employee who continues to
18take orders for title insurance or close transactions on behalf
19of a company after the notice to discontinue doing business,
20and before its capital has been made good, may, for each
21offense, be fined as provided by this Act.
22(Source: P.A. 94-893, eff. 6-20-06.)
 
23    (215 ILCS 155/12)  (from Ch. 73, par. 1412)
24    Sec. 12. Examinations; compliance.

 

 

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1    (a) The Director Secretary or his or her authorized
2representative shall have the power and authority, and it shall
3be his or her duty, to cause to be visited and examined
4annually any title insurance company doing business under this
5Act, and to verify and compel compliance with the provisions of
6law governing it.
7    (b) The Director Secretary or his or her authorized agent
8shall have power and authority to compel compliance with the
9provisions of this Act and shall, only upon the showing of good
10cause, require any title insurance company to take all legal
11means to obtain the appropriate records of its registered
12agents and make them available for examination at a time and
13place designated by the Director Secretary. Expenses incurred
14in the course of such examinations will be the responsibility
15of the title insurance company. In the event that a present or
16former registered agent or its successor refuses or is unable
17to cooperate with a title insurance company in furnishing the
18records requested by the Director Secretary or his or her
19authorized agent, then the Director Secretary or his or her
20authorized agent shall have the power and authority to obtain
21those records directly from the registered agent.
22(Source: P.A. 94-893, eff. 6-20-06.)
 
23    (215 ILCS 155/13)  (from Ch. 73, par. 1413)
24    Sec. 13. Annual statement.
25    (a) Each title insurance company shall file with the

 

 

SB0215- 20 -LRB101 04676 SMS 49685 b

1Department during the month of March of each year, a statement
2under oath, of the condition of such company on the
3thirty-first day of December next preceding disclosing the
4assets, liabilities, earnings and expenses of the company. The
5report shall be in such form and shall contain such additional
6statements and information as to the affairs, business, and
7conditions of the company as the Director Secretary may from
8time to time prescribe or require.
9    (b) By June 1 of each year, a title insurance company must
10file with the Department a copy of its most recent audited
11financial statements.
12    (c) If determined to be necessary and appropriate by the
13Department, a title insurance company shall provide a summary
14describing its professional reinsurance placed outside of the
15title insurance industry.
16(Source: P.A. 100-570, eff. 6-1-18.)
 
17    (215 ILCS 155/14.1)
18    Sec. 14.1. Insurance Financial Regulation Fund Financial
19Institution Fund. All moneys received by the Department of
20Insurance Financial and Professional Regulation under this Act
21shall be deposited into in the Insurance Financial Regulation
22Fund Financial Institution Fund created under Section 6z-26 of
23the State Finance Act.
24(Source: P.A. 98-463, eff. 8-16-13.)
 

 

 

SB0215- 21 -LRB101 04676 SMS 49685 b

1    (215 ILCS 155/16)  (from Ch. 73, par. 1416)
2    Sec. 16. Title insurance agents.
3    (a) No person, firm, partnership, association, corporation
4or other legal entity shall act as or hold itself out to be a
5title insurance agent unless duly registered by a title
6insurance company with the Director Secretary.
7    (b) Each application for registration shall be made on a
8form specified by the Director Secretary and prepared by each
9title insurance company which the agent represents. The title
10insurance company shall retain the copy of the application and
11forward a copy to the Director Secretary.
12    (c) Every applicant for registration, except a firm,
13partnership, association, limited liability company, or
14corporation, must be 18 years or more of age. Included in every
15application for registration of a title insurance agent,
16including a firm, partnership, association, limited liability
17company, or corporation, shall be an affidavit of the applicant
18title insurance agent, signed and notarized in front of a
19notary public, affirming that the applicant and every owner,
20officer, director, principal, member, or manager of the
21applicant has never been convicted or pled guilty to any felony
22or misdemeanor involving a crime of theft or dishonesty or
23otherwise accurately disclosing any such felony or misdemeanor
24involving a crime of theft or dishonesty. No person who has had
25a conviction or pled guilty to any felony or misdemeanor
26involving theft or dishonesty may be registered by a title

 

 

SB0215- 22 -LRB101 04676 SMS 49685 b

1insurance company without a written notification to the
2Director Secretary disclosing the conviction or plea, and no
3such person may serve as an owner, officer, director,
4principal, or manager of any registered title insurance agent
5without the written permission of the Director Secretary.
6    (d) Registration shall be made annually by a filing with
7the Director Secretary; supplemental registrations for new
8title insurance agents to be added between annual filings shall
9be made from time to time in the manner provided by the
10Director Secretary; registrations shall remain in effect
11unless revoked or suspended by the Director Secretary or
12voluntarily withdrawn by the registrant or the title insurance
13company.
14    (e) Funds deposited in connection with any escrows,
15settlements, or closings shall be deposited in a separate
16fiduciary trust account or accounts in a bank or other
17financial institution insured by an agency of the federal
18government unless the instructions provide otherwise. The
19funds shall be the property of the person or persons entitled
20thereto under the provisions of the escrow, settlement, or
21closing and shall be segregated by escrow, settlement, or
22closing in the records of the escrow agent. The funds shall not
23be subject to any debts of the escrowee and shall be used only
24in accordance with the terms of the individual escrow,
25settlement, or closing under which the funds were accepted.
26    Interest received on funds deposited with the escrow agent

 

 

SB0215- 23 -LRB101 04676 SMS 49685 b

1in connection with any escrow, settlement, or closing shall be
2paid to the depositing party unless the instructions provide
3otherwise.
4    The escrow agent shall maintain separate records of all
5receipts and disbursements of escrow, settlement, or closing
6funds.
7    The escrow agent shall comply with any rules adopted by the
8Director Secretary pertaining to escrow, settlement, or
9closing transactions.
10    (f) A title insurance agent shall not act as an escrow
11agent in a nonresidential real property transaction where the
12amount of settlement funds on deposit with the escrow agent is
13less than $2,000,000 or in a residential real property
14transaction unless the title insurance agent, title insurance
15company, or another authorized title insurance agent has
16committed for the issuance of title insurance in that
17transaction and the title insurance agent is authorized to act
18as an escrow agent on behalf of the title insurance company for
19which the commitment for title insurance has been issued. The
20authorization under the preceding sentence shall be given
21either (1) by an agency contract with the title insurance
22company which contract, in compliance with the requirements set
23forth in subsection (g) of this Section, authorizes the title
24insurance agent to act as an escrow agent on behalf of the
25title insurance company or (2) by a closing protection letter
26in compliance with the requirements set forth in Section 16.1

 

 

SB0215- 24 -LRB101 04676 SMS 49685 b

1of this Act, issued by the title insurance company to the
2seller, buyer, borrower, and lender. A closing protection
3letter shall not be issued by a title insurance agent. The
4provisions of this subsection (f) shall not apply to the
5authority of a title insurance agent to act as an escrow agent
6under subsection (g) of Section 17 of this Act.
7    (g) If an agency contract between the title insurance
8company and the title insurance agent is the source of the
9authority under subsection (f) of this Section for a title
10insurance agent to act as escrow agent for a real property
11transaction, then the agency contract shall provide for no less
12protection from the title insurance company to all parties to
13the real property transaction than the title insurance company
14would have provided to those parties had the title insurance
15company issued a closing protection letter in conformity with
16Section 16.1 of this Act.
17    (h) A title insurance company shall be liable for the acts
18or omissions of its title insurance agent as an escrow agent if
19the title insurance company has authorized the title insurance
20agent under subsections (f) and (g) of this Section 16 and only
21to the extent of the liability undertaken by the title
22insurance company in the agency agreement or closing protection
23letter. The liability, if any, of the title insurance agent to
24the title insurance company for acts and omissions of the title
25insurance agent as an escrow agent shall not be limited or
26otherwise modified because the title insurance company has

 

 

SB0215- 25 -LRB101 04676 SMS 49685 b

1provided closing protection to a party or parties to a real
2property transaction escrow, settlement, or closing. The
3escrow agent shall not charge a fee for protection provided by
4a title insurance company to parties to real property
5transactions under subsections (f) and (g) of this Section 16
6and Section 16.1, but shall collect from the parties the fee
7charged by the title insurance company and shall promptly remit
8the fee to the title insurance company. The title insurance
9company may charge the parties a reasonable fee for protection
10provided pursuant to subsections (f) and (g) of this Section 16
11and Section 16.1 and shall not pay any portion of the fee to
12the escrow agent. The payment of any portion of the fee to the
13escrow agent by the title insurance company, shall be deemed a
14prohibited inducement or compensation in violation of Section
1524 of this Act.
16    (i) The Director Secretary shall adopt and amend such rules
17as may be required for the proper administration and
18enforcement of this Section 16 consistent with the federal Real
19Estate Settlement Procedures Act and Section 24 of this Act.
20(Source: P.A. 98-398, eff. 1-1-14; 98-832, eff. 1-1-15; 99-104,
21eff. 1-1-16.)
 
22    (215 ILCS 155/16.1)
23    Sec. 16.1. Closing or settlement protection.
24    (a) Notwithstanding the provisions of item (iii) of
25paragraph (B) of subsection (1) and subsections (3) and (8) of

 

 

SB0215- 26 -LRB101 04676 SMS 49685 b

1Section 3 and Section 16 of this Act, a title insurance company
2or title insurance agent is not authorized to act as an escrow
3agent in a nonresidential real property transaction where the
4amount of settlement funds on deposit with the escrow agent is
5less than $2,000,000 or in a residential real property
6transaction unless as part of the same transaction a
7commitment, binder, or title insurance policy and closing
8protection letters protecting the buyer's or borrower's,
9lender's, and seller's interests have been issued by the title
10insurance company on whose behalf the commitment, binder, or
11title insurance policy has been issued. Closing protection
12letters are not required when the authorization for the title
13insurance agent to act as an escrow agent is given by an agency
14contract with the title insurance company pursuant to
15subsections (f), (g), and (h) of Section 16 of this Act, but
16shall be issued by the title insurance company upon the request
17of a party to a nonresidential real property transaction where
18the amount of settlement funds on deposit with the escrow agent
19is less than $2,000,000 or in a residential real property
20transaction.
21    (b) Unless otherwise agreed to between a title insurance
22company and a protected person or entity, a closing protection
23letter under this Section shall indemnify all parties to a real
24property transaction against actual loss, not to exceed the
25amount of the settlement funds deposited with the escrow agent.
26The closing protection letter shall in any event indemnify all

 

 

SB0215- 27 -LRB101 04676 SMS 49685 b

1parties to a real property transaction when such losses arise
2out of:
3        (1) failure of the escrow agent to comply with written
4    closing instructions to the extent that they relate to (A)
5    the status of the title to an interest in land or the
6    validity, enforceability, and priority of the lien of a
7    mortgage on an interest in land, including the obtaining of
8    documents and the disbursement of funds necessary to
9    establish the status of title or lien or (B) the obtaining
10    of any other document specifically required by a party to
11    the real property transaction, but only to the extent that
12    the failure to obtain such other document affects the
13    status of the title to an interest in land or the validity,
14    enforceability, and priority of the lien of a mortgage on
15    an interest in land; or
16        (2) fraud, dishonesty, or negligence of the escrow
17    agent in handling funds or documents in connection with
18    closings to the extent that the fraud, dishonesty, or
19    negligence relates to the status of the title to the
20    interest in land or to the validity, enforceability, and
21    priority of the lien of a mortgage on an interest in land
22    or, in the case of a seller, to the extent that the fraud,
23    dishonesty, or negligence relates to funds paid to or on
24    behalf of, or which should have been paid to or on behalf
25    of, the seller.
26    (c) The indemnification under a closing protection letter

 

 

SB0215- 28 -LRB101 04676 SMS 49685 b

1may include limitations on the liability of the title insurance
2company for any of the following:
3        (1) Failure of the escrow agent to comply with closing
4    instructions that require title insurance protection
5    inconsistent with that set forth in the title insurance
6    commitment for the real property transaction. Instructions
7    that require the removal of specific exceptions to title or
8    compliance with the requirements contained in the title
9    insurance commitment shall not be deemed to be
10    inconsistent.
11        (2) Loss or impairment of funds in the course of
12    collection or while on deposit with a bank due to bank
13    failure, insolvency, or suspension, except such as shall
14    result from failure of the escrow agent closer to comply
15    with written closing instructions to deposit the funds in a
16    bank that is designated by name by a party to the real
17    property transaction.
18        (3) Mechanics' and materialmen's liens in connection
19    with sale, purchase, lease, or construction loan
20    transactions, except to the extent that protection against
21    such liens is afforded by a title insurance commitment or
22    policy issued by the escrow agent.
23        (4) Failure of the escrow agent to comply with written
24    closing instructions to the extent that such instructions
25    require a determination by the escrow agent of the
26    validity, enforceability, or effectiveness of any document

 

 

SB0215- 29 -LRB101 04676 SMS 49685 b

1    described in subitem (B) of item (1) of subsection (b) of
2    this Section.
3        (5) Fraud, dishonesty, or negligence of an employee,
4    agent, attorney, or broker, who is not also the escrow
5    agent or an independent contract closer of the escrow
6    agent, of the indemnified party to the real property
7    transaction.
8        (6) The settlement or release of any claim by the
9    indemnified party to the real property transaction without
10    the written consent of the title insurance company.
11        (7) Any matters created, suffered, assumed, or agreed
12    to by, or known to, the indemnified party to the real
13    property transaction without the written consent of the
14    title insurance company.
15    The closing protection letter may also include reasonable
16additional provisions concerning the dollar amount of
17protection, provided such limit is not less than the amount
18deposited with the escrow agent, arbitration, subrogation,
19claim notices, and other conditions and limitations that do not
20materially impair the protection required by this Section 16.1.
21    (d) This Section shall not apply to the authority of a
22title insurance company and title insurance agent to act as an
23escrow agent under subsection (g) of Section 17 of this Act.
24    (e) The Director Secretary shall adopt and amend such rules
25as may be required for the proper administration and
26enforcement of this Section 16.1 consistent with the federal

 

 

SB0215- 30 -LRB101 04676 SMS 49685 b

1Real Estate Settlement Procedures Act and Section 24 of this
2Act.
3(Source: P.A. 96-1454, eff. 1-1-11.)
 
4    (215 ILCS 155/17)  (from Ch. 73, par. 1417)
5    Sec. 17. Independent escrowees.
6    (a) Every independent escrowee shall be subject to the same
7certification and deposit requirements to which title
8insurance companies are subject under Section 4 of this Act.
9    (b) No person, firm, corporation or other legal entity
10shall hold itself out to be an independent escrowee unless it
11has been issued a certificate of authority by the Director
12Secretary.
13    (c) Every applicant for a certificate of authority, except
14a firm, partnership, association or corporation, must be 18
15years or more of age.
16    (d) Every certificate of authority shall remain in effect
17one year unless revoked or suspended by the Director Secretary
18or voluntarily surrendered by the holder.
19    (e) An independent escrowee may engage in the escrow,
20settlement, or closing business, or any combination of such
21business, and operate as an escrow, settlement, or closing
22agent, provided that:
23        (1) Funds deposited in connection with any escrow,
24    settlement, or closing shall be deposited in a separate
25    fiduciary trust account or accounts in a bank or other

 

 

SB0215- 31 -LRB101 04676 SMS 49685 b

1    financial institution insured by an agency of the federal
2    government unless the instructions provide otherwise. Such
3    funds shall be the property of the person or persons
4    entitled thereto under the provisions of the escrow,
5    settlement, or closing and shall be segregated by escrow,
6    settlement or closing in the records of the independent
7    escrowee. Such funds shall not be subject to any debts of
8    the escrowee and shall be used only in accordance with the
9    terms of the individual escrow, settlement or closing under
10    which the funds were accepted.
11        (2) Interest received on funds deposited with the
12    independent escrowee in connection with any escrow,
13    settlement or closing shall be paid to the depositing party
14    unless the instructions provide otherwise.
15        (3) The independent escrowee shall maintain separate
16    records of all receipt and disbursement of escrow,
17    settlement or closing funds.
18        (4) The independent escrowee shall comply with any
19    rules or regulations promulgated by the Director Secretary
20    pertaining to escrow, settlement or closing transactions.
21    (f) The Director Secretary or his or her authorized
22representative shall have the power and authority to visit and
23examine at any time any independent escrowee certified under
24this Act and to verify and compel compliance with the
25provisions of this Act.
26    (g) A title insurance company or title insurance agent, not

 

 

SB0215- 32 -LRB101 04676 SMS 49685 b

1qualified as an independent escrowee, may act in the capacity
2of an escrow agent when it is supplying an abstract of title,
3grantor-grantee search, tract search, lien search, tax
4assessment search, or other limited purpose search to the
5parties to the transaction even if it is not issuing a title
6insurance commitment or title insurance policy. A title
7insurance agent may act as an escrow agent only when
8specifically authorized in writing on forms prescribed by the
9Director Secretary by a title insurance company that has duly
10registered the agent with the Director Secretary and only when
11notice of the authorization is provided to and receipt thereof
12is acknowledged by the Director Secretary. The authority
13granted to a title insurance agent may be limited or revoked at
14any time by the title insurance company.
15    (h) An independent escrowee may, pursuant to Section 17.1
16of this Act, issue an insured closing letter if, in addition to
17complying with the same certification and deposit requirements
18that title insurance companies are subject to under Section 4
19of this Act, the independent escrowee:
20        (1) Satisfies the Director Secretary that it has a
21    minimum capital and surplus of $2,000,000. The Director
22    Secretary may provide the forms and standards for this
23    purpose by rule. This paragraph applies only to independent
24    escrowees licensed under this Act for the first time on or
25    after the effective date of this amendatory Act of the
26    100th General Assembly.

 

 

SB0215- 33 -LRB101 04676 SMS 49685 b

1        (2) Files with and has approved by the Director
2    Secretary proof of a fidelity bond in the minimum amount of
3    $2,000,000 per occurrence.
4        (3) Establishes and maintains a statutory closing
5    protection letter reserve for the protection of parties
6    named in warranties of services consisting of a sum of 25%
7    of the closing protection letter revenue received by the
8    independent escrowee on or after the effective date of this
9    amendatory Act of the 100th General Assembly. The reserve
10    shall be reported as a liability of the independent
11    escrowee in its financial statements. Amounts placed in the
12    statutory closing protection letter reserve shall be
13    deducted in determining the net profit of the independent
14    escrowee for the year. Except as provided in this
15    subsection, assets in value equal to the statutory closing
16    protection letter reserve are not subject to distribution
17    among creditors, stockholders, or other owners of the
18    independent escrowee until all claims of parties named in
19    warranties of services have been paid in full and
20    discharged.
21        (4) Releases from the statutory closing protection
22    letter reserve a sum equal to 10% of the amount added to
23    the reserve during a calendar year on July 1 of each of the
24    5 years following the year in which the sum was added and
25    releases from the statutory closing protection letter
26    reserve a sum equal to 3 1/3% of the amount added to the

 

 

SB0215- 34 -LRB101 04676 SMS 49685 b

1    reserve during that year on each succeeding July 1 until
2    the entire amount for that year has been released.
3    The Director Secretary shall adopt and amend rules as may
4be required for the proper administration and enforcement of
5this subsection (h) consistent with the federal Real Estate
6Settlement and Procedures Act and Section 24 of this Act.
7(Source: P.A. 100-485, eff. 9-8-17.)
 
8    (215 ILCS 155/17.1)
9    Sec. 17.1. Closing or settlement protection; independent
10escrowees.
11    (a) Notwithstanding the provisions of item (iii) of
12paragraph (B) of subsection (1) and subsection (9) of Section 3
13of this Act, an independent escrowee is not authorized to act
14pursuant to subsection (9) of Section 3 of this Act in a
15nonresidential real property transaction where the amount of
16settlement funds on deposit with the escrow agent is less than
17$2,000,000 or in a residential real property transaction
18unless, as part of the same transaction, closing protection
19letters protecting the buyer's or borrower's, lender's, and
20seller's interests have been issued by the independent
21escrowee.
22    (b) Unless otherwise agreed to between an independent
23escrowee and a protected person or entity, a closing protection
24letter under this Section shall indemnify all parties to a real
25property transaction against actual loss, not to exceed the

 

 

SB0215- 35 -LRB101 04676 SMS 49685 b

1amount of the settlement funds deposited with the independent
2escrowee. The closing protection letter shall in any event
3indemnify all parties to a real property transaction when such
4losses arise out of:
5        (1) failure of the independent escrowee to comply with
6    written closing instructions to the extent that they relate
7    to (A) the status of the title to an interest in land or
8    the validity, enforceability, and priority of the lien of a
9    mortgage on an interest in land, including the obtaining of
10    documents and the disbursement of funds necessary to
11    establish the status of title or lien or (B) the obtaining
12    of any other document specifically required by a party to
13    the real property transaction, but only to the extent that
14    the failure to obtain such other document affects the
15    status of the title to an interest in land or the validity,
16    enforceability, and priority of the lien of a mortgage on
17    an interest in land; or
18        (2) fraud, dishonesty, or negligence of the
19    independent escrowee in handling funds or documents in
20    connection with closings to the extent that the fraud,
21    dishonesty, or negligence relates to the status of the
22    title to the interest in land or to the validity,
23    enforceability, and priority of the lien of a mortgage on
24    an interest in land or, in the case of a seller, to the
25    extent that the fraud, dishonesty, or negligence relates to
26    funds paid to or on behalf of, or which should have been

 

 

SB0215- 36 -LRB101 04676 SMS 49685 b

1    paid to or on behalf of, the seller.
2    (c) The indemnification under a closing protection letter
3may include limitations on the liability of the independent
4escrowee for any of the following:
5        (1) Failure of the independent escrowee to comply with
6    closing instructions that require title insurance
7    protection inconsistent with that set forth in the title
8    insurance commitment for the real property transaction.
9    Instructions that require the removal of specific
10    exceptions to title or compliance with the requirements
11    contained in the title insurance commitment shall not be
12    deemed to be inconsistent.
13        (2) Loss or impairment of funds in the course of
14    collection or while on deposit with a bank due to bank
15    failure, insolvency, or suspension, except such as shall
16    result from failure of the independent escrowee closer to
17    comply with written closing instructions to deposit the
18    funds in a bank that is designated by name by a party to
19    the real property transaction.
20        (3) Mechanics' and materialmen's liens in connection
21    with sale, purchase, lease, or construction loan
22    transactions, except to the extent that protection against
23    such liens is afforded by a title insurance commitment or
24    policy issued by the title insurance agent or title
25    insurance company.
26        (4) Failure of the independent escrowee to comply with

 

 

SB0215- 37 -LRB101 04676 SMS 49685 b

1    written closing instructions to the extent that such
2    instructions require a determination by the independent
3    escrowee of the validity, enforceability, or effectiveness
4    of any document described in item (B) of paragraph (1) of
5    subsection (b) of this Section.
6        (5) Fraud, dishonesty, or negligence of an employee,
7    agent, attorney, or broker, who is not also the independent
8    escrowee or an independent contract closer of the
9    independent escrowee, of the indemnified party to the real
10    property transaction.
11        (6) The settlement or release of any claim by the
12    indemnified party to the real property transaction without
13    the written consent of the independent escrowee.
14        (7) Any matters created, suffered, assumed, or agreed
15    to by, or known to, the indemnified party to the real
16    property transaction without the written consent of the
17    independent escrowee.
18    The closing protection letter may also include reasonable
19additional provisions concerning the dollar amount of
20protection, provided the limit is no less than the amount
21deposited with the independent escrowee, arbitration,
22subrogation, claim notices, and other conditions and
23limitations that do not materially impair the protection
24required by this Section.
25    (d) The Director Secretary shall adopt and amend rules as
26may be required for the proper administration and enforcement

 

 

SB0215- 38 -LRB101 04676 SMS 49685 b

1of this Section consistent with the federal Real Estate
2Settlement Procedures Act and Section 24 of this Act.
3(Source: P.A. 100-485, eff. 9-8-17.)
 
4    (215 ILCS 155/18)  (from Ch. 73, par. 1418)
5    Sec. 18. No referral payments; kickbacks.
6    (a) Application of this Section is limited to residential
7properties of 4 or fewer units, at least one of which units is
8occupied or to be occupied by an owner, legal or beneficial.
9    (b) No title insurance company, independent escrowee, or
10title insurance agent may issue a title insurance policy to, or
11provide services to an applicant if it knows or has reason to
12believe that the applicant was referred to it by any producer
13of title business or by any associate of such producer, where
14the producer, the associate, or both, have a financial interest
15in the title insurance company, independent escrowee, or title
16insurance agent to which business is referred unless the
17producer has disclosed to any party paying for the products or
18services, or his or her representative, the financial interest
19of the producer of title business or associate referring the
20title business and a disclosure of an estimate of those charges
21to be paid as described in Section 19. Such disclosure must be
22made in writing on forms prescribed by the Director Secretary
23prior to the time that the commitment for title insurance is
24issued. The title insurance company, independent escrowee, or
25title insurance agent shall maintain the disclosure forms for a

 

 

SB0215- 39 -LRB101 04676 SMS 49685 b

1period of 3 years.
2    (c) Each title insurance company, independent escrowee,
3and title insurance agent shall file with the Director
4Secretary, on forms prescribed by the Director Secretary,
5reports setting forth the names and addresses of those persons,
6if any, who have had a financial interest in the title
7insurance company, independent escrowee, or title insurance
8agent during the calendar year, who are known or reasonably
9believed by the title insurance company, independent escrowee,
10or title insurance agent to be producers of title business or
11associates of producers.
12        (1) Each title insurance company and independent
13    escrowee shall file the report required under this
14    subsection with its application for a certificate of
15    authority and at any time there is a change in the
16    information provided in the last report.
17        (2) Each title insurance agent shall file the report
18    required under this subsection with its title insurance
19    company for inclusion with its application for
20    registration and at any time there is a change in the
21    information provided in its last report.
22        (3) Each title insurance company, independent
23    escrowee, or title insurance agent doing business on the
24    effective date of this Act shall file the report required
25    under this subsection within 90 days after such effective
26    date.

 

 

SB0215- 40 -LRB101 04676 SMS 49685 b

1(Source: P.A. 94-893, eff. 6-20-06.)
 
2    (215 ILCS 155/19)  (from Ch. 73, par. 1419)
3    Sec. 19. Director Secretary powers; pricing. Nothing
4contained in this Act shall be construed as giving any
5authority to the Director Secretary to set or otherwise adjust
6the fees charged to the parties to the transaction for:
7        (1) issuing a title insurance policy, including any
8    service charge or administration fee for the issuance of a
9    title insurance policy;
10        (2) abstracting, searching and examining title;
11        (3) preparing or issuing preliminary reports, property
12    profiles, commitments, binders, or like product;
13        (4) closing fees, escrow fees, settlement fees, and
14    like charges.
15(Source: P.A. 94-893, eff. 6-20-06.)
 
16    (215 ILCS 155/20)  (from Ch. 73, par. 1420)
17    Sec. 20. Rules and regulations. The Director Secretary
18shall rely upon federal regulations and opinion letters and may
19adopt rules and regulations as needed to implement and
20interpret the provisions of this Act.
21(Source: P.A. 94-893, eff. 6-20-06.)
 
22    (215 ILCS 155/21)  (from Ch. 73, par. 1421)
23    Sec. 21. Regulatory action.

 

 

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1    (a) The Director Secretary may refuse to grant, and may
2suspend or revoke, any certificate of authority, registration,
3or license issued pursuant to this Act or may impose a fine for
4a violation of this Act if he determines that the holder of or
5applicant for such certificate, registration or license:
6        (1) has intentionally made a material misstatement or
7    fraudulent misrepresentation in relation to a matter
8    covered by this Act;
9        (2) has misappropriated or tortiously converted to its
10    own use, or illegally withheld, monies held in a fiduciary
11    capacity;
12        (3) has demonstrated untrustworthiness or incompetency
13    in transacting the business of guaranteeing titles to real
14    estate in such a manner as to endanger the public;
15        (4) has materially misrepresented the terms or
16    conditions of contracts or agreements to which it is a
17    party;
18        (5) has paid any commissions, discounts or any part of
19    its premiums, fees or other charges to any person in
20    violation of any State or federal law or regulations or
21    opinion letters issued under the federal Real Estate
22    Settlement Procedures Act of 1974;
23        (6) has failed to comply with the deposit and reserve
24    requirements of this Act or any other requirements of this
25    Act;
26        (7) has committed fraud or misrepresentation in

 

 

SB0215- 42 -LRB101 04676 SMS 49685 b

1    applying for or procuring any certificate of authority,
2    registration, or license issued pursuant to this Act;
3        (8) has a conviction or plea of guilty or plea of nolo
4    contendere in this State or any other jurisdiction to (i)
5    any felony or (ii) a misdemeanor, an essential element of
6    which is dishonesty or fraud or larceny, embezzlement, or
7    obtaining money, property, or credit by false pretenses or
8    by means of a confidence game;
9        (9) has been disciplined by another state, the District
10    of Columbia, a territory, foreign nation, a governmental
11    agency, or any entity authorized to impose discipline if at
12    least one of the grounds for that discipline is the same as
13    or equivalent to one of the grounds for which a title
14    insurance company, title insurance agent, or independent
15    escrowee may be disciplined under this Act or if at least
16    one of the grounds for that discipline involves dishonesty;
17    a certified copy of the record of the action by the other
18    state or jurisdiction shall be prima facie evidence
19    thereof;
20        (10) has advertising that is inaccurate, misleading,
21    or contrary to the provisions of this Act;
22        (11) has knowingly and willfully made any substantial
23    misrepresentation or untruthful advertising;
24        (12) has made any false promises of a character likely
25    to influence, persuade, or induce;
26        (13) has knowingly failed to account for or remit any

 

 

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1    money or documents coming into the possession of a title
2    insurance company, title insurance agent, or independent
3    escrowee that belong to others;
4        (14) has engaged in dishonorable, unethical, or
5    unprofessional conduct of a character likely to deceive,
6    defraud, or harm the public;
7        (15) has violated the terms of a disciplinary order
8    issued by the Department;
9        (16) has disregarded or violated any provision of this
10    Act or the published rules adopted by the Department to
11    enforce this Act or has aided or abetted any individual,
12    partnership, registered limited liability partnership,
13    limited liability company, or corporation in disregarding
14    any provision of this Act or the published rules; or
15        (17) has acted as a title insurance company, title
16    insurance agent, or independent escrowee without a
17    certificate of authority, registration, or license after
18    the title insurance company, title insurance agent, or
19    independent escrowee's certificate of authority,
20    registration, or license was inoperative.
21    (b) In every case where a registration or certificate is
22suspended or revoked, or an application for a registration or
23certificate or renewal thereof is refused, the Director
24Secretary shall serve notice of his or her action, including a
25statement of the reasons for his or her action, as provided by
26this Act. When a notice of suspension or revocation of a

 

 

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1certificate of authority is given to a title insurance company,
2the Director Secretary shall also notify all the registered
3agents of that title insurance company of the Director's
4Secretary's action.
5    (c) In the case of a refusal to issue or renew a
6certificate or accept a registration, the applicant or
7registrant may request in writing, within 30 days after the
8date of service, a hearing. In the case of a refusal to renew,
9the expiring registration or certificate shall be deemed to
10continue in force until 30 days after the service of the notice
11of refusal to renew, or if a hearing is requested during that
12period, until a final order is entered pursuant to such
13hearing.
14    (d) The suspension or revocation of a registration or
15certificate shall take effect upon service of notice thereof.
16The holder of any such suspended registration or certificate
17may request in writing, within 30 days of such service, a
18hearing.
19    (e) In cases of suspension or revocation of registration
20pursuant to subsection (a), the Director Secretary may, in the
21public interest, issue an order of suspension or revocation
22which shall take effect upon service of notification thereof.
23Such order shall become final 60 days from the date of service
24unless the registrant requests in writing, within such 60 days,
25a formal hearing thereon. In the event a hearing is requested,
26the order shall remain temporary until a final order is entered

 

 

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1pursuant to such hearing.
2    (f) Hearing shall be held at such time and place as may be
3designated by the Director Secretary either in the City of
4Springfield, the City of Chicago, or in the county in which the
5principal business office of the affected registrant or
6certificate holder is located.
7    (g) The suspension or revocation of a registration or
8certificate or the refusal to issue or renew a registration or
9certificate shall not in any way limit or terminate the
10responsibilities of any registrant or certificate holder
11arising under any policy or contract of title insurance to
12which it is a party. No new contract or policy of title
13insurance may be issued, nor may any existing policy or
14contract to title insurance be renewed by any registrant or
15certificate holder during any period of suspension or
16revocation of a registration or certificate.
17    (h) The Director Secretary may issue a cease and desist
18order to a title insurance company, agent, or other entity
19doing business without the required license or registration,
20when in the opinion of the Director Secretary, the company,
21agent, or other entity is violating or is about to violate any
22provision of this Act or any law or of any rule or condition
23imposed in writing by the Department.
24    The Director Secretary may issue the cease and desist order
25without notice and before a hearing.
26    The Director Secretary shall have the authority to

 

 

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1prescribe rules for the administration of this Section.
2    If it is determined that the Director Secretary had the
3authority to issue the cease and desist order, he may issue
4such orders as may be reasonably necessary to correct,
5eliminate or remedy such conduct.
6    Any person or company subject to an order pursuant to this
7Section is entitled to judicial review of the order in
8accordance with the provisions of the Administrative Review
9Law.
10    The powers vested in the Director Secretary by this Section
11are additional to any and all other powers and remedies vested
12in the Director Secretary by law, and nothing in this Section
13shall be construed as requiring that the Director Secretary
14shall employ the powers conferred in this Section instead of or
15as a condition precedent to the exercise of any other power or
16remedy vested in the Director Secretary.
17(Source: P.A. 98-398, eff. 1-1-14.)
 
18    (215 ILCS 155/21.1)
19    Sec. 21.1. Receiver and involuntary liquidation.
20    (a) The Director's Secretary's proceedings under this
21Section shall be the exclusive remedy and the only proceedings
22commenced in any court for the dissolution of, the winding up
23of the affairs of, or the appointment of a receiver for a title
24insurance company.
25    (b) If the Director Secretary, with respect to a title

 

 

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1insurance company, finds that (i) its capital is impaired or it
2is otherwise in an unsound condition, (ii) its business is
3being conducted in an unlawful, fraudulent, or unsafe manner,
4(iii) it is unable to continue operations, or (iv) its
5examination has been obstructed or impeded, the Director
6Secretary may give notice to the board of directors of the
7title insurance company of his or her finding or findings. If
8the Director's Secretary's findings are not corrected to his or
9her satisfaction within 60 days after the company receives the
10notice, the Director Secretary shall take possession and
11control of the title insurance company, its assets, and assets
12held by it for any person for the purpose of examination,
13reorganization, or liquidation through receivership.
14    If, in addition to making a finding as provided in this
15subsection (b), the Director Secretary is of the opinion and
16finds that an emergency that may result in serious losses to
17any person exists, the Director Secretary may, in his or her
18discretion, without having given the notice provided for in
19this subsection, and whether or not proceedings under
20subsection (a) of this Section have been instituted or are then
21pending, take possession and control of the title insurance
22company and its assets for the purpose of examination,
23reorganization, or liquidation through receivership.
24    (c) The Director Secretary may take possession and control
25of a title insurance company, its assets, and assets held by it
26for any person by posting upon the premises of each office

 

 

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1located in the State of Illinois at which it transacts its
2business as a title insurance company a notice reciting that
3the Director Secretary is assuming possession pursuant to this
4Act and the time when the possession shall be deemed to
5commence.
6    (d) Promptly after taking possession and control of a title
7insurance company the Director Secretary, represented by the
8Attorney General, shall file a copy of the notice posted upon
9the premises in the Circuit Court of either Cook County or
10Sangamon County, which cause shall be entered as a court action
11upon the dockets of the court under the name and style of "In
12the matter of the possession and control by the Director of
13Insurance Secretary of the Department of Financial and
14Professional Regulation of (insert the name of the title
15insurance company)". If the Director Secretary determines
16(which determination may be made at the time of, or at any time
17subsequent to, taking possession and control of a title
18insurance company) that no practical possibility exists to
19reorganize the title insurance company after reasonable
20efforts have been made, the Director Secretary, represented by
21the Attorney General, shall also file a complaint, if it has
22not already been done, for the appointment of a receiver or
23other proceeding as is appropriate under the circumstances. The
24court where the cause is docketed shall be vested with the
25exclusive jurisdiction to hear and determine all issues and
26matters pertaining to or connected with the Director's

 

 

SB0215- 49 -LRB101 04676 SMS 49685 b

1Secretary's possession and control of the title insurance
2company as provided in this Act, and any further issues and
3matters pertaining to or connected with the Director's
4Secretary's possession and control as may be submitted to the
5court for its adjudication.
6    The Director Secretary, upon taking possession and control
7of a title insurance company, may, and if not previously done
8shall, immediately upon filing a complaint for dissolution make
9an examination of the affairs of the title insurance company or
10appoint a suitable person to make the examination as the
11Director's Secretary's agent. The examination shall be
12conducted in accordance with and pursuant to the authority
13granted under Section 12 of this Act. The person conducting the
14examination shall have and may exercise on behalf of the
15Director Secretary all of the powers and authority granted to
16the Director Secretary under Section 12. A copy of the report
17shall be filed in any dissolution proceeding filed by the
18Director Secretary. The reasonable fees and necessary expenses
19of the examining person, as approved by the Director Secretary
20or as recommended by the Director Secretary and approved by the
21court if a dissolution proceeding has been filed, shall be
22borne by the subject title insurance company and shall have the
23same priority for payment as the reasonable and necessary
24expenses of the Director Secretary in conducting an
25examination. The person appointed to make the examination shall
26make a proper accounting, in the manner and scope as determined

 

 

SB0215- 50 -LRB101 04676 SMS 49685 b

1by the Director Secretary to be practical and advisable under
2the circumstances, on behalf of the title insurance company and
3no guardian ad litem need be appointed to review the
4accounting.
5    (e) The Director Secretary, upon taking possession and
6control of a title insurance company and its assets, shall be
7vested with the full powers of management and control
8including, but not limited to, the following:
9        (1) the power to continue or to discontinue the
10    business;
11        (2) the power to stop or to limit the payment of its
12    obligations;
13        (3) the power to collect and to use its assets and to
14    give valid receipts and acquittances therefor;
15        (4) the power to transfer title and liquidate any bond
16    or deposit made under Section 4 of this Act;
17        (5) the power to employ and to pay any necessary
18    assistants;
19        (6) the power to execute any instrument in the name of
20    the title insurance company;
21        (7) the power to commence, defend, and conduct in the
22    title insurance company's name any action or proceeding in
23    which it may be a party;
24        (8) the power, upon the order of the court, to sell and
25    convey the title insurance company's assets, in whole or in
26    part, and to sell or compound bad or doubtful debts upon

 

 

SB0215- 51 -LRB101 04676 SMS 49685 b

1    such terms and conditions as may be fixed in that order;
2        (9) the power, upon the order of the court, to make and
3    to carry out agreements with other title insurance
4    companies, financial institutions, or with the United
5    States or any agency of the United States for the payment
6    or assumption of the title insurance company's
7    liabilities, in whole or in part, and to transfer assets
8    and to make guaranties, in whole or in part, in connection
9    therewith;
10        (10) the power, upon the order of the court, to borrow
11    money in the name of the title insurance company and to
12    pledge its assets as security for the loan;
13        (11) the power to terminate his or her possession and
14    control by restoring the title insurance company to its
15    board of directors;
16        (12) the power to appoint a receiver which may be the
17    Director of Insurance Secretary of the Department of
18    Financial and Professional Regulation, another title
19    insurance company, or another suitable person and to order
20    liquidation of the title insurance company as provided in
21    this Act; and
22        (13) the power, upon the order of the court and without
23    the appointment of a receiver, to determine that the title
24    insurance company has been closed for the purpose of
25    liquidation without adequate provision being made for
26    payment of its obligations, and thereupon the title

 

 

SB0215- 52 -LRB101 04676 SMS 49685 b

1    insurance company shall be deemed to have been closed on
2    account of inability to meet its obligations to its
3    insureds or escrow depositors.
4    (f) Upon taking possession, the Director Secretary shall
5make an examination of the condition of the title insurance
6company, an inventory of the assets and, unless the time shall
7be extended by order of the court or unless the Director
8Secretary shall have otherwise settled the affairs of the title
9insurance company pursuant to the provisions of this Act,
10within 90 days after the time of taking possession and control
11of the title insurance company, the Director Secretary shall
12either terminate his or her possession and control by restoring
13the title insurance company to its board of directors or
14appoint a receiver, which may be the Director of Insurance
15Secretary of the Department of Financial and Professional
16Regulation, another title insurance company, or another
17suitable person and order the liquidation of the title
18insurance company as provided in this Act. All necessary and
19reasonable expenses of the Director's Secretary's possession
20and control shall be a priority claim and shall be borne by the
21title insurance company and may be paid by the Director
22Secretary from the title insurance company's own assets as
23distinguished from assets held for any other person.
24    (g) If the Director Secretary takes possession and control
25of a title insurance company and its assets, any period of
26limitation fixed by a statute or agreement that would otherwise

 

 

SB0215- 53 -LRB101 04676 SMS 49685 b

1expire on a claim or right of action of the title insurance
2company, on its own behalf or on behalf of its insureds or
3escrow depositors, or upon which an appeal must be taken or a
4pleading or other document filed by the title insurance company
5in any pending action or proceeding, shall be tolled until 6
6months after the commencement of the possession, and no
7judgment, lien, levy, attachment, or other similar legal
8process may be enforced upon or satisfied, in whole or in part,
9from any asset of the title insurance company or from any asset
10of an insured or escrow depositor while it is in the possession
11of the Director Secretary.
12    (h) If the Director Secretary appoints a receiver to take
13possession and control of the assets of insureds or escrow
14depositors for the purpose of holding those assets as fiduciary
15for the benefit of the insureds or escrow depositors pending
16the winding up of the affairs of the title insurance company
17being liquidated and the appointment of a successor escrowee
18for those assets, any period of limitation fixed by statute,
19rule of court, or agreement that would otherwise expire on a
20claim or right of action in favor of or against the insureds or
21escrow depositors of those assets or upon which an appeal must
22be taken or a pleading or other document filed by a title
23insurance company on behalf of an insured or escrow depositor
24in any pending action or proceeding shall be tolled for a
25period of 6 months after the appointment of a receiver, and no
26judgment, lien, levy, attachment, or other similar legal

 

 

SB0215- 54 -LRB101 04676 SMS 49685 b

1process shall be enforced upon or satisfied, in whole or in
2part, from any asset of the insured or escrow depositor while
3it is in the possession of the receiver.
4    (i) If the Director Secretary determines at any time that
5no reasonable possibility exists for the title insurance
6company to be operated by its board of directors in accordance
7with the provisions of this Act after reasonable efforts have
8been made and that it should be liquidated through
9receivership, he or she shall appoint a receiver. The Director
10Secretary may require of the receiver such bond and security as
11the Director Secretary deems proper. The Director Secretary,
12represented by the Attorney General, shall file a complaint for
13the dissolution or winding up of the affairs of the title
14insurance company in a court of the county in which the
15principal office of the title insurance company is located and
16shall cause notice to be given in a newspaper of general
17circulation once each week for 4 consecutive weeks so that
18persons who may have claims against the title insurance company
19may present them to the receiver and make legal proof thereof
20and notifying those persons and all to whom it may concern of
21the filing of a complaint for the dissolution or winding up of
22the affairs of the title insurance company and stating the name
23and location of the court. All persons who may have claims
24against the assets of the title insurance company, as
25distinguished from the assets of insureds and escrow depositors
26held by the title insurance company, and the receiver to whom

 

 

SB0215- 55 -LRB101 04676 SMS 49685 b

1those persons have presented their claims may present the
2claims to the clerk of the court, and the allowance or
3disallowance of the claims by the court in connection with the
4proceedings shall be deemed an adjudication in a court of
5competent jurisdiction. Within a reasonable time after
6completion of publication, the receiver shall file with the
7court a correct list of all creditors of the title insurance
8company as shown by its books, who have not presented their
9claims and the amount of their respective claims after allowing
10adjusted credit, deductions, and set-offs as shown by the books
11of the title insurance company. The claims so filed shall be
12deemed proven unless objections are filed thereto by a party or
13parties interested therein within the time fixed by the court.
14    (j) The receiver for a title insurance company has the
15power and authority and is charged with the duties and
16responsibilities as follows:
17        (1) To take possession of and, for the purpose of the
18    receivership, title to the books, records, and assets of
19    every description of the title insurance company.
20        (2) To proceed to collect all debts, dues, and claims
21    belonging to the title insurance company.
22        (3) To sell and compound all bad and doubtful debts on
23    such terms as the court shall direct.
24        (4) To sell the real and personal property of the title
25    insurance company, as distinguished from the real and
26    personal property of the insureds or escrow depositors, on

 

 

SB0215- 56 -LRB101 04676 SMS 49685 b

1    such terms as the court shall direct.
2        (5) To file with the Director Secretary a copy of each
3    report that he or she makes to the court, together with
4    such other reports and records as the Director Secretary
5    may require.
6        (6) To sue and defend in his or her own name and with
7    respect to the affairs, assets, claims, debts, and choses
8    in action of the title insurance company.
9        (7) To surrender to the insureds and escrow depositors
10    of the title insurance company, when requested in writing
11    directed to the receiver by them, the escrowed funds (on a
12    pro rata basis), and escrowed documents in the receiver's
13    possession upon satisfactory proof of ownership and
14    determination by the receiver of available escrow funds.
15        (8) To redeem or take down collateral hypothecated by
16    the title insurance company to secure its notes and other
17    evidence of indebtedness whenever the court deems it to be
18    in the best interest of the creditors of the title
19    insurance company and directs the receiver so to do.
20    (k) Whenever the receiver finds it necessary in his or her
21opinion to use and employ money of the title insurance company
22in order to protect fully and benefit the title insurance
23company by the purchase or redemption of property, real or
24personal, in which the title insurance company may have any
25rights by reason of any bond, mortgage, assignment, or other
26claim thereto, the receiver may certify the facts together with

 

 

SB0215- 57 -LRB101 04676 SMS 49685 b

1the receiver's opinions as to the value of the property
2involved and the value of the equity the title insurance
3company may have in the property to the court, together with a
4request for the right and authority to use and employ so much
5of the money of the title insurance company as may be necessary
6to purchase the property, or to redeem the property from a sale
7if there was a sale, and if the request is granted, the
8receiver may use so much of the money of the title insurance
9company as the court may have authorized to purchase the
10property at the sale.
11    The receiver shall deposit daily all moneys collected by
12him or her in any State or national bank approved by the court.
13The deposits shall be made in the name of the Director
14Secretary, in trust for the receiver, and be subject to
15withdrawal upon the receiver's order or upon the order of those
16persons the Director Secretary may designate. The moneys may be
17deposited without interest, unless otherwise agreed. The
18receiver shall do the things and take the steps from time to
19time under the direction and approval of the court that may
20reasonably appear to be necessary to conserve the title
21insurance company's assets and secure the best interests of the
22creditors, insureds, and escrow depositors of the title
23insurance company. The receiver shall record any judgment of
24dissolution entered in a dissolution proceeding and thereupon
25turn over to the Director Secretary a certified copy of the
26judgment.

 

 

SB0215- 58 -LRB101 04676 SMS 49685 b

1    The receiver may cause all assets of the insureds and
2escrow depositors of the title insurance company to be
3registered in the name of the receiver or in the name of the
4receiver's nominee.
5    For its services in administering the escrows held by the
6title insurance company during the period of winding up the
7affairs of the title insurance company, the receiver is
8entitled to be reimbursed for all costs and expenses incurred
9by the receiver and shall also be entitled to receive out of
10the assets of the individual escrows being administered by the
11receiver during the period of winding up the affairs of the
12title insurance company and prior to the appointment of a
13successor escrowee the usual and customary fees charged by an
14escrowee for escrows or reasonable fees approved by the court.
15    The receiver, during its administration of the escrows of
16the title insurance company during the winding up of the
17affairs of the title insurance company, shall have all of the
18powers that are vested in trustees under the terms and
19provisions of the Trusts and Trustees Act.
20    Upon the appointment of a successor escrowee, the receiver
21shall deliver to the successor escrowee all of the assets
22belonging to each individual escrow to which the successor
23escrowee succeeds, and the receiver shall thereupon be relieved
24of any further duties or obligations with respect thereto.
25    (l) The receiver shall, upon approval by the court, pay all
26claims against the assets of the title insurance company

 

 

SB0215- 59 -LRB101 04676 SMS 49685 b

1allowed by the court pursuant to subsection (i) of this
2Section, as well as claims against the assets of insureds and
3escrow depositors of the title insurance company in accordance
4with the following priority:
5        (1) All necessary and reasonable expenses of the
6    Director's Secretary's possession and control and of its
7    receivership shall be paid from the assets of the title
8    insurance company.
9        (2) All usual and customary fees charged for services
10    in administering escrows shall be paid from the assets of
11    the individual escrows being administered. If the assets of
12    the individual escrows being administered are
13    insufficient, the fees shall be paid from the assets of the
14    title insurance company.
15        (3) Secured claims, including claims for taxes and
16    debts due the federal or any state or local government,
17    that are secured by liens perfected prior to the date of
18    filing of the complaint for dissolution, shall be paid from
19    the assets of the title insurance company.
20        (4) Claims by policyholders, beneficiaries, insureds,
21    and escrow depositors of the title insurance company shall
22    be paid from the assets of the insureds and escrow
23    depositors. If there are insufficient assets of the
24    insureds and escrow depositors, claims shall be paid from
25    the assets of the title insurance company.
26        (5) Any other claims due the federal government shall

 

 

SB0215- 60 -LRB101 04676 SMS 49685 b

1    be paid from the assets of the title insurance company.
2        (6) Claims for wages or salaries, excluding vacation,
3    severance, and sick leave pay earned by employees for
4    services rendered within 90 days prior to the date of
5    filing of the complaint for dissolution, shall be paid from
6    the assets of the title insurance company.
7        (7) All other claims of general creditors not falling
8    within any priority under this subsection (l) including
9    claims for taxes and debts due any state or local
10    government which are not secured claims and claims for
11    attorney's fees incurred by the title insurance company in
12    contesting the dissolution shall be paid from the assets of
13    the title insurance company.
14        (8) Proprietary claims asserted by an owner, member, or
15    stockholder of the title insurance company in receivership
16    shall be paid from the assets of the title insurance
17    company.
18    The receiver shall pay all claims of equal priority
19according to the schedule set out in this subsection, and shall
20not pay claims of lower priority until all higher priority
21claims are satisfied. If insufficient assets are available to
22meet all claims of equal priority, those assets shall be
23distributed pro rata among those claims. All unclaimed assets
24of the title insurance company shall be deposited with the
25receiver to be paid out by him or her when such claims are
26submitted and allowed by the court.

 

 

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1    (m) At the termination of the receiver's administration,
2the receiver shall petition the court for the entry of a
3judgment of dissolution. After a hearing upon the notice as the
4court may prescribe, the court may enter a judgment of
5dissolution whereupon the title insurance company's corporate
6existence shall be terminated and the receivership concluded.
7    (n) The receiver shall serve at the pleasure of the
8Director Secretary and upon the death, inability to act,
9resignation, or removal by the Director Secretary of a
10receiver, the Director Secretary may appoint a successor, and
11upon the appointment, all rights and duties of the predecessor
12shall at once devolve upon the appointee.
13    (o) Whenever the Director Secretary shall have taken
14possession and control of a title insurance company or a title
15insurance agent and its assets for the purpose of examination,
16reorganization or liquidation through receivership, or
17whenever the Director Secretary shall have appointed a receiver
18for a title insurance company or title insurance agent and
19filed a complaint for the dissolution or winding up of its
20affairs, and the title insurance company or title insurance
21agent denies the grounds for such actions, it may at any time
22within 10 days apply to the Circuit Court of Cook or Sangamon
23County to enjoin further proceedings in the premises; and the
24Court shall cite the Director Secretary to show cause why
25further proceedings should not be enjoined, and if the Court
26shall find that grounds do not exist, the Court shall make an

 

 

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1order enjoining the Director Secretary or any receiver acting
2under his or her direction from all further proceedings on
3account of the alleged grounds.
4(Source: P.A. 94-893, eff. 6-20-06.)
 
5    (215 ILCS 155/21.2)
6    Sec. 21.2. Notice.
7    (a) Notice of any action by the Director Secretary under
8this Act or regulations or orders promulgated under it shall be
9made either personally or by registered or certified mail,
10return receipt requested, and by sending a copy of the notice
11by telephone facsimile or electronic mail, if known and
12operating, and if unknown or not operating, then by regular
13mail. Service by mail shall be deemed completed if the notice
14is deposited as registered or certified mail in the post
15office, postage paid, addressed to the last known address
16specified in the application for the certificate of authority
17to do business or certificate of registration of the holder or
18registrant.
19    (b) The Director Secretary shall notify all registered
20agents of a title insurance company when that title insurance
21company's certificate of authority is suspended or revoked.
22(Source: P.A. 94-893, eff. 6-20-06.)
 
23    (215 ILCS 155/23)  (from Ch. 73, par. 1423)
24    Sec. 23. Violation; penalties.

 

 

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1    (a) Any violation of any of the provisions of this Act and,
2beginning January 1, 2013, any violation of any of the
3provisions of Article 3 of the Residential Real Property
4Disclosure Act shall constitute a business offense and shall
5subject the party violating the same to a penalty of $1000 for
6each offense.
7    (b) Nothing contained in this Section shall affect the
8right of the Director Secretary to revoke or suspend a title
9insurance company's or independent escrowee's certificate of
10authority or a title insurance agent's registration under any
11other Section of this Act.
12(Source: P.A. 97-891, eff. 8-3-12.)

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 105/6z-26
4    215 ILCS 155/3from Ch. 73, par. 1403
5    215 ILCS 155/3.5 new
6    215 ILCS 155/4from Ch. 73, par. 1404
7    215 ILCS 155/4.1
8    215 ILCS 155/5from Ch. 73, par. 1405
9    215 ILCS 155/6from Ch. 73, par. 1406
10    215 ILCS 155/7from Ch. 73, par. 1407
11    215 ILCS 155/8from Ch. 73, par. 1408
12    215 ILCS 155/9from Ch. 73, par. 1409
13    215 ILCS 155/12from Ch. 73, par. 1412
14    215 ILCS 155/13from Ch. 73, par. 1413
15    215 ILCS 155/14.1
16    215 ILCS 155/16from Ch. 73, par. 1416
17    215 ILCS 155/16.1
18    215 ILCS 155/17from Ch. 73, par. 1417
19    215 ILCS 155/17.1
20    215 ILCS 155/18from Ch. 73, par. 1418
21    215 ILCS 155/19from Ch. 73, par. 1419
22    215 ILCS 155/20from Ch. 73, par. 1420
23    215 ILCS 155/21from Ch. 73, par. 1421
24    215 ILCS 155/21.1
25    215 ILCS 155/21.2

 

 

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1    215 ILCS 155/23from Ch. 73, par. 1423