Illinois General Assembly - Full Text of SB1317
Illinois General Assembly

Previous General Assemblies

Full Text of SB1317  101st General Assembly



SB1317 EngrossedLRB101 09891 RAB 54993 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Title Insurance Act is amended by changing
5Sections 3, 5, 12, 14, 14.1, 16, 18, 21, and 23 and by adding
6Section 18.2 as follows:
7    (215 ILCS 155/3)  (from Ch. 73, par. 1403)
8    Sec. 3. As used in this Act, the words and phrases
9following shall have the following meanings unless the context
10requires otherwise:
11    (1) "Title insurance business" or "business of title
12insurance" means:
13        (A) Issuing as insurer or offering to issue as insurer
14    title insurance; and
15        (B) Transacting or proposing to transact one or more of
16    the following activities when conducted or performed in
17    contemplation of or in conjunction with the issuance of
18    title insurance;
19            (i) soliciting or negotiating the issuance of
20        title insurance;
21            (ii) guaranteeing, warranting, or otherwise
22        insuring the correctness of title searches for all
23        instruments affecting titles to real property, any



SB1317 Engrossed- 2 -LRB101 09891 RAB 54993 b

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



SB1317 Engrossed- 3 -LRB101 09891 RAB 54993 b

1warranting, or indemnifying owners of real or personal property
2or the holders of liens or encumbrances thereon or others
3interested therein against loss or damage suffered by reason of
4liens, encumbrances upon, defects in, or the unmarketability of
5the title to the property; the invalidity or unenforceability
6of any liens or encumbrances thereon; or doing any business in
7substance equivalent to any of the foregoing. "Warranting" for
8purpose of this provision shall not include any warranty
9contained in instruments of encumbrance or conveyance. Title
10insurance is a single line form of insurance, also known as
11monoline. An attorney's opinion of title pursuant to paragraph
12(1)(C) is not intended to be within the definition of "title
14    (2) "Title insurance company" means any domestic company
15organized under the laws of this State for the purpose of
16conducting the business of title insurance and any title
17insurance company organized under the laws of another State,
18the District of Columbia or foreign government and authorized
19to transact the business of title insurance in this State.
20    (3) "Title insurance agent" means a person, firm,
21partnership, association, corporation or other legal entity
22licensed under this Act registered by a title insurance company
23and authorized by a title insurance such company to determine
24insurability of title in accordance with generally acceptable
25underwriting rules and standards in reliance on either the
26public records or a search package prepared from a title plant,



SB1317 Engrossed- 4 -LRB101 09891 RAB 54993 b

1or both, and authorized by such title insurance company in
2addition to do any of the following: act as an escrow agent
3pursuant to subsections (f), (g), and (h) of Section 16 of this
4Act, solicit title insurance, collect premiums, or issue title
5insurance commitments, policies, and endorsements of the title
6insurance company; provided, however, the term "title
7insurance agent" shall not include officers and salaried
8employees of any title insurance company.
9    (4) "Producer of title business" is any person, firm,
10partnership, association, corporation or other legal entity
11engaged in this State in the trade, business, occupation or
12profession of (i) buying or selling interests in real property,
13(ii) making loans secured by interests in real property, or
14(iii) acting as broker, agent, attorney, or representative of
15natural persons or other legal entities that buy or sell
16interests in real property or that lend money with such
17interests as security.
18    (5) "Associate" is any firm, association, partnership,
19corporation or other legal entity organized for profit in which
20a producer of title business is a director, officer, or partner
21thereof, or owner of a financial interest, as defined herein,
22in such entity; any legal entity that controls, is controlled
23by, or is under common control with a producer of title
24business; and any natural person or legal entity with whom a
25producer of title business has any agreement, arrangement, or
26understanding or pursues any course of conduct the purpose of



SB1317 Engrossed- 5 -LRB101 09891 RAB 54993 b

1which is to evade the provisions of this Act.
2    (6) "Financial interest" is any ownership interest, legal
3or beneficial, except ownership of publicly traded stock.
4    (7) "Refer" means to place or cause to be placed, or to
5exercise any power or influence over the placing of title
6business, whether or not the consent or approval of any other
7person is sought or obtained with respect to the referral.
8    (8) "Escrow Agent" means any title insurance company or any
9title insurance agent, including independent contractors of
10either, acting on behalf of a title insurance company, which
11receives deposits, in trust, of funds or documents, or both,
12for the purpose of effecting the sale, transfer, encumbrance or
13lease of real property to be held by such escrow agent until
14title to the real property that is the subject of the escrow is
15in a prescribed condition. An escrow agent conducting closings
16shall be subject to the provisions of paragraphs (1) through
17(4) of subsection (e) of Section 16 of this Act.
18    (9) "Independent Escrowee" means any firm, person,
19partnership, association, corporation or other legal entity,
20other than a title insurance company or a title insurance
21agent, which receives deposits, in trust, of funds or
22documents, or both, for the purpose of effecting the sale,
23transfer, encumbrance or lease of real property to be held by
24such escrowee until title to the real property that is the
25subject of the escrow is in a prescribed condition. Federal and
26State chartered banks, savings and loan associations, credit



SB1317 Engrossed- 6 -LRB101 09891 RAB 54993 b

1unions, mortgage bankers, banks or trust companies authorized
2to do business under the Illinois Corporate Fiduciary Act,
3licensees under the Consumer Installment Loan Act, real estate
4brokers licensed pursuant to the Real Estate License Act of
52000, as such Acts are now or hereafter amended, and licensed
6attorneys when engaged in the attorney-client relationship are
7exempt from the escrow provisions of this Act. "Independent
8Escrowee" does not include employees or independent
9contractors of a title insurance company or title insurance
10agent authorized by a title insurance company to perform
11closing, escrow, or settlement services.
12    (10) "Single risk" means the insured amount of any title
13insurance policy, except that where 2 or more title insurance
14policies are issued simultaneously covering different estates
15in the same real property, "single risk" means the sum of the
16insured amounts of all such title insurance policies. Any title
17insurance policy insuring a mortgage interest, a claim payment
18under which reduces the insured amount of a fee or leasehold
19title insurance policy, shall be excluded in computing the
20amount of a single risk to the extent that the insured amount
21of the mortgage title insurance policy does not exceed the
22insured amount of the fee or leasehold title insurance policy.
23    (11) "Department" means the Department of Financial and
24Professional Regulation.
25    (12) "Secretary" means the Secretary of Financial and
26Professional Regulation.



SB1317 Engrossed- 7 -LRB101 09891 RAB 54993 b

1    (13) "Insured closing letter" or "closing protection
2letter" means an indemnification or undertaking to a party to a
3real property transaction, from a principal such as a title
4insurance company, setting forth in writing the extent of the
5principal's responsibility for intentional misconduct or
6errors in closing the real property transaction on the part of
7a settlement agent, such as a title insurance agent or other
8settlement service provider, or an indemnification or
9undertaking given by a title insurance company or an
10independent escrowee setting forth in writing the extent of the
11title insurance company's or independent escrowee's
12responsibility to a party to a real property transaction which
13indemnifies the party against the intentional misconduct or
14errors in closing the real property transaction on the part of
15the title insurance company or independent escrowee and
16includes protection afforded pursuant to subsections (f), (g),
17and (h) of Section 16, Section 16.1, subsection (h) of Section
1817, and Section 17.1 of this Act even if such protection is
19afforded by contract.
20    (14) "Residential real property" means a building or
21buildings consisting of one to 4 residential units or a
22residential condominium unit where at least one of the
23residential units or condominium units is occupied or intended
24to be occupied as a residence by the purchaser or borrower, or
25in the event that the purchaser or borrower is the trustee of a
26trust, by a beneficiary of that trust.



SB1317 Engrossed- 8 -LRB101 09891 RAB 54993 b

1    (15) "Financial institution" means any bank subject to the
2Illinois Banking Act, any savings and loan association subject
3to the Illinois Savings and Loan Act of 1985, any savings bank
4subject to the Savings Bank Act, any credit union subject to
5the Illinois Credit Union Act, and any federally chartered
6commercial bank, savings and loan association, savings bank, or
7credit union organized and operated in this State pursuant to
8the laws of the United States.
9(Source: P.A. 100-485, eff. 9-8-17.)
10    (215 ILCS 155/5)  (from Ch. 73, par. 1405)
11    Sec. 5. Certificate of authority required to engage in
12activities under this Act.
13    (a) It is unlawful for any company to engage or to continue
14in the business of title insurance without first procuring from
15the Secretary a certificate of authority stating that the
16company has complied with the requirements of Section 4 of this
17Act. An insurer that transacts any class of insurance other
18than title insurance anywhere in the United States is not
19eligible for the issuance of a certificate of authority to
20transact title insurance in this State nor for a renewal of a
21certificate of authority.
22    (b) It is unlawful for any person, firm, partnership,
23association, corporation, or other legal entity to act as or
24hold itself out to be a title insurance agent unless first
25procuring from the Secretary a certificate of authority subject



SB1317 Engrossed- 9 -LRB101 09891 RAB 54993 b

1to the conditions of subsection (a) of Section 16.
2(Source: P.A. 94-893, eff. 6-20-06.)
3    (215 ILCS 155/12)  (from Ch. 73, par. 1412)
4    Sec. 12. Examinations; compliance.
5    (a) The Secretary or his authorized representative shall
6have the power and authority, and it shall be his duty, to
7cause to be visited and examined annually any title insurance
8company doing business under this Act, and to verify and compel
9compliance with the provisions of law governing it.
10    (b) The Secretary or his authorized representative agent
11shall have power and authority to compel compliance with the
12provisions of this Act and may visit and shall, only upon the
13showing of good cause, require a title insurance agent or
14independent escrowee to make appropriate records any title
15insurance company to take all legal means to obtain the
16appropriate records of its registered agents and make them
17available for examination at a time and place designated by the
18Secretary. Expenses incurred in the course of such examinations
19will be the responsibility of the title insurance company. In
20the event that a present or former registered agent or its
21successor refuses or is unable to cooperate with a title
22insurance company in furnishing the records requested by the
23Secretary or his or her authorized agent, then the Secretary or
24his or her authorized agent shall have the power and authority
25to obtain those records directly from the registered agent.



SB1317 Engrossed- 10 -LRB101 09891 RAB 54993 b

1    (c) The Secretary or the Secretary's authorized
2representative shall have power and authority to compel an
3independent escrowee's compliance with the provisions of this
4Act pursuant to subsection (f) of Section 17 of this Act.
5(Source: P.A. 94-893, eff. 6-20-06.)
6    (215 ILCS 155/14)  (from Ch. 73, par. 1414)
7    Sec. 14. Fees.
8    (a) Every title insurance company and every independent
9escrowee subject to this Act shall pay the following fees:
10        (1) for filing the original application for a
11    certificate of authority and receiving the deposit
12    required under this Act, $500;
13        (2) for the certificate of authority, $10;
14        (3) for every copy of a paper filed in the Department
15    under this Act, $1 per folio;
16        (4) for affixing the seal of the Department and
17    certifying a copy, $2; and
18        (5) for filing the annual statement, $50.
19    (b) Each title insurance company shall remit, for all of
20its title insurance agents subject to this Act for filing an
21annual registration of its agents, an amount equal to $3 for
22each policy issued by all of its title insurance agents in the
23immediately preceding calendar year.
24    (c) Every title insurance agent subject to this Act shall
25pay the following fees:



SB1317 Engrossed- 11 -LRB101 09891 RAB 54993 b

1        (1) for a resident of the State, filing the original
2    application for a certification of authority and for the
3    certificate of authority, $80;
4        (2) for a nonresident of the State, filing the original
5    application for a certification of authority and for the
6    certificate of authority, $120;
7        (3) for a resident and nonresident of the State, filing
8    for renewal of a certificate, $80; and
9        (4) for a resident and nonresident of the State, filing
10    for reinstatement of a lapsed certificate, $120.
11(Source: P.A. 99-104, eff. 1-1-16.)
12    (215 ILCS 155/14.1)
13    Sec. 14.1. Financial Institution Fund. All moneys received
14by the Department of Financial and Professional Regulation
15under this Act shall be deposited in the Financial Institution
16Fund created under Section 6z-26 of the State Finance Act for
17expenses incurred in administering this Act.
18(Source: P.A. 98-463, eff. 8-16-13.)
19    (215 ILCS 155/16)  (from Ch. 73, par. 1416)
20    Sec. 16. Title insurance agents.
21    (a) No person, firm, partnership, association, corporation
22or other legal entity shall act as or hold itself out to be a
23title insurance agent unless it has been issued a certificate
24of authority by duly registered by a title insurance company



SB1317 Engrossed- 12 -LRB101 09891 RAB 54993 b

1with the Secretary. Every title insurance agent registration
2before or after the effective date of this amendatory Act of
3the 101st General Assembly shall satisfy the requirements for a
4certificate of authority under this amendatory Act of the 101st
5General Assembly until January 1 of the calendar year
6immediately following the adoption of such rules that the
7Secretary shall adopt as may be necessary for the
8administration of granting of the certificates of authority for
9title insurance agents under this amendatory Act of the 101st
10General Assembly, and until the related application is either
11approved or disapproved; the continued recognition of such
12title insurance agent registrations during this period does not
13relieve title insurance agents and title insurance companies of
14their other obligations under this Act before the effective
15date of this amendatory Act of the 101st General Assembly.
16    (b) Each application for a certificate of authority
17registration shall be made on a form specified by the Secretary
18and prepared by each title insurance agent company which the
19agent represents. The title insurance agent and company
20authorizing the agent shall retain the copy of the application
21and issued certificate of authority forward a copy to the
23    (c) Every applicant for a certificate of authority
24registration, except a firm, partnership, association, limited
25liability company, or corporation, must be 18 years or more of



SB1317 Engrossed- 13 -LRB101 09891 RAB 54993 b

1        (1) Every applicant for a certificate of authority that
2    is a firm, partnership, association, corporation, or other
3    legal entity shall designate and name at least one
4    individual who (i) has a financial or other beneficial
5    interest in the licensee and (ii) is authorized by at least
6    one title insurance company to determine insurability of
7    title.
8        (2) Included in every application for a certificate of
9    authority registration of a title insurance agent,
10    including a firm, partnership, association, limited
11    liability company, or corporation, shall be an affidavit of
12    the applicant title insurance agent, signed and notarized
13    in front of a notary public, affirming that the applicant
14    and every owner, officer, director, principal, member, or
15    manager of the applicant has never been convicted or pled
16    guilty to any felony or misdemeanor involving a crime of
17    theft or dishonesty or otherwise accurately disclosing any
18    such felony or misdemeanor involving a crime of theft or
19    dishonesty. No person who has had a conviction or pled
20    guilty to any felony or misdemeanor involving theft or
21    dishonesty may be registered by a title insurance agent
22    company without a written notification to the Secretary
23    disclosing the conviction or plea, and no such person may
24    serve as an owner, officer, director, principal, or manager
25    of any registered title insurance agent without the written
26    permission of the Secretary.



SB1317 Engrossed- 14 -LRB101 09891 RAB 54993 b

1        (3) An applicant for a certificate of authority of a
2    title insurance agent, including a firm, partnership,
3    association, limited liability company, or corporation,
4    shall include an affidavit of the applicant, signed and
5    notarized in front of a notary public, affirming that the
6    applicant is authorized by one or more title insurance
7    companies to determine insurability of title, stating the
8    title insurance company or companies with which it is
9    authorized, and listing the individuals authorized.
10        (4) Every applicant shall obtain and maintain errors
11    and omissions insurance, or its equivalent, in an amount
12    acceptable to the title insurance company authorizing the
13    agent, but in no event in an amount less than $250,000 per
14    claim and an aggregate limit of $500,000 with a deductible
15    no greater than $25,000. A title insurance company shall
16    not provide the insurance directly or indirectly on behalf
17    of a title insurance agent. In the event errors and
18    omissions insurance is unavailable generally, the
19    Department shall adopt rules for alternative methods to
20    comply with this paragraph.
21    (d) A certificate of authority Registration shall be
22renewed on January 1 every 2 years made annually by a filing
23with the Secretary; supplemental filings registrations for a
24new agency agreement with a title insurance company agents to
25be added between certificate of authority renewal annual
26filings shall be made by the title insurance agent from time to



SB1317 Engrossed- 15 -LRB101 09891 RAB 54993 b

1time in the manner provided by the Secretary; certificates of
2authority registrations shall remain in effect unless revoked
3or suspended by the Secretary or voluntarily withdrawn by the
4title insurance agent, registrant or the title insurance agent
5no longer has any agency agreement with a title insurance
7    (e) Funds deposited in connection with any escrows,
8settlements, or closings shall be deposited in a separate
9fiduciary trust account or accounts in a bank or other
10financial institution insured by an agency of the federal
11government unless the instructions provide otherwise. The
12funds shall be the property of the person or persons entitled
13thereto under the provisions of the escrow, settlement, or
14closing and shall be segregated by escrow, settlement, or
15closing in the records of the escrow agent. The funds shall not
16be subject to any debts of the escrowee and shall be used only
17in accordance with the terms of the individual escrow,
18settlement, or closing under which the funds were accepted.
19    Interest received on funds deposited with the escrow agent
20in connection with any escrow, settlement, or closing shall be
21paid to the depositing party unless the instructions provide
23    The escrow agent shall maintain separate records of all
24receipts and disbursements of escrow, settlement, or closing
26    The escrow agent shall comply with any rules adopted by the



SB1317 Engrossed- 16 -LRB101 09891 RAB 54993 b

1Secretary pertaining to escrow, settlement, or closing
3    (f) A title insurance agent shall not act as an escrow
4agent in a nonresidential real property transaction where the
5amount of settlement funds on deposit with the escrow agent is
6less than $2,000,000 or in a residential real property
7transaction unless the title insurance agent, title insurance
8company, or another authorized title insurance agent has
9committed for the issuance of title insurance in that
10transaction and the title insurance agent is authorized to act
11as an escrow agent on behalf of the title insurance company for
12which the commitment for title insurance has been issued. The
13authorization under the preceding sentence shall be given
14either (1) by an agency contract with the title insurance
15company which contract, in compliance with the requirements set
16forth in subsection (g) of this Section, authorizes the title
17insurance agent to act as an escrow agent on behalf of the
18title insurance company or (2) by a closing protection letter
19in compliance with the requirements set forth in Section 16.1
20of this Act, issued by the title insurance company to the
21seller, buyer, borrower, and lender. A closing protection
22letter shall not be issued by a title insurance agent. The
23provisions of this subsection (f) shall not apply to the
24authority of a title insurance agent to act as an escrow agent
25under subsection (g) of Section 17 of this Act.
26    (g) If an agency contract between the title insurance



SB1317 Engrossed- 17 -LRB101 09891 RAB 54993 b

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



SB1317 Engrossed- 18 -LRB101 09891 RAB 54993 b

1the fee to the title insurance company. The title insurance
2company may charge the parties a reasonable fee for protection
3provided pursuant to subsections (f) and (g) of this Section 16
4and Section 16.1 and shall not pay any portion of the fee to
5the escrow agent. The payment of any portion of the fee to the
6escrow agent by the title insurance company, shall be deemed a
7prohibited inducement or compensation in violation of Section
824 of this Act.
9    (i) The Secretary shall adopt and amend such rules as may
10be required for the proper administration and enforcement of
11this Section 16 consistent with the federal Real Estate
12Settlement Procedures Act and Section 24 of this Act.
13(Source: P.A. 98-398, eff. 1-1-14; 98-832, eff. 1-1-15; 99-104,
14eff. 1-1-16.)
15    (215 ILCS 155/18)  (from Ch. 73, par. 1418)
16    Sec. 18. Disclosure of financial interests No referral
17payments; kickbacks.
18    (a) Application of this Section is limited to residential
19properties of 4 or fewer units, at least one of which units is
20occupied or to be occupied by an owner, legal or beneficial.
21    (b) No title insurance company, independent escrowee, or
22title insurance agent may issue a title insurance policy to, or
23provide services to an applicant if it knows or has reason to
24believe that the applicant was referred to it by any producer
25of title business or by any associate of such producer, where



SB1317 Engrossed- 19 -LRB101 09891 RAB 54993 b

1the producer, the associate, or both, have a financial interest
2in the title insurance company, independent escrowee, or title
3insurance agent to which business is referred unless the
4producer has disclosed to any party paying for the products or
5services, or his representative, the financial interest of the
6producer of title business or associate referring the title
7business and a disclosure of an estimate of those charges to be
8paid as described in Section 19. Such disclosure must be made
9in writing on forms prescribed by the Secretary prior to the
10time that the commitment for title insurance is issued. The
11title insurance company, independent escrowee, or title
12insurance agent shall maintain the disclosure forms for a
13period of 3 years.
14    (c) Each title insurance company, independent escrowee,
15and title insurance agent shall file with the Secretary, on
16forms prescribed by the Secretary, reports setting forth the
17names and addresses of those persons, if any, who have had a
18financial interest in the title insurance company, independent
19escrowee, or title insurance agent during the calendar year,
20who are known or reasonably believed by the title insurance
21company, independent escrowee, or title insurance agent to be
22producers of title business or associates of producers.
23        (1) Each title insurance company and independent
24    escrowee shall file the report required under this
25    subsection with its application for a certificate of
26    authority and at any time there is a change in the



SB1317 Engrossed- 20 -LRB101 09891 RAB 54993 b

1    information provided in the last report.
2        (2) Each title insurance agent shall file the report
3    required under this subsection with its title insurance
4    company for inclusion with its application for
5    registration and at any time there is a change in the
6    information provided in its last report.
7        (3) Each title insurance company, independent
8    escrowee, or title insurance agent doing business on the
9    effective date of this Act shall file the report required
10    under this subsection within 90 days after such effective
11    date.
12(Source: P.A. 94-893, eff. 6-20-06.)
13    (215 ILCS 155/18.2 new)
14    Sec. 18.2. Rate and service fee filings.
15    (a) Rate and service fee filing requirements.
16        (1) Every title insurance company shall file with the
17    Secretary every manual of classifications, rules, plans,
18    forms, and schedules of fees and every modification of any
19    of the foregoing relating to the rates that it proposes to
20    use. Every such filing shall state the proposed effective
21    date and shall indicate the character and extent of the
22    coverage contemplated. Every title insurance company and
23    independent escrowee shall file with the Secretary the
24    specification of services and schedule of fees for each fee
25    intended to be charged to the parties to a transaction



SB1317 Engrossed- 21 -LRB101 09891 RAB 54993 b

1    pursuant to paragraph (5) of subsection (k) of this
2    Section.
3        (2) A title insurance company may satisfy its
4    obligations to make such filings by becoming a member of,
5    or a subscriber to, a licensed rating organization that
6    makes such filings and by authorizing the Secretary to
7    accept such filings on its behalf.
8        (3) The Secretary shall make such review of the filings
9    as may be necessary to carry out the provisions of this Act
10    and either approve or disapprove a filing or any part of a
11    filing, including the proposed effective date.
12        (4) Subject to the provisions of paragraphs (5) and (6)
13    and either approval or disapproval of the Secretary, each
14    filing shall be on file for a period of 30 days before it
15    can become effective only by approval of the Secretary. The
16    Secretary may, upon written notice to the person making the
17    filing within the 30-day period, extend the period no more
18    than 30 days to enable the Secretary to complete the review
19    of the filing. Further extensions of the waiting period may
20    be made with the consent of the title insurance company or
21    rating organization making the filing. Upon written
22    application by the title insurance company or rating
23    organization making the filing, the Secretary may
24    authorize a filing or any part of a filing to become
25    effective before the expiration of the waiting period or
26    any extension.



SB1317 Engrossed- 22 -LRB101 09891 RAB 54993 b

1        (5) When the Secretary finds that any rate for a
2    particular kind or class of risk cannot practicably be
3    filed before it is used, or any contract or kind of title
4    insurance, by reason of rarity or peculiar circumstances,
5    does not lend itself to advance determination and filing of
6    rates, the Secretary may permit the rates to be used
7    without a previous filing and waiting period, and such
8    rates can be effective only by approval of the Secretary.
9        (6) A rate in excess of a filing may be used on any
10    specific risk upon the written consent of the insured,
11    filed with the Secretary, explaining the applicability of
12    the rate to the specific risk; the rate becomes effective
13    when the consent is filed.
14    (b) Justification for rates. A rate filing shall be
15accompanied by a statement of the title insurance company or
16rating organization making the filing setting forth the basis
17upon which the rate was fixed and the fees are to be computed.
18Any filing may be justified by:
19        (1) the experience or judgment of the title insurance
20    company or rating organization making the filing;
21        (2) the experience of other title insurance companies
22    or rating organizations; or
23        (3) any other factors that the title insurance company
24    or rating organization deems relevant.
25    (c) Making of rates.
26        (1) In making rates, due consideration shall be given



SB1317 Engrossed- 23 -LRB101 09891 RAB 54993 b

1    to past and prospective loss experience, to exposure to
2    loss, to underwriting practice and judgment, to the extent
3    appropriate, to past and prospective expenses, the
4    expenses incurred by title insurance companies, to a
5    reasonable margin for profit and contingencies, and to all
6    other relevant factors both within and outside of this
7    State.
8        (2) Rates shall not be inadequate or unfairly
9    discriminatory, nor shall rates be excessive; that is, such
10    as to permit title insurance companies to earn a greater
11    profit, after payment of all taxes upon all income, than is
12    necessary to enable them to earn over the years sufficient
13    amounts to pay their actual expenses and losses arising in
14    the conduct of their title insurance business, including
15    the actual costs of maintaining a title plant, plus a
16    reasonable profit.
17        (3) In ascertaining the estimated future earnings of
18    title insurance companies, the Secretary shall utilize a
19    properly weighted cross section of title insurance
20    companies operating in this State representative of the
21    average of normally efficiently operated title insurance
22    companies including on a weighted basis, both title
23    insurance companies having their own title plants, and
24    those not operating upon the title plant system. In
25    ascertaining what is a reasonable profit after payment of
26    all taxes on such income, the Secretary shall give due



SB1317 Engrossed- 24 -LRB101 09891 RAB 54993 b

1    consideration to the following matters:
2            (A) the average rates of profit after payment of
3        taxes on all income earned by other industry generally;
4            (B) the desirability for stability of rate
5        structure;
6            (C) the necessity of insuring through growth in
7        assets in times of high business activity, the
8        financial solvency of title insurance companies in
9        times of economic depression; and
10            (D) The necessity for earning sufficient dividends
11        on the stock of title insurance companies to induce
12        capital to be invested in title insurance companies.
13        (4) The systems of expense provisions and the amount of
14    expense charged against each class of contract or policy
15    may vary between title insurance companies. Rates may, in
16    the discretion of any title insurance company, be less than
17    the cost of performing the work in the case of smaller
18    insurances, and the excess may be charged against the
19    larger insurances without rendering the rates unfairly
20    discriminatory.
21    (d) Disapproval of filings. If the Secretary finds that the
22filing or a part of the filing does not meet the requirements
23of this Act, the Secretary shall issue an order specifying in
24what respects it fails to meet the requirements of this Act. If
25the filing or part of the filing already has become effective,
26the order shall also state when, within a reasonable period,



SB1317 Engrossed- 25 -LRB101 09891 RAB 54993 b

1such filing or part shall be deemed no longer effective. A
2title insurance company or rating organization shall have the
3right at any time to withdraw a filing or a part of the filing,
4subject to the provisions of subsection (f) of this Section
5regarding deviations. Copies of the order shall be sent to
6every such title insurance company and rating organization. The
7order shall not affect any contract or policy made or issued
8prior to the expiration of the period set forth in the order.
9    (e) Rating organizations.
10        (1) A corporation, an unincorporated association, a
11    partnership, or an individual, whether located within or
12    outside this State, may make application to the Secretary
13    for a license as a rating organization for title insurance
14    companies.
15            (A) An entity seeking a license as a rating
16        organization shall file:
17                (i) a copy of its constitution, its articles of
18            agreement or association or its certificate of
19            incorporation, and of its bylaws, rules, and
20            regulations governing the conduct of its business;
21                (ii) a list of its members and subscribers;
22                (iii) the name and address of a resident of
23            this State upon whom notices or orders of the
24            Secretary or process affecting such rating
25            organization may be served; and
26                (iv) a statement of its qualifications as a



SB1317 Engrossed- 26 -LRB101 09891 RAB 54993 b

1            rating organization.
2            (B) If the Secretary finds that the applicant is
3        competent, trustworthy, and otherwise qualified to act
4        as a rating organization, and that its constitution,
5        articles of agreement or association or certificate of
6        incorporation, and its bylaws, rules, and regulations
7        governing the conduct of its business conforms to the
8        requirements of law, the Secretary shall issue a
9        license authorizing the applicant to act as a rating
10        organization for title insurance. Every such
11        application shall be granted or denied in whole or in
12        part by the Secretary within 60 days after the date of
13        its filing. Licenses issued under this Section shall
14        remain in effect for 3 years unless sooner suspended or
15        revoked by the Secretary or withdrawn by the licensee.
16        The fee for the license shall be $25. Licenses issued
17        under this Section may be suspended or revoked by the
18        Secretary, after hearing upon notice, in the event the
19        rating organization ceases to meet the requirements of
20        this subsection.
21            (C) Every rating organization shall notify the
22        Secretary promptly of every change in:
23                (i) its constitution, its articles of
24            agreement or association or its certificate of
25            incorporation, and its bylaws, rules, and
26            regulations governing the conduct of its business;



SB1317 Engrossed- 27 -LRB101 09891 RAB 54993 b

1                (ii) its list of members and subscribers; and
2                (iii) the name and address of the resident of
3            this State designated by it upon whom notices or
4            orders of the Secretary or process affecting such
5            rating organization may be served.
6        (2) Subject to rules adopted by the Secretary, each
7    rating organization shall permit any title insurance
8    company not a member to be a subscriber to its rating
9    services. Each rating organization shall furnish its
10    rating services without discrimination to its members and
11    subscribers. The furnishing of rating services without
12    discrimination to its members and subscribers, or the
13    refusal of any rating organization to admit a title
14    insurance company as a subscriber, shall, at the request of
15    any subscriber or any such title insurance company, be
16    reviewed by the Secretary at a hearing held upon at least
17    10 days' written notice to such rating organization and to
18    such subscriber or title insurance company. If the
19    Secretary finds that the actions of the rating organization
20    were discriminatory, the Secretary shall order that such
21    actions cease. If the rating organization fails to grant or
22    reject an application of a title insurance company for
23    subscribership within 30 days after it was made, the title
24    insurance company may request a review by the Secretary as
25    if the application had been rejected. If the Secretary
26    finds that the title insurance company has been refused



SB1317 Engrossed- 28 -LRB101 09891 RAB 54993 b

1    admittance to the rating organization as a subscriber
2    without justification, the Secretary shall order the
3    rating organization to admit the title insurance company as
4    a subscriber. If the Secretary finds that the action of the
5    rating organization was justified, the Secretary shall
6    make an order affirming its action.
7        (3) Cooperation among rating organizations, or among
8    rating organizations and title insurance companies, and
9    concert of action among title insurance companies under the
10    same general management and control in rate making or in
11    other matters within the scope of this Act is hereby
12    authorized, provided that the filings are subject to all
13    the provisions of this Act that are applicable to filings
14    generally. The Secretary may review such activities and
15    practices and if, after a hearing, the Secretary finds that
16    any such activity or practice is unfair or unreasonable or
17    otherwise inconsistent with the provisions of this Act, the
18    Secretary may issue a written order specifying in what
19    respects such activity or practice is unfair or
20    unreasonable or otherwise inconsistent with the provisions
21    of this Act and requiring the discontinuance of such
22    activity or practice.
23    (f) Deviations. Every member of or subscriber to a rating
24organization shall adhere to the filings made on its behalf by
25such organization, except that any title insurance company that
26is a member of or subscriber to a rating organization may file



SB1317 Engrossed- 29 -LRB101 09891 RAB 54993 b

1with the Secretary a decrease or increase to be applied to any
2or all elements of the fees produced by the rating system so
3filed for a class of title insurance that is found by the
4Secretary to be a proper rating unit for the application of
5such uniform decrease or increase, or to be applied to the
6rates for a particular area. Such deviation filing shall
7specify the basis for the modification and shall be accompanied
8by the data or historical pattern upon which the applicant
9relies. A copy of the filing and data shall be sent
10simultaneously to such rating organization. Any such deviation
11filing shall be on file for a waiting period of 30 days before
12it becomes effective. The Secretary shall make such review of
13the deviation filing as may be necessary to carry out the
14provisions of this Act, and either approve or disapprove the
15filing or any part of the filing, including the proposed
16effective date. Extension of the waiting period may be made in
17the same manner that the period is extended in the case of rate
18filings. Upon written application of the person making the
19filing, the Secretary may authorize a deviation filing or any
20part of the filing to become effective before the expiration of
21the waiting period or any extension. Deviation filings shall be
22subject to the provisions of subsection (d) of this Section.
23Each deviation shall be effective for at least one year after
24the date such deviation is approved unless terminated sooner
25with the approval of the Secretary, or in accordance with the
26provisions of subsection (d) of this Section.



SB1317 Engrossed- 30 -LRB101 09891 RAB 54993 b

1    (g) Examinations of rating organizations. The Secretary
2shall, at least once in 5 years, make or cause to be made an
3examination of a rating organization licensed under this Act in
4this State. The reasonable costs of the examination shall be
5paid by the rating organization examined upon presentation to
6it of a detailed account of such costs. The officers, managers,
7agents, and employees of the rating organization may be
8examined at any time under oath and shall exhibit all books,
9records, accounts, documents, or agreements governing its
10method of operation. The Secretary shall furnish 2 copies of
11the examination report to the organization examined and shall
12notify such organization that it may, within 20 days, request a
13hearing on the report or on any facts or recommendations
14contained in the report. Before filing the report for public
15inspection, the Secretary shall grant a hearing to the
16organization examined. The report of the examination, when
17filed for public inspection, shall be admissible in evidence in
18any action or proceeding brought by the Secretary against the
19organization examined, or its officers or agents, and shall be
20prima facie evidence of facts stated in the report. The
21Secretary may withhold the report of the examination from
22public inspection for such time as the Secretary may deem
23proper. In lieu of the examination, the Secretary may accept
24the report of an examination made by the title insurance
25supervisory official of another state pursuant to the laws of
26that state.



SB1317 Engrossed- 31 -LRB101 09891 RAB 54993 b

1    (h) Rate administration.
2        (1) The Secretary shall adopt reasonable rules and
3    statistical plans, reasonably adapted to each of the rating
4    systems on file with the Secretary, which may be modified
5    from time to time, and which shall be used by each title
6    insurance company in the recording and reporting of the
7    composition of its business, its loss and countrywide
8    expense experience and those of its title insurance
9    underwriters in order that the experience of all title
10    insurance companies may be made available, at least
11    annually, in such form and detail as may be necessary to
12    aid the Secretary in determining whether rating systems
13    comply with the standards set forth in this Act. The rules
14    and plans may also provide for the recording and reporting
15    of expense experience items that are specially applicable
16    to this State and are not susceptible of determination by a
17    prorating of countrywide expense experience. In adopting
18    the rules and plans, the Secretary shall give due
19    consideration to the rating systems on file with the
20    Secretary, and in order that the rules and plans may be as
21    uniform as is practicable among the several states, to the
22    rules and to form of the plans used for such rating systems
23    in other states. The rules and plans shall not place an
24    unreasonable burden of expense on any title insurance
25    company. No title insurance company shall be required to
26    record or report its expense and loss experience on a



SB1317 Engrossed- 32 -LRB101 09891 RAB 54993 b

1    classification basis that is inconsistent with the rating
2    system filed by it, nor shall any title insurance company
3    be required to report its experience to any agency of which
4    it is not a member or subscriber. The Secretary may
5    designate one or more rating organizations or other
6    agencies to assist the Secretary in gathering such
7    experience and making compilations, and such compilations
8    shall be made available, subject to reasonable rules
9    adopted by the Secretary, to title insurance companies and
10    rating organizations.
11        (2) Reasonable rules and plans may be adopted by the
12    Secretary for the interchange of data necessary for the
13    application of rating plans.
14        (3) In order to further uniform administration of rate
15    regulatory laws, the Secretary and every title insurance
16    company and rating organization may exchange information
17    and experience data with title insurance supervisory
18    officials, title insurance companies, and title insurance
19    rating organizations in other states, and may consult with
20    them with respect to rate making and the application of
21    rating systems.
22        (4) In addition to any powers expressly enumerated in
23    this Act, the Secretary shall have full power and
24    authority, and it shall be their duty, to enforce and carry
25    out by rules, orders, or otherwise the provisions of this
26    Act and the full intent. The Secretary may adopt rules



SB1317 Engrossed- 33 -LRB101 09891 RAB 54993 b

1    consistent with this Act as may be necessary or proper in
2    the exercise of his or her powers or for the performance of
3    his or her duties under this Act.
4    (i) False or misleading information. No person or
5organization shall willfully withhold information from or
6knowingly give false or misleading information to the
7Secretary, any statistical agency designated by the Secretary,
8any rating organization, or any title insurance company that
9will affect the rates or fees chargeable under this Act.
10    (j) Penalties.
11        (1) The Secretary may, if the Secretary finds that any
12    person or organization has violated any provision of this
13    Section, impose a penalty of not more than $500 for each
14    such violation, but if the Secretary finds such violation
15    to be willful, the Secretary may impose a penalty of not
16    more than $5,000 for each such violation. Such penalties
17    may be in addition to any other penalty provided by law.
18        (2) The Secretary may suspend the license of a rating
19    organization or the certificate of authority of a title
20    insurance company that fails to comply with an order of the
21    Secretary within the time limited by such order, or any
22    extension that the Secretary may grant. The Secretary shall
23    not suspend the license of any rating organization or the
24    certificate of authority of a title insurance company for
25    failure to comply with an order until the time prescribed
26    for an appeal has expired or, if an appeal has been taken,



SB1317 Engrossed- 34 -LRB101 09891 RAB 54993 b

1    until such order has been affirmed. The Secretary may
2    determine when a suspension of license shall become
3    effective, and it shall remain in effect for the period
4    fixed by the Secretary, unless the Secretary modifies or
5    rescinds the suspension, or until the order upon which the
6    suspension is based is modified, rescinded, or reversed.
7        (3) No penalty shall be imposed and no license or
8    certificate of authority shall be suspended or revoked
9    pursuant to this Section except upon a written order of the
10    Secretary stating his or her findings made after a hearing
11    held upon not less than 10 days' written notice to the
12    holder specifying the alleged violation.
13        (4) All hearings provided for in this Section shall be
14    conducted, and the decision of the Secretary on the issue
15    or filing involved shall be rendered, in accordance with
16    the Administrative Review Law.
17    (k) In all circumstances, whether involving rates filed by
18a rating organization or title insurance company:
19        (1) separate filings shall be provided for the 2
20    following geographic zones:
21            (A) Zone 1 comprising the counties of Cook, Lake,
22        DuPage, McHenry, Kane, Will, Grundy, and Kendall; and
23            (B) Zone 2 comprising all other counties within the
24        State.
25        The Secretary shall submit a report to the Governor and
26    General Assembly no later than January 1, 2023 as to



SB1317 Engrossed- 35 -LRB101 09891 RAB 54993 b

1    whether multiple zones are justified based on differences
2    in costs between the zones.
3        (2) Rates shall be separated into classes based on
4    monetary insurance ranges without distinction of
5    commercial or residential use of the property.
6        (3) From the owner's policy premium, loan policy
7    premium, and residential real property endorsement
8    charges, which does not include closing protection letter
9    charges, a title agent shall retain 80% and remit 20% to a
10    title insurance company if services are performed by the
11    title insurance agent to at least (i) determine
12    insurability of title, which includes title examination
13    and title clearance, and (ii) issue title insurance
14    commitments, policies, and endorsements. For endorsement
15    charges that are not for residential real property as
16    defined in Section 3 of this Act, which does not include
17    closing protection letter charges, a title agent shall
18    retain 80% and remit 20% to a title insurance company
19    provided the title agent is authorized pursuant to its
20    agency contract to issue the endorsement and completes the
21    work necessary to issue the endorsement. If the title agent
22    is not authorized pursuant to its agency agreement to issue
23    the endorsement and does not complete the work necessary to
24    issue the endorsement, the title agent shall retain 0% and
25    remit 100% of the charge to a title insurance company.
26        (4) Any fees charged to the parties to the transaction



SB1317 Engrossed- 36 -LRB101 09891 RAB 54993 b

1    other than the owner's policy premium, loan policy premium,
2    and endorsement charges shall not be retained or remitted
3    between a title insurance company and title insurance
4    agent, or with any other entity or individual, unless the
5    charges are being retained or remitted in an amount
6    directly related to services actually performed.
7        (5) Subject to all other provisions of this Section
8    regarding rate filing requirements, a filing shall also
9    include a specification of services to be performed and
10    schedule of fees for each fee intended to be charged to the
11    parties to the transaction, which includes, but is not
12    limited to, closing fees, escrow fees, settlement fees,
13    closing protection letter fees subject to Section 16.1 of
14    this Act, and like charges, and is applicable to services
15    provided by an independent escrowee, which must similarly
16    file a specification of services and schedule of fees with
17    the Secretary.
18    (215 ILCS 155/21)  (from Ch. 73, par. 1421)
19    Sec. 21. Regulatory action.
20    (a) The Secretary may refuse to grant, and may suspend or
21revoke, any certificate of authority, registration, or license
22issued pursuant to this Act or may impose a fine for a
23violation of this Act if he determines that the holder of or
24applicant for such certificate, registration, or license:
25        (1) has intentionally made a material misstatement or



SB1317 Engrossed- 37 -LRB101 09891 RAB 54993 b

1    fraudulent misrepresentation in relation to a matter
2    covered by this Act;
3        (2) has misappropriated or tortiously converted to its
4    own use, or illegally withheld, monies held in a fiduciary
5    capacity;
6        (3) has demonstrated untrustworthiness or incompetency
7    in transacting the business of guaranteeing titles to real
8    estate in such a manner as to endanger the public;
9        (4) has materially misrepresented the terms or
10    conditions of contracts or agreements to which it is a
11    party;
12        (5) has paid any commissions, discounts or any part of
13    its premiums, fees or other charges to any person in
14    violation of any State or federal law or regulations or
15    opinion letters issued under the federal Real Estate
16    Settlement Procedures Act of 1974;
17        (5.1) has accepted or referred a title order or
18    performed title services with knowledge that the order was
19    placed in exchange for the express or implicit promise that
20    a consumer has been or will be referred to that provider
21    for services;
22        (5.2) has given or accepted any portion of any charge
23    made or received for the rendering of a real estate
24    settlement service in connection with a transaction other
25    than for services actually performed;
26        (5.3) has disbursed funds prior to the actual delivery



SB1317 Engrossed- 38 -LRB101 09891 RAB 54993 b

1    of funds acceptable to the closing and settlement services
2    agent;
3        (5.4) has disbursed of closing and settlement services
4    funds before all necessary conditions of the transaction
5    have been met;
6        (5.5) has paid for, furnished or offered to pay for or
7    furnish any reward or compensation for any past, present,
8    or future title insurance business or closing and
9    settlement services or any other title business,
10    including, but not limited to, the payment of a fee to an
11    attorney for the referral of title business;
12        (5.6) has paid or offered to pay any fee to a producer
13    of title business for making an inspection or appraisal of
14    property;
15        (5.7) has received securities of the title insurance
16    company, title insurance agent, or independent escrowee at
17    prices below the normal market price, or bonds or
18    debentures that guarantee a higher than normal interest
19    rate, whether or not the consummation of the transaction is
20    directly or indirectly related to the number of closing and
21    settlement services or title orders coming to the title
22    insurance company, title insurance agent or independent
23    escrowee through the efforts of that person;
24        (5.8) has furnished to any producer of title business
25    or associate of a producer reports containing publicly
26    recorded information, appraisals, estimates of income



SB1317 Engrossed- 39 -LRB101 09891 RAB 54993 b

1    production potential, information kits, or similar
2    packages containing information about one or more parcels
3    of real property helpful to any producer of title business
4    without making a charge that is commensurate with the
5    actual cost of the work performed and the material
6    furnished; Additionally:
7            (A) There must be a written service agreement
8        between a title agent and any entity providing any
9        closing, title, or ancillary related services on
10        behalf of a title agent. Pursuant to this written
11        service agreement, a service fee must be charged to the
12        title agent and paid by the title agent to the service
13        provider. The service fee charge is in addition to any
14        search fee charged to the title agent and cannot be
15        added on to the charges to the seller, buyer, borrower,
16        or lender. The charge for a service fee shall be no
17        less than $350; and
18            (B) Pursuant to an agency agreement or service
19        agreement, the cost of searches procured on behalf of
20        the title agent must be charged to the title agent and
21        paid by the title agent to the provider of such
22        searches in an amount commensurate with the actual cost
23        of the work performed and the material furnished. The
24        search fee charge is in addition to any service fee
25        charged to the title agent and cannot be added on to
26        the charges to the seller, buyer, borrower, or lender.



SB1317 Engrossed- 40 -LRB101 09891 RAB 54993 b

1        (5.9) has made or guaranteed or has offered to make or
2    guarantee, either directly or indirectly, any loan to any
3    producer of title business or associate of a producer with
4    terms more favorable than otherwise available to the
5    producer;
6        (5.10) has guaranteed, or offered to guarantee the
7    proper performance of closing and settlement services or
8    undertakings that are to be performed by any producer of
9    title business, except as authorized pursuant to Sections
10    16 and 16.1 of this Act;
11        (5.11) has provided, or offered to provide, either
12    directly or indirectly, a compensating balance or deposit
13    in a lending institution either for the express or implied
14    purpose of influencing the placement or channeling of title
15    insurance business by the lending institution; this
16    provision does not prohibit the maintenance by a title
17    insurance company, title agent, or independent escrowee of
18    demand deposits or escrow deposits that are reasonably
19    necessary for use in the ordinary course of the business of
20    the title insurance company, title agent, or independent
21    escrowee;
22        (5.12) has paid for or offered to pay for the fees or
23    charges of an outside professional, such as an attorney,
24    engineer, appraiser, or surveyor, whose services are
25    required by any producer of title business to structure or
26    complete a particular transaction;



SB1317 Engrossed- 41 -LRB101 09891 RAB 54993 b

1        (5.13) has provided or offered to provide non-title
2    services, such as computerized bookkeeping, forms
3    management, computer programming, or any similar benefit,
4    without a charge that is commensurate with the actual cost
5    to any producer of title business or to any associate of a
6    producer of title business;
7        (5.14) has furnished or offered to furnish all or any
8    part of the time or productive effort of any employee of
9    the title insurance company, title insurance agent, or
10    independent escrowee, such as office manager, escrow
11    officer, secretary, clerk, or messenger, to any producer of
12    the title business or associate of a producer of title
13    business;
14        (5.15) has paid for or offered to pay for all or any
15    part of the salary of an employee of any producer of title
16    business;
17        (5.16) has paid for or offered to pay for the salary or
18    any part of the salary of a relative of any producer of
19    title business if that payment is in excess of the
20    reasonable value of work performed by the relative on
21    behalf of the title insurance company, title insurance
22    agent or independent escrowee;
23        (5.17) has paid for or offered to pay for services by
24    any producer of title business that are ordinarily to be
25    performed by the producer of title business in his or her
26    licensed capacity as a real estate or mortgage broker or



SB1317 Engrossed- 42 -LRB101 09891 RAB 54993 b

1    salesman or agent;
2        (5.18) has furnished or offered to furnish, or paid for
3    or offered to pay for, furniture, office supplies,
4    telephones, facsimile machines, equipment, or automobiles
5    to any producer of title business, or has paid for or
6    offered to pay for any portion of the cost of renting,
7    leasing, operating or maintaining any of these items;
8        (5.19) has paid for, furnished, or waived, or offered
9    to pay for, furnish, or waive, all or any part of the rent
10    for space occupied by any producer of title business;
11        (5.20) has rented or offered to rent space from any
12    producer of title business, regardless of the purpose, at a
13    rent that is excessive when compared with rents for
14    comparable space in the geographic area, or has paid or
15    offered to pay rent based in whole or in part on the volume
16    of business generated by any producer of title business;
17        (5.21) has paid for or offered to pay for gifts,
18    vacations, business trips, convention expenses, travel
19    expenses, membership fees, registration fees, lodging, or
20    meals on behalf of a producer of title insurance, directly
21    or indirectly, or supplied letters of credit, credit cards,
22    or any such benefits;
23        (5.22) has paid for or offered to pay for the
24    cancellation fee for a title report or other fee on behalf
25    of any producer of title business either before or after
26    inducing the producer of title business to cancel an order



SB1317 Engrossed- 43 -LRB101 09891 RAB 54993 b

1    with another title insurance company, title insurance
2    agent, or independent escrowee;
3        (5.23) has paid for, furnished, or offered to pay for
4    or furnish any business form to any producer of title
5    business, other than a form regularly used in the conduct
6    of the title insurance company's business, that is
7    furnished for the convenience of the title insurance
8    company and does not constitute a direct monetary benefit
9    to any producer of title business;
10        (5.24) has given trading stamps, cash redemption
11    coupons, or similar items to any producer of title
12    business;
13        (6) has failed to comply with the deposit and reserve
14    requirements of this Act or any other requirements of this
15    Act;
16        (7) has committed fraud or misrepresentation in
17    applying for or procuring any certificate of authority,
18    registration, or license issued pursuant to this Act;
19        (8) has a conviction or plea of guilty or plea of nolo
20    contendere in this State or any other jurisdiction to (i)
21    any felony or (ii) a misdemeanor, an essential element of
22    which is dishonesty or fraud or larceny, embezzlement, or
23    obtaining money, property, or credit by false pretenses or
24    by means of a confidence game;
25        (9) has been disciplined by another state, the District
26    of Columbia, a territory, foreign nation, a governmental



SB1317 Engrossed- 44 -LRB101 09891 RAB 54993 b

1    agency, or any entity authorized to impose discipline if at
2    least one of the grounds for that discipline is the same as
3    or equivalent to one of the grounds for which a title
4    insurance company, title insurance agent, or independent
5    escrowee may be disciplined under this Act or if at least
6    one of the grounds for that discipline involves dishonesty;
7    a certified copy of the record of the action by the other
8    state or jurisdiction shall be prima facie evidence
9    thereof;
10        (10) has advertising that is inaccurate, misleading,
11    or contrary to the provisions of this Act;
12        (11) has knowingly and willfully made any substantial
13    misrepresentation or untruthful advertising;
14        (12) has made any false promises of a character likely
15    to influence, persuade, or induce;
16        (13) has knowingly failed to account for or remit any
17    money or documents coming into the possession of a title
18    insurance company, title insurance agent, or independent
19    escrowee that belong to others;
20        (14) has engaged in dishonorable, unethical, or
21    unprofessional conduct of a character likely to deceive,
22    defraud, or harm the public;
23        (15) has violated the terms of a disciplinary order
24    issued by the Department;
25        (16) has disregarded or violated any provision of this
26    Act or the published rules adopted by the Department to



SB1317 Engrossed- 45 -LRB101 09891 RAB 54993 b

1    enforce this Act or has aided or abetted any individual,
2    partnership, registered limited liability partnership,
3    limited liability company, or corporation in disregarding
4    any provision of this Act or the published rules; or
5        (17) has acted as a title insurance company, title
6    insurance agent, or independent escrowee without a
7    certificate of authority, registration, or license after
8    the title insurance company, title insurance agent, or
9    independent escrowee's certificate of authority,
10    registration, or license was inoperative.
11    (a-1) Nothing in subsection (a) shall be construed as
13        (1) publishing or printing and disseminating any
14    educational information, notwithstanding that the
15    information may be of benefit to a producer of title
16    business;
17        (2) distributing information, whether printed or oral,
18    advertising novelties, and gift items not to exceed $25 in
19    value that bear the name of the giver (but not the name of
20    the recipient) to producers of title business;
21        (3) providing reasonable promotional and educational
22    activities that are not conditioned on the referral of
23    business and that do not involve the defraying of expenses
24    that otherwise would be incurred by persons in a position
25    to refer settlement services or business incident to those
26    services, such as a reception by a title company, seminars



SB1317 Engrossed- 46 -LRB101 09891 RAB 54993 b

1    on title matters offered to professionals, furnishing
2    property descriptions and names of record owners without
3    charge to lenders, real estate brokers, attorneys, or
4    others, or distribution of calendars and other promotional
5    material that do not exceed $25 in value;
6        (4) the payment of a fee:
7            (A) that bears a reasonable relationship to the
8        value of the services rendered or performed:
9                (i) by any person or party to attorneys at law
10            for services actually rendered;
11                (ii) by a title company to its duly appointed
12            agent for services actually performed in the
13            issuance of a policy of title insurance; or
14                (iii) by a lender to its duly appointed agent
15            for services actually performed in the making of a
16            loan; and
17            (B) to a settlement service provider for services
18        outside of the normal scope of that provider's services
19        to the parties to the transaction;
20        (5) the payment of a bona fide salary or compensation
21    or other payment for goods or facilities actually furnished
22    or for services actually performed, so long as the salary,
23    compensation, or other payment bears a reasonable
24    relationship to the value of the services, goods, or
25    facilities;
26        (6) proportionate returns on an ownership or franchise



SB1317 Engrossed- 47 -LRB101 09891 RAB 54993 b

1    interest;
2        (7) ordinary and customary business entertainment or
3    promotional activities with reasonable frequency not to
4    exceed $100 in value per person, per event by title
5    insurance companies, title insurance agents, or
6    independent escrowees that are not directly or indirectly
7    consideration as an inducement or compensation for the
8    referral of title business or for the referral of any
9    escrow or other service from a title insurance company,
10    title insurance agent, or independent escrowee.
11    (b) In every case where a registration or certificate is
12suspended or revoked, or an application for a registration or
13certificate or renewal thereof is refused, the Secretary shall
14serve notice of his action, including a statement of the
15reasons for his action, as provided by this Act. When a notice
16of suspension or revocation of a certificate of authority is
17given to a title insurance company, the Secretary shall also
18notify all the registered agents of that title insurance
19company of the Secretary's action.
20    (c) In the case of a refusal to issue or renew a
21certificate or accept a registration, the applicant or
22registrant may request in writing, within 30 days after the
23date of service, a hearing. In the case of a refusal to renew,
24the expiring registration or certificate shall be deemed to
25continue in force until 30 days after the service of the notice
26of refusal to renew, or if a hearing is requested during that



SB1317 Engrossed- 48 -LRB101 09891 RAB 54993 b

1period, until a final order is entered pursuant to such
3    (d) The suspension or revocation of a registration or
4certificate shall take effect upon service of notice thereof.
5The holder of any such suspended registration or certificate
6may request in writing, within 30 days of such service, a
8    (e) In cases of suspension or revocation of registration
9pursuant to subsection (a), the Secretary may, in the public
10interest, issue an order of suspension or revocation which
11shall take effect upon service of notification thereof. Such
12order shall become final 60 days from the date of service
13unless the registrant requests in writing, within such 60 days,
14a formal hearing thereon. In the event a hearing is requested,
15the order shall remain temporary until a final order is entered
16pursuant to such hearing.
17    (f) Hearing shall be held at such time and place as may be
18designated by the Secretary either in the City of Springfield,
19the City of Chicago, or in the county in which the principal
20business office of the affected registrant or certificate
21holder is located.
22    (g) The suspension or revocation of a registration or
23certificate or the refusal to issue or renew a registration or
24certificate shall not in any way limit or terminate the
25responsibilities of any registrant or certificate holder
26arising under any policy or contract of title insurance to



SB1317 Engrossed- 49 -LRB101 09891 RAB 54993 b

1which it is a party. No new contract or policy of title
2insurance may be issued, nor may any existing policy or
3contract to title insurance be renewed by any registrant or
4certificate holder during any period of suspension or
5revocation of a registration or certificate.
6    (h) The Secretary may issue a cease and desist order to a
7title insurance company, agent, or other entity doing business
8without the required license or registration, when in the
9opinion of the Secretary, the company, agent, or other entity
10is violating or is about to violate any provision of this Act
11or any law or of any rule or condition imposed in writing by
12the Department.
13    The Secretary may issue the cease and desist order without
14notice and before a hearing.
15    The Secretary shall have the authority to prescribe rules
16for the administration of this Section.
17    If it is determined that the Secretary had the authority to
18issue the cease and desist order, he may issue such orders as
19may be reasonably necessary to correct, eliminate or remedy
20such conduct.
21    Any person or company subject to an order pursuant to this
22Section is entitled to judicial review of the order in
23accordance with the provisions of the Administrative Review
25    The powers vested in the Secretary by this Section are
26additional to any and all other powers and remedies vested in



SB1317 Engrossed- 50 -LRB101 09891 RAB 54993 b

1the Secretary by law, and nothing in this Section shall be
2construed as requiring that the Secretary shall employ the
3powers conferred in this Section instead of or as a condition
4precedent to the exercise of any other power or remedy vested
5in the Secretary.
6(Source: P.A. 98-398, eff. 1-1-14.)
7    (215 ILCS 155/23)  (from Ch. 73, par. 1423)
8    Sec. 23. Violation; penalties; actual damages; injunctive
10    (a) Any violation of any of the provisions of this Act and,
11beginning January 1, 2013, any violation of any of the
12provisions of Article 3 of the Residential Real Property
13Disclosure Act shall constitute a business offense and shall
14subject the party violating the same to a penalty of $1000 for
15each offense.
16    (b) A violation of paragraphs (5.1) through (5.24) of
17subsection (a) of Section 21 is a Class A misdemeanor.
18    (c) A person who violates the prohibitions or limitations
19of subsection (a) of Section 21 shall be liable to the person
20or persons charged for the settlement service involved in the
21violation for actual damages.
22    (d) A title insurance company, a title insurance agent, or
23an independent escrowee who violates the prohibitions or
24limitations of subsection (a) of Section 21 shall be subject to
25injunctive relief. If a permanent injunction is granted, the



SB1317 Engrossed- 51 -LRB101 09891 RAB 54993 b

1court may award actual damages. Reasonable attorney's fees and
2costs may be awarded to the prevailing party.
3    (e) (b) Nothing contained in this Section shall affect the
4right of the Secretary to revoke or suspend a title insurance
5company's, title insurance agent's, or independent escrowee's
6certificate of authority or a title insurance agent's
7registration under any other Section of this Act.
8(Source: P.A. 97-891, eff. 8-3-12.)
9    (215 ILCS 155/19 rep.)
10    (215 ILCS 155/24 rep.)
11    (215 ILCS 155/25 rep.)
12    Section 10. The Title Insurance Act is amended by repealing
13Sections 19, 24, and 25.
14    Section 99. Effective date. This Act takes effect upon
15becoming law, except that Section 18.2 of the Title Insurance
16Act takes effect September 1, 2020.