(215 ILCS 155/4)
(from Ch. 73, par. 1404)
(a) Before doing business in the State of Illinois, a
title insurance company must file with and have approved by the Secretary cash or bonds of the
United States, this State or any body politic of this State in amounts as
specified in subsection (b). The deposit is not to be otherwise pledged or subject to distribution among creditors or stockholders until all claims of escrow depositors, claims of policyholders, and claims under reinsurance contracts have been paid in full or discharged, reinsured, or otherwise assumed by a title insurance company authorized to do business under this Act. The cash, bonds, and securities so deposited may be
exchanged for other such securities. No such cash, bond, or security shall be
sold or transferred by the Secretary except on order of the circuit court or
as provided in subsection (d). As long as the company depositing such
securities remains solvent, the company shall be permitted to receive from
the Secretary the interest on such deposit.
(b) The deposit required under subsection (a) must have a then current value of $1,000,000. All deposits shall be held for the benefit of any insured under a policy the title insurance company issued or named party to a written escrow it accepted. The deposit is not to be otherwise pledged or subject to distribution among creditors or stockholders.
(c) The Secretary may provide for custody of the deposits by any trust
company or bank located in this State and qualified to do business under
the Corporate Fiduciary Act, as now or hereafter amended. The
compensation, if any, of such custodian shall be paid by the depositing
company. When the required deposits
have been made by a title insurance
company, the Secretary shall certify that the company has complied with the
provisions of this Section and is authorized to transact the business of
insuring and guaranteeing titles to real estate.
(d) If, at any time, a title insurance company causes all of its
unexpired policies, escrow deposits, and reinsurance obligations in Illinois to be paid in full, cancelled, discharged, reinsured, or otherwise assumed by another title insurance company
authorized to do
business under this Act, the Secretary shall, upon application of the
verified by the oath of its president or secretary and on being satisfied
by an examination of its books and its officers under oath that all of its
policies are paid in full, cancelled, discharged, reinsured, or otherwise assumed, authorize the release of any bond or deposit posted under this Section.
(e) The Secretary may revoke the certificate of authority of a company that fails to maintain the deposit required by this Section. The Secretary shall give notice of that revocation to the company as provided by this Act, and during the time of the revocation, the company may not conduct a title insurance business. A company may complete contractual obligations, such as issuing a policy where the obligations have already been assumed. However, it may not solicit new business, complete new searches or examinations, or close transactions. A revocation shall not be set aside until a good and sufficient deposit has been filed with the Secretary and the company is otherwise in compliance with this Act.
(Source: P.A. 94-893, eff. 6-20-06.)