Illinois General Assembly - Bill Status for SB2985

Amends the Title Insurance Act. In the provision concerning definitions, makes changes to the definition of "title insurance agent". Provides that a title insurance agent shall not act as an escrow agent in a real property transaction unless the title insurance agent, title insurance company, or another authorized title insurance agent has committed for the issuance of title insurance and the title insurance agent is authorized to act as an escrow agent on behalf of the title insurance company. Provides that closing protection letters shall indemnify the parties in a real property transaction against actual loss, not to exceed the amount of the settlement funds deposited with the escrow agent, when the loss arises out of certain circumstances. Sets forth the circumstances under which indemnification under a closing protection letter may include limitations on the liability of the title insurance. Provides that a title insurance company shall be liable for the acts or omissions of its title insurance agent as an escrow agent if the title insurance company has authorized the title insurance agent and only to the extent of the liability undertaken by the title insurance company in the agency agreement or closing protection letter. Makes other changes.

Deletes everything after the enacting clause. Reinserts the contents of the bill as introduced with the following changes. Further amends the Title Insurance Act. Makes changes to the definition of "title insurance agent". Provides that if an agency contract between the title insurance company and the title insurance agent is the source of the authority for a title insurance agent to act as escrow agent for a real property transaction, then the agency contract shall provide for no less protection from the title insurance company to all parties to the real property transaction than the title insurance company would have provided to those parties had the title insurance company issued a closing protection letter. Provides that the liability of the title insurance agent to the title insurance company for acts and omissions of the title insurance agent as an escrow agent shall not be limited or modified because the title insurance company has provided closing protection in a real property transaction. Provides that a title insurance company or title insurance agent is not authorized to act as an escrow agent in a real property transaction unless as part of the same transaction a commitment, binder, or title insurance policy and closing protection letters have been issued by the title insurance company. Provides that a title insurance company shall collect a service fee for closing protection. Makes other changes.

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