HB5935 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5935

 

Introduced , by Rep. Jeanne M Ives

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 155/21  from Ch. 73, par. 1421

    Amends the Title Insurance Act. Provides that the Secretary of Financial and Professional Regulation may refuse to grant and may suspend or revoke a certificate of authority, registration, or license issued under the Act or impose a fine if the Secretary determines that the holder of or applicant for a certificate of authority, registration, or license is both a holder of a registration as a title insurance agent and an attorney and has acted as the attorney for any party to a real property transaction in which the person has also acted as a registered title insurance agent. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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
5Section 21 as follows:
 
6    (215 ILCS 155/21)  (from Ch. 73, par. 1421)
7    Sec. 21. Regulatory action.
8    (a) The Secretary may refuse to grant, and may suspend or
9revoke, any certificate of authority, registration, or license
10issued pursuant to this Act or may impose a fine for a
11violation of this Act if he determines that the holder of or
12applicant for such certificate, registration or license:
13        (1) has intentionally made a material misstatement or
14    fraudulent misrepresentation in relation to a matter
15    covered by this Act;
16        (2) has misappropriated or tortiously converted to its
17    own use, or illegally withheld, monies held in a fiduciary
18    capacity;
19        (3) has demonstrated untrustworthiness or incompetency
20    in transacting the business of guaranteeing titles to real
21    estate in such a manner as to endanger the public;
22        (4) has materially misrepresented the terms or
23    conditions of contracts or agreements to which it is a

 

 

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1    party;
2        (5) has paid any commissions, discounts or any part of
3    its premiums, fees or other charges to any person in
4    violation of any State or federal law or regulations or
5    opinion letters issued under the federal Real Estate
6    Settlement Procedures Act of 1974;
7        (6) has failed to comply with the deposit and reserve
8    requirements of this Act or any other requirements of this
9    Act;
10        (7) has committed fraud or misrepresentation in
11    applying for or procuring any certificate of authority,
12    registration, or license issued pursuant to this Act;
13        (8) has a conviction or plea of guilty or plea of nolo
14    contendere in this State or any other jurisdiction to (i)
15    any felony or (ii) a misdemeanor, an essential element of
16    which is dishonesty or fraud or larceny, embezzlement, or
17    obtaining money, property, or credit by false pretenses or
18    by means of a confidence game;
19        (9) has been disciplined by another state, the District
20    of Columbia, a territory, foreign nation, a governmental
21    agency, or any entity authorized to impose discipline if at
22    least one of the grounds for that discipline is the same as
23    or equivalent to one of the grounds for which a title
24    insurance company, title insurance agent, or independent
25    escrowee may be disciplined under this Act or if at least
26    one of the grounds for that discipline involves dishonesty;

 

 

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1    a certified copy of the record of the action by the other
2    state or jurisdiction shall be prima facie evidence
3    thereof;
4        (10) has advertising that is inaccurate, misleading,
5    or contrary to the provisions of this Act;
6        (11) has knowingly and willfully made any substantial
7    misrepresentation or untruthful advertising;
8        (12) has made any false promises of a character likely
9    to influence, persuade, or induce;
10        (13) has knowingly failed to account for or remit any
11    money or documents coming into the possession of a title
12    insurance company, title insurance agent, or independent
13    escrowee that belong to others;
14        (14) has engaged in dishonorable, unethical, or
15    unprofessional conduct of a character likely to deceive,
16    defraud, or harm the public;
17        (15) has violated the terms of a disciplinary order
18    issued by the Department;
19        (16) has disregarded or violated any provision of this
20    Act or the published rules adopted by the Department to
21    enforce this Act or has aided or abetted any individual,
22    partnership, registered limited liability partnership,
23    limited liability company, or corporation in disregarding
24    any provision of this Act or the published rules; or
25        (17) has acted as a title insurance company, title
26    insurance agent, or independent escrowee without a

 

 

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1    certificate of authority, registration, or license after
2    the title insurance company, title insurance agent, or
3    independent escrowee's certificate of authority,
4    registration, or license was inoperative; or .
5        (18) is both a holder of a registration as a title
6    insurance agent and an attorney and has acted as the
7    attorney for any party to a real property transaction in
8    which the person has also acted as a registered title
9    insurance agent.
10    (b) In every case where a registration or certificate is
11suspended or revoked, or an application for a registration or
12certificate or renewal thereof is refused, the Secretary shall
13serve notice of his action, including a statement of the
14reasons for his action, as provided by this Act. When a notice
15of suspension or revocation of a certificate of authority is
16given to a title insurance company, the Secretary shall also
17notify all the registered agents of that title insurance
18company of the Secretary's action.
19    (c) In the case of a refusal to issue or renew a
20certificate or accept a registration, the applicant or
21registrant may request in writing, within 30 days after the
22date of service, a hearing. In the case of a refusal to renew,
23the expiring registration or certificate shall be deemed to
24continue in force until 30 days after the service of the notice
25of refusal to renew, or if a hearing is requested during that
26period, until a final order is entered pursuant to such

 

 

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1hearing.
2    (d) The suspension or revocation of a registration or
3certificate shall take effect upon service of notice thereof.
4The holder of any such suspended registration or certificate
5may request in writing, within 30 days of such service, a
6hearing.
7    (e) In cases of suspension or revocation of registration
8pursuant to subsection (a), the Secretary may, in the public
9interest, issue an order of suspension or revocation which
10shall take effect upon service of notification thereof. Such
11order shall become final 60 days from the date of service
12unless the registrant requests in writing, within such 60 days,
13a formal hearing thereon. In the event a hearing is requested,
14the order shall remain temporary until a final order is entered
15pursuant to such hearing.
16    (f) Hearing shall be held at such time and place as may be
17designated by the Secretary either in the City of Springfield,
18the City of Chicago, or in the county in which the principal
19business office of the affected registrant or certificate
20holder is located.
21    (g) The suspension or revocation of a registration or
22certificate or the refusal to issue or renew a registration or
23certificate shall not in any way limit or terminate the
24responsibilities of any registrant or certificate holder
25arising under any policy or contract of title insurance to
26which it is a party. No new contract or policy of title

 

 

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1insurance may be issued, nor may any existing policy or
2contract to title insurance be renewed by any registrant or
3certificate holder during any period of suspension or
4revocation of a registration or certificate.
5    (h) The Secretary may issue a cease and desist order to a
6title insurance company, agent, or other entity doing business
7without the required license or registration, when in the
8opinion of the Secretary, the company, agent, or other entity
9is violating or is about to violate any provision of this Act
10or any law or of any rule or condition imposed in writing by
11the Department.
12    The Secretary may issue the cease and desist order without
13notice and before a hearing.
14    The Secretary shall have the authority to prescribe rules
15for the administration of this Section.
16    If it is determined that the Secretary had the authority to
17issue the cease and desist order, he may issue such orders as
18may be reasonably necessary to correct, eliminate or remedy
19such conduct.
20    Any person or company subject to an order pursuant to this
21Section is entitled to judicial review of the order in
22accordance with the provisions of the Administrative Review
23Law.
24    The powers vested in the Secretary by this Section are
25additional to any and all other powers and remedies vested in
26the Secretary by law, and nothing in this Section shall be

 

 

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1construed as requiring that the Secretary shall employ the
2powers conferred in this Section instead of or as a condition
3precedent to the exercise of any other power or remedy vested
4in the Secretary.
5(Source: P.A. 98-398, eff. 1-1-14.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.