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| 1 | AN ACT concerning regulation.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Title Insurance Act is amended by changing | ||||||
| 5 | Sections 6, 8, and 13 as follows:
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| 6 | (215 ILCS 155/6) (from Ch. 73, par. 1406)
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| 7 | Sec. 6. Reinsurance.
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| 8 | (a) A title insurance company may obtain reinsurance for | ||||||
| 9 | all or
any part of its liability under one or more of its title | ||||||
| 10 | insurance policies
or reinsurance agreements and may also | ||||||
| 11 | reinsure title insurance policies
issued by other title | ||||||
| 12 | insurance companies on risks located in this State
or | ||||||
| 13 | elsewhere. | ||||||
| 14 | (a-5) Notwithstanding any other provision of this Act, a | ||||||
| 15 | title insurance company may obtain reinsurance for all or any | ||||||
| 16 | part of its liability under one or more of its title insurance | ||||||
| 17 | policies from an assuming insurer with a financial strength | ||||||
| 18 | rating of A- or better from A.M. Best Company, Inc., or with an | ||||||
| 19 | alternative rating the Department may approve that the | ||||||
| 20 | Department determines is an equivalent rating by another | ||||||
| 21 | recognized rating organization. | ||||||
| 22 | (b) A title insurance company licensed to do business in | ||||||
| 23 | this State shall retain at least $100,000 of primary liability | ||||||
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| 1 | for policies it issues, unless a lesser sum is authorized by | ||||||
| 2 | the Secretary. A lesser sum may be retained at the request of | ||||||
| 3 | an insured for a particular policy. This subsection (b) applies | ||||||
| 4 | only to policies issued on or after the effective date of this | ||||||
| 5 | amendatory Act of the 94th General Assembly.
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| 6 | (Source: P.A. 94-893, eff. 6-20-06.)
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| 7 | (215 ILCS 155/8) (from Ch. 73, par. 1408)
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| 8 | Sec. 8. Retained liability.
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| 9 | (a) The net retained liability of a title insurance company
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| 10 | for a single risk on property located in this State, whether | ||||||
| 11 | assumed
directly or as reinsurance, may not exceed 50% of the | ||||||
| 12 | total
surplus to policyholders as shown in the most recent | ||||||
| 13 | annual statement of
the title insurance company on file with | ||||||
| 14 | the Department.
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| 15 | (b) The Secretary may waive the limitation of this Section | ||||||
| 16 | for a
particular risk upon application of the title insurance | ||||||
| 17 | company and
for good cause shown.
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| 18 | (Source: P.A. 94-893, eff. 6-20-06.)
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| 19 | (215 ILCS 155/13) (from Ch. 73, par. 1413)
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| 20 | Sec. 13. Annual statement.
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| 21 | (a)
Each title insurance company shall file with the | ||||||
| 22 | Department
during the month of March of each year, a statement | ||||||
| 23 | under oath, of the
condition of such company on the | ||||||
| 24 | thirty-first day of December next
preceding disclosing the | ||||||
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| 1 | assets, liabilities, earnings and expenses of the
company. The | ||||||
| 2 | report shall be in such form and shall contain such additional
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| 3 | statements and information as to the affairs, business, and | ||||||
| 4 | conditions of
the company as the Secretary may from time to | ||||||
| 5 | time prescribe or require. | ||||||
| 6 | (b) By June 1 of each year, a title insurance company must | ||||||
| 7 | file with the Department a copy of its most recent audited | ||||||
| 8 | financial statements.
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| 9 | (c) If determined to be necessary and appropriate by the | ||||||
| 10 | Department, a title insurance company shall provide a summary | ||||||
| 11 | describing its professional reinsurance placed outside of the | ||||||
| 12 | title insurance industry. | ||||||
| 13 | (Source: P.A. 94-893, eff. 6-20-06.)
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