97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB0141

 

Introduced 1/27/2011, by Sen. Iris Y. Martinez

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 155/14  from Ch. 73, par. 1414
215 ILCS 155/14.1
215 ILCS 155/14.2 new
30 ILCS 105/5.786 new

    Amends the Title Insurance Act. Makes changes to the provision concerning fees paid by title insurance companies and independent escrowees. Creates a special income-earning fund, known as the Title Insurance Consumer Protection Fund, in the State Treasury. Sets forth the fees collected by the Department of Financial and Professional Regulation that shall be deposited in the Fund. Provides that money in the Fund shall be used solely for the purpose of providing restitution to consumers who have suffered monetary loss arising out of a transaction regulated by the Act. Provides that money in the Fund shall be subrogated to the amount of the restitution. Provides that money in the Fund may be transferred to the Professions Indirect Cost Fund. Amends the State Finance Act to create the Title Insurance Consumer Protection Fund. Makes other changes. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning insurance.
 
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 14 and 14.1 and by adding Section 14.2 as follows:
 
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 pay, for all of its
20title insurance agents subject to this Act for filing an annual
21registration of its agents, an amount equal to $3 for each
22policy issued by all of its agents in the immediately preceding
23calendar year.

 

 

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1    (c) Each title insurance company shall pay, on or before
2February 1 of the following year, an amount equal to $3 for
3each policy directly issued by the title insurance company in
4the immediately preceding calendar year.
5(Source: P.A. 93-32, eff. 7-1-03; 94-893, eff. 6-20-06.)
 
6    (215 ILCS 155/14.1)
7    Sec. 14.1. Financial Institutions Fund. All moneys
8received by the Department of Financial and Professional
9Regulation under this Act, except for money received under
10subsection (c) of Section 14 of this Act, shall be deposited in
11the Financial Institutions Fund created under Section 6z-26 of
12the State Finance Act.
13(Source: P.A. 94-893, eff. 6-20-06.)
 
14    (215 ILCS 155/14.2 new)
15    Sec. 14.2. Consumer Protection Fund.
16    (a) A special income-earning fund is hereby created in the
17State treasury, known as the Title Insurance Consumer
18Protection Fund.
19    (b) All money received by the Department under subsection
20(c) of Section 14 of this Act shall be deposited in the Title
21Insurance Consumer Protection Fund created under this Section.
22    (c) All money paid into the Fund together with all
23accumulated undistributed income thereon shall be held as a
24special fund in the State treasury. The Fund shall be used

 

 

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1solely for the purpose of providing restitution to consumers
2who have suffered monetary loss arising out of a transaction
3regulated by this Act.
4    (d) Money in the Fund shall be applied only to restitution
5when restitution has been ordered by the Secretary. Restitution
6must not exceed the amount actually lost by the consumer. Money
7in the Fund may not be used for the payment of attorneys fees
8or other fees.
9    (e) The Fund shall be subrogated to the amount of the
10restitution. The Secretary shall request the Attorney General
11to engage in all reasonable collection steps to collect
12restitution from the party responsible for the loss and
13reimburse the Fund.
14    (f) Notwithstanding any other provisions of this Section,
15the payment of restitution from the Fund shall be a matter of
16grace and not of right. No consumer shall have any vested
17rights in the Fund as a beneficiary or otherwise. Before
18seeking restitution from the Fund, the consumer seeking payment
19of restitution shall apply for restitution on a form provided
20by the Secretary. The form shall include any information the
21Secretary may reasonably require in order to determine that
22restitution is appropriate.
23    (g) Notwithstanding any other provision of this Section,
24money in the Title Insurance Consumer Protection Fund may be
25transferred to the Professions Indirect Cost Fund as authorized
26under Section 2105-300 of the Department of Professional

 

 

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1Regulation Law of the Civil Administrative Code of Illinois.
 
2    Section 90. The State Finance Act is amended by adding
3Section 5.786 as follows:
 
4    (30 ILCS 105/5.786 new)
5    Sec. 5.786. The Title Insurance Consumer Protection Fund.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.