Illinois General Assembly - Full Text of SB0207
Illinois General Assembly

Previous General Assemblies

Full Text of SB0207  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/17/2021, by Sen. Omar Aquino


See Index

    Amends the Title Insurance Act. Provides that it is unlawful for any person or legal entity to act as or hold itself out to be a title insurance agent without procuring a title insurance license from the Secretary of Financial and Professional Regulation. Provides that every title insurance agent shall pay specified fees. Provides requirements concerning eligibility for title insurance licensure. Grants the Department of Financial and Professional Regulation rulemaking authority for alternate methods of obtaining errors and omissions insurance. Provides requirements concerning rate and service fee filing requirements. Provides that the Secretary shall examine rating organizations at least once every 5 years. Provides that the Secretary may impose a penalty of not more than $5,000 for willful violations of the Act. Provides that the Secretary shall submit a report to the Governor and General Assembly no later than January 1, 2027 regarding separate filings for multiple geographic zones. Provides grounds by which the Secretary may refuse to grant, or suspend or revoke any license issued under the Act or impose a fine. Repeals a provision concerning the Secretary's authority to adjust certain fees. Makes other changes. Effective immediately, except the provisions concerning rate and service fee filing requirements take effect September 1, 2022.

LRB102 13076 BMS 18419 b






SB0207LRB102 13076 BMS 18419 b

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
5Sections 3, 5, 12, 14, 16, 18, and 21 and by adding Section
618.2 as follows:
7    (215 ILCS 155/3)  (from Ch. 73, par. 1403)
8    Sec. 3. As used in this Act, the words and phrases
9following shall have the following meanings unless the context
10requires otherwise:
11    (1) "Title insurance business" or "business of title
12insurance" means:
13        (A) Issuing as insurer or offering to issue as insurer
14    title insurance; and
15        (B) Transacting or proposing to transact one or more
16    of the following activities when conducted or performed in
17    contemplation of or in conjunction with the issuance of
18    title insurance;
19            (i) soliciting or negotiating the issuance of
20        title insurance;
21            (ii) guaranteeing, warranting, or otherwise
22        insuring the correctness of title searches for all
23        instruments affecting titles to real property, any



SB0207- 2 -LRB102 13076 BMS 18419 b

1        interest in real property, cooperative units and
2        proprietary leases, and for all liens or charges
3        affecting the same;
4            (iii) handling of escrows, settlements, or
5        closings;
6            (iv) executing title insurance policies;
7            (v) effecting contracts of reinsurance;
8            (vi) abstracting, searching, or examining titles;
9        or
10            (vii) issuing insured closing letters or closing
11        protection letters;
12        (C) Guaranteeing, warranting, or insuring searches or
13    examinations of title to real property or any interest in
14    real property, with the exception of preparing an
15    attorney's opinion of title; or
16        (D) Guaranteeing or warranting the status of title as
17    to ownership of or liens on real property and personal
18    property by any person other than the principals to the
19    transaction; or
20        (E) Doing or proposing to do any business
21    substantially equivalent to any of the activities listed
22    in this subsection, provided that the preparation of an
23    attorney's opinion of title pursuant to paragraph (1)(C)
24    is not intended to be within the definition of "title
25    insurance business" or "business of title insurance".
26    (1.5) "Title insurance" means insuring, guaranteeing,



SB0207- 3 -LRB102 13076 BMS 18419 b

1warranting, or indemnifying owners of real or personal
2property or the holders of liens or encumbrances thereon or
3others interested therein against loss or damage suffered by
4reason of liens, encumbrances upon, defects in, or the
5unmarketability of the title to the property; the invalidity
6or unenforceability of any liens or encumbrances thereon; or
7doing any business in substance equivalent to any of the
8foregoing. "Warranting" for purpose of this provision shall
9not include any warranty contained in instruments of
10encumbrance or conveyance. Title insurance is a single line
11form of insurance, also known as monoline. An attorney's
12opinion of title pursuant to paragraph (1)(C) is not intended
13to be within the definition of "title insurance".
14    (2) "Title insurance company" means any domestic company
15organized under the laws of this State for the purpose of
16conducting the business of title insurance and any title
17insurance company organized under the laws of another State,
18the District of Columbia or foreign government and authorized
19to transact the business of title insurance in this State.
20    (3) "Title insurance agent" means a person, firm,
21partnership, association, corporation, or other legal entity
22licensed under this Act registered by a title insurance
23company and authorized by a title insurance such company to
24determine insurability of title in accordance with generally
25acceptable underwriting rules and standards in reliance on
26either the public records or a search package prepared from a



SB0207- 4 -LRB102 13076 BMS 18419 b

1title plant, or both, and authorized by such title insurance
2company in addition to do any of the following: act as an
3escrow agent pursuant to subsections (f), (g), and (h) of
4Section 16 of this Act, solicit title insurance, collect
5premiums, or issue title insurance commitments, policies, and
6endorsements of the title insurance company; provided,
7however, the term "title insurance agent" shall not include
8officers and salaried employees of any title insurance
10    (4) "Producer of title business" is any person, firm,
11partnership, association, corporation or other legal entity
12engaged in this State in the trade, business, occupation or
13profession of (i) buying or selling interests in real
14property, (ii) making loans secured by interests in real
15property, or (iii) acting as broker, agent, attorney, or
16representative of natural persons or other legal entities that
17buy or sell interests in real property or that lend money with
18such interests as security.
19    (5) "Associate" is any firm, association, partnership,
20corporation or other legal entity organized for profit in
21which a producer of title business is a director, officer, or
22partner thereof, or owner of a financial interest, as defined
23herein, in such entity; any legal entity that controls, is
24controlled by, or is under common control with a producer of
25title business; and any natural person or legal entity with
26whom a producer of title business has any agreement,



SB0207- 5 -LRB102 13076 BMS 18419 b

1arrangement, or understanding or pursues any course of conduct
2the purpose of which is to evade the provisions of this Act.
3    (6) "Financial interest" is any ownership interest, legal
4or beneficial, of more than 1% in a privately held or except
5ownership of publicly traded company stock.
6    (7) "Refer" means to place or cause to be placed, or to
7exercise any power or influence over the placing of title
8business, whether or not the consent or approval of any other
9person is sought or obtained with respect to the referral.
10    (8) "Escrow Agent" means any title insurance company or
11any title insurance agent, including independent contractors
12of either, acting on behalf of a title insurance company,
13which receives deposits, in trust, of funds or documents, or
14both, for the purpose of effecting the sale, transfer,
15encumbrance or lease of real property to be held by such escrow
16agent until title to the real property that is the subject of
17the escrow is in a prescribed condition. An escrow agent
18conducting closings shall be subject to the provisions of
19paragraphs (1) through (4) of subsection (e) of Section 16 of
20this Act.
21    (9) "Independent Escrowee" means any firm, person,
22partnership, association, corporation or other legal entity,
23other than a title insurance company or a title insurance
24agent, which receives deposits, in trust, of funds or
25documents, or both, for the purpose of effecting the sale,
26transfer, encumbrance or lease of real property to be held by



SB0207- 6 -LRB102 13076 BMS 18419 b

1such escrowee until title to the real property that is the
2subject of the escrow is in a prescribed condition. Federal
3and State chartered banks, savings and loan associations,
4credit unions, mortgage bankers, banks or trust companies
5authorized to do business under the Illinois Corporate
6Fiduciary Act, licensees under the Consumer Installment Loan
7Act, real estate brokers licensed pursuant to the Real Estate
8License Act of 2000, as such Acts are now or hereafter amended,
9and licensed attorneys when engaged in the attorney-client
10relationship are exempt from the escrow provisions of this
11Act. "Independent Escrowee" does not include employees or
12independent contractors of a title insurance company or title
13insurance agent authorized by a title insurance company to
14perform closing, escrow, or settlement services.
15    (10) "Single risk" means the insured amount of any title
16insurance policy, except that where 2 or more title insurance
17policies are issued simultaneously covering different estates
18in the same real property, "single risk" means the sum of the
19insured amounts of all such title insurance policies. Any
20title insurance policy insuring a mortgage interest, a claim
21payment under which reduces the insured amount of a fee or
22leasehold title insurance policy, shall be excluded in
23computing the amount of a single risk to the extent that the
24insured amount of the mortgage title insurance policy does not
25exceed the insured amount of the fee or leasehold title
26insurance policy.



SB0207- 7 -LRB102 13076 BMS 18419 b

1    (11) "Department" means the Department of Financial and
2Professional Regulation.
3    (12) "Secretary" means the Secretary of Financial and
4Professional Regulation.
5    (13) "Insured closing letter" or "closing protection
6letter" means an indemnification or undertaking to a party to
7a real property transaction, from a principal such as a title
8insurance company, setting forth in writing the extent of the
9principal's responsibility for intentional misconduct or
10errors in closing the real property transaction on the part of
11a settlement agent, such as a title insurance agent or other
12settlement service provider, or an indemnification or
13undertaking given by a title insurance company or an
14independent escrowee setting forth in writing the extent of
15the title insurance company's or independent escrowee's
16responsibility to a party to a real property transaction which
17indemnifies the party against the intentional misconduct or
18errors in closing the real property transaction on the part of
19the title insurance company or independent escrowee and
20includes protection afforded pursuant to subsections (f), (g),
21and (h) of Section 16, Section 16.1, subsection (h) of Section
2217, and Section 17.1 of this Act even if such protection is
23afforded by contract.
24    (14) "Residential real property" means a building or
25buildings consisting of one to 4 residential units or a
26residential condominium unit where at least one of the



SB0207- 8 -LRB102 13076 BMS 18419 b

1residential units or condominium units is occupied or intended
2to be occupied as a residence by the purchaser or borrower, or
3in the event that the purchaser or borrower is the trustee of a
4trust, by a beneficiary of that trust.
5    (15) "Financial institution" means any bank subject to the
6Illinois Banking Act, any savings and loan association subject
7to the Illinois Savings and Loan Act of 1985, any savings bank
8subject to the Savings Bank Act, any credit union subject to
9the Illinois Credit Union Act, and any federally chartered
10commercial bank, savings and loan association, savings bank,
11or credit union organized and operated in this State pursuant
12to the laws of the United States.
13    (16) "Core title services" means to: (i) determine
14insurability of title, which includes title examination and
15title clearance; and (ii) issue, or cause to issue, title
16insurance commitments, policies, and endorsements.
17    (17) "Multi-state licensing system" means a web-based
18platform that allows an applicant to submit his or her
19application or license renewal application to the Department
21(Source: P.A. 100-485, eff. 9-8-17.)
22    (215 ILCS 155/5)  (from Ch. 73, par. 1405)
23    Sec. 5. Certificate of authority required to engage in
24activities under this Act.
25    (a) It is unlawful for any company to engage or to continue



SB0207- 9 -LRB102 13076 BMS 18419 b

1in the business of title insurance without first procuring
2from the Secretary a certificate of authority stating that the
3company has complied with the requirements of Section 4 of
4this Act. An insurer that transacts any class of insurance
5other than title insurance anywhere in the United States is
6not eligible for the issuance of a certificate of authority to
7transact title insurance in this State nor for a renewal of a
8certificate of authority.
9    (b) It is unlawful for any person, firm, partnership,
10association, corporation, or other legal entity to act as or
11hold itself out to be a title insurance agent without first
12procuring from the Secretary a license subject to the
13conditions of Section 16.
14    (c) As used in this Act, the terms "license" and
15"certificate of authority" have the same meaning.
16(Source: P.A. 94-893, eff. 6-20-06.)
17    (215 ILCS 155/12)  (from Ch. 73, par. 1412)
18    Sec. 12. Examinations; compliance.
19    (a) The Secretary or his authorized representative shall
20have the power and authority, and it shall be his duty, to
21cause to be visited and examined annually any title insurance
22company doing business under this Act, and to verify and
23compel compliance with the provisions of law governing it.
24    (b) The Secretary or his authorized representative agent
25shall have power and authority to compel compliance with the



SB0207- 10 -LRB102 13076 BMS 18419 b

1provisions of this Act and may visit and shall, only upon the
2showing of good cause, require a title insurance agent or
3independent escrowee to make appropriate records any title
4insurance company to take all legal means to obtain the
5appropriate records of its registered agents and make them
6available for examination at a time and place designated by
7the Secretary. Expenses incurred in the course of such
8examinations will be the responsibility of the title insurance
9company. In the event that a present or former registered
10agent or its successor refuses or is unable to cooperate with a
11title insurance company in furnishing the records requested by
12the Secretary or his or her authorized agent, then the
13Secretary or his or her authorized agent shall have the power
14and authority to obtain those records directly from the
15registered agent.
16    (c) The Secretary or the Secretary's authorized
17representative shall have power and authority to compel an
18independent escrowee's compliance with the provisions of this
19Act pursuant to subsection (f) of Section 17.
20(Source: P.A. 94-893, eff. 6-20-06.)
21    (215 ILCS 155/14)  (from Ch. 73, par. 1414)
22    Sec. 14. Fees.
23    (a) Every title insurance company and every independent
24escrowee subject to this Act shall pay the following fees:
25        (1) for filing the original application for a



SB0207- 11 -LRB102 13076 BMS 18419 b

1    certificate of authority and receiving the deposit
2    required under this Act, $500;
3        (2) for the certificate of authority, $10;
4        (3) for every copy of a paper filed in the Department
5    under this Act, $1 per folio;
6        (4) for affixing the seal of the Department and
7    certifying a copy, $2; and
8        (5) for filing the annual statement, $50.
9    (b) Each title insurance company shall remit, for all of
10its title insurance agents subject to this Act for filing an
11annual registration of its agents, an amount equal to $3 for
12each policy issued by all of its title insurance agents in the
13immediately preceding calendar year.
14    (c) Every title insurance agent subject to this Act shall
15pay the following fees:
16        (1) for a resident of the State, filing the original
17    application for a certification of authority and for the
18    certificate of authority, $80;
19        (2) for a nonresident of the State, filing the
20    original application for a certification of authority and
21    for the certificate of authority, $120;
22        (3) for a resident or nonresident of the State, filing
23    for renewal of a certificate of authority, $80; and
24        (4) for a resident or nonresident of the State, filing
25    for reinstatement of a lapsed certificate of authority,
26    $120.



SB0207- 12 -LRB102 13076 BMS 18419 b

1(Source: P.A. 99-104, eff. 1-1-16.)
2    (215 ILCS 155/16)  (from Ch. 73, par. 1416)
3    Sec. 16. Title insurance agents.
4    (a) No person, firm, partnership, association,
5corporation, or other legal entity shall act as or hold itself
6out to be a title insurance agent unless it is authorized to
7perform core title services duly registered by a title
8insurance company and has a license from with the Secretary.
9Every title insurance agent registration issued before or
10after the effective date of this amendatory Act of the 102nd
11General Assembly shall satisfy the requirements for a license
12under this amendatory Act of the 102nd General Assembly until
13January 1 of the calendar year immediately following the
14adoption of such rules that the Secretary shall adopt as may be
15necessary for the administration of granting of the license
16for title insurance agents under this amendatory Act of the
17102nd General Assembly and until the related application is
18either approved or disapproved; the continued recognition of
19such title insurance agent registrations during this period
20does not relieve title insurance agents and title insurance
21companies of their other obligations under this Act before the
22effective date of this amendatory Act of the 102nd General
24    (b) Each application for a license registration shall be
25made on a form specified by the Secretary and prepared by each



SB0207- 13 -LRB102 13076 BMS 18419 b

1title insurance company which the agent represents. The title
2insurance company shall retain the copy of the application and
3forward a copy to the Secretary. The Secretary may require
4participation in a third-party, multi-state licensing system
5for licensing under this Act. The third-party, multi-state
6licensing system may share regulatory information and maintain
7records in compliance with the provisions of this Act. The
8third-party, multi-state licensing system may charge an
9administration fee. The title insurance agent licensing fees
10that are set forth in Section 14 shall be paid by the title
11insurance agent to the Department.
12    (c) License applications shall comply with the following:
13        (1) Every applicant for a license registration, except
14    a firm, partnership, association, limited liability
15    company, or corporation, must be 18 years or more of age.
16        (2) Every applicant for a license that is a firm,
17    partnership, association, corporation, or other legal
18    entity shall designate and name at least one individual
19    who: (i) has a financial interest in the licensee; and
20    (ii) is authorized by at least one title insurance company
21    to determine insurability of title.
22        (3) Included in every application for a license
23    registration of a title insurance agent, including a firm,
24    partnership, association, limited liability company, or
25    corporation, shall be an affidavit of the applicant title
26    insurance agent, signed and notarized in front of a notary



SB0207- 14 -LRB102 13076 BMS 18419 b

1    public, affirming that the applicant and every owner,
2    officer, director, principal, member, or manager of the
3    applicant has never been convicted or pled guilty to any
4    felony or misdemeanor involving a crime of theft or
5    dishonesty or otherwise accurately disclosing any such
6    felony or misdemeanor involving a crime of theft or
7    dishonesty. No person who has had a conviction or pled
8    guilty to any felony or misdemeanor involving theft or
9    dishonesty may be appointed registered by a title
10    insurance company without a written notification to the
11    Secretary disclosing the conviction or plea, and no such
12    person may serve as an owner, officer, director,
13    principal, or manager of any registered title insurance
14    agent without the written permission of the Secretary.
15        (4) Every applicant shall obtain and maintain errors
16    and omissions insurance or its equivalent, such as
17    malpractice insurance covering title insurance agent
18    services, in an amount acceptable to the title insurance
19    company authorizing the agent, but in no event in an
20    amount less than $250,000 per claim and less than an
21    aggregate limit of $500,000 with a deductible in an amount
22    acceptable to the title insurance company appointing the
23    agent. A title insurance company shall not provide the
24    insurance directly or indirectly on behalf of a title
25    insurance agent. If errors and omissions insurance is
26    unavailable generally, the Department shall adopt rules



SB0207- 15 -LRB102 13076 BMS 18419 b

1    for alternative methods to comply with this paragraph (4).
2    (d) A license Registration shall be renewed by February 1
3every 2 years made annually by a filing with the Secretary or
4other methods utilizing a third-party, multi-state licensing
5system as determined by the Secretary through the adoption of
6rules; supplemental filings registrations for a new agency
7agreement with a title insurance company agents to be added
8between license renewal annual filings shall be made from time
9to time in the manner provided by the Secretary; licenses
10registrations shall remain in effect unless revoked or
11suspended by the Secretary or voluntarily withdrawn by the
12title insurance agent registrant or the title insurance agent
13no longer has any agency agreement with a title insurance
15    (e) Funds deposited in connection with any escrows,
16settlements, or closings shall be deposited in a separate
17fiduciary trust account or accounts in a bank or other
18financial institution insured by an agency of the federal
19government unless the instructions provide otherwise. The
20funds shall be the property of the person or persons entitled
21thereto under the provisions of the escrow, settlement, or
22closing and shall be segregated by escrow, settlement, or
23closing in the records of the escrow agent. The funds shall not
24be subject to any debts of the escrowee and shall be used only
25in accordance with the terms of the individual escrow,
26settlement, or closing under which the funds were accepted.



SB0207- 16 -LRB102 13076 BMS 18419 b

1    Interest received on funds deposited with the escrow agent
2in connection with any escrow, settlement, or closing shall be
3paid to the depositing party unless the instructions provide
5    The escrow agent shall maintain separate records of all
6receipts and disbursements of escrow, settlement, or closing
8    The escrow agent shall comply with any rules adopted by
9the Secretary pertaining to escrow, settlement, or closing
11    (f) A title insurance agent shall not act as an escrow
12agent in a nonresidential real property transaction where the
13amount of settlement funds on deposit with the escrow agent is
14less than $2,000,000 or in a residential real property
15transaction unless the title insurance agent, title insurance
16company, or another authorized title insurance agent has
17committed for the issuance of title insurance in that
18transaction and the title insurance agent is authorized to act
19as an escrow agent on behalf of the title insurance company for
20which the commitment for title insurance has been issued. The
21authorization under the preceding sentence shall be given
22either (1) by an agency contract with the title insurance
23company which contract, in compliance with the requirements
24set forth in subsection (g) of this Section, authorizes the
25title insurance agent to act as an escrow agent on behalf of
26the title insurance company or (2) by a closing protection



SB0207- 17 -LRB102 13076 BMS 18419 b

1letter in compliance with the requirements set forth in
2Section 16.1 of this Act, issued by the title insurance
3company to the seller, buyer, borrower, and lender. A closing
4protection letter shall not be issued by a title insurance
5agent. The provisions of this subsection (f) shall not apply
6to the authority of a title insurance agent to act as an escrow
7agent under subsection (g) of Section 17 of this Act.
8    (g) If an agency contract between the title insurance
9company and the title insurance agent is the source of the
10authority under subsection (f) of this Section for a title
11insurance agent to act as escrow agent for a real property
12transaction, then the agency contract shall provide for no
13less protection from the title insurance company to all
14parties to the real property transaction than the title
15insurance company would have provided to those parties had the
16title insurance company issued a closing protection letter in
17conformity with Section 16.1 of this Act.
18    (h) A title insurance company shall be liable for the acts
19or omissions of its title insurance agent as an escrow agent if
20the title insurance company has authorized the title insurance
21agent under subsections (f) and (g) of this Section 16 and only
22to the extent of the liability undertaken by the title
23insurance company in the agency agreement or closing
24protection letter. The liability, if any, of the title
25insurance agent to the title insurance company for acts and
26omissions of the title insurance agent as an escrow agent



SB0207- 18 -LRB102 13076 BMS 18419 b

1shall not be limited or otherwise modified because the title
2insurance company has provided closing protection to a party
3or parties to a real property transaction escrow, settlement,
4or closing. The escrow agent shall not charge a fee for
5protection provided by a title insurance company to parties to
6real property transactions under subsections (f) and (g) of
7this Section 16 and Section 16.1, but shall collect from the
8parties the fee charged by the title insurance company and
9shall promptly remit the fee to the title insurance company.
10The title insurance company may charge the parties a
11reasonable fee for protection provided pursuant to subsections
12(f) and (g) of this Section 16 and Section 16.1 and shall not
13pay any portion of the fee to the escrow agent. The payment of
14any portion of the fee to the escrow agent by the title
15insurance company, shall be deemed a prohibited inducement or
16compensation in violation of Section 24 of this Act.
17    (i) The Secretary shall adopt and amend such rules as may
18be required for the proper administration and enforcement of
19this Section 16 consistent with the federal Real Estate
20Settlement Procedures Act and Section 24 of this Act.
21(Source: P.A. 98-398, eff. 1-1-14; 98-832, eff. 1-1-15;
2299-104, eff. 1-1-16.)
23    (215 ILCS 155/18)  (from Ch. 73, par. 1418)
24    Sec. 18. Disclosure of financial interests No referral
25payments; kickbacks.



SB0207- 19 -LRB102 13076 BMS 18419 b

1    (a) Application of this Section is limited to residential
2properties of 4 or fewer units, at least one of which units is
3occupied or to be occupied by an owner, legal or beneficial.
4    (b) No title insurance company, independent escrowee, or
5title insurance agent may issue a title insurance policy to,
6or provide services to an applicant if it knows or has reason
7to believe that the applicant was referred to it by any
8producer of title business or by any associate of such
9producer, where the producer, the associate, or both, have a
10financial interest in the title insurance company, independent
11escrowee, or title insurance agent to which business is
12referred unless the producer has disclosed to any party paying
13for the products or services, or his representative, the
14financial interest of the producer of title business or
15associate referring the title business and a disclosure of an
16estimate of those charges to be paid as described in Section
1719. Such disclosure must be made in writing on forms
18prescribed by the Secretary prior to the time that the
19commitment for title insurance is issued. The title insurance
20company, independent escrowee, or title insurance agent shall
21maintain the disclosure forms for a period of 3 years.
22    (c) Each title insurance company, independent escrowee,
23and title insurance agent shall file with the Secretary, on
24forms prescribed by the Secretary, reports setting forth the
25names and addresses of those persons, if any, who have had a
26financial interest in the title insurance company, independent



SB0207- 20 -LRB102 13076 BMS 18419 b

1escrowee, or title insurance agent during the calendar year,
2who are known or reasonably believed by the title insurance
3company, independent escrowee, or title insurance agent to be
4producers of title business or associates of producers.
5        (1) Each title insurance company and independent
6    escrowee shall file the report required under this
7    subsection with its application for a certificate of
8    authority and at any time there is a change in the
9    information provided in the last report.
10        (2) Each title insurance agent shall file the report
11    required under this subsection with its title insurance
12    company for inclusion with its application for
13    registration and at any time there is a change in the
14    information provided in its last report.
15        (3) Each title insurance company, independent
16    escrowee, or title insurance agent doing business on the
17    effective date of this Act shall file the report required
18    under this subsection within 90 days after such effective
19    date.
20(Source: P.A. 94-893, eff. 6-20-06.)
21    (215 ILCS 155/18.2 new)
22    Sec. 18.2. Rate and service fee filings.
23    (a) Rate and service fee filing requirements.
24        (1) For every rate and fee intended to be charged to
25    the parties to a transaction subject to this Act, every



SB0207- 21 -LRB102 13076 BMS 18419 b

1    title insurance company and independent escrowee shall
2    file with the Secretary every manual of classifications,
3    forms, specification of services, character and extent of
4    the coverage contemplated, schedules of rates and fees,
5    and every modification of any of the foregoing, which
6    includes, but is not limited to: owner's policy premium,
7    loan policy premium, endorsement charges, additional or
8    special charges, closing fees, escrow fees, settlement
9    fees, closing protection letter fees subject to Section
10    16.1, and like charges.
11        (2) The Secretary shall review filings as may be
12    necessary to carry out the provisions of this Act and
13    shall either approve or disapprove a filing or any part of
14    a filing within 30 days after it is filed. Within the
15    30-day period, the Secretary may, upon written notice to a
16    person designated by the entity making the filing, extend
17    the period no more than 30 days to enable the Secretary to
18    complete the review of the filing. Further extensions may
19    be made only with the consent of the title insurance
20    company or rating organization making the filing. Upon
21    written application by the title insurance company or
22    rating organization making the filing, the Secretary may
23    approve any part of a filing to become effective before
24    other parts of the filing.
25        (3) If the Secretary finds that the filing or a part of
26    the filing does not meet the requirements of this Act, the



SB0207- 22 -LRB102 13076 BMS 18419 b

1    Secretary shall issue an order specifying in what respects
2    it fails to meet the requirements of this Act. Copies of
3    the order shall be sent to every such title insurance
4    company and rating organization.
5        (4) A title insurance company may satisfy its
6    obligations under this Act to make rate and fee filings by
7    becoming a member of, or a subscriber to, a licensed
8    rating organization that makes rate and fee filings and by
9    authorizing the Secretary to accept rate and fee filings
10    on its behalf. A title insurance agent may become an
11    affiliate, non-voting member of a rating organization
12    based on the requirements and rights set forth by the
13    rating organization.
14    (b) Justification and administration of rates and fees. A
15rate filing shall be accompanied by a statement of the title
16insurance company or rating organization making the filing
17setting forth the basis upon which the rate was fixed and the
18fees are to be computed.
19        (1) Any filing may be justified by:
20            (A) the experience or judgment of the title
21        insurance company or rating organization making the
22        filing;
23            (B) the experience of other title insurance
24        companies or rating organizations; or
25            (C) any other factors that the title insurance
26        company or rating organization deems relevant.



SB0207- 23 -LRB102 13076 BMS 18419 b

1        (2) In making rates, due consideration shall be given
2    to past and prospective loss experience, exposure to loss,
3    underwriting practice and judgment, past and prospective
4    expenses incurred by title insurance companies and their
5    title insurance agents, a reasonable margin for profit and
6    contingencies by title insurance companies and their title
7    insurance agents, and to all other relevant factors both
8    within and outside of this State.
9        (3) Rates shall not be inadequate or unfairly
10    discriminatory nor shall rates be excessive such as to
11    permit title insurance companies and their title insurance
12    agents to earn a greater profit, after payment of all
13    taxes upon all income, than is necessary to enable them to
14    earn over the years sufficient amounts to pay their actual
15    expenses and losses arising in the conduct of their title
16    insurance business plus a reasonable profit. The systems
17    of expense provisions and the amount of expense charged
18    against each class of contract or policy may vary between
19    title insurance companies. Rates may, in the discretion of
20    any title insurance company, be less than the cost of
21    performing the work in the case of smaller insurances, and
22    the excess may be charged against the larger insurances
23    without rendering the rates unfairly discriminatory.
24        (4) If ascertaining the estimated future earnings of
25    title insurance companies and their title insurance
26    agents, the Secretary shall utilize a properly weighted



SB0207- 24 -LRB102 13076 BMS 18419 b

1    cross section of title insurance companies and their title
2    insurance agents operating in this State and shall give
3    due consideration to the following matters:
4            (A) the average rates of profit after payment of
5        taxes on all income earned by other comparable
6        industry generally;
7            (B) the desirability for stability of a rate
8        structure;
9            (C) the necessity of insuring through growth in
10        assets in times of high business activity and the
11        financial solvency of title insurance companies and
12        their title insurance agents in times of economic
13        depression; and
14            (D) the necessity for earning sufficient dividends
15        on the stock, or its equivalent, to induce capital to
16        be invested in title insurance companies and their
17        title insurance agents.
18        (5) The Secretary shall adopt rules adapted to each of
19    the rating systems on file with the Secretary, which may
20    be modified from time to time, and that shall be used by
21    each title insurance company in the recording and
22    reporting of the composition of its business, its loss and
23    countrywide expense experience, and the experience of its
24    title insurance underwriters in order that the experience
25    of all title insurance companies may be made available, at
26    least annually, in such form and detail as may be



SB0207- 25 -LRB102 13076 BMS 18419 b

1    necessary to aid the Secretary in determining whether
2    rating systems comply with the standards set forth in this
3    Act. The rules and plans may also provide for the
4    recording and reporting of expense experience items that
5    are applicable to this State and are not susceptible of
6    determination by a prorating of countrywide expense
7    experience. In adopting the rules and plans, the Secretary
8    shall give due consideration to the rating systems on file
9    with the Secretary and, in order that the rules and plans
10    may be as uniform as is practicable among the several
11    states, to the rules and to form of the plans used for such
12    rating systems in other states. The rules and plans shall
13    not place an unreasonable burden of expense on any title
14    insurance company.
15        (6) Reasonable rules and plans may be adopted by the
16    Secretary for the interchange of data necessary for the
17    application of rating plans. No title insurance company
18    shall be required to record or report its expense and loss
19    experience on a classification basis that is inconsistent
20    with the rating system filed by it nor shall any title
21    insurance company be required to report its experience to
22    any rating organization of which it is not a member or
23    subscriber. The Secretary may otherwise designate one or
24    more rating organizations or other agencies to assist the
25    Secretary in gathering such experience and making
26    compilations, and these compilations shall be made



SB0207- 26 -LRB102 13076 BMS 18419 b

1    available in a manner not inconsistent with this Section,
2    subject to reasonable rules adopted by the Secretary, to
3    title insurance companies and rating organizations.
4        (7) In order to further uniform administration of rate
5    regulatory laws, the Secretary and every title insurance
6    company and rating organization may exchange information
7    and experience data with title insurance supervisory
8    officials, title insurance companies, and title insurance
9    rating organizations in other states and may consult with
10    them with respect to rate making and the application of
11    rating systems.
12    (c) Rating organizations.
13        (1) A corporation, an unincorporated association, a
14    partnership, or an individual, whether located within or
15    outside this State, may make application to the Secretary
16    for a license as a rating organization for title insurance
17    companies.
18            (A) An entity seeking a license as a rating
19        organization shall file: (i) a copy of its
20        constitution, its articles of agreement or association
21        or its certificate of incorporation, and its bylaws,
22        rules, and regulations governing the conduct of its
23        business; (ii) a list of its members and subscribers;
24        (iii) the name and address of a resident of this State
25        upon whom notices or orders of the Secretary or
26        process affecting such rating organization may be



SB0207- 27 -LRB102 13076 BMS 18419 b

1        served; and (iv) a statement of its qualifications as
2        a rating organization.
3            (B) If the Secretary finds that the applicant is
4        competent, trustworthy, and otherwise qualified to act
5        as a rating organization and that its constitution,
6        articles of agreement or association or certificate of
7        incorporation, and its bylaws, rules, and regulations
8        governing the conduct of its business conforms to the
9        requirements of law, the Secretary shall issue a
10        license authorizing the applicant to act as a rating
11        organization for title insurance. Every such
12        application shall be granted or denied in whole or in
13        part by the Secretary within 60 days after the date of
14        its filing. Licenses issued under this Section shall
15        remain in effect for 3 years unless sooner suspended
16        or revoked by the Secretary or withdrawn by the
17        licensee. The fee for the license shall be $25.
18        Licenses issued under this Section may be suspended or
19        revoked by the Secretary, after hearing upon notice,
20        if the rating organization ceases to meet the
21        requirements of this subsection (c).
22            (C) Every rating organization shall notify the
23        Secretary promptly of every change in: (i) its
24        constitution, its articles of agreement or association
25        or its certificate of incorporation, and its bylaws,
26        rules, and regulations governing the conduct of its



SB0207- 28 -LRB102 13076 BMS 18419 b

1        business; (ii) its list of members and subscribers;
2        and (iii) the name and address of the resident of this
3        State designated by it upon whom notices or orders of
4        the Secretary or process affecting such rating
5        organization may be served.
6        (2) Subject to rules adopted by the Secretary, each
7    rating organization shall permit any title insurance
8    company not a member to be a subscriber to its rating
9    services, and a title insurance agent may become an
10    affiliate, non-voting member of a rating organization
11    based on the requirements and rights set forth by the
12    rating organization. Each rating organization shall
13    furnish its rating services without discrimination to its
14    members, subscribers, and affiliates. The furnishing of
15    rating services without discrimination to its members,
16    subscribers, and affiliates, or the refusal of any rating
17    organization to admit a subscriber or affiliate, shall, at
18    the request of any subscriber or any such title insurance
19    company or affiliate, be reviewed by the Secretary at a
20    hearing held upon at least 10 days' written notice to the
21    rating organization and to the subscriber or title
22    insurance company. If the Secretary finds that the actions
23    of the rating organization were discriminatory, the
24    Secretary shall order that the actions cease. If the
25    rating organization fails to grant or reject an
26    application for subscriber or affiliate status within 30



SB0207- 29 -LRB102 13076 BMS 18419 b

1    days after it was made, the title insurance company may
2    request a review by the Secretary as if the application
3    had been rejected. If the Secretary finds that the title
4    insurance company has been refused admittance to the
5    rating organization as a subscriber without justification,
6    the Secretary shall order the rating organization to admit
7    the title insurance company as a subscriber. If the
8    Secretary finds that the action of the rating organization
9    was justified, the Secretary shall make an order affirming
10    its action.
11        (3) Cooperation among rating organizations, or among
12    rating organizations and title insurance companies, and
13    concert of action among title insurance companies under
14    the same general management and control in rate making or
15    in other matters within the scope of this Act is hereby
16    authorized, provided that the filings are subject to all
17    the provisions of this Act that are applicable to filings
18    generally. The Secretary may review the activities and
19    practices and if, after a hearing, the Secretary finds
20    that any such activity or practice is unfair or
21    unreasonable or otherwise inconsistent with the provisions
22    of this Act, the Secretary may issue a written order
23    specifying in what respects the activity or practice is
24    unfair or unreasonable or otherwise inconsistent with the
25    provisions of this Act and requiring the discontinuance of
26    the activity or practice.



SB0207- 30 -LRB102 13076 BMS 18419 b

1    (d) Deviations. Every member of or subscriber to a rating
2organization shall adhere to the filings made on its behalf by
3such organization, except that any title insurance company
4that is a member of or subscriber to a rating organization may
5file with the Secretary a decrease or increase to be applied to
6any or all elements of the fees produced by the rating system
7so filed for a class of title insurance that is found by the
8Secretary to be a proper rating unit for the application of the
9uniform decrease or increase or to be applied to the rates for
10a particular area. A deviation filing shall specify the basis
11for the modification and shall be accompanied by the data or
12historical pattern upon which the applicant relies. A copy of
13the filing and data shall be sent simultaneously to the rating
14organization. Any deviation filing shall be on file for a
15waiting period of 30 days before it becomes effective. The
16Secretary shall make the review of the deviation filing as may
17be necessary to carry out the provisions of this Act and either
18approve or disapprove the filing or any part of the filing,
19including the proposed effective date. Extension of the
20waiting period may be made in the same manner that the period
21is extended in the case of rate filings. Upon written
22application of the person making the filing, the Secretary may
23authorize a deviation filing or any part of the filing to
24become effective before the expiration of the waiting period
25or any extension. Deviation filings shall be subject to the
26provisions of paragraph (3) of subsection (a). Each deviation



SB0207- 31 -LRB102 13076 BMS 18419 b

1shall be effective for at least one year after the date the
2deviation is approved unless terminated sooner with the
3approval of the Secretary or in accordance with the provisions
4of paragraph (3) of subsection (a).
5    (e) Examinations of rating organizations. The Secretary
6shall, at least once in 5 years, make or cause to be made an
7examination of a rating organization licensed under this Act
8in this State. The reasonable costs of the examination shall
9be paid by the rating organization examined upon presentation
10to it of a detailed account of the costs. The officers,
11managers, agents, and employees of the rating organization may
12be examined at any time under oath and shall exhibit all books,
13records, accounts, documents, or agreements governing its
14method of operation. The Secretary shall furnish 2 copies of
15the examination report to the organization examined and shall
16notify the organization that it may, within 20 days, request a
17hearing on the report or on any facts or recommendations
18contained in the report. Before filing the report for public
19inspection, the Secretary shall grant a hearing to the
20organization examined. The report of the examination, when
21filed for public inspection, shall be admissible in evidence
22in any action or proceeding brought by the Secretary against
23the organization examined, or its officers or agents, and
24shall be prima facie evidence of facts stated in the report.
25The Secretary may withhold the report of the examination from
26public inspection for such time as the Secretary may deem



SB0207- 32 -LRB102 13076 BMS 18419 b

1proper. In lieu of the examination, the Secretary may accept
2the report of an examination made by the title insurance
3supervisory official of another state pursuant to the laws of
4that state.
5    (f) False or misleading information. No person or
6organization shall willfully withhold information from or
7knowingly give false or misleading information to the
8Secretary, any statistical agency designated by the Secretary,
9any rating organization, or any title insurance company that
10will affect the rates or fees chargeable under this Act.
11    (g) Penalties.
12        (1) The Secretary may, if the Secretary finds that any
13    person or organization has violated any provision of this
14    Section, impose a penalty of not more than $500 for each
15    such violation, but if the Secretary finds the violation
16    to be willful, the Secretary may impose a penalty of not
17    more than $5,000 for each willful violation. Such
18    penalties may be in addition to any other penalty provided
19    by law.
20        (2) The Secretary may suspend the license of a rating
21    organization or the certificate of authority of a title
22    insurance company that fails to comply with an order of
23    the Secretary within the time limited by such order or any
24    extension that the Secretary may grant. The Secretary
25    shall not suspend the license of any rating organization
26    or the certificate of authority of a title insurance



SB0207- 33 -LRB102 13076 BMS 18419 b

1    company for failure to comply with an order until the time
2    prescribed for an appeal has expired or, if an appeal has
3    been taken, until the order has been affirmed. The
4    Secretary may determine when a suspension of license shall
5    become effective, and it shall remain in effect for the
6    period fixed by the Secretary, unless the Secretary
7    modifies or rescinds the suspension or until the order
8    upon which the suspension is based is modified, rescinded,
9    or reversed.
10        (3) No penalty shall be imposed and no license or
11    certificate of authority shall be suspended or revoked
12    pursuant to this Section except upon a written order of
13    the Secretary stating his or her findings made after a
14    hearing held upon not less than 10 days' written notice to
15    the holder specifying the alleged violation.
16        (4) All hearings provided for in this Section shall be
17    conducted and the decision of the Secretary on the issue
18    or filing involved shall be rendered in accordance with
19    the Administrative Review Law.
20    (h) Rates and fees. In all circumstances, whether
21involving rates and fees filed by a rating organization or
22title insurance company:
23        (1) separate filings shall be provided for the 2
24    following geographic zones:
25            (A) Zone 1 comprising the counties of Cook, Lake,
26        DuPage, McHenry, Kane, Will, Grundy, and Kendall; and



SB0207- 34 -LRB102 13076 BMS 18419 b

1            (B) Zone 2 comprising all other counties within
2        the State.
3        The Secretary shall submit a report to the Governor
4    and General Assembly no later than January 1, 2027 as to
5    whether multiple zones are justified based on differences
6    in costs between the zones.
7        (2) Rates shall be separated into classes based on
8    monetary insurance ranges without distinction of
9    commercial or residential use of the property.
10        (3) Regarding residential real property transactions,
11    from the owner's policy premium, loan policy premium, and
12    endorsement charges, which does not include closing
13    protection letter charges, a title insurance agent shall
14    retain 85% and remit 15% to a title insurance company for
15    each premium and endorsement that the title insurance
16    agent performs at least core title services. For those
17    residential real property transactions, if the title
18    insurance agent does not perform at least core title
19    services for a premium or endorsement charge, then the
20    entity or individual performing the core title services
21    shall be compensated an amount equal to 85% of each
22    premium or endorsement charge for which they perform the
23    core title services.
24        Regarding non-residential real property transactions,
25    from the owner's policy premium, loan policy premium, and
26    endorsement charges, which does not include closing



SB0207- 35 -LRB102 13076 BMS 18419 b

1    protection letter charges, a title insurance agent may
2    retain no more than 80% and remit no less than 20% to a
3    title insurance company for each premium and endorsement
4    that the title insurance agent performs at least core
5    title services. For those non-residential real property
6    transactions, if the title insurance agent does not
7    perform at least core title services for a premium or
8    endorsement charge, then the title insurance agent or
9    title insurance company performing the core title services
10    shall be compensated an amount no more than 80% of each
11    premium or endorsement charge for which they perform the
12    core title services.
13        (4) Any fees charged to the parties to the transaction
14    other than the owner's policy premium, loan policy
15    premium, and endorsement charges shall not be duplicative
16    of any other charges to that party, shall be retained or
17    remitted in an amount commensurate with the actual cost of
18    the work performed and material furnished, and, if
19    applicable, shall be in compliance with paragraph (5.8) of
20    subsection (a) of Section 21.
21    (215 ILCS 155/21)  (from Ch. 73, par. 1421)
22    Sec. 21. Regulatory action.
23    (a) The Secretary may refuse to grant, and may suspend or
24revoke, any certificate of authority, registration, or license
25issued pursuant to this Act or may impose a fine for a



SB0207- 36 -LRB102 13076 BMS 18419 b

1violation of this Act if he determines that the holder of or
2applicant for such certificate, registration or license:
3        (1) has intentionally made a material misstatement or
4    fraudulent misrepresentation in relation to a matter
5    covered by this Act;
6        (2) has misappropriated or tortiously converted to its
7    own use, or illegally withheld, monies held in a fiduciary
8    capacity;
9        (3) has demonstrated untrustworthiness or incompetency
10    in transacting the business of guaranteeing titles to real
11    estate in such a manner as to endanger the public;
12        (4) has materially misrepresented the terms or
13    conditions of contracts or agreements to which it is a
14    party;
15        (5) has paid any commissions, discounts or any part of
16    its premiums, fees or other charges to any person in
17    violation of any State or federal law or regulations or
18    opinion letters issued under the federal Real Estate
19    Settlement Procedures Act of 1974, including if a producer
20    of title business requires the use of a title insurance
21    company, title insurance agent, or independent escrowee in
22    exchange for continued title insurance business referrals
23    where an individual with a financial interest in the
24    producer of title business also has a financial interest
25    in the title insurance company, title insurance agent, or
26    independent escrowee;



SB0207- 37 -LRB102 13076 BMS 18419 b

1        (5.1) has given or accepted any portion of any charge
2    made or received for the rendering of a real estate
3    settlement service in connection with a transaction other
4    than for services actually performed;
5        (5.2) has disbursed funds before the actual delivery
6    of funds acceptable to the closing and settlement services
7    agent;
8        (5.3) has disbursed of closing and settlement services
9    funds before all necessary conditions of the transaction
10    have been met;
11        (5.4) has paid for, furnished, or offered to pay for
12    or furnish any reward or compensation for any past,
13    present, or future title insurance business or closing and
14    settlement services or any other title business,
15    including, but not limited to, the payment of a fee to an
16    attorney for the referral of title business;
17        (5.5) has paid or offered to pay any fee to a producer
18    of title business for making an inspection or appraisal of
19    property;
20        (5.6) has received securities of the title insurance
21    company, title insurance agent, or independent escrowee at
22    prices below the normal market price or bonds or
23    debentures that guarantee a higher than normal interest
24    rate, whether or not the consummation of the transaction
25    is directly or indirectly related to the number of closing
26    and settlement services or title orders coming to the



SB0207- 38 -LRB102 13076 BMS 18419 b

1    title insurance company, title insurance agent, or
2    independent escrowee through the efforts of that person;
3        (5.7) has furnished to any producer of title business
4    or associate of a producer reports containing publicly
5    recorded information, appraisals, estimates of income
6    production potential, information kits, or similar
7    packages containing information about one or more parcels
8    of real property helpful to any producer of title business
9    without making a charge that is commensurate with the
10    actual cost of the work performed and the material
11    furnished; additionally:
12            (A) when search services subject to this Act are
13        provided to a title insurance agent by another entity
14        or individual there shall be a written service
15        agreement for the search services, payment shall be
16        made pursuant to the agreement if the transaction
17        closes, and any charges to a party to the transaction
18        that are related to the search services shall not be
19        duplicative of any other charges to that party; and
20            (B) when services other than search services
21        subject to this Act are provided to a title insurance
22        agent by another entity or individual there shall be a
23        written service agreement for the services, payment
24        shall be made pursuant to the agreement in a
25        cumulative total amount no less than $350 if the
26        transaction closes, and any charges to a party to the



SB0207- 39 -LRB102 13076 BMS 18419 b

1        transaction that are related to the services shall not
2        be duplicative of any other charges to that party;
3        (5.8) has made or guaranteed or has offered to make or
4    guarantee, either directly or indirectly, any loan to any
5    producer of title business or associate of a producer with
6    terms more favorable than otherwise available to the
7    producer;
8        (5.9) has guaranteed or offered to guarantee the
9    proper performance of closing and settlement services or
10    undertakings that are to be performed by any producer of
11    title business, except as authorized pursuant to Sections
12    16 and 16.1;
13        (5.10) has provided or offered to provide, either
14    directly or indirectly, a compensating balance or deposit
15    in a lending institution either for the express or implied
16    purpose of influencing the placement or channeling of
17    title insurance business by the lending institution; this
18    provision does not prohibit the maintenance by a title
19    insurance company, title agent, or independent escrowee of
20    demand deposits or escrow deposits that are reasonably
21    necessary for use in the ordinary course of the business
22    of the title insurance company, title agent, or
23    independent escrowee;
24        (5.11) has paid for or offered to pay for the fees or
25    charges of an outside professional, such as an attorney,
26    engineer, appraiser, or surveyor, whose services are



SB0207- 40 -LRB102 13076 BMS 18419 b

1    required by any producer of title business to structure or
2    complete a particular transaction;
3        (5.12) has provided or offered to provide non-title
4    services, such as computerized bookkeeping, forms
5    management, computer programming, or any similar benefit,
6    without a charge that is commensurate with the actual cost
7    to any producer of title business or to any associate of a
8    producer of title business;
9        (5.13) has furnished or offered to furnish all or any
10    part of the time or productive effort of any employee of
11    the title insurance company, title insurance agent, or
12    independent escrowee, such as an office manager, escrow
13    officer, secretary, clerk, or messenger, to any producer
14    of the title business or associate of a producer of title
15    business;
16        (5.14) has paid for or offered to pay for all or any
17    part of the salary of an employee of any producer of title
18    business;
19        (5.15) has paid for or offered to pay for the salary or
20    any part of the salary of a relative of any producer of
21    title business if that payment is in excess of the
22    reasonable value of work performed by the relative on
23    behalf of the title insurance company, title insurance
24    agent, or independent escrowee;
25        (5.16) has paid for or offered to pay for services by
26    any producer of title business that are ordinarily to be



SB0207- 41 -LRB102 13076 BMS 18419 b

1    performed by the producer of title business in his or her
2    licensed capacity as a real estate or mortgage broker or
3    salesman or agent;
4        (5.17) has furnished or offered to furnish or paid for
5    or offered to pay for furniture, office supplies,
6    telephones, facsimile machines, equipment, or automobiles
7    to any producer of title business, or has paid for or
8    offered to pay for any portion of the cost of renting,
9    leasing, operating, or maintaining any of these items;
10        (5.18) has paid for, furnished, or waived or offered
11    to pay for, furnish, or waive all or any part of the rent
12    for space occupied by any producer of title business;
13        (5.19) has rented or offered to rent space from any
14    producer of title business, regardless of the purpose, at
15    a rent that is excessive when compared with rents for
16    comparable space in the geographic area or has paid or
17    offered to pay rent based in whole or in part on the volume
18    of business generated by any producer of title business;
19        (5.20) has paid for or offered to pay for gifts,
20    vacations, business trips, convention expenses, travel
21    expenses, membership fees, registration fees, lodging, or
22    meals on behalf of a producer of title insurance, directly
23    or indirectly, or supplied letters of credit, credit
24    cards, or any such benefits;
25        (5.21) has paid for or offered to pay for the
26    cancellation fee for a title report or other fee on behalf



SB0207- 42 -LRB102 13076 BMS 18419 b

1    of any producer of title business either before or after
2    inducing the producer of title business to cancel an order
3    with another title insurance company, title insurance
4    agent, or independent escrowee;
5        (5.22) has paid for, furnished, or offered to pay for
6    or furnish any business form to any producer of title
7    business, other than a form regularly used in the conduct
8    of the title insurance company's business, that is
9    furnished for the convenience of the title insurance
10    company and does not constitute a direct monetary benefit
11    to any producer of title business;
12        (5.23) has given trading stamps, cash redemption
13    coupons, or similar items to any producer of title
14    business;
15        (6) has failed to comply with the deposit and reserve
16    requirements of this Act or any other requirements of this
17    Act;
18        (7) has committed fraud or misrepresentation in
19    applying for or procuring any certificate of authority,
20    registration, or license issued pursuant to this Act;
21        (8) has a conviction or plea of guilty or plea of nolo
22    contendere in this State or any other jurisdiction to (i)
23    any felony or (ii) a misdemeanor, an essential element of
24    which is dishonesty or fraud or larceny, embezzlement, or
25    obtaining money, property, or credit by false pretenses or
26    by means of a confidence game;



SB0207- 43 -LRB102 13076 BMS 18419 b

1        (9) has been disciplined by another state, the
2    District of Columbia, a territory, foreign nation, a
3    governmental agency, or any entity authorized to impose
4    discipline if at least one of the grounds for that
5    discipline is the same as or equivalent to one of the
6    grounds for which a title insurance company, title
7    insurance agent, or independent escrowee may be
8    disciplined under this Act or if at least one of the
9    grounds for that discipline involves dishonesty; a
10    certified copy of the record of the action by the other
11    state or jurisdiction shall be prima facie evidence
12    thereof;
13        (10) has advertising that is inaccurate, misleading,
14    or contrary to the provisions of this Act;
15        (11) has knowingly and willfully made any substantial
16    misrepresentation or untruthful advertising;
17        (12) has made any false promises of a character likely
18    to influence, persuade, or induce;
19        (13) has knowingly failed to account for or remit any
20    money or documents coming into the possession of a title
21    insurance company, title insurance agent, or independent
22    escrowee that belong to others;
23        (14) has engaged in dishonorable, unethical, or
24    unprofessional conduct of a character likely to deceive,
25    defraud, or harm the public;
26        (15) has violated the terms of a disciplinary order



SB0207- 44 -LRB102 13076 BMS 18419 b

1    issued by the Department;
2        (16) has disregarded or violated any provision of this
3    Act or the published rules adopted by the Department to
4    enforce this Act or has aided or abetted any individual,
5    partnership, registered limited liability partnership,
6    limited liability company, or corporation in disregarding
7    any provision of this Act or the published rules; or
8        (17) has acted as a title insurance company, title
9    insurance agent, or independent escrowee without a
10    certificate of authority, registration, or license after
11    the title insurance company, title insurance agent, or
12    independent escrowee's certificate of authority,
13    registration, or license was inoperative.
14    (a-1) Nothing in subsection (a) shall be construed as
16        (1) publishing or printing and disseminating any
17    educational information, notwithstanding that the
18    information may be of benefit to a producer of title
19    business;
20        (2) distributing information, whether printed or oral,
21    advertising novelties, and gift items not to exceed $25 in
22    value that bear the name of the giver (but not the name of
23    the recipient) to producers of title business;
24        (3) providing reasonable promotional and educational
25    activities that are not conditioned on the referral of
26    business and that do not involve the defraying of expenses



SB0207- 45 -LRB102 13076 BMS 18419 b

1    that otherwise would be incurred by persons in a position
2    to refer settlement services or business incident to those
3    services, such as a reception by a title company, seminars
4    on title matters offered to professionals, furnishing
5    property descriptions and names of record owners without
6    charge to lenders, real estate brokers, attorneys, or
7    others, or distribution of calendars and other promotional
8    material that do not exceed $25 in value;
9        (4) the payment of a fee:
10            (A) that bears a reasonable relationship to the
11        value of the services rendered or performed: (i) by
12        any person or party to attorneys at law for services
13        actually rendered; (ii) by a title company to its duly
14        appointed agent for services actually performed in the
15        issuance of a policy of title insurance; or (iii) by a
16        lender to its duly appointed agent for services
17        actually performed in the making of a loan; and
18            (B) to a settlement service provider for services
19        outside of the normal scope of that provider's
20        services to the parties to the transaction;
21        (5) the payment of a bona fide salary or compensation
22    or other payment for goods or facilities actually
23    furnished or for services actually performed, so long as
24    the salary, compensation, or other payment bears a
25    reasonable relationship to the value of the services,
26    goods, or facilities;



SB0207- 46 -LRB102 13076 BMS 18419 b

1        (6) proportionate returns on an ownership or franchise
2    interest; and
3        (7) ordinary and customary business entertainment or
4    promotional activities not to exceed $200 in value per
5    person, per quarter of each year beginning January 1 by
6    title insurance companies, title insurance agents, or
7    independent escrowees that are not directly or indirectly
8    consideration as an inducement or compensation for the
9    referral of title business or for the referral of any
10    escrow or other service from a title insurance company,
11    title insurance agent, or independent escrowee.
12    (b) In every case where a registration or certificate is
13suspended or revoked, or an application for a registration or
14certificate or renewal thereof is refused, the Secretary shall
15serve notice of his action, including a statement of the
16reasons for his action, as provided by this Act. When a notice
17of suspension or revocation of a certificate of authority is
18given to a title insurance company, the Secretary shall also
19notify all the registered agents of that title insurance
20company of the Secretary's action.
21    (c) In the case of a refusal to issue or renew a
22certificate or accept a registration, the applicant or
23registrant may request in writing, within 30 days after the
24date of service, a hearing. In the case of a refusal to renew,
25the expiring registration or certificate shall be deemed to
26continue in force until 30 days after the service of the notice



SB0207- 47 -LRB102 13076 BMS 18419 b

1of refusal to renew, or if a hearing is requested during that
2period, until a final order is entered pursuant to such
4    (d) The suspension or revocation of a registration or
5certificate shall take effect upon service of notice thereof.
6The holder of any such suspended registration or certificate
7may request in writing, within 30 days of such service, a
9    (e) In cases of suspension or revocation of registration
10pursuant to subsection (a), the Secretary may, in the public
11interest, issue an order of suspension or revocation which
12shall take effect upon service of notification thereof. Such
13order shall become final 60 days from the date of service
14unless the registrant requests in writing, within such 60
15days, a formal hearing thereon. In the event a hearing is
16requested, the order shall remain temporary until a final
17order is entered pursuant to such hearing.
18    (f) Hearing shall be held at such time and place as may be
19designated by the Secretary either in the City of Springfield,
20the City of Chicago, or in the county in which the principal
21business office of the affected registrant or certificate
22holder is located.
23    (g) The suspension or revocation of a registration or
24certificate or the refusal to issue or renew a registration or
25certificate shall not in any way limit or terminate the
26responsibilities of any registrant or certificate holder



SB0207- 48 -LRB102 13076 BMS 18419 b

1arising under any policy or contract of title insurance to
2which it is a party. No new contract or policy of title
3insurance may be issued, nor may any existing policy or
4contract to title insurance be renewed by any registrant or
5certificate holder during any period of suspension or
6revocation of a registration or certificate.
7    (h) The Secretary may issue a cease and desist order to a
8title insurance company, agent, or other entity doing business
9without the required license or registration, when in the
10opinion of the Secretary, the company, agent, or other entity
11is violating or is about to violate any provision of this Act
12or any law or of any rule or condition imposed in writing by
13the Department.
14    The Secretary may issue the cease and desist order without
15notice and before a hearing.
16    The Secretary shall have the authority to prescribe rules
17for the administration of this Section.
18    If it is determined that the Secretary had the authority
19to issue the cease and desist order, he may issue such orders
20as may be reasonably necessary to correct, eliminate or remedy
21such conduct.
22    Any person or company subject to an order pursuant to this
23Section is entitled to judicial review of the order in
24accordance with the provisions of the Administrative Review
26    The powers vested in the Secretary by this Section are



SB0207- 49 -LRB102 13076 BMS 18419 b

1additional to any and all other powers and remedies vested in
2the Secretary by law, and nothing in this Section shall be
3construed as requiring that the Secretary shall employ the
4powers conferred in this Section instead of or as a condition
5precedent to the exercise of any other power or remedy vested
6in the Secretary.
7(Source: P.A. 98-398, eff. 1-1-14.)
8    (215 ILCS 155/19 rep.)
9    Section 10. The Title Insurance Act is amended by
10repealing Section 19.
11    Section 99. Effective date. This Act takes effect upon
12becoming law, except that Section 18.2 of the Title Insurance
13Act takes effect September 1, 2022.



SB0207- 50 -LRB102 13076 BMS 18419 b

2 Statutes amended in order of appearance
3    215 ILCS 155/3from Ch. 73, par. 1403
4    215 ILCS 155/5from Ch. 73, par. 1405
5    215 ILCS 155/12from Ch. 73, par. 1412
6    215 ILCS 155/14from Ch. 73, par. 1414
7    215 ILCS 155/16from Ch. 73, par. 1416
8    215 ILCS 155/18from Ch. 73, par. 1418
9    215 ILCS 155/18.2 new
10    215 ILCS 155/21from Ch. 73, par. 1421
11    215 ILCS 155/19 rep.