Full Text of HB3910 99th General Assembly
HB3910ham001 99TH GENERAL ASSEMBLY | Rep. David Reis Filed: 3/12/2015
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| 1 | | AMENDMENT TO HOUSE BILL 3910
| 2 | | AMENDMENT NO. ______. Amend House Bill 3910 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Title Insurance Act is amended by changing | 5 | | Sections 14 and 16 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
| 9 | | escrowee 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 |
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| 1 | | certifying a copy, $2; and
| 2 | | (5) for filing the annual statement, $50.
| 3 | | (b)
Each title insurance company shall remit pay , for all | 4 | | of its title
insurance agents subject to this Act for filing an | 5 | | annual registration of
its agents, an amount collected from the | 6 | | consumer equal to $3 for each policy issued by
all
of its
| 7 | | agents
in the immediately preceding calendar year.
| 8 | | (Source: P.A. 93-32, eff. 7-1-03; 94-893, eff. 6-20-06.)
| 9 | | (215 ILCS 155/16) (from Ch. 73, par. 1416)
| 10 | | Sec. 16. Title insurance agents.
| 11 | | (a) No person, firm, partnership, association, corporation | 12 | | or other
legal entity shall act as or hold itself out to be a | 13 | | title insurance agent
unless duly registered by a title | 14 | | insurance company with the Secretary.
| 15 | | (b) Each application for registration shall be made on a | 16 | | form specified
by the Secretary and prepared in duplicate by | 17 | | each title insurance company
which the agent represents. The | 18 | | title insurance company shall retain the
copy of the | 19 | | application and forward a copy the original to the Secretary | 20 | | with the
appropriate fee .
| 21 | | (c) Every applicant for registration, except a firm, | 22 | | partnership,
association, limited liability company, or | 23 | | corporation, must be 18 years or more of age. Included in every | 24 | | application for registration of a title insurance agent, | 25 | | including a firm, partnership,
association, limited liability |
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| 1 | | company, or corporation, shall be an affidavit of the applicant | 2 | | title insurance agent, signed and notarized in front
of a | 3 | | notary public, affirming that the applicant and every owner, | 4 | | officer, director, principal, member, or
manager of the | 5 | | applicant has never been convicted or pled guilty to any felony | 6 | | or misdemeanor involving a crime of
theft or dishonesty or | 7 | | otherwise accurately disclosing any such felony or misdemeanor | 8 | | involving a crime of
theft or dishonesty. No person who has had | 9 | | a conviction or pled guilty to any felony or
misdemeanor | 10 | | involving theft or dishonesty may be registered by a title | 11 | | insurance company without a written notification to the | 12 | | Secretary disclosing the conviction or plea, and no such
person | 13 | | may serve as an owner, officer, director, principal, or manager | 14 | | of any registered title insurance
agent without the written | 15 | | permission of the Secretary.
| 16 | | (d) Registration shall be made annually by a filing with | 17 | | the Secretary;
supplemental registrations for new title | 18 | | insurance agents to be added
between annual filings shall be | 19 | | made from time to time in the manner
provided by the Secretary; | 20 | | registrations shall remain in effect unless
revoked or | 21 | | suspended by the Secretary or
voluntarily withdrawn by the
| 22 | | registrant or the title insurance company.
| 23 | | (e) Funds deposited in connection with any escrows, | 24 | | settlements, or closings shall be deposited in a separate | 25 | | fiduciary trust account or accounts in a bank or other | 26 | | financial institution insured by an agency of the federal |
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| 1 | | government unless the instructions provide otherwise. The | 2 | | funds shall be the property of the person or persons entitled | 3 | | thereto under the provisions of the escrow, settlement, or | 4 | | closing and shall be segregated by escrow, settlement, or | 5 | | closing in the records of the escrow agent. The funds shall not | 6 | | be subject to any debts of the escrowee and shall be used only | 7 | | in accordance with the terms of the individual escrow, | 8 | | settlement, or closing under which the funds were accepted. | 9 | | Interest received on funds deposited with the escrow agent | 10 | | in connection with any escrow, settlement, or closing shall be | 11 | | paid to the depositing party unless the instructions provide | 12 | | otherwise. | 13 | | The escrow agent shall maintain separate records of all | 14 | | receipts and disbursements of escrow, settlement, or closing | 15 | | funds. | 16 | | The escrow agent shall comply with any rules adopted by the | 17 | | Secretary pertaining to escrow, settlement, or closing | 18 | | transactions. | 19 | | (f) A title insurance agent shall not act as an escrow | 20 | | agent in a nonresidential real property transaction where the | 21 | | amount of settlement funds on deposit with the escrow agent is | 22 | | less than $2,000,000 or in a residential real property | 23 | | transaction unless the title insurance agent, title insurance | 24 | | company, or another authorized title insurance agent has | 25 | | committed for the issuance of title insurance in that | 26 | | transaction and the title insurance agent is authorized to act |
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| 1 | | as an escrow agent on behalf of the title insurance company for | 2 | | which the commitment for title insurance has been issued. The | 3 | | authorization under the preceding sentence shall be given | 4 | | either (1) by an agency contract with the title insurance | 5 | | company which contract, in compliance with the requirements set | 6 | | forth in subsection (g) of this Section, authorizes the title | 7 | | insurance agent to act as an escrow agent on behalf of the | 8 | | title insurance company or (2) by a closing protection letter | 9 | | in compliance with the requirements set forth in Section 16.1 | 10 | | of this Act, issued by the title insurance company to the | 11 | | seller, buyer, borrower, and lender. A closing protection | 12 | | letter shall not be issued by a title insurance agent. The | 13 | | provisions of this subsection (f) shall not apply to the | 14 | | authority of a title insurance agent to act as an escrow agent | 15 | | under subsection (g) of Section 17 of this Act. | 16 | | (g) If an agency contract between the title insurance | 17 | | company and the title insurance agent is the source of the | 18 | | authority under subsection (f) of this Section for a title | 19 | | insurance agent to act as escrow agent for a real property | 20 | | transaction, then the agency contract shall provide for no less | 21 | | protection from the title insurance company to all parties to | 22 | | the real property transaction than the title insurance company | 23 | | would have provided to those parties had the title insurance | 24 | | company issued a closing protection letter in conformity with | 25 | | Section 16.1 of this Act. | 26 | | (h) A title insurance company shall be liable for the acts |
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| 1 | | or omissions of its title insurance agent as an escrow agent if | 2 | | the title insurance company has authorized the title insurance | 3 | | agent under subsections (f) and (g) of this Section 16 and only | 4 | | to the extent of the liability undertaken by the title | 5 | | insurance company in the agency agreement or closing protection | 6 | | letter. The liability, if any, of the title insurance agent to | 7 | | the title insurance company for acts and omissions of the title | 8 | | insurance agent as an escrow agent shall not be limited or | 9 | | otherwise modified because the title insurance company has | 10 | | provided closing protection to a party or parties to a real | 11 | | property transaction escrow, settlement, or closing. The | 12 | | escrow agent shall not charge a fee for protection provided by | 13 | | a title insurance company to parties to real property | 14 | | transactions under subsections (f) and (g) of this Section 16 | 15 | | and Section 16.1, but shall collect from the parties the fee | 16 | | charged by the title insurance company and shall promptly remit | 17 | | the fee to the title insurance company. The title insurance | 18 | | company may charge the parties a reasonable fee for protection | 19 | | provided pursuant to subsections (f) and (g) of this Section 16 | 20 | | and Section 16.1 and shall not pay any portion of the fee to | 21 | | the escrow agent. The payment of any portion of the fee to the | 22 | | escrow agent by the title insurance company, shall be deemed a | 23 | | prohibited inducement or compensation in violation of Section | 24 | | 24 of this Act. | 25 | | (i) The Secretary shall adopt and amend such rules as may | 26 | | be required for the proper administration and enforcement of |
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| 1 | | this Section 16 consistent with the federal Real Estate | 2 | | Settlement Procedures Act and Section 24 of this Act. | 3 | | (Source: P.A. 98-398, eff. 1-1-14; 98-832, eff. 1-1-15 .)".
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