Full Text of SB2688 99th General Assembly
SB2688sam001 99TH GENERAL ASSEMBLY | Sen. Michael Connelly Filed: 4/15/2016
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| 1 | | AMENDMENT TO SENATE BILL 2688
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2688 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Title Insurance Act is amended by changing | 5 | | Sections 12 and 21 as follows:
| 6 | | (215 ILCS 155/12) (from Ch. 73, par. 1412)
| 7 | | Sec. 12. Examinations; compliance.
| 8 | | (a) The Secretary or his authorized representative shall | 9 | | have
the power and authority, and it shall be his duty, to | 10 | | cause to be visited
and examined annually any title insurance | 11 | | company doing business under this
Act, and to verify and compel | 12 | | compliance with the provisions of law governing it.
| 13 | | (b) The Secretary or his authorized agent shall have power | 14 | | and authority , and it shall be his duty, to cause to be visited | 15 | | and examined annually any registered agent doing business under | 16 | | this Act and to verify and compel compliance with the |
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| 1 | | provisions of law governing the registered agent. to
compel | 2 | | compliance with the provisions of this Act and shall, only upon | 3 | | the
showing of good cause, require any title insurance company | 4 | | to take all legal means to obtain the
appropriate records of | 5 | | its registered agents and make them available for
examination | 6 | | at a time and place designated by the Secretary. Expenses | 7 | | incurred in
the course of such examinations will be the | 8 | | responsibility of the title insurance
company. In the event | 9 | | that a present or former registered agent or its successor | 10 | | refuses or is unable to cooperate with a title insurance | 11 | | company in furnishing the records requested by the Secretary or | 12 | | his or her authorized agent, then the Secretary or his or her | 13 | | authorized agent shall have the power and authority to obtain | 14 | | those records directly from the registered agent.
| 15 | | (Source: P.A. 94-893, eff. 6-20-06.)
| 16 | | (215 ILCS 155/21) (from Ch. 73, par. 1421)
| 17 | | Sec. 21. Regulatory action.
| 18 | | (a) The Secretary may refuse to grant, and may suspend or
| 19 | | revoke, any certificate of authority, registration,
or license | 20 | | issued
pursuant to this Act or may impose a fine for a | 21 | | violation of this Act if he determines that the holder of or | 22 | | applicant for
such certificate, registration or license:
| 23 | | (1) has intentionally made a material misstatement or | 24 | | fraudulent
misrepresentation in relation to a matter | 25 | | covered by this Act;
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| 1 | | (2) has misappropriated or tortiously converted to its | 2 | | own use, or
illegally withheld, monies held in a fiduciary | 3 | | capacity;
| 4 | | (3) has demonstrated untrustworthiness or incompetency | 5 | | in transacting
the business of guaranteeing titles to real | 6 | | estate in such a manner as to
endanger the public;
| 7 | | (4) has materially misrepresented the terms or | 8 | | conditions of contracts
or agreements to which it is a | 9 | | party;
| 10 | | (5) has paid any commissions, discounts or any part of | 11 | | its premiums,
fees or other charges to any person , or has | 12 | | accepted a title order with knowledge that the order was | 13 | | placed by a settlement service provider, in violation of | 14 | | any State or federal
law or regulations or opinion letters | 15 | | issued under the federal Real Estate
Settlement Procedures | 16 | | Act of 1974;
| 17 | | (6) has failed to comply with the deposit and reserve | 18 | | requirements of
this Act or any other requirements of this | 19 | | Act; | 20 | | (7) has committed fraud or misrepresentation in | 21 | | applying for or procuring any certificate of authority, | 22 | | registration, or license issued pursuant to this Act; | 23 | | (8) has a conviction or plea of guilty or plea of nolo | 24 | | contendere in this State or any other jurisdiction to (i) | 25 | | any felony or (ii) a misdemeanor, an essential element of | 26 | | which is dishonesty or fraud or larceny, embezzlement, or |
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| 1 | | obtaining money, property, or credit by false pretenses or | 2 | | by means of a confidence game; | 3 | | (9) has been disciplined by another state, the District | 4 | | of Columbia, a territory, foreign nation, a governmental | 5 | | agency, or any entity authorized to impose discipline if at | 6 | | least one of the grounds for that discipline is the same as | 7 | | or equivalent to one of the grounds for which a title | 8 | | insurance company, title insurance agent, or independent | 9 | | escrowee may be disciplined under this Act or if at least | 10 | | one of the grounds for that discipline involves dishonesty; | 11 | | a certified copy of the record of the action by the other | 12 | | state or jurisdiction shall be prima facie evidence | 13 | | thereof; | 14 | | (10) has advertising that is inaccurate, misleading, | 15 | | or contrary to the provisions of this Act; | 16 | | (11) has knowingly and willfully made any substantial | 17 | | misrepresentation or untruthful advertising; | 18 | | (12) has made any false promises of a character likely | 19 | | to influence, persuade, or induce; | 20 | | (13) has knowingly failed to account for or remit any | 21 | | money or documents coming into the possession of a title | 22 | | insurance company, title insurance agent, or independent | 23 | | escrowee that belong to others; | 24 | | (14) has engaged in dishonorable, unethical, or | 25 | | unprofessional conduct of a character likely to deceive, | 26 | | defraud, or harm the public; |
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| 1 | | (15) has violated the terms of a disciplinary order | 2 | | issued by the Department; | 3 | | (16) has disregarded or violated any provision of this | 4 | | Act or the published rules adopted by the Department to | 5 | | enforce this Act or has aided or abetted any individual, | 6 | | partnership, registered limited liability partnership, | 7 | | limited liability company, or corporation in disregarding | 8 | | any provision of this Act or the published rules; or | 9 | | (17) has acted as a title insurance company, title | 10 | | insurance agent, or independent escrowee without a | 11 | | certificate of authority, registration, or license after | 12 | | the title insurance company, title insurance agent, or | 13 | | independent escrowee's certificate of authority, | 14 | | registration, or license was inoperative ; . | 15 | | (18) has, as a title insurance agent, failed to pay to | 16 | | the title insurance company a portion of the title | 17 | | insurance premium that is reasonably related to exposure to | 18 | | loss; or | 19 | | (19) has, as a title insurance company, failed to | 20 | | obtain a portion of the title insurance premium from the | 21 | | title insurance agent that is reasonably related to | 22 | | exposure to loss.
| 23 | | (b) In every case where a registration or certificate is | 24 | | suspended or
revoked, or an application for a registration or | 25 | | certificate or renewal
thereof is refused, the Secretary shall | 26 | | serve notice of his action,
including a statement of the |
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| 1 | | reasons for his action, as provided by this Act. When a notice | 2 | | of suspension or revocation of a certificate of authority is | 3 | | given to a title insurance company, the Secretary shall also | 4 | | notify all the registered agents of that title insurance | 5 | | company of the Secretary's action.
| 6 | | (c) In the case of a refusal to issue or renew a | 7 | | certificate or accept a
registration, the applicant or | 8 | | registrant may request in writing, within 30
days after the | 9 | | date of service, a hearing. In the case of a
refusal to renew, | 10 | | the expiring registration or certificate shall be deemed
to | 11 | | continue in force until 30 days after the service of the notice | 12 | | of
refusal to renew, or if a hearing is requested during that | 13 | | period, until a
final order is entered pursuant to such | 14 | | hearing.
| 15 | | (d) The suspension or revocation of a registration or | 16 | | certificate shall
take effect upon service of notice thereof. | 17 | | The holder of any such
suspended registration or certificate | 18 | | may request in writing, within 30
days of such service, a | 19 | | hearing.
| 20 | | (e) In cases of suspension or revocation of registration | 21 | | pursuant to
subsection (a), the Secretary may, in the public | 22 | | interest, issue an order of
suspension or revocation which | 23 | | shall take effect upon service of
notification thereof. Such | 24 | | order shall become final 60 days from the date
of service | 25 | | unless the registrant requests in writing, within such 60 days,
| 26 | | a formal hearing thereon. In the event a hearing is requested, |
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| 1 | | the order
shall remain temporary until a final order is entered | 2 | | pursuant to such hearing.
| 3 | | (f) Hearing shall be held at such time and place as may be | 4 | | designated by
the Secretary either in the City of Springfield, | 5 | | the City of Chicago, or in
the county in which the principal | 6 | | business office of the affected
registrant or certificate | 7 | | holder is located.
| 8 | | (g) The suspension or revocation of a registration or | 9 | | certificate or the
refusal to issue or renew a registration or | 10 | | certificate shall not in any
way limit or terminate the | 11 | | responsibilities of any registrant or
certificate holder | 12 | | arising under any policy or contract of title insurance
to | 13 | | which it is a party. No new contract or policy of title | 14 | | insurance may
be issued, nor may any existing policy or | 15 | | contract to title insurance be
renewed by any registrant or | 16 | | certificate holder during any period of
suspension or | 17 | | revocation of a registration or certificate.
| 18 | | (h) The Secretary may issue a cease and desist order to a | 19 | | title insurance
company, agent, or other entity doing business | 20 | | without the required license or
registration, when in the | 21 | | opinion of the Secretary, the company, agent, or other
entity | 22 | | is violating or is about to violate any provision of this Act | 23 | | or any
law or of
any
rule or condition imposed in writing by | 24 | | the Department.
| 25 | | The Secretary may issue the cease and desist order without | 26 | | notice and before a
hearing.
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| 1 | | The Secretary shall have the authority to prescribe rules | 2 | | for the
administration of this Section.
| 3 | | If it is determined that the Secretary had the authority to | 4 | | issue the cease
and desist order, he may issue such orders as | 5 | | may be reasonably necessary to
correct, eliminate or remedy | 6 | | such conduct.
| 7 | | Any person or company subject to an order pursuant to this | 8 | | Section is
entitled to judicial review of the order in | 9 | | accordance with the provisions of
the Administrative Review | 10 | | Law.
| 11 | | The powers vested in the Secretary by this Section are | 12 | | additional to any and
all other powers and remedies vested in | 13 | | the Secretary by law, and nothing in
this Section shall be | 14 | | construed as requiring that the Secretary
shall employ the
| 15 | | powers conferred in this Section instead of or as a condition | 16 | | precedent to the
exercise of any other power or remedy vested | 17 | | in the Secretary.
| 18 | | (Source: P.A. 98-398, eff. 1-1-14.)".
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