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90_HB1621
215 ILCS 155/18 from Ch. 73, par. 1418
Amends the Title Insurance Act. Provides that an
applicant for a title insurance commitment or policy who was
referred to a title insurance company, independent escrowee,
or title insurance agent by a producer of title business or
by an associate of that producer shall have the right for 10
business days after acceptance of the real estate contract to
rescind the title insurance policy or commitment order at no
cost. Effective immediately.
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LRB9004004LDmb
1 AN ACT to amend the Title Insurance Act by changing
2 Section 18.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Title Insurance Act is amended by
6 changing Section 18 as follows:
7 (215 ILCS 155/18) (from Ch. 73, par. 1418)
8 Sec. 18. (a) Application of this Section is limited to
9 residential properties of 4 or fewer units, at least one of
10 which units is occupied or to be occupied by an owner, legal
11 or beneficial.
12 (b) No title insurance company, independent escrowee, or
13 title insurance agent may issue a title insurance policy to,
14 or provide services to an applicant if it knows or has reason
15 to believe that the applicant was referred to it by any
16 producer of title business or by any associate of such
17 producer, where the producer, the associate, or both, have a
18 financial interest in the title insurance company,
19 independent escrowee, or title insurance agent to which
20 business is referred unless the producer has disclosed to any
21 party paying for the products or services, or his
22 representative, the financial interest of the producer of
23 title business or associate referring the title business and
24 a disclosure of an estimate of those charges to be paid as
25 described in Section 19. Such disclosure must be made in
26 writing on forms prescribed by the Director prior to the time
27 that the commitment for title insurance is issued. The title
28 insurance company, independent escrowee, or title insurance
29 agent shall maintain the disclosure forms for a period of 3
30 years.
31 (c) Each title insurance company, independent escrowee,
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1 and title insurance agent shall file with the Director, on
2 forms prescribed by the Director, reports setting forth the
3 names and addresses of those persons, if any, who have had a
4 financial interest in the title insurance company,
5 independent escrowee, or title insurance agent during the
6 calendar year, who are known or reasonably believed by the
7 title insurance company, independent escrowee, or title
8 insurance agent to be producers of title business or
9 associates of producers.
10 (1) Each title insurance company and independent
11 escrowee shall file the report required under this
12 subsection with its application for a certificate of
13 authority and at any time there is a change in the
14 information provided in the last report.
15 (2) Each title insurance agent shall file the
16 report required under this subsection with its title
17 insurance company for inclusion with its application for
18 registration and at any time there is a change in the
19 information provided in its last report.
20 (3) Each title insurance company, independent
21 escrowee, or title insurance agent doing business on the
22 effective date of this Act shall file the report required
23 under this subsection within 90 days after such effective
24 date.
25 (d) An applicant for a title insurance commitment or
26 policy who was referred to the title insurance company,
27 independent escrowee, or title insurance agent by a producer
28 of title business or by an associate of that producer shall,
29 no later than 10 business days after acceptance of the real
30 estate sales contract, have the right, at no cost to the
31 applicant, to rescind the title insurance policy or
32 commitment.
33 (Source: P.A. 86-239.)
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.