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| Public Act 100-0570 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Title Insurance Act is amended by changing | ||||
Sections 6, 8, and 13 as follows:
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(215 ILCS 155/6) (from Ch. 73, par. 1406)
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Sec. 6. Reinsurance.
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(a) A title insurance company may obtain reinsurance for | ||||
all or
any part of its liability under one or more of its title | ||||
insurance policies
or reinsurance agreements and may also | ||||
reinsure title insurance policies
issued by other title | ||||
insurance companies on risks located in this State
or | ||||
elsewhere. | ||||
(a-5) Notwithstanding any other provision of this Act, a | ||||
title insurance company may obtain reinsurance for all or any | ||||
part of its liability under one or more of its title insurance | ||||
policies from an assuming insurer with a financial strength | ||||
rating of A- or better from A.M. Best Company, Inc., or with an | ||||
alternative rating the Department may approve that the | ||||
Department determines is an equivalent rating by another | ||||
recognized rating organization. | ||||
(b) A title insurance company licensed to do business in | ||||
this State shall retain at least $100,000 of primary liability | ||||
for policies it issues, unless a lesser sum is authorized by | ||
the Secretary. A lesser sum may be retained at the request of | ||
an insured for a particular policy. This subsection (b) applies | ||
only to policies issued on or after the effective date of this | ||
amendatory Act of the 94th General Assembly.
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(Source: P.A. 94-893, eff. 6-20-06.)
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(215 ILCS 155/8) (from Ch. 73, par. 1408)
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Sec. 8. Retained liability.
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(a) The net retained liability of a title insurance company
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for a single risk on property located in this State, whether | ||
assumed
directly or as reinsurance, may not exceed 50% of the | ||
total
surplus to policyholders as shown in the most recent | ||
annual statement of
the title insurance company on file with | ||
the Department.
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(b) The Secretary may waive the limitation of this Section | ||
for a
particular risk upon application of the title insurance | ||
company and
for good cause shown.
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(Source: P.A. 94-893, eff. 6-20-06.)
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(215 ILCS 155/13) (from Ch. 73, par. 1413)
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Sec. 13. Annual statement.
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(a)
Each title insurance company shall file with the | ||
Department
during the month of March of each year, a statement | ||
under oath, of the
condition of such company on the | ||
thirty-first day of December next
preceding disclosing the | ||
assets, liabilities, earnings and expenses of the
company. The | ||
report shall be in such form and shall contain such additional
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statements and information as to the affairs, business, and | ||
conditions of
the company as the Secretary may from time to | ||
time prescribe or require. | ||
(b) By June 1 of each year, a title insurance company must | ||
file with the Department a copy of its most recent audited | ||
financial statements.
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(c) If determined to be necessary and appropriate by the | ||
Department, a title insurance company shall provide a summary | ||
describing its professional reinsurance placed outside of the | ||
title insurance industry. | ||
(Source: P.A. 94-893, eff. 6-20-06.)
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