Illinois 2023-2024 Regular Session

Illinois House Bill HB4555 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4555 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED: 215 ILCS 155/3 from Ch. 73, par. 1403215 ILCS 155/12 from Ch. 73, par. 1412215 ILCS 155/15.2 new215 ILCS 155/16 from Ch. 73, par. 1416215 ILCS 155/16.2 new215 ILCS 155/17.2 new Amends the Title Insurance Act. Provides that no person, firm, partnership, association, corporation, or other legal entity shall act as or hold itself out to be a title insurance agent without first procuring a certificate of authority from the Secretary of Financial and Professional Regulation (rather than unless duly registered by a title insurance company with the Secretary). Provides that a certificate of authority shall remain in effect unless revoked or suspended by the Secretary or voluntarily surrendered by the holder, or when the holder of the certificate of authority is no longer authorized as a title insurance agent of a title insurance company. Provides that every applicant that is not duly registered as a title insurance agent on the effective date of the amendatory Act shall comply with specified requirements. Sets forth provisions concerning applications for a certificate of authority and makes changes concerning the powers of the Secretary. Provides that the Secretary shall maintain a database of title insurance agents in good standing on a publicly accessible website that any person may use to verify the authority of a particular title insurance agent. Sets forth duties applicable to transactions involving residential real property for title insurance companies, title insurance agents, and independent escrowees. Makes other changes. Effective immediately. LRB103 37017 RPS 67132 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4555 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED: 215 ILCS 155/3 from Ch. 73, par. 1403215 ILCS 155/12 from Ch. 73, par. 1412215 ILCS 155/15.2 new215 ILCS 155/16 from Ch. 73, par. 1416215 ILCS 155/16.2 new215 ILCS 155/17.2 new 215 ILCS 155/3 from Ch. 73, par. 1403 215 ILCS 155/12 from Ch. 73, par. 1412 215 ILCS 155/15.2 new 215 ILCS 155/16 from Ch. 73, par. 1416 215 ILCS 155/16.2 new 215 ILCS 155/17.2 new Amends the Title Insurance Act. Provides that no person, firm, partnership, association, corporation, or other legal entity shall act as or hold itself out to be a title insurance agent without first procuring a certificate of authority from the Secretary of Financial and Professional Regulation (rather than unless duly registered by a title insurance company with the Secretary). Provides that a certificate of authority shall remain in effect unless revoked or suspended by the Secretary or voluntarily surrendered by the holder, or when the holder of the certificate of authority is no longer authorized as a title insurance agent of a title insurance company. Provides that every applicant that is not duly registered as a title insurance agent on the effective date of the amendatory Act shall comply with specified requirements. Sets forth provisions concerning applications for a certificate of authority and makes changes concerning the powers of the Secretary. Provides that the Secretary shall maintain a database of title insurance agents in good standing on a publicly accessible website that any person may use to verify the authority of a particular title insurance agent. Sets forth duties applicable to transactions involving residential real property for title insurance companies, title insurance agents, and independent escrowees. Makes other changes. Effective immediately. LRB103 37017 RPS 67132 b LRB103 37017 RPS 67132 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4555 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED:
3	3	215 ILCS 155/3 from Ch. 73, par. 1403215 ILCS 155/12 from Ch. 73, par. 1412215 ILCS 155/15.2 new215 ILCS 155/16 from Ch. 73, par. 1416215 ILCS 155/16.2 new215 ILCS 155/17.2 new 215 ILCS 155/3 from Ch. 73, par. 1403 215 ILCS 155/12 from Ch. 73, par. 1412 215 ILCS 155/15.2 new 215 ILCS 155/16 from Ch. 73, par. 1416 215 ILCS 155/16.2 new 215 ILCS 155/17.2 new
4	4	215 ILCS 155/3 from Ch. 73, par. 1403
5	5	215 ILCS 155/12 from Ch. 73, par. 1412
6	6	215 ILCS 155/15.2 new
7	7	215 ILCS 155/16 from Ch. 73, par. 1416
8	8	215 ILCS 155/16.2 new
9	9	215 ILCS 155/17.2 new
10	10	Amends the Title Insurance Act. Provides that no person, firm, partnership, association, corporation, or other legal entity shall act as or hold itself out to be a title insurance agent without first procuring a certificate of authority from the Secretary of Financial and Professional Regulation (rather than unless duly registered by a title insurance company with the Secretary). Provides that a certificate of authority shall remain in effect unless revoked or suspended by the Secretary or voluntarily surrendered by the holder, or when the holder of the certificate of authority is no longer authorized as a title insurance agent of a title insurance company. Provides that every applicant that is not duly registered as a title insurance agent on the effective date of the amendatory Act shall comply with specified requirements. Sets forth provisions concerning applications for a certificate of authority and makes changes concerning the powers of the Secretary. Provides that the Secretary shall maintain a database of title insurance agents in good standing on a publicly accessible website that any person may use to verify the authority of a particular title insurance agent. Sets forth duties applicable to transactions involving residential real property for title insurance companies, title insurance agents, and independent escrowees. Makes other changes. Effective immediately.
11	11	LRB103 37017 RPS 67132 b LRB103 37017 RPS 67132 b
12	12	LRB103 37017 RPS 67132 b
13	13	A BILL FOR
14	14	HB4555LRB103 37017 RPS 67132 b HB4555 LRB103 37017 RPS 67132 b
15	15	HB4555 LRB103 37017 RPS 67132 b
16	16	1 AN ACT concerning regulation.
17	17	2 Be it enacted by the People of the State of Illinois,
18	18	3 represented in the General Assembly:
19	19	4 Section 5. The Title Insurance Act is amended by changing
20	20	5 Sections 3, 12, and 16 and by adding Sections 15.2, 16.2, and
21	21	6 17.2 as follows:
22	22	7 (215 ILCS 155/3) (from Ch. 73, par. 1403)
23	23	8 Sec. 3. As used in this Act, the words and phrases
24	24	9 following shall have the following meanings unless the context
25	25	10 requires otherwise:
26	26	11 (1) "Title insurance business" or "business of title
27	27	12 insurance" means:
28	28	13 (A) Issuing as insurer or offering to issue as insurer
29	29	14 title insurance; and
30	30	15 (B) Transacting or proposing to transact one or more
31	31	16 of the following activities when conducted or performed in
32	32	17 contemplation of or in conjunction with the issuance of
33	33	18 title insurance;
34	34	19 (i) soliciting or negotiating the issuance of
35	35	20 title insurance;
36	36	21 (ii) guaranteeing, warranting, or otherwise
37	37	22 insuring the correctness of title searches for all
38	38	23 instruments affecting titles to real property, any
39	39
40	40
41	41
42	42	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4555 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED:
43	43	215 ILCS 155/3 from Ch. 73, par. 1403215 ILCS 155/12 from Ch. 73, par. 1412215 ILCS 155/15.2 new215 ILCS 155/16 from Ch. 73, par. 1416215 ILCS 155/16.2 new215 ILCS 155/17.2 new 215 ILCS 155/3 from Ch. 73, par. 1403 215 ILCS 155/12 from Ch. 73, par. 1412 215 ILCS 155/15.2 new 215 ILCS 155/16 from Ch. 73, par. 1416 215 ILCS 155/16.2 new 215 ILCS 155/17.2 new
44	44	215 ILCS 155/3 from Ch. 73, par. 1403
45	45	215 ILCS 155/12 from Ch. 73, par. 1412
46	46	215 ILCS 155/15.2 new
47	47	215 ILCS 155/16 from Ch. 73, par. 1416
48	48	215 ILCS 155/16.2 new
49	49	215 ILCS 155/17.2 new
50	50	Amends the Title Insurance Act. Provides that no person, firm, partnership, association, corporation, or other legal entity shall act as or hold itself out to be a title insurance agent without first procuring a certificate of authority from the Secretary of Financial and Professional Regulation (rather than unless duly registered by a title insurance company with the Secretary). Provides that a certificate of authority shall remain in effect unless revoked or suspended by the Secretary or voluntarily surrendered by the holder, or when the holder of the certificate of authority is no longer authorized as a title insurance agent of a title insurance company. Provides that every applicant that is not duly registered as a title insurance agent on the effective date of the amendatory Act shall comply with specified requirements. Sets forth provisions concerning applications for a certificate of authority and makes changes concerning the powers of the Secretary. Provides that the Secretary shall maintain a database of title insurance agents in good standing on a publicly accessible website that any person may use to verify the authority of a particular title insurance agent. Sets forth duties applicable to transactions involving residential real property for title insurance companies, title insurance agents, and independent escrowees. Makes other changes. Effective immediately.
51	51	LRB103 37017 RPS 67132 b LRB103 37017 RPS 67132 b
52	52	LRB103 37017 RPS 67132 b
53	53	A BILL FOR
54	54
55	55
56	56
57	57
58	58
59	59	215 ILCS 155/3 from Ch. 73, par. 1403
60	60	215 ILCS 155/12 from Ch. 73, par. 1412
61	61	215 ILCS 155/15.2 new
62	62	215 ILCS 155/16 from Ch. 73, par. 1416
63	63	215 ILCS 155/16.2 new
64	64	215 ILCS 155/17.2 new
65	65
66	66
67	67
68	68	LRB103 37017 RPS 67132 b
69	69
70	70
71	71
72	72
73	73
74	74
75	75
76	76
77	77
78	78	HB4555 LRB103 37017 RPS 67132 b
79	79
80	80
81	81	HB4555- 2 -LRB103 37017 RPS 67132 b HB4555 - 2 - LRB103 37017 RPS 67132 b
82	82	HB4555 - 2 - LRB103 37017 RPS 67132 b
83	83	1 interest in real property, cooperative units and
84	84	2 proprietary leases, and for all liens or charges
85	85	3 affecting the same;
86	86	4 (iii) handling of escrows, settlements, or
87	87	5 closings;
88	88	6 (iv) executing title insurance policies;
89	89	7 (v) effecting contracts of reinsurance;
90	90	8 (vi) abstracting, searching, or examining titles;
91	91	9 or
92	92	10 (vii) issuing insured closing letters or closing
93	93	11 protection letters;
94	94	12 (C) Guaranteeing, warranting, or insuring searches or
95	95	13 examinations of title to real property or any interest in
96	96	14 real property, with the exception of preparing an
97	97	15 attorney's opinion of title; or
98	98	16 (D) Guaranteeing or warranting the status of title as
99	99	17 to ownership of or liens on real property and personal
100	100	18 property by any person other than the principals to the
101	101	19 transaction; or
102	102	20 (E) Doing or proposing to do any business
103	103	21 substantially equivalent to any of the activities listed
104	104	22 in this subsection, provided that the preparation of an
105	105	23 attorney's opinion of title pursuant to paragraph (1)(C)
106	106	24 is not intended to be within the definition of "title
107	107	25 insurance business" or "business of title insurance".
108	108	26 (1.5) "Title insurance" means insuring, guaranteeing,
109	109
110	110
111	111
112	112
113	113
114	114	HB4555 - 2 - LRB103 37017 RPS 67132 b
115	115
116	116
117	117	HB4555- 3 -LRB103 37017 RPS 67132 b HB4555 - 3 - LRB103 37017 RPS 67132 b
118	118	HB4555 - 3 - LRB103 37017 RPS 67132 b
119	119	1 warranting, or indemnifying owners of real or personal
120	120	2 property or the holders of liens or encumbrances thereon or
121	121	3 others interested therein against loss or damage suffered by
122	122	4 reason of liens, encumbrances upon, defects in, or the
123	123	5 unmarketability of the title to the property; the invalidity
124	124	6 or unenforceability of any liens or encumbrances thereon; or
125	125	7 doing any business in substance equivalent to any of the
126	126	8 foregoing. "Warranting" for purpose of this provision shall
127	127	9 not include any warranty contained in instruments of
128	128	10 encumbrance or conveyance. Title insurance is a single line
129	129	11 form of insurance, also known as monoline. An attorney's
130	130	12 opinion of title pursuant to paragraph (1)(C) is not intended
131	131	13 to be within the definition of "title insurance".
132	132	14 (2) "Title insurance company" means any domestic company
133	133	15 organized under the laws of this State for the purpose of
134	134	16 conducting the business of title insurance and any title
135	135	17 insurance company organized under the laws of another State,
136	136	18 the District of Columbia or foreign government and authorized
137	137	19 to transact the business of title insurance in this State.
138	138	20 (3) "Title insurance agent" means a person, firm,
139	139	21 partnership, association, corporation, or other legal entity
140	140	22 that is the holder of a certificate of authority provided
141	141	23 pursuant to Section 16 and that is authorized registered by a
142	142	24 title insurance company to solicit title insurance, collect
143	143	25 title insurance premiums and endorsement charges, perform core
144	144	26 title services, and, if authorized by a title insurance
145	145
146	146
147	147
148	148
149	149
150	150	HB4555 - 3 - LRB103 37017 RPS 67132 b
151	151
152	152
153	153	HB4555- 4 -LRB103 37017 RPS 67132 b HB4555 - 4 - LRB103 37017 RPS 67132 b
154	154	HB4555 - 4 - LRB103 37017 RPS 67132 b
155	155	1 company, and authorized by such company to determine
156	156	2 insurability of title in accordance with generally acceptable
157	157	3 underwriting rules and standards in reliance on either the
158	158	4 public records or a search package prepared from a title
159	159	5 plant, or both, and authorized by such title insurance company
160	160	6 in addition to do any of the following: act as an escrow agent
161	161	7 pursuant to Sections subsections (f), (g), and (h) of Section
162	162	8 16, 16.1, and 16.2 of this Act. "Title , solicit title
163	163	9 insurance, collect premiums, or issue title insurance
164	164	10 commitments, policies, and endorsements of the title insurance
165	165	11 company; provided, however, the term "title insurance agent"
166	166	12 does shall not include officers and salaried employees of any
167	167	13 title insurance company.
168	168	14 (4) "Producer of title business" is any person, firm,
169	169	15 partnership, association, corporation or other legal entity
170	170	16 engaged in this State in the trade, business, occupation or
171	171	17 profession of (i) buying or selling interests in real
172	172	18 property, (ii) making loans secured by interests in real
173	173	19 property, or (iii) acting as broker, agent, attorney, or
174	174	20 representative of natural persons or other legal entities that
175	175	21 buy or sell interests in real property or that lend money with
176	176	22 such interests as security.
177	177	23 (5) "Associate" is any firm, association, partnership,
178	178	24 corporation or other legal entity organized for profit in
179	179	25 which a producer of title business is a director, officer, or
180	180	26 partner thereof, or owner of a financial interest, as defined
181	181
182	182
183	183
184	184
185	185
186	186	HB4555 - 4 - LRB103 37017 RPS 67132 b
187	187
188	188
189	189	HB4555- 5 -LRB103 37017 RPS 67132 b HB4555 - 5 - LRB103 37017 RPS 67132 b
190	190	HB4555 - 5 - LRB103 37017 RPS 67132 b
191	191	1 herein, in such entity; any legal entity that controls, is
192	192	2 controlled by, or is under common control with a producer of
193	193	3 title business; and any natural person or legal entity with
194	194	4 whom a producer of title business has any agreement,
195	195	5 arrangement, or understanding or pursues any course of conduct
196	196	6 the purpose of which is to evade the provisions of this Act.
197	197	7 (6) "Financial interest" is any ownership interest, legal
198	198	8 or beneficial, except ownership of publicly traded stock.
199	199	9 (7) "Refer" means to place or cause to be placed, or to
200	200	10 exercise any power or influence over the placing of title
201	201	11 business, whether or not the consent or approval of any other
202	202	12 person is sought or obtained with respect to the referral.
203	203	13 (8) "Escrow Agent" means any title insurance company or
204	204	14 any title insurance agent, including independent contractors
205	205	15 of either, acting on behalf of a title insurance company,
206	206	16 which receives deposits, in trust, of funds or documents, or
207	207	17 both, for the purpose of effecting the sale, transfer,
208	208	18 encumbrance or lease of real property to be held by such escrow
209	209	19 agent until title to the real property that is the subject of
210	210	20 the escrow is in a prescribed condition. An escrow agent
211	211	21 conducting closings shall be subject to the provisions of
212	212	22 Sections paragraphs (1) through (4) of subsection (e) of
213	213	23 Section 16, 16.1, and 16.2 of this Act.
214	214	24 (9) "Independent Escrowee" means any firm, person,
215	215	25 partnership, association, corporation or other legal entity,
216	216	26 other than a title insurance company or a title insurance
217	217
218	218
219	219
220	220
221	221
222	222	HB4555 - 5 - LRB103 37017 RPS 67132 b
223	223
224	224
225	225	HB4555- 6 -LRB103 37017 RPS 67132 b HB4555 - 6 - LRB103 37017 RPS 67132 b
226	226	HB4555 - 6 - LRB103 37017 RPS 67132 b
227	227	1 agent, which receives deposits, in trust, of funds or
228	228	2 documents, or both, for the purpose of effecting the sale,
229	229	3 transfer, encumbrance or lease of real property to be held by
230	230	4 such escrowee until title to the real property that is the
231	231	5 subject of the escrow is in a prescribed condition. Federal
232	232	6 and State chartered banks, savings and loan associations,
233	233	7 credit unions, mortgage bankers, banks or trust companies
234	234	8 authorized to do business under the Illinois Corporate
235	235	9 Fiduciary Act, licensees under the Consumer Installment Loan
236	236	10 Act, real estate brokers licensed pursuant to the Real Estate
237	237	11 License Act of 2000, as such Acts are now or hereafter amended,
238	238	12 and licensed attorneys when engaged in the attorney-client
239	239	13 relationship are exempt from the escrow provisions of this
240	240	14 Act. "Independent Escrowee" does not include employees or
241	241	15 independent contractors of a title insurance company or title
242	242	16 insurance agent authorized by a title insurance company to
243	243	17 perform closing, escrow, or settlement services.
244	244	18 (10) "Single risk" means the insured amount of any title
245	245	19 insurance policy, except that where 2 or more title insurance
246	246	20 policies are issued simultaneously covering different estates
247	247	21 in the same real property, "single risk" means the sum of the
248	248	22 insured amounts of all such title insurance policies. Any
249	249	23 title insurance policy insuring a mortgage interest, a claim
250	250	24 payment under which reduces the insured amount of a fee or
251	251	25 leasehold title insurance policy, shall be excluded in
252	252	26 computing the amount of a single risk to the extent that the
253	253
254	254
255	255
256	256
257	257
258	258	HB4555 - 6 - LRB103 37017 RPS 67132 b
259	259
260	260
261	261	HB4555- 7 -LRB103 37017 RPS 67132 b HB4555 - 7 - LRB103 37017 RPS 67132 b
262	262	HB4555 - 7 - LRB103 37017 RPS 67132 b
263	263	1 insured amount of the mortgage title insurance policy does not
264	264	2 exceed the insured amount of the fee or leasehold title
265	265	3 insurance policy.
266	266	4 (11) "Department" means the Department of Financial and
267	267	5 Professional Regulation.
268	268	6 (12) "Secretary" means the Secretary of Financial and
269	269	7 Professional Regulation.
270	270	8 (13) "Insured closing letter" or "closing protection
271	271	9 letter" means an indemnification or undertaking to a party to
272	272	10 a real property transaction, from a principal such as a title
273	273	11 insurance company, setting forth in writing the extent of the
274	274	12 principal's responsibility for intentional misconduct or
275	275	13 errors in closing the real property transaction on the part of
276	276	14 a settlement agent, such as a title insurance agent or other
277	277	15 settlement service provider, or an indemnification or
278	278	16 undertaking given by a title insurance company or an
279	279	17 independent escrowee setting forth in writing the extent of
280	280	18 the title insurance company's or independent escrowee's
281	281	19 responsibility to a party to a real property transaction which
282	282	20 indemnifies the party against the intentional misconduct or
283	283	21 errors in closing the real property transaction on the part of
284	284	22 the title insurance company or independent escrowee and
285	285	23 includes protection afforded pursuant to subsections (p), (q),
286	286	24 and (r) (f), (g), and (h) of Section 16, Section 16.1,
287	287	25 subsection (h) of Section 17, and Section 17.1 of this Act even
288	288	26 if such protection is afforded by contract.
289	289
290	290
291	291
292	292
293	293
294	294	HB4555 - 7 - LRB103 37017 RPS 67132 b
295	295
296	296
297	297	HB4555- 8 -LRB103 37017 RPS 67132 b HB4555 - 8 - LRB103 37017 RPS 67132 b
298	298	HB4555 - 8 - LRB103 37017 RPS 67132 b
299	299	1 (14) "Residential real property" means a building or
300	300	2 buildings consisting of one to 4 residential units or a
301	301	3 residential condominium unit where at least one of the
302	302	4 residential units or condominium units is occupied or intended
303	303	5 to be occupied as a residence by the purchaser or borrower, or
304	304	6 in the event that the purchaser or borrower is the trustee of a
305	305	7 trust, by a beneficiary of that trust.
306	306	8 (15) "Financial institution" means any bank subject to the
307	307	9 Illinois Banking Act, any savings and loan association subject
308	308	10 to the Illinois Savings and Loan Act of 1985, any savings bank
309	309	11 subject to the Savings Bank Act, any credit union subject to
310	310	12 the Illinois Credit Union Act, and any federally chartered
311	311	13 commercial bank, savings and loan association, savings bank,
312	312	14 or credit union organized and operated in this State pursuant
313	313	15 to the laws of the United States.
314	314	16 (16) "Core title services" means the performance of the
315	315	17 following services, for which liability shall arise, and that
316	316	18 is separate from and is not duplicative of any other
317	317	19 professional service, including, without limitation, the
318	318	20 practice of law and the performance of services as a real
319	319	21 estate licensee:
320	320	22 (A) review and evaluation of title, tax, judgment,
321	321	23 lien, and other searches or search products, private title
322	322	24 plant records, records of grantor-grantee and other
323	323	25 indices, public records and other records, and any other
324	324	26 information and materials which are relevant to a
325	325
326	326
327	327
328	328
329	329
330	330	HB4555 - 8 - LRB103 37017 RPS 67132 b
331	331
332	332
333	333	HB4555- 9 -LRB103 37017 RPS 67132 b HB4555 - 9 - LRB103 37017 RPS 67132 b
334	334	HB4555 - 9 - LRB103 37017 RPS 67132 b
335	335	1 particular property and transaction to determine
336	336	2 insurability of title to the property;
337	337	3 (B) issuing or causing to be issued the title
338	338	4 commitments on behalf of a title insurance company,
339	339	5 including the determination of the conditions under which
340	340	6 the title insurance company will issue the title insurance
341	341	7 policies required in a particular transaction;
342	342	8 (C) determination as to whether, in accordance with
343	343	9 applicable law and the title insurance company's
344	344	10 underwriting requirements, principles, or guidelines,
345	345	11 underwriting objections stated on the title insurance
346	346	12 commitments may be cleared and the circumstances under
347	347	13 which the objections will be waived or insured before
348	348	14 issuance of the title insurance policies; and
349	349	15 (D) issuing or causing to be issued the title
350	350	16 insurance policies required in a particular transaction
351	351	17 when all conditions for the issuance have been satisfied.
352	352	18 (17) "Title search" means any abstract of title, tract,
353	353	19 tax, judgment, or lien searches, limited purpose searches,
354	354	20 other searches and search products, private title plant
355	355	21 records, records of grantor-grantee and other indices, public
356	356	22 records and other records, property inspections, records
357	357	23 related to the status of title to land, and other information
358	358	24 and materials that are relevant to a particular residential
359	359	25 real property and transactions relating to that residential
360	360	26 real property.
361	361
362	362
363	363
364	364
365	365
366	366	HB4555 - 9 - LRB103 37017 RPS 67132 b
367	367
368	368
369	369	HB4555- 10 -LRB103 37017 RPS 67132 b HB4555 - 10 - LRB103 37017 RPS 67132 b
370	370	HB4555 - 10 - LRB103 37017 RPS 67132 b
371	371	1 (Source: P.A. 100-485, eff. 9-8-17.)
372	372	2 (215 ILCS 155/12) (from Ch. 73, par. 1412)
373	373	3 Sec. 12. Examinations; compliance.
374	374	4 (a) The Secretary or the Secretary's his authorized
375	375	5 representative shall have the power and authority, and it
376	376	6 shall be his duty, to cause to be visited and examined annually
377	377	7 any title insurance company doing business under this Act, and
378	378	8 to verify and compel compliance with the provisions of law
379	379	9 governing it.
380	380	10 (b) The Secretary or the Secretary's his authorized
381	381	11 representative agent shall have power and authority to visit
382	382	12 and examine the records specifically pertaining to the
383	383	13 services provided under this Act of any title insurance agent,
384	384	14 but not including files pertaining to the title insurance
385	385	15 agent's practice of law, if applicable, and to verify and
386	386	16 compel compliance with the provisions of this Act compel
387	387	17 compliance with the provisions of this Act and shall, only
388	388	18 upon the showing of good cause, require any title insurance
389	389	19 company to take all legal means to obtain the appropriate
390	390	20 records of its registered agents and make them available for
391	391	21 examination at a time and place designated by the Secretary.
392	392	22 Expenses incurred in the course of such examinations will be
393	393	23 the responsibility of the title insurance company. In the
394	394	24 event that a present or former registered agent or its
395	395	25 successor refuses or is unable to cooperate with a title
396	396
397	397
398	398
399	399
400	400
401	401	HB4555 - 10 - LRB103 37017 RPS 67132 b
402	402
403	403
404	404	HB4555- 11 -LRB103 37017 RPS 67132 b HB4555 - 11 - LRB103 37017 RPS 67132 b
405	405	HB4555 - 11 - LRB103 37017 RPS 67132 b
406	406	1 insurance company in furnishing the records requested by the
407	407	2 Secretary or his or her authorized agent, then the Secretary
408	408	3 or his or her authorized agent shall have the power and
409	409	4 authority to obtain those records directly from the registered
410	410	5 agent.
411	411	6 (c) The Secretary or the Secretary's authorized
412	412	7 representative shall have the power and authority to visit and
413	413	8 examine the records specifically pertaining to the services
414	414	9 provided under this Act of any independent escrowee and to
415	415	10 verify and compel compliance with the provisions of this Act.
416	416	11 (Source: P.A. 94-893, eff. 6-20-06.)
417	417	12 (215 ILCS 155/15.2 new)
418	418	13 Sec. 15.2. Title insurance company duties.
419	419	14 (a) This Section applies only to transactions involving
420	420	15 residential real property.
421	421	16 (b) In the conduct of its title insurance business, every
422	422	17 title insurance company shall:
423	423	18 (1) Post and publish its current rates and charges
424	424	19 associated with its title insurance business with a clear
425	425	20 and complete description thereof, including, without
426	426	21 limitation, title insurance premiums, endorsements to
427	427	22 policies, fees for services as an escrow agent, and all
428	428	23 other services and products it provides, conspicuously in
429	429	24 its offices and on its websites, social media, and
430	430	25 digital, electronic, online, and other platforms and
431	431
432	432
433	433
434	434
435	435
436	436	HB4555 - 11 - LRB103 37017 RPS 67132 b
437	437
438	438
439	439	HB4555- 12 -LRB103 37017 RPS 67132 b HB4555 - 12 - LRB103 37017 RPS 67132 b
440	440	HB4555 - 12 - LRB103 37017 RPS 67132 b
441	441	1 places that are intended to be visited or viewed by the
442	442	2 public. Title insurance companies must also provide their
443	443	3 registered title insurance agents with the posted and
444	444	4 published rates and charges. A title insurance company
445	445	5 must not make a charge that exceeds its published rates
446	446	6 and charges. This subsection (b) does not apply to special
447	447	7 risk title insurance and endorsement premiums, general
448	448	8 advertising, and marketing in media not controlled by the
449	449	9 title insurance company, but any such advertising shall
450	450	10 contain information, such as an Internet web address or a
451	451	11 hyperlink, to a website where the published rates and
452	452	12 charges can be viewed by the public.
453	453	13 (2) Require all of its title insurance agents to
454	454	14 perform, at a minimum in each transaction, all core title
455	455	15 services as a condition to that title insurance agent's
456	456	16 compensation as set forth in the agency contract, and may
457	457	17 not interfere with, assume in whole or in part, or prevent
458	458	18 the title insurance agent's performance of any core title
459	459	19 service.
460	460	20 (3) Agree upon the terms of the agency in writing with
461	461	21 its title insurance agents; the terms shall include that
462	462	22 the title insurance agent must perform, at a minimum, all
463	463	23 core title services as a condition of the title insurance
464	464	24 agent's compensation for each title insurance product and
465	465	25 endorsement issued and the compensation that the title
466	466	26 insurance agent shall receive for the performance of such
467	467
468	468
469	469
470	470
471	471
472	472	HB4555 - 12 - LRB103 37017 RPS 67132 b
473	473
474	474
475	475	HB4555- 13 -LRB103 37017 RPS 67132 b HB4555 - 13 - LRB103 37017 RPS 67132 b
476	476	HB4555 - 13 - LRB103 37017 RPS 67132 b
477	477	1 core title services. Compensation to the title insurance
478	478	2 agent for the performance of core title services shall be
479	479	3 as stated in the written agency contract.
480	480	4 (4) Share title insurance premiums and endorsement
481	481	5 charges only with its title insurance agent performing the
482	482	6 core title services in a transaction.
483	483	7 (5) Agree in writing with any title insurance agent to
484	484	8 which the title insurance company provides products or
485	485	9 services that are not core title services but are related
486	486	10 to the title insurance agent's performance of core title
487	487	11 services and are included in the cost of the title
488	488	12 insurance premiums and endorsements, such as, if
489	489	13 applicable, title searches, underwriting research
490	490	14 assistance, quality control, document recording, retention
491	491	15 of title documentation, commitment and policy typing, or
492	492	16 other products and services to the title insurance agent.
493	493	17 The written agreement must set forth, at a minimum, a
494	494	18 description of the products and services to be provided
495	495	19 and the compensation to be paid for such products and
496	496	20 services. Such compensation must be commensurate with the
497	497	21 actual value of the products and services.
498	498	22 (6) Retain any remedy or right of action against its
499	499	23 title insurance agent as provided in any law, rule, or
500	500	24 regulation for the title insurance agent's failure to
501	501	25 perform its obligations under the written agency contract,
502	502	26 underwriting requirements, or otherwise as provided by
503	503
504	504
505	505
506	506
507	507
508	508	HB4555 - 13 - LRB103 37017 RPS 67132 b
509	509
510	510
511	511	HB4555- 14 -LRB103 37017 RPS 67132 b HB4555 - 14 - LRB103 37017 RPS 67132 b
512	512	HB4555 - 14 - LRB103 37017 RPS 67132 b
513	513	1 law.
514	514	2 (c) In any residential real property transaction in which
515	515	3 a title insurance company acts as an escrow agent pursuant to
516	516	4 any provision in this Act:
517	517	5 (1) A title insurance company's current rates and
518	518	6 charges for its products and services rendered as an
519	519	7 escrow agent must be included in the posting and
520	520	8 publication provided for in subsection (b).
521	521	9 (2) A title insurance company shall disburse all title
522	522	10 insurance premiums and endorsement charges as directed by
523	523	11 the title insurance agent performing core title services
524	524	12 under Section 16.2 at the time of settlement or closing.
525	525	13 The disbursements shall be in accordance with the written
526	526	14 agency or other contracts between the title insurance
527	527	15 agent and the title insurance company acting as the escrow
528	528	16 agent in the transaction and the distributions shall be
529	529	17 clearly and unambiguously disclosed on any applicable
530	530	18 closing disclosure or settlement statement and delivered
531	531	19 to the parties to the transaction at the time of closing or
532	532	20 settlement.
533	533	21 (3) A title insurance company shall not share or allow
534	534	22 to be shared, either directly or indirectly, any of its
535	535	23 compensation for its service as an escrow agent or other
536	536	24 products or services with any title insurance agent except
537	537	25 as provided in this Section. Any payment that is contrary
538	538	26 to this paragraph (3) is a prohibited inducement or
539	539
540	540
541	541
542	542
543	543
544	544	HB4555 - 14 - LRB103 37017 RPS 67132 b
545	545
546	546
547	547	HB4555- 15 -LRB103 37017 RPS 67132 b HB4555 - 15 - LRB103 37017 RPS 67132 b
548	548	HB4555 - 15 - LRB103 37017 RPS 67132 b
549	549	1 compensation for a referral in violation of Section 24.
550	550	2 (d) Nothing in this Section shall be construed to restrict
551	551	3 or impair a title insurance company's right or ability to
552	552	4 determine and promulgate its underwriting requirements,
553	553	5 principles, and conditions for insuring any risk that would be
554	554	6 covered in a policy of insurance or an endorsement to a policy,
555	555	7 or to educate, instruct, or inform its title insurance agents
556	556	8 as to its underwriting requirements generally or in a
557	557	9 particular transaction or otherwise. Nothing in this Section
558	558	10 shall be construed to restrict or impair a title insurance
559	559	11 company's right or ability to determine and charge special
560	560	12 risk title insurance and endorsement premiums that are
561	561	13 different from the posted or published rates and premiums, or
562	562	14 to waive or vary from its title insurance underwriting
563	563	15 requirements, principles, and conditions for insuring any risk
564	564	16 that would be covered in a policy of insurance or an
565	565	17 endorsement to a policy in any given case as it, in its sole
566	566	18 discretion, may decide. Special risk title insurance and
567	567	19 endorsement premiums shall not be shared with any other party.
568	568	20 (215 ILCS 155/16) (from Ch. 73, par. 1416)
569	569	21 Sec. 16. Title insurance agents.
570	570	22 (a) No person, firm, partnership, association,
571	571	23 corporation, or other legal entity shall act as or hold itself
572	572	24 out to be a title insurance agent without first procuring a
573	573	25 certificate of authority from the Secretary. A certificate of
574	574
575	575
576	576
577	577
578	578
579	579	HB4555 - 15 - LRB103 37017 RPS 67132 b
580	580
581	581
582	582	HB4555- 16 -LRB103 37017 RPS 67132 b HB4555 - 16 - LRB103 37017 RPS 67132 b
583	583	HB4555 - 16 - LRB103 37017 RPS 67132 b
584	584	1 authority shall remain in effect unless revoked or suspended
585	585	2 by the Secretary, voluntarily surrendered by the holder, or
586	586	3 the holder of the certificate of authority is no longer
587	587	4 authorized as a title insurance agent of a title insurance
588	588	5 company unless duly registered by a title insurance company
589	589	6 with the Secretary.
590	590	7 (b) Each application for a certificate of authority
591	591	8 registration shall be made on a form specified by the
592	592	9 Secretary and prepared by each title insurance company which
593	593	10 the agent represents. The title insurance company shall retain
594	594	11 the copy of the application and forward a copy to the
595	595	12 Secretary.
596	596	13 (c) Every applicant for a certificate of authority
597	597	14 registration, except a firm, partnership, association, limited
598	598	15 liability company, or corporation, must be 18 years or more of
599	599	16 age. Included in every application for a certificate of
600	600	17 authority registration of a title insurance agent, including a
601	601	18 firm, partnership, association, limited liability company, or
602	602	19 corporation, shall be an affidavit of the applicant title
603	603	20 insurance agent, signed and notarized in front of a notary
604	604	21 public, affirming that the applicant and every owner, officer,
605	605	22 director, principal, member, or manager of the applicant has
606	606	23 never been convicted or pled guilty to any felony or
607	607	24 misdemeanor involving a crime of theft or dishonesty or
608	608	25 otherwise accurately disclosing any such felony or misdemeanor
609	609	26 involving a crime of theft or dishonesty, and that the
610	610
611	611
612	612
613	613
614	614
615	615	HB4555 - 16 - LRB103 37017 RPS 67132 b
616	616
617	617
618	618	HB4555- 17 -LRB103 37017 RPS 67132 b HB4555 - 17 - LRB103 37017 RPS 67132 b
619	619	HB4555 - 17 - LRB103 37017 RPS 67132 b
620	620	1 applicant and every owner, officer, director, principal,
621	621	2 member, or manager of the applicant has never been adjudicated
622	622	3 by any tribunal to be civilly liable to any party based on a
623	623	4 finding involving theft or dishonesty. No person who has had a
624	624	5 conviction or pled guilty to any felony or misdemeanor or who
625	625	6 has been adjudicated by any tribunal to be civilly liable to
626	626	7 any party based on a finding involving theft or dishonesty may
627	627	8 qualify for a certificate of authority be registered by a
628	628	9 title insurance company without a written notification to the
629	629	10 Secretary disclosing the conviction or plea, and no such
630	630	11 person may serve as an owner, officer, director, principal, or
631	631	12 manager of any registered title insurance agent without the
632	632	13 written permission of the Secretary.
633	633	14 (d) Every individual applicant that is not duly registered
634	634	15 as a title insurance agent on the effective date of this
635	635	16 amendatory Act of the 103rd General Assembly shall:
636	636	17 Registration shall be made annually by a filing with the
637	637	18 Secretary; supplemental registrations for new title insurance
638	638	19 agents to be added between annual filings shall be made from
639	639	20 time to time in the manner provided by the Secretary;
640	640	21 registrations shall remain in effect unless revoked or
641	641	22 suspended by the Secretary or voluntarily withdrawn by the
642	642	23 registrant or the title insurance company.
643	643	24 (1) Successfully complete a 4-year course of study in
644	644	25 a high school or secondary school approved by the state in
645	645	26 which the school is located, or possess a State of
646	646
647	647
648	648
649	649
650	650
651	651	HB4555 - 17 - LRB103 37017 RPS 67132 b
652	652
653	653
654	654	HB4555- 18 -LRB103 37017 RPS 67132 b HB4555 - 18 - LRB103 37017 RPS 67132 b
655	655	HB4555 - 18 - LRB103 37017 RPS 67132 b
656	656	1 Illinois High School Diploma, which shall be verified
657	657	2 under oath by the applicant.
658	658	3 (2) Pass an examination that is designed to determine
659	659	4 the competency of the applicant to conduct the business of
660	660	5 a title agent and knowledge of basic real property law and
661	661	6 title insurance procedures. The applicant shall file with
662	662	7 its application satisfactory proof that the applicant has
663	663	8 passed the competency examination. The Department shall
664	664	9 have the authority to adopt administrative rules to
665	665	10 approve testing providers, establish the testing
666	666	11 procedures, including, but not limited to, the
667	667	12 requirements for passing the examination, and the content
668	668	13 of the examination that shall, at a minimum, determine the
669	669	14 competency of an applicant in the following subject
670	670	15 matters and any other subject matter which the Secretary
671	671	16 may determine to be basic and essential to the competent
672	672	17 conduct of the business of a title insurance agent, which
673	673	18 must include, at a minimum:
674	674	19 (i) the Title Insurance Act and its requirements;
675	675	20 (ii) Illinois real property law, including, but
676	676	21 not limited to, forms of ownership, conveyancing,
677	677	22 testate or intestate succession of title, taxes,
678	678	23 judgments, liens, surveys;
679	679	24 (iii) basic knowledge of the federal Real Estate
680	680	25 Settlement Procedures Act;
681	681	26 (iv) core title services; and
682	682
683	683
684	684
685	685
686	686
687	687	HB4555 - 18 - LRB103 37017 RPS 67132 b
688	688
689	689
690	690	HB4555- 19 -LRB103 37017 RPS 67132 b HB4555 - 19 - LRB103 37017 RPS 67132 b
691	691	HB4555 - 19 - LRB103 37017 RPS 67132 b
692	692	1 (v) title examinations and methods, title
693	693	2 objections, policy and endorsement forms, waivers of
694	694	3 policy exceptions, and escrow procedures.
695	695	4 Any applicant that is a firm, partnership, association,
696	696	5 corporation, or other legal entity shall fulfill the
697	697	6 examination requirement of paragraph (2) of this subsection
698	698	7 (d) by an officer of the entity that owns an equity interest in
699	699	8 the entity and that has managerial authority in the entity.
700	700	9 (e) The requirements of subsection (d) do not apply to
701	701	10 applicants who are admitted to practice law by the Supreme
702	702	11 Court of Illinois and who are in active standing or to
703	703	12 applicants that have earned the Illinois Land Title
704	704	13 Association's "Illinois Title Professional" designation.
705	705	14 (f) The Secretary shall issue a certificate of authority
706	706	15 to conduct business as a title insurance agent upon
707	707	16 determination that an applicant has passed the required
708	708	17 examination and is otherwise in compliance with this Act and
709	709	18 all applicable laws. The certificate of authority provided for
710	710	19 in this Section shall be renewed every 2 years upon the payment
711	711	20 of a certificate of authority renewal fee in an amount
712	712	21 determined by the Secretary pursuant to the rulemaking
713	713	22 authority under subsection (s).
714	714	23 (g) Any title insurance agent who is registered on the
715	715	24 effective date of this amendatory Act of the 103rd General
716	716	25 Assembly may continue to conduct the business of title
717	717	26 insurance as a title insurance agent for a period of one year
718	718
719	719
720	720
721	721
722	722
723	723	HB4555 - 19 - LRB103 37017 RPS 67132 b
724	724
725	725
726	726	HB4555- 20 -LRB103 37017 RPS 67132 b HB4555 - 20 - LRB103 37017 RPS 67132 b
727	727	HB4555 - 20 - LRB103 37017 RPS 67132 b
728	728	1 after the effective date of this amendatory Act of the 103rd
729	729	2 General Assembly and shall be issued a certificate of
730	730	3 authority upon the filing by a title insurance company with
731	731	4 the Secretary a written agency agreement that complies with
732	732	5 this Act within 90 days after the effective date of this
733	733	6 amendatory Act of the 103rd General Assembly.
734	734	7 (h) A title insurance company shall annually file with the
735	735	8 Secretary a list of all title insurance agents authorized to
736	736	9 conduct the business of title insurance as an agent of the
737	737	10 title insurance company. Supplemental filings for new title
738	738	11 insurance agents to be added between annual filings shall be
739	739	12 made from time to time in the manner provided by the Secretary.
740	740	13 A title insurance company shall immediately notify the
741	741	14 Secretary of any title insurance agent whose agency has been
742	742	15 terminated, and shall immediately file with the Secretary any
743	743	16 new title insurance agency agreement that replaces an
744	744	17 agreement already on file or that has been revised or amended
745	745	18 in any way.
746	746	19 (i) The Secretary shall maintain a database of title
747	747	20 insurance agents in good standing on a publicly accessible
748	748	21 website that any person may use to verify the authority of a
749	749	22 particular title insurance agent.
750	750	23 (j) (e) Funds deposited in connection with any escrows,
751	751	24 settlements, or closings shall be deposited into in a separate
752	752	25 fiduciary trust account or accounts in a bank or other
753	753	26 financial institution insured by an agency of the federal
754	754
755	755
756	756
757	757
758	758
759	759	HB4555 - 20 - LRB103 37017 RPS 67132 b
760	760
761	761
762	762	HB4555- 21 -LRB103 37017 RPS 67132 b HB4555 - 21 - LRB103 37017 RPS 67132 b
763	763	HB4555 - 21 - LRB103 37017 RPS 67132 b
764	764	1 government unless the instructions provide otherwise. The
765	765	2 funds shall be the property of the person or persons entitled
766	766	3 thereto under the provisions of the escrow, settlement, or
767	767	4 closing and shall be segregated by escrow, settlement, or
768	768	5 closing in the records of the escrow agent. The funds shall not
769	769	6 be subject to any debts of the escrowee and shall be used only
770	770	7 in accordance with the terms of the individual escrow,
771	771	8 settlement, or closing under which the funds were accepted.
772	772	9 Interest received on funds deposited with the escrow agent
773	773	10 in connection with any escrow, settlement, or closing shall be
774	774	11 paid to the depositing party unless the instructions provide
775	775	12 otherwise.
776	776	13 The escrow agent shall maintain separate records of all
777	777	14 receipts and disbursements of escrow, settlement, or closing
778	778	15 funds.
779	779	16 The escrow agent shall comply with any rules adopted by
780	780	17 the Secretary pertaining to escrow, settlement, or closing
781	781	18 transactions.
782	782	19 (k) A title insurance agent shall not act as an escrow
783	783	20 agent in a residential real property transaction unless the
784	784	21 title insurance agent files with the Secretary and the
785	785	22 Secretary approves cash or bonds of the United States, this
786	786	23 State, or any body politic of this State in the amounts
787	787	24 specified in subsection (l). The deposit is not to be
788	788	25 otherwise pledged or subject to distribution among creditors,
789	789	26 owners of equity, or stockholders until all claims of escrow
790	790
791	791
792	792
793	793
794	794
795	795	HB4555 - 21 - LRB103 37017 RPS 67132 b
796	796
797	797
798	798	HB4555- 22 -LRB103 37017 RPS 67132 b HB4555 - 22 - LRB103 37017 RPS 67132 b
799	799	HB4555 - 22 - LRB103 37017 RPS 67132 b
800	800	1 depositors have been paid in full or discharged, reinsured, or
801	801	2 otherwise assumed by a title insurance company authorized to
802	802	3 do business under this Act. The cash, bonds, and securities so
803	803	4 deposited may be exchanged for other such securities. No such
804	804	5 cash, bond, or security shall be sold or transferred by the
805	805	6 Secretary except on order of the circuit court or as provided
806	806	7 in subsection (o). The company shall be permitted to receive
807	807	8 from the Secretary the interest on the deposit as long as the
808	808	9 company depositing such securities remains solvent.
809	809	10 (l) The deposit required under subsection (k) must have a
810	810	11 then-current value of $500,000. For title insurance agents
811	811	12 that act as an escrow agent exclusively for transactions
812	812	13 involving residential real property in counties having
813	813	14 populations of fewer than 500,000, the deposit required under
814	814	15 subsection (k) must have a then-current value of $250,000. All
815	815	16 deposits shall be held for the benefit of any named party to a
816	816	17 written escrow it accepted. The deposit is not to be otherwise
817	817	18 pledged or subject to distribution among creditors or
818	818	19 stockholders.
819	819	20 (m) The Secretary may provide for custody of the deposits
820	820	21 by any trust company or bank located in this State and
821	821	22 qualified to do business under the Corporate Fiduciary Act.
822	822	23 The compensation, if any, of such custodian shall be paid by
823	823	24 the depositing company. When the required deposits have been
824	824	25 made by a title insurance agent that intends to act as an
825	825	26 escrow agent in any residential real property transaction, the
826	826
827	827
828	828
829	829
830	830
831	831	HB4555 - 22 - LRB103 37017 RPS 67132 b
832	832
833	833
834	834	HB4555- 23 -LRB103 37017 RPS 67132 b HB4555 - 23 - LRB103 37017 RPS 67132 b
835	835	HB4555 - 23 - LRB103 37017 RPS 67132 b
836	836	1 Secretary shall certify that the title insurance agent has
837	837	2 complied with the provisions of this Section and is authorized
838	838	3 to transact the business of a title insurance agent acting as
839	839	4 an escrow agent in residential real property transactions.
840	840	5 (n) Before doing business in the State of Illinois in a
841	841	6 residential real property transaction, an escrow agent must
842	842	7 file with and have approved by the Secretary proof of a
843	843	8 fidelity bond in the minimum amount of $1,000,000 per
844	844	9 occurrence, errors and omissions insurance in the minimum
845	845	10 amount of $1,000,000 per occurrence, and cybercrime insurance
846	846	11 coverage in the minimum amount of $500,000 per occurrence. The
847	847	12 insurance policies required shall be issued by insurers that
848	848	13 are authorized to conduct such insurance business in the State
849	849	14 of Illinois. The title insurance agent may not conduct title
850	850	15 insurance business as an escrow agent unless the deposit,
851	851	16 fidelity bond, errors and omissions insurance, and cybercrime
852	852	17 insurance coverage required by this Section are continuously
853	853	18 maintained.
854	854	19 (o) The Secretary may revoke the certificate of authority
855	855	20 of a title insurance agent acting as an escrow agent that fails
856	856	21 to maintain the deposit, fidelity bond, errors and omissions
857	857	22 insurance, or cybercrime insurance coverage required by this
858	858	23 Section. The Secretary shall give notice of that revocation to
859	859	24 such title insurance agent as provided by this Act, and,
860	860	25 during the time of the revocation, the title insurance agent
861	861	26 may not conduct any title insurance business as an escrow
862	862
863	863
864	864
865	865
866	866
867	867	HB4555 - 23 - LRB103 37017 RPS 67132 b
868	868
869	869
870	870	HB4555- 24 -LRB103 37017 RPS 67132 b HB4555 - 24 - LRB103 37017 RPS 67132 b
871	871	HB4555 - 24 - LRB103 37017 RPS 67132 b
872	872	1 agent. A revocation shall not be set aside until the title
873	873	2 insurance agent has filed with and has been approved by the
874	874	3 Secretary in accordance with the requirements of this Section
875	875	4 and the title insurance agent is otherwise in compliance with
876	876	5 this Act, or until the title insurance agent ceases to do
877	877	6 business as an escrow agent.
878	878	7 (p) (f) A title insurance agent shall not act as an escrow
879	879	8 agent in a nonresidential real property transaction where the
880	880	9 amount of settlement funds on deposit with the escrow agent is
881	881	10 less than $2,000,000 or in a residential real property
882	882	11 transaction unless the title insurance agent, title insurance
883	883	12 company, or another authorized title insurance agent has
884	884	13 committed for the issuance of title insurance in that
885	885	14 transaction and the title insurance agent is authorized to act
886	886	15 as an escrow agent on behalf of the title insurance company for
887	887	16 which the commitment for title insurance has been issued. The
888	888	17 authorization under the preceding sentence shall be given
889	889	18 either (1) by an agency contract with the title insurance
890	890	19 company which contract, in compliance with the requirements
891	891	20 set forth in subsection (q) (g) of this Section, authorizes
892	892	21 the title insurance agent to act as an escrow agent on behalf
893	893	22 of the title insurance company or (2) by a closing protection
894	894	23 letter in compliance with the requirements set forth in
895	895	24 Section 16.1 of this Act, issued by the title insurance
896	896	25 company to the seller, buyer, borrower, and lender. A closing
897	897	26 protection letter shall not be issued by a title insurance
898	898
899	899
900	900
901	901
902	902
903	903	HB4555 - 24 - LRB103 37017 RPS 67132 b
904	904
905	905
906	906	HB4555- 25 -LRB103 37017 RPS 67132 b HB4555 - 25 - LRB103 37017 RPS 67132 b
907	907	HB4555 - 25 - LRB103 37017 RPS 67132 b
908	908	1 agent. The provisions of this subsection (f) shall not apply
909	909	2 to the authority of a title insurance agent to act as an escrow
910	910	3 agent under subsection (g) of Section 17 of this Act.
911	911	4 (q) (g) If an agency contract between the title insurance
912	912	5 company and the title insurance agent is the source of the
913	913	6 authority under subsection (p) (f) of this Section for a title
914	914	7 insurance agent to act as escrow agent for a real property
915	915	8 transaction, then the agency contract shall provide for no
916	916	9 less protection from the title insurance company to all
917	917	10 parties to the real property transaction than the title
918	918	11 insurance company would have provided to those parties had the
919	919	12 title insurance company issued a closing protection letter in
920	920	13 conformity with Section 16.1 of this Act.
921	921	14 (r) (h) A title insurance company shall be liable for the
922	922	15 acts or omissions of its title insurance agent as an escrow
923	923	16 agent if the title insurance company has authorized the title
924	924	17 insurance agent under subsections (p) and (q) (f) and (g) of
925	925	18 this Section 16 and only to the extent of the liability
926	926	19 undertaken by the title insurance company in the agency
927	927	20 agreement or closing protection letter. The liability, if any,
928	928	21 of the title insurance agent to the title insurance company
929	929	22 for acts and omissions of the title insurance agent as an
930	930	23 escrow agent shall not be limited or otherwise modified
931	931	24 because the title insurance company has provided closing
932	932	25 protection to a party or parties to a real property
933	933	26 transaction escrow, settlement, or closing. The escrow agent
934	934
935	935
936	936
937	937
938	938
939	939	HB4555 - 25 - LRB103 37017 RPS 67132 b
940	940
941	941
942	942	HB4555- 26 -LRB103 37017 RPS 67132 b HB4555 - 26 - LRB103 37017 RPS 67132 b
943	943	HB4555 - 26 - LRB103 37017 RPS 67132 b
944	944	1 shall not charge a fee for protection provided by a title
945	945	2 insurance company to parties to real property transactions
946	946	3 under subsections (p) and (q) (f) and (g) of this Section 16
947	947	4 and Section 16.1, but shall collect from the parties the fee
948	948	5 charged by the title insurance company and shall promptly
949	949	6 remit the fee to the title insurance company. The title
950	950	7 insurance company may charge the parties a reasonable fee for
951	951	8 protection provided pursuant to subsections (p) and (q) (f)
952	952	9 and (g) of this Section 16 and Section 16.1 and shall not pay
953	953	10 any portion of the fee to the escrow agent. The payment of any
954	954	11 portion of the fee to the escrow agent by the title insurance
955	955	12 company, shall be deemed a prohibited inducement or
956	956	13 compensation in violation of Section 24 of this Act.
957	957	14 (s) (i) The Secretary shall adopt and amend such rules as
958	958	15 may be required for the proper administration and enforcement
959	959	16 of this Section 16 consistent with the federal Real Estate
960	960	17 Settlement Procedures Act and Section 24 of this Act,
961	961	18 including the proper administration of the licensing and
962	962	19 examination of applicants, the retention of third-party
963	963	20 licensing and competency examination entities if the Secretary
964	964	21 deems such retention to be reasonable, necessary, and proper,
965	965	22 and application, licensing, and renewal fees sufficient to
966	966	23 offset the costs of the implementation, administration, and
967	967	24 enforcement of the provisions of this Section. The Department
968	968	25 shall adopt such rules as the Secretary deems necessary
969	969	26 promptly after the effective date of this amendatory Act of
970	970
971	971
972	972
973	973
974	974
975	975	HB4555 - 26 - LRB103 37017 RPS 67132 b
976	976
977	977
978	978	HB4555- 27 -LRB103 37017 RPS 67132 b HB4555 - 27 - LRB103 37017 RPS 67132 b
979	979	HB4555 - 27 - LRB103 37017 RPS 67132 b
980	980	1 the 103rd General Assembly.
981	981	2 (t) Notwithstanding any other provision of this amendatory
982	982	3 Act of the 103rd General Assembly, the examination
983	983	4 requirements of paragraph (2) of subsection (d) shall take
984	984	5 effect on the date that final rules for implementation of
985	985	6 provisions described in subsection (s) take effect.
986	986	7 (Source: P.A. 98-398, eff. 1-1-14; 98-832, eff. 1-1-15;
987	987	8 99-104, eff. 1-1-16.)
988	988	9 (215 ILCS 155/16.2 new)
989	989	10 Sec. 16.2. Title insurance agent duties.
990	990	11 (a) This Section shall apply only to transactions
991	991	12 involving residential real property.
992	992	13 (b) In the conduct of its title insurance business, every
993	993	14 title insurance agent shall:
994	994	15 (1) Post and publish the current rates and charges of
995	995	16 each of its title insurance company principals, as
996	996	17 provided by the title insurance company, conspicuously in
997	997	18 its offices and on its websites, social media, and
998	998	19 digital, electronic, online, and other platforms and
999	999	20 places that are intended to be visited or viewed by the
1000	1000	21 public. A title insurance agent shall not make a charge
1001	1001	22 that exceeds the published rates and charges. This
1002	1002	23 subsection (b) does not apply to special risk title
1003	1003	24 insurance and endorsements premiums, general advertising,
1004	1004	25 and marketing in media not controlled by the title
1005	1005
1006	1006
1007	1007
1008	1008
1009	1009
1010	1010	HB4555 - 27 - LRB103 37017 RPS 67132 b
1011	1011
1012	1012
1013	1013	HB4555- 28 -LRB103 37017 RPS 67132 b HB4555 - 28 - LRB103 37017 RPS 67132 b
1014	1014	HB4555 - 28 - LRB103 37017 RPS 67132 b
1015	1015	1 insurance agent, but any such advertising shall contain
1016	1016	2 information, such as an Internet web address or a
1017	1017	3 hyperlink, to a website where such published rates and
1018	1018	4 charges can be viewed by the public.
1019	1019	5 (2) Agree upon the terms of the agency in writing with
1020	1020	6 each title insurance company for which it is a registered
1021	1021	7 agent; the terms shall include that the title insurance
1022	1022	8 agent must perform, at a minimum, all core title services
1023	1023	9 as a condition of the title insurance agent's compensation
1024	1024	10 for each title insurance product and endorsement issued,
1025	1025	11 and the compensation that the title insurance agent shall
1026	1026	12 receive for the performance of such core title services.
1027	1027	13 Compensation received by the title insurance agent for the
1028	1028	14 performance of core title services shall not exceed that
1029	1029	15 which is stated in the written agency contract.
1030	1030	16 (3) Enter into an agreement in writing with any escrow
1031	1031	17 agent or title insurance agent that provides products or
1032	1032	18 services that are not core title services but that are
1033	1033	19 related to the title insurance agent's performance of core
1034	1034	20 title services and are included in the title insurance and
1035	1035	21 endorsements premiums, such as, if applicable, title
1036	1036	22 searches, underwriting research assistance, quality
1037	1037	23 control, document recording, retention of title
1038	1038	24 documentation, commitment and policy typing, or other
1039	1039	25 products and services to the title insurance agent; the
1040	1040	26 agreement shall set forth, at a minimum, a description of
1041	1041
1042	1042
1043	1043
1044	1044
1045	1045
1046	1046	HB4555 - 28 - LRB103 37017 RPS 67132 b
1047	1047
1048	1048
1049	1049	HB4555- 29 -LRB103 37017 RPS 67132 b HB4555 - 29 - LRB103 37017 RPS 67132 b
1050	1050	HB4555 - 29 - LRB103 37017 RPS 67132 b
1051	1051	1 the product and services to be provided, the compensation
1052	1052	2 to be paid for such products and services, and the
1053	1053	3 conditions for which the products and services are
1054	1054	4 necessary. Such compensation shall be commensurate with
1055	1055	5 the actual value of such products and services.
1056	1056	6 (4) Perform, at a minimum, all core title services as
1057	1057	7 a condition of its compensation as set forth in the agency
1058	1058	8 agreement.
1059	1059	9 (5) Direct the escrow agent or independent escrowee as
1060	1060	10 to the disbursement at the time of settlement or closing
1061	1061	11 of title insurance premiums and endorsement charges to the
1062	1062	12 title insurance company in accordance with its agency
1063	1063	13 contract and to the escrow agent in accordance with its
1064	1064	14 written agreement. All such disbursements shall be clearly
1065	1065	15 and unambiguously disclosed on any applicable closing
1066	1066	16 disclosure and settlement statement and delivered to the
1067	1067	17 parties to the transaction at the time of closing or
1068	1068	18 settlement.
1069	1069	19 (6) Not share or allow to be shared, either directly
1070	1070	20 or indirectly, any of its compensation for any products or
1071	1071	21 services charged directly to a party in the transaction
1072	1072	22 with any other title insurance agent except as provided in
1073	1073	23 this Section. Any payment that is contrary to this
1074	1074	24 paragraph (6) is a prohibited inducement or compensation
1075	1075	25 for a referral in violation of Section 24.
1076	1076	26 (c) In any transaction in which a title insurance agent
1077	1077
1078	1078
1079	1079
1080	1080
1081	1081
1082	1082	HB4555 - 29 - LRB103 37017 RPS 67132 b
1083	1083
1084	1084
1085	1085	HB4555- 30 -LRB103 37017 RPS 67132 b HB4555 - 30 - LRB103 37017 RPS 67132 b
1086	1086	HB4555 - 30 - LRB103 37017 RPS 67132 b
1087	1087	1 acts as an escrow agent pursuant to Sections 16, 16.1, and 16.2
1088	1088	2 of this Act or any other provision in this Act:
1089	1089	3 (1) The title insurance agent's current rates and
1090	1090	4 charges for its products and services rendered as an
1091	1091	5 escrow agent shall be included in the posting and
1092	1092	6 publication provided for in subsection (b). An escrow
1093	1093	7 agent shall not make any charge that exceeds its published
1094	1094	8 rates and charges.
1095	1095	9 (2) The escrow agent shall disburse all title
1096	1096	10 insurance premiums and endorsement charges as directed by
1097	1097	11 the title insurance agent performing core title services
1098	1098	12 at the time of settlement or closing of the transaction.
1099	1099	13 The disbursement shall include payment for any products or
1100	1100	14 services that are not core title services but that are
1101	1101	15 related to the title insurance agent's performance of core
1102	1102	16 title services and are included in the cost of the title
1103	1103	17 insurance premiums and endorsements, such as, if
1104	1104	18 applicable, title searches, underwriting research
1105	1105	19 assistance, quality control, document recording, retention
1106	1106	20 of title documentation, commitment and policy typing, or
1107	1107	21 other products and services to the title insurance agent
1108	1108	22 that were supplied to the title insurance agent by an
1109	1109	23 escrow agent or other title insurance agent. The
1110	1110	24 disbursements shall be in accordance with the written
1111	1111	25 agency or other agreement between the title insurance
1112	1112	26 agent and escrow agent or other title insurance agent in
1113	1113
1114	1114
1115	1115
1116	1116
1117	1117
1118	1118	HB4555 - 30 - LRB103 37017 RPS 67132 b
1119	1119
1120	1120
1121	1121	HB4555- 31 -LRB103 37017 RPS 67132 b HB4555 - 31 - LRB103 37017 RPS 67132 b
1122	1122	HB4555 - 31 - LRB103 37017 RPS 67132 b
1123	1123	1 the transaction and the distributions shall be clearly and
1124	1124	2 unambiguously disclosed on any applicable closing
1125	1125	3 disclosure or settlement statement and delivered to the
1126	1126	4 parties to the transaction at the time of closing or
1127	1127	5 settlement.
1128	1128	6 (3) The escrow agent shall not share or allow to be
1129	1129	7 shared, either directly or indirectly, any of its
1130	1130	8 compensation for its service as an escrow agent or other
1131	1131	9 products or services charged directly to a party in the
1132	1132	10 transaction with any other title insurance agent except as
1133	1133	11 provided in this Section. Any payment that is contrary to
1134	1134	12 this paragraph (3) is a prohibited inducement or
1135	1135	13 compensation for a referral in violation of Section 24.
1136	1136	14 (215 ILCS 155/17.2 new)
1137	1137	15 Sec. 17.2. Independent escrowee duties.
1138	1138	16 (a) This Section shall apply only to transactions
1139	1139	17 involving residential real property.
1140	1140	18 (b) In the conduct of its escrow, settlement, or closing
1141	1141	19 business, and its operation as an escrow, settlement, or
1142	1142	20 closing agent as provided in Section 17, every independent
1143	1143	21 escrowee shall:
1144	1144	22 (1) Post and publish the current rates and charges
1145	1145	23 associated with its performance of the services and
1146	1146	24 obligations as an independent escrowee and all other
1147	1147	25 services and products it provides with a clear and
1148	1148
1149	1149
1150	1150
1151	1151
1152	1152
1153	1153	HB4555 - 31 - LRB103 37017 RPS 67132 b
1154	1154
1155	1155
1156	1156	HB4555- 32 -LRB103 37017 RPS 67132 b HB4555 - 32 - LRB103 37017 RPS 67132 b
1157	1157	HB4555 - 32 - LRB103 37017 RPS 67132 b
1158	1158	1 complete description thereof conspicuously in its offices
1159	1159	2 and on its websites, social media, and digital,
1160	1160	3 electronic, online, and other platforms and places that
1161	1161	4 are intended to be visited or viewed by the public. An
1162	1162	5 independent escrowee shall not make a charge that exceeds
1163	1163	6 the published rates and charges. This paragraph (1) shall
1164	1164	7 not apply to general advertising and marketing in media
1165	1165	8 not controlled by the independent escrowee, but any such
1166	1166	9 advertising shall contain information, such as an Internet
1167	1167	10 web address or a hyperlink, to a website where such
1168	1168	11 published rates and charges can be viewed by the public.
1169	1169	12 (2) Disburse all title insurance premiums and
1170	1170	13 endorsement charges as directed by the title insurance
1171	1171	14 agent performing core title services under subsection (c)
1172	1172	15 of Section 16.2 at the time of settlement or closing. All
1173	1173	16 such disbursements shall be clearly and unambiguously
1174	1174	17 disclosed on any applicable closing disclosure or
1175	1175	18 settlement statement and delivered to the parties to the
1176	1176	19 transaction at the time of closing or settlement.
1177	1177	20 (c) An independent escrowee shall not share or allow to be
1178	1178	21 shared any of its compensation for its escrow and settlement
1179	1179	22 services with any title insurance company or title insurance
1180	1180	23 agent except as provided in this Section. Any payment that is
1181	1181	24 contrary to this subsection (c) is a prohibited inducement or
1182	1182	25 compensation for a referral in violation of Section 24.
1183	1183	26 Section 99. Effective date. This Act takes effect upon
1184	1184
1185	1185
1186	1186
1187	1187
1188	1188
1189	1189	HB4555 - 32 - LRB103 37017 RPS 67132 b
1190	1190
1191	1191
1192	1192	HB4555- 33 -LRB103 37017 RPS 67132 b HB4555 - 33 - LRB103 37017 RPS 67132 b
1193	1193	HB4555 - 33 - LRB103 37017 RPS 67132 b
1194	1194
1195	1195
1196	1196
1197	1197
1198	1198
1199	1199	HB4555 - 33 - LRB103 37017 RPS 67132 b