TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.100 NOTICE OF SUSPENSION OR REVOCATION
Section 8100.100 Notice of
Suspension or Revocation
The suspension or revocation of
any certificate or registration issued under the Title Insurance Act
("Act") is effective upon completion of service pursuant to the
provisions of Section 21(b) of the Act. When service is made by registered or
certified mail, the Department of Financial and Professional
Regulation-Division of Financial Institutions ("Division") will, if
possible, notify by telephone or by facsimile transmission the affected person
or party of the suspension or revocation.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
 | TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.105 NOTIFICATION OF NONCOMPLIANCE OR MATERIAL CHANGE
Section 8100.105
Notification of Noncompliance or Material Change
All holders of or applicants for
any certificate of authority or registration issued pursuant to the Act shall
submit written notification to this Division within a maximum of 10 business
days after becoming aware of any noncompliance with the provisions of the Act
and any material change in condition that places or tends to place any
policyholder in jeopardy.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.110 DISPLAY OF CERTIFICATES OR REGISTRATIONS
Section 8100.110 Display of
Certificates or Registrations
Each holder of a certificate of
authority or registration issued pursuant to the Act shall display it in a
manner conspicuous to the public or maintain it at its principal place of
business for inspection upon request by the public.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.114 CERTIFICATION
Section 8100.114
Certification
a) Any applicant requesting certification as a title insurance
company or as an independent escrowee, prior to certification, shall provide,
as a minimum, the following information to the Division:
1) A certified copy of the Certificate of Authority from the
Illinois Secretary of State authorizing it to do business in the State of
Illinois, if any;
2) A Certificate issued by the State/domicile setting forth that
it is in good standing and further setting forth the date upon which the
Articles of Incorporation were issued, if any;
3) A certified copy of the assumed name filing, if any;
4) A brief narrative history of the company, if any;
5) A listing of the officers, directors and owners of the
company, if any;
6) A listing of the company shareholders, if any, except when the
shares of the company are publicly traded;
7) A certified copy of the company's charter and by-laws and any
amendments thereto, if any;
8) A Certificate of Compliance from the state of domicile, if
any;
9) A copy of the most recent audited financial statements,
including a letter of opinion, if any;
10) The last published Annual Report of the company, if any;
11) A copy of the most recent examination, if applicable, by the state
of domicile;
12) A copy of the Certificate of Deposit from the state of
domicile and other states in which the company does business, if any;
13) A listing of the counties in Illinois in which the company
proposes to conduct business;
14) The nature and amount of the proposed deposit, as provided
for in the Act;
15) A listing of all the company's locations or proposed locations
in the State of Illinois by name, address and phone number;
16) The name, address and phone number of a member of the
company, or person to whom to direct questions regarding the application; and
17) The names and addresses of any proposed agents.
b) The Director of the Division of Financial Institutions
(Director), with authority delegated by the Secretary of the Department of
Financial and Professional Regulation (Secretary) or the Director's authorized
representative, after review of information submitted as required by subsection
(a), shall require the filing of that additional information with the Division
as necessary to assure that the business repute and qualification of the
applicant requesting certification is set forth in detail, to allow a decision
to be made upon the request for certification.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.115 PROHIBITION ON FILING APPLICATION
Section 8100.115 Prohibition
on Filing Application
No person or party whose
application has been denied or refused or whose certificate of authority or
registration has been revoked for a violation of the Act hereunder shall be
entitled to file another application within one year from the effective date of
such denial, refusal or revocation, or if judicial review of such denial,
refusal or revocation is sought, within one year from the date of final court
order or decree affirming such action unless the Director or Director's
authorized representative has issued a variance as provided by Section 8100.190
of this Part. Such application, when filed after one year, may be refused by
the Director unless the person or party shows change(s) in condition or
situation to establish why the denial, refusal or revocation of the certificate
of authority or registration shall not be deemed a bar to the issuance of a new
certificate or registration.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.120 COMPUTATION OF TIME
Section 8100.120 Computation
of Time
The time within which an act
under the Act shall be done shall be computed by excluding the first day and
including the last, unless the last day is a Saturday, Sunday or holiday as
defined or fixed in any statute now or hereafter in force in this State, and
then it shall also be excluded. If the date succeeding such Saturday, Sunday
or holiday is also a Saturday, Sunday or holiday, then such succeeding day
shall also be excluded.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.121 REQUIREMENTS AS TO PROPER FORM
Section 8100.121
Requirements as to Proper Form
Any document filed with the Division
pursuant to the Act shall be prepared in accordance with the form, if any,
prescribed therefor by the Director. Any such document shall, after review by
the Division, be deemed to be filed on the proper form, unless objection to the
form is made in writing by the Division.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.125 PLACE OF FILING
Section 8100.125 Place of
Filing
All applications and other
papers filed with the Title Insurance Section of the Division shall be filed at
Springfield, Illinois. This material may be filed by delivery to the Division,
through the mails or otherwise.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.130 ADDITIONAL INFORMATION
Section 8100.130 Additional
Information
In addition to the information
expressly required to be included in an application, there shall be added such
further material information, if any, as may be necessary to make the required
statements, in the light of the circumstances under which they are made, not
misleading.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.135 ADDITIONAL EXHIBITS
Section 8100.135 Additional
Exhibits
Any holder or applicant may file
such exhibits as it may desire in addition to those required by the appropriate
form. The exhibits shall be so marked as to indicate clearly the subject
matters to which they refer.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.140 INFORMATION UNKNOWN OR NOT REASONABLY AVAILABLE
Section 8100.140 Information
Unknown or Not Reasonably Available
Information required need be
given only insofar as it is known or reasonably available to the holder or
applicant. If any required information is unknown and not reasonably available
to it, either because the obtaining thereof would involve unreasonable effort
or expense, or because it rests peculiarly within the knowledge of another
person not affiliated with it, the information may be omitted, subject to the
following conditions:
a) The holder or applicant shall give such information on the
subject as it possesses or can acquire without unreasonable effort or expense,
together with the sources thereof.
b) The holder or applicant shall include a statement either
showing that unreasonable effort or expense would be involved or indicating the
absence of any affiliation with the person within whose knowledge the
information rests and stating the result of a request made to the person for
the information.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.145 REQUIREMENTS AS TO PAPER, PRINTING AND LANGUAGE
Section 8100.145
Requirements as to Paper, Printing and Language
a) Application shall be filed on good quality, unglazed, white
paper, 8½ by 11 inches in size, insofar as practicable. However, tables,
charts, maps and financial statements may be on larger paper, if folded to that
size, and the prospectus may be on smaller paper, if the registrant so desires,
but not less than 7½ by 9 inches in size. Applications may be submitted
electronically and shall be filed in a format reasonably similar to the format
described in this subsection.
b) The application and, insofar as practicable, all papers and
documents filed as a part of the application, shall be printed or typewritten.
However, the application or any portion may be prepared by any similar process that,
in the opinion of the Division, produces copies suitable for permanent record.
Irrespective of the process used, all copies of the material shall be clear,
easily readable and suitable for repeated photocopying. Debits in credit
categories and credits in debit categories shall be designated so as to be
clearly distinguishable as such on photocopies.
c) The application shall be in the English language. If any
exhibit or other paper or document filed with the application is in a foreign
language, it shall be accompanied by a translation into the English language.
(Source: Amended at 41 Ill.
Reg. 12475, effective October 6, 2017)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.150 NUMBER OF COPIES - SIGNATURES
Section 8100.150 Number of
Copies − Signatures
a) One copy of the completed application, manually signed by the
applicant, including exhibits and all other papers and documents filed as a
part of the application, shall be filed with the Division.
b) If any name is signed to the application pursuant to a power
of attorney, copies of the power of attorney shall be filed with the
application for registration. In addition, if the name of any officer signing
on behalf of the applicant, or attesting the applicant's seal, is signed
pursuant to a power of attorney, certified copies of a resolution of the
applicant's board of directors authorizing the signature shall be filed with
the application for registration.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.155 EXAMINATION FEES
Section 8100.155 Examination
Fees
Examination fees for services
under the Act are as follows:
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a)
|
Section 4(d)
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1)
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Each examiner day or part thereof
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$500
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2)
|
Transportation, lodging, per diem and miscellaneous
expense
|
ACTUAL COST computed in
accordance with 80 Ill. Adm. Code 3000
|
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b)
|
Section 12
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1)
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Each examiner day or part thereof
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$400
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2)
|
Transportation, lodging, per diem and miscellaneous
expense
|
ACTUAL COST computed in
accordance with 80 Ill. Adm. Code 3000
|
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|
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3)
|
Verification Examination
|
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The Division may conduct an examination for the purpose of
verifying that the licensee has taken necessary actions to correct violation
of the Act and/or related rules and regulations, when the Director determines
the verification examination must be performed on site at any facility of the
licensee.
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A) Each
examiner day or part thereof
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$550
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B) Transportation,
lodging, per diem and miscellaneous expense
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ACTUAL COST computed in accordance
with 80 Ill. Adm. Code 3000
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c)
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Section 17(f)
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1)
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Each examiner day or part thereof
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$400
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|
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2)
|
Transportation, lodging, per diem and miscellaneous
expense
|
ACTUAL COST computed in
accordance with 80 Ill. Adm. Code 3000
|
|
|
|
|
|
|
|
3)
|
Verification Examination
The Division may conduct an examination for the purpose of
verifying that the licensee has taken necessary actions to correct violations
to the Act and/or related rules and regulations, when the Director determines
the verification examination must be performed on site at any facility of the
licensee.
|
|
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A) Each
examiner day or part thereof
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$550
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|
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B) Transportation,
lodging, per diem and miscellaneous expense
|
ACTUAL COST computed in accordance
with 80 Ill. Adm. Code 3000
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|
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.170 EXTENSION OF DATE FOR FILING
Section 8100.170 Extension
of Date for Filing
The Director or the Director's
authorized representative may, upon receipt of a written application, extend
for up to thirty (30) days any filing deadline set forth in this Part.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.190 PROVISIONS FOR GRANTING OF VARIANCE FROM RULES
Section 8100.190 Provisions
for Granting of Variance from Rules
The Director or the Director's
authorized representative may grant variances from this Part in individual
cases when it is determined that:
a) the provision from which the variance is granted is not
statutorily mandated;
b) no party will be injured by granting the variance; and
c) the rule from which the variance is granted would, in the
particular case, be unnecessarily burdensome.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
SUBPART B: DEFINITIONS
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.200 DEFINITIONS OF TERMS USED IN THIS PART
Section 8100.200 Definitions
of terms Used in this Part
a) As used in this Part, unless the context otherwise requires,
the term:
"Act" means the Title Insurance Act [215 ILCS 155].
"Delinquency assessment" means any amount, as
determined by the Division, payable under Section 15 of the Act and not
submitted with the report of each foreign title company as required under
Section 8100.1500 of this Part.
"Surplus as regards policyholders" means the total
of capital paid-up, gross paid-in and contributed surplus, special surplus
funds, unassigned funds less treasury stock at cost, all as shown on the
company's balance sheet.
"Consideration" means, but is not limited to,
monies, things, salaries, fees, duplicate payments of a charge, stocks,
dividends, distributions of partnership profits, credits representing monies
that may be paid at a future date, special bank deposits or accounts, banking
terms, special loan or loan guarantee terms, services of all types at special
or free rates, and sales or rentals at special prices or rates.
"Director's authorized representative" means any
person employed by or on behalf of the Division to whom the Director has
delegated verbally or in writing authority to act on the Director's behalf.
b) A Section in this Part that defines a term without express
reference to the Act or to this Part or to a portion thereof defines that term
for all purposes as used both in the Act and in this Part. Terms defined in
the Act and not defined in this Part have the meanings given them in the Act.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.205 DEFINITION OF THE TERM "DOMESTIC TITLE INSURANCE COMPANY" AS USED IN THE ACT
Section 8100.205 Definition
of the term "Domestic Title Insurance Company" as Used
in the Act
The term "Domestic Title
Insurance Company" as used in the Act shall mean a title insurance company
organized under the laws of this State.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.210 DEFINITION OF THE TERM "APPLICATION" AS USED IN SECTIONS 4.(D) AND 8.(B) OF THE ACT
Section 8100.210 Definition
of the term "Application" as Used in Sections 4.(d) and
8.(b) of the Act
The term "Application"
as used in Section 4.(d) and 8.(b) of the Act shall mean a request in writing
under oath containing all the relevant facts upon which a decision can be made,
and the specific relief requested.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.215 DEFINITION OF THE TERM "AUDIT" AS USED IN SECTION 12.(B) OF THE ACT
Section 8100.215 Definition
of the term "Audit" as Used in Section 12.(b) of the
Act
The term "Audit" as
used in Section 12.(b) of the Act shall include, but not be limited to, any
annual or special examination, visit or review required under the Act or
required by the Director or the Director's authorized representative in
carrying out the duties and responsibilities under the Act.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.220 DEFINITION OF THE TERM "BONDS OF THE UNITED STATES" AS USED IN SECTION 4.(A) OF THE ACT
Section 8100.220 Definition
of the term "Bonds of the United States" as Used in Section
4.(a) of the Act
The term "Bonds of
the United States" as used in Section 4.(a) of the Act shall include
bonds, bills and notes issued by the United States, the United States Federal
Reserve and direct obligations of the United States of America for the payment
of money, or obligations for the payment of money to the extent guaranteed or
insured as to the payment of principal and interest by the United States of
America.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.225 DEFINITION OF THE TERM "BONDS ... OF ANY BODY POLITIC OF THIS STATE" AS USED IN SECTION 4.(A) OF THE ACT
Section 8100.225 Definition
of the term "Bonds ... of Any Body Politic of This State" as
Used in Section 4.(a) of the Act
The term "Bonds ...
of Any Body Politic of This State" as used in Section 4.(a) of the Act
shall mean direct, general obligations of any body politic of this State for
the payment of money, or obligations for the payment of money to the extent
guaranteed as to the payment of principal and interest by the State on the
following conditions:
a) The obligations are payable or guaranteed from ad valorem
taxes;
b) Such body politic is not in default in the payment of
principal or interest of any of its direct or guaranteed obligations; and
c) No investment shall be made in obligations which are secured
only by special assessments.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.230 DEFINITION OF THE TERM "BONDS ... OF THIS STATE" AS USED IN SECTION 4.(A) OF THE ACT
Section 8100.230 Definition
of the term "Bonds ... of This State" as Used in
Section 4.(a) of the Act
The term "Bonds ... of
This State" as used in Section 4.(a) of the Act shall mean direct,
general obligations of this State for the payment of money, or obligations for
the payment of money to the extent guaranteed or insured as to the payment of
principal and interest by the State on the following conditions:
a) The State has the power to levy taxes for the prompt payment
of the principal and interest of such obligations, and
b) The State shall not be in default in the payment of principal
or interest on any of its direct, guaranteed or insured obligations at the date
of such investment.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.235 DEFINITION OF THE TERM "QUALIFIED TO DO BUSINESS IN THIS STATE" AS USED IN SECTION 4.(A) OF THE ACT
Section 8100.235 Definition
of the term "Qualified to Do business in This State" as
Used in Section 4.(a) of the Act
The term "Qualified
to Do Business in This State" as used in Section 4.(a) of the Act shall
mean the date of and period in which a company is in compliance with the
requirements of the Business Corporation Act of 1983 (Ill. Rev. Stat. 1987, ch.
32, par. 1.10 et seq.).
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.240 DEFINITION OF THE TERM "TITLE PLANT" AS USED IN SECTION 7.(B) OF THE ACT
Section 8100.240 Definition
of the term "Title Plant" as Used in Section 7.(b) of
the Act
The term "Title Plant"
as used in Section 7.(b) of the Act shall mean a set of records in which an
entry has been made of documents or matters imparting constructive notice under
the law of matters affecting title to real property or any interest therein or
encumbrance thereon, which have been filed or recorded in the jurisdiction for
which such title plant is maintained.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.245 DEFINITION OF THE TERM "NET RETAINED LIABILITY" AS USED IN SECTIONS 8.(A) AND 11.(C)(2) OF THE ACT
Section 8100.245 Definition
of the term "Net Retained Liability" as Used in
Sections 8.(a) and 11.(c)(2) of the Act
The term "Net Retained
Liability" as used in Sections 8.(a) and 11.(c)(2) of the Act shall mean
the total liability retained by a title insurance company for a single risk,
after taking into account the deduction for ceded liability, if any.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.250 DEFINITION OF THE TERM "CAPITAL" AS USED IN SECTION 9.(A) OF THE ACT
Section 8100.250 Definition
of the term "Capital" as Used in Section 9.(a) of the
Act
The term "Capital" as
used in Section 9.(a) of the Act shall mean the paid-up capital of the company.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.255 DEFINITION OF THE TERM "NOTICE" AS USED IN SECTION 9.(B) OF THE ACT
Section 8100.255 Definition
of the term "Notice" as Used in Section 9.(b) of the
Act
The term "Notice" as
used in Section 9.(b) of the Act shall include, but not be limited to, a
communication accomplished by telephone, United States Postal Service, private
mail service, computer transaction or facsimile transmission.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.260 DEFINITION OF THE TERM "ALIEN TITLE INSURANCE COMPANY" AS USED IN SECTION 11.(B) OF THE ACT
Section 8100.260 Definition
of the term "Alien Title Insurance Company" as Used in
Section 11.(b) of the Act
The term "Alien Title
Insurance Company" as used in Section 11.(b) of the Act shall mean any
title insurer incorporated or organized under the laws of any foreign nation or
any province or territory thereof.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.265 DEFINITION OF THE TERM "FOREIGN TITLE INSURANCE COMPANY" AS USED IN SECTIONS 11.(B) AND 15 OF THE ACT
Section 8100.265 Definition
of the term "Foreign Title Insurance Company" as Used
in Sections 11.(b) and 15 of the Act
The term "Foreign Title
Insurance Company" as used in Sections 11.(b) and 15 of the Act shall mean
any title insurance company organized under the laws of any other state of the
United States, the District of Columbia, or any other jurisdiction of the
United States.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.270 DEFINITION OF THE TERM "LIKE PURPOSES" AS USED IN SECTION 15 OF THE ACT
Section 8100.270 Definition
of the term "Like Purposes" as Used in Section 15 of
the Act
The term "Like
Purposes" as used in Section 15 of the Act shall not include the fee
specified in Section 14.(b) of the Act.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.275 DEFINITION OF THE TERM "PARTY" AS USED IN SECTION 23 OF THE ACT
Section 8100.275 Definition
of the term "Party" as Used in Section 23 of the Act
The term "Party" as
used in Section 23 of the Act shall include, but not be limited to, all holders
of or applicants for any certificate of authority or registration, their
agents, servants and employees, whether they are natural persons, corporations,
partnerships, associations, cooperatives, trusts or other legal entities.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.280 DEFINITION OF THE TERM "PERSON" AS USED IN SECTION 24 OF THE ACT
Section 8100.280 Definition
of the term "Person" as Used in Section 24 of the Act
The term "Person" as
used in Section 24 of the Act shall include, but not be limited to, all holders
of or applicants for any certificate of authority or registration, their
agents, servants and employees, whether they are natural persons, corporations,
partnerships, associations, cooperatives, trusts or other legal entities.
SUBPART C: TITLE INSURANCE COMPANIES
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.400 BONDS AND SECURITIES ACCEPTABLE FOR DEPOSIT
Section 8100.400 Bonds and
Securities Acceptable for Deposit
Each Title Insurance Company
("company") prior to becoming certified by the Director to transact
the business of insuring and guaranteeing titles to real estate in this State
shall deposit with the Division bonds of the United States, this State or any
body politic of this State in the amount specified by Section 4(b) of the Act
("bonds"). No other bonds or securities are acceptable for deposit.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.401 PLACE OF DEPOSIT
Section 8100.401 Place of
Deposit
Each company shall:
a) instead
of physical delivery of the bonds to the Division, place the required deposit
in the custody of any trust company or bank located in this State and qualified
to do business under the Corporate Fiduciary Act [205 ILCS 620] ("Depository
Institution");
b) execute
and deliver to the Division a Pledgor/Pledgee Authorization form for filing
with the Depository Institution; and
c) file
with the Division a true and correct copy of an acknowledgement issued by the
Depository Institution setting forth the amount of and description of the bonds
on deposit.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.402 COMPUTATION OF AMOUNT ON DEPOSIT
Section 8100.402 Computation
of Amount on Deposit
Each Company shall compute the
value of the Bonds on deposit on at least a quarterly basis. The computation
shall be made using the actual cash value of each Bond, not face value. At all
times, the actual cash value of the Bonds on deposit must be equal to or
greater than the amount required to be on deposit , as specified under Section
4.(b) of the Act.
(Source: Amended at 26 Ill.
Reg. 14265, effective October 1, 2002)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.403 EXCHANGE OF BONDS ON DEPOSIT
Section 8100.403 Exchange of
Bonds on Deposit
No Company shall exchange,
substitute, remove, encumber, or hypothecate, Bonds on deposit without
receiving prior thereto written approval from the Director or the Director's
authorized representative.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.900 IMPAIRMENT
Section 8100.900 Impairment
Impairment occurs:
a) when an insurer does not possess assets equal to at least its
total statutory liabilities; or
b) when its surplus as regards policyholders is 75% or less of
the paid-up capital as shown in the most recent annual statement of the company
on file with the Division.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.905 DEFINITION OF THE TERM "STATUTORY LIABILITIES" AS USED IN THIS SUBPART
Section 8100.905 Definition
of the Term "Statutory Liabilities" as Used in This Subpart
The term "statutory
liabilities" as used in this Subpart shall mean the total liabilities of
the company as shown in its most recent annual statement on file with the Division.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1000 DATE OF REDETERMINATION OF REQUIRED RESERVES
Section 8100.1000 Date of
Redetermination of Required Reserves
Each Company shall redetermine
the reserves required under Section 10 of the Act annually as of December 31st
regardless of the date when the initial reserve against unpaid losses and loss
expenses were established.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1005 RECORDS OF REQUIRED RESERVES
Section 8100.1005 Records of
Required Reserves
Each Company shall maintain for
each claim file a chronological record of each notice received which results in
a revision or readjustment to the reserve against unpaid losses or loss
expense.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1100 RECORDS OF STATUTORY PREMIUM RESERVE
Section 8100.1100 Records of
Statutory Premium Reserve
Each Company shall maintain a
record of the statutory premium reserve required pursuant to Section 11 of the
Act, which sets forth the basis of and computation of the reserve, along with
the amount of, date of and computation of each amount released from the
reserve.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1200 CONSUMER COMPLAINTS
Section 8100.1200 Consumer
Complaints
Each company shall maintain for
review by the Division:
a) A file or consumer complaint register containing each written
complaint received from any person or party regarding property located in this
State other than matters for which a separate claim file has been opened,
together with the response to or resolution of the complaint.
b) The files must be maintained during each audit period and will
be reviewed by and released by the Division's examiner at the time of annual
audit. The completion of the audit without limitation to the contrary shall
constitute release and permit the company to dispose of complaints responded to
or otherwise resolved.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1300 REPORT OF CONDITION
Section 8100.1300 Report of
Condition
a) Each Company shall file a report of condition pursuant to
Section 13 of the Act which includes, but is not limited to:
1) an audited financial statement;
2) the current address and telephone number of the main
administrative office;
3) the primary location of books and records;
4) a list of officers and directors;
5) a list of and analysis of investments;
6) a schedule of special and regular deposits;
7) a list of subsidiary, controlled or affiliated companies;
8) an organization chart;
9) a narrative report of all contingencies which may have a
material affect on finances or operations; and
10) the date of and state conducting the latest financial
examination of the company.
b) The Director or the Director's authorized representative,
after review of the report of condition, may request further and additional
information to assure the business repute and qualifications of the Company.
c) National Association of Insurance Commissioners Form 9 is
acceptable as a report of condition pursuant to this Section.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1500 DUE DATE FOR FILING REPORT
Section 8100.1500 Due Date
for Filing Report
Each foreign title insurance
company shall file not later than May 15th of each year a report
setting forth the basis for, computation of and amount due pursuant to Section
15 of the Act.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1505 DUE DATE FOR DEPOSITS AND PAYMENTS
Section 8100.1505 Due Date
for Deposits and Payments
All amounts due pursuant to
Section 15 of the Act shall be paid to and received by the Division not later
than May 15 of each year.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1510 REVIEW OF REPORTS
Section 8100.1510 Review of
Reports
Each report filed with the Division
will be reviewed. A report of the review, including any delinquency assessment,
will be submitted to the filing company.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1515 DUE DATE FOR DELINQUENCY ASSESSMENT
Section 8100.1515 Due Date
for Delinquency Assessment
Amounts due pursuant to the
delinquency assessment shall be paid to and received by the Division within 30
days after the date of issuance of the delinquency assessment.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
SUBPART D: TITLE INSURANCE AGENTS
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1600 REGISTRATION OF TITLE INSURANCE AGENTS
Section 8100.1600
Registration of Title Insurance Agents
a) Each company shall make the annual filing of the required
registration form for title insurance agents on or before February 1 of each
year. Included with the filing shall be the annual fee computed in accordance
with Section 14(b) of the Act.
b) Each company shall file supplemental registrations for new
title insurance agents. Each new title insurance agent shall be registered
with the Division within 30 days after the signing of the agency agreement.
c) No title insurance agent shall conduct business before:
1) having obtained errors and omissions insurance, if required by
the terms of the agency agreement, in an amount acceptable to the title
insurance company appointing the agent; and
2) being registered with the Division.
d) A company may voluntarily withdraw the registration of a title
insurance agent or limit the duties of a title insurance agent. Within 5
business days after the withdrawal or limitation, the company shall notify the
Division of the action taken.
e) Withdrawal of the registration of a title insurance agent or
limitation of the duties of a title insurance agent shall not be deemed to
prevent the Division from taking action under Section 21(a) of the Act.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
SUBPART E: INDEPENDENT ESCROWEES
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1700 BONDS AND SECURITIES ACCEPTABLE FOR DEPOSIT
Section 8100.1700 Bonds and
Securities Acceptable for Deposit
Each independent escrowee, prior
to becoming certified by the Director to transact business in this State, shall
deposit with the Division bonds of the United States, this State or any body
politic of this State in the amount specified by Section 4(b) of the Act
("bonds"). No other bonds or securities are acceptable for deposit.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1701 PLACE OF DEPOSIT
Section 8100.1701 Place of
Deposit
Each independent escrowee shall:
a) instead of physical delivery of the bonds to the Division,
place the required deposit in the custody of any trust company or bank located
in this State and qualified to do business under the Corporate Fiduciary Act,
("Depository Institution");
b) execute and deliver to the Division, a Pledgor/Pledgee
Authorization form for filing with the Depository Institution; and
c) file with the Division a true and correct copy of the
safekeeping certificate issued by the Depository Institution setting forth the
amount of and description of the bonds on deposit.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1702 COMPUTATION OF AMOUNT ON DEPOSIT
Section 8100.1702
Computation of Amount on Deposit
Each independent escrowee shall
compute the value of the Bonds on deposit. The computation will be made using
the actual cash value of each Bond, not face value. At all times, the actual
cash value of the Bonds on deposit must equal at least 95% of the face value of
the Bonds on deposit, as specified under Section 4.(b) of the Act.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1703 EXCHANGE OF BONDS ON DEPOSIT
Section 8100.1703 Exchange
of Bonds on Deposit
No independent escrowee shall
exchange, substitute, remove, encumber or hypothecate Bonds on deposit without
receiving prior thereto written approval from the Director or the Director's
authorized representative.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1704 STARKER EXCHANGE
Section 8100.1704 Starker
Exchange
Licensed attorneys, retained by
the parties to a real estate transaction to act solely as escrowee, trustee or
other capacity in effectuating a Starker exchange (Starker vs. U.S., 602 F.2d
1341 (9th Cir. 1979)) or other similar transaction, structured to
obtain favorable tax treatment under the Internal Revenue Code or other tax
law, are not independent escrowees.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1705 INDEPENDENT ACCOUNTANT
Section 8100.1705
Independent Accountant
The Annual Report and all
financial statements provided to the Division by an independent escrowee shall
be prepared by an independent certified public accountant.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1706 NOTICE OF JUDGMENTS
Section 8100.1706 Notice of
Judgments
An independent escrowee shall
notify the Director, in writing, immediately upon becoming aware of an entry of
a money judgment in a civil action against the independent escrowee, or entry
of a judgment involving moral turpitude against any independent escrowee,
officer, or director of an independent escrowee, or after the filing of a
criminal action involving moral turpitude against the independent escrowee, or
any of its officers, or directors.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1708 MAINTENANCE OF BOOKS
Section 8100.1708
Maintenance of Books
An independent escrowee shall
maintain its books, records and accounts and shall notify the Director in
writing of the location of its books, records and accounts. Such books,
records and accounts shall be maintained at such location unless the independent
escrowee shall notify the Director in writing at least fifteen (15) days prior
to changing the location of such books.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1710 ANNUAL REPORT
Section 8100.1710 Annual
Report
a) An independent escrowee shall make an annual report;
b) The annual report shall include, but is not limited to:
1) an audited financial statement;
2) the current address and telephone number of the main
administrative office;
3) the primary location of books and records;
4) a list of officers, directors and shareholders including
addresses;
5) a list of and analysis of investments;
6) a schedule of special and regular deposits;
7) a list of subsidiary, controlled or affiliated companies;
8) an organization chart;
9) a narrative report of all contingencies which may have a
material affect on finances or operations; and
10) the date of and state conducting the latest financial
examination of the company.
c) The Director or the Director's authorized representative,
after review of the annual report, may request further and additional
information to assure the business repute and qualifications of the Company.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1712 DUE DATE FOR FILING OF ANNUAL REPORT
Section 8100.1712 Due Date
for Filing of Annual Report
Each independent escrowee shall
file an annual report not later than March 31st of each year.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1714 CONFIRMATION OF ESCROW FUND AND LIABILITY
Section 8100.1714
Confirmation of Escrow Fund and Liability
The annual report shall include
a statement that the escrow fund was confirmed by the accountant in writing
directly with the depositories and that the escrow liability was confirmed by
the accountant in writing directly with escrow depositors of at least twenty-five
(25) escrow accounts or one-fourth of the number of escrow accounts having
balances at the reporting date, whichever number is greater. If the
independent escrowee has less than twenty-five (25) such accounts, all shall be
confirmed.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1716 BASIS OF BOOKS
Section 8100.1716 Basis of
Books
An independent escrowee shall
maintain its books, records and accounts in accordance with generally accepted
accounting principles (Accounting Standards of the Financial Accounting
Standards Board of the American Institute of Certified Public Accountants (1989)).
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1718 POSTING DATES
Section 8100.1718 Posting
Dates
All receipts and disbursements
of monies by an independent escrowee shall be posted in the escrow ledger as of
the date of such receipts and disbursements.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1720 ESCROW BOOKS
Section 8100.1720 Escrow
Books
An independent escrowee shall
establish and maintain current the following books with reference to its escrow
accounts:
a) escrow ledger containing a separate ledger sheet for each
escrow;
b) escrow liability controlling account; and
c) cash receipt and disbursement journal or a file containing
copies of all receipts and checks and/or check stubs of checks issued by the escrow
agent as a medium of posting to the records referred to in subsections (a) and
(b) in which case adding machine tapes of totals of receipts and checks shall
be retained. The records referred to in subsections (a) and (b) shall be
reconciled at least once each month with the bank statements of the
"trust" or "escrow" account. The records referred to in
subsection (a) shall be reconciled at least once each week with the escrow
liability controlling account referred to in subsection (b).
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1722 GENERAL BOOKS
Section 8100.1722 General
Books
An independent escrowee shall
establish and maintain current the following books with reference to its
general accounts:
a) general ledger reflecting the assets, liabilities, capital,
income and expense of the business, in accordance with generally accepted
accounting principles (Accounting Standards of the Financial Accounting
Standards Board of the American Institute of Certified Public Accountants
(1989)); and
b) cash receipt and disbursement journals.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1724 SPECIAL ACCOUNTS
Section 8100.1724 Special
Accounts
a) All money received by an independent escrowee as part of an
escrow transaction shall on or before the close of the next full working day
after such receipt be deposited in a bank, a savings bank, a savings and loan
association or credit union ("financial institution") in an account
designated "trust" or "escrow" account, or in an account
otherwise designated by a name indicating that the funds contained therein are
not the funds of the escrow agent, but only if such other designation has been
first approved by the Director. No funds other than those received as part of
an escrow transaction shall be deposited in such account or otherwise
commingled with escrow money.
b) Pursuant to written instructions of the principals containing
at least the provisions required by subsection (c), funds received in any
particular escrow transaction and deposited pursuant to subsection (a) may
subsequently be deposited into an interest-bearing escrow account established
solely for such purpose at a financial institution in the name of the
independent escrowee as trustee for the principals to the particular escrow
identified by escrow number.
c) The escrow instructions for interest-bearing escrow deposits
shall, at a minimum:
1) authorize the opening of an interest-bearing escrow account in
the name of the independent escrowee as trustee for the particular escrow
identified by escrow number;
2) specify the type of account to be opened and the amount of the
deposit;
3) identify the name and location of the financial institution
with which the interest-bearing account is to be opened;
4) specify:
A) the disposition of the interest at the close of escrow;
B) the disposition of the interest in the event that the escrow
fails to close; and
C) the disposition of any accrued interest retained in the
interest-bearing escrow account after the close of escrow pursuant to
subsection (g);
5) indicate that the principals have been advised by the
independent escrowee of possible restrictions or penalties, or both for early
withdrawal of funds; and
6) prohibit the independent escrowee from withdrawing funds from
the interest-bearing account except for redeposit into the "trust" or
"escrow" account.
d) An independent escrowee is responsible for establishing and
maintaining an interest-bearing account so that the funds are fully insured or
guaranteed, to the extent available by law.
e) An independent escrowee is responsible for establishing and
maintaining adequate controls over the passbooks and certificates issued by
financial institutions in connection with interest-bearing escrow accounts.
f) An independent escrowee depositing escrow funds into
interest-bearing escrow accounts shall establish and maintain a control ledger
summarizing the deposits in interest-bearing escrow accounts or shall make a
memo entry on each individual escrow ledger. The posting of the ledger shall
include the escrow number, interest-bearing account number, date of deposit,
and amount of deposit.
g) All funds deposited into an interest-bearing escrow account,
including any interest paid thereon, shall be transferred from such account
into the "trust" or "escrow" account before the close of
escrow, except that a specified portion of all the interest accrued may be
retained in the interest-bearing escrow account until the end of the current
calendar quarter if the escrow instructions of the principals so provide.
h) Disbursements from the "trust" or "escrow"
account shall not be made against funds deposited in an interest-bearing
escrow account until such funds have been transferred and receipted into the
"escrow" or "trust" account with proper posting to the
particular escrow.
i) No electronic fund transfers, except in commercial
transactions, shall be made between the "trust" or "escrow"
account and any interest-bearing account. Transfers shall be made only in a
manner consistent with the provisions of Section 8100.1744 of this Part.
j) Interest paid on any interest-bearing escrow account shall be
paid over to the principal having deposited the moneys in escrow unless the
escrow instructions clearly specify that such interest is to be paid over to a
named person.
k) An independent escrowee which wishes to transact business as
an escrow agent on a basis other than as provided by this Subpart may request
in writing a variance to or waiver of any provisions of this Subpart, but may
not engage in business in a manner not in compliance with this Subpart without
first having received a waiver or variance in writing from the Director or the
Director's authorized representative.
l) Any request for a variance or waiver shall include at least:
1) a statement of the basis upon which the escrow agent's
business is proposed to be transacted in connection with a particular named
financial institution;
2) a description of the plan of business and applicable
procedures including copies of all agreements or memoranda of understanding
between the independent escrowee and the financial institution;
3) a showing that the proposed plan of business and applicable
procedures provide for administrative and accounting controls at least as
adequate as those provided in this Subpart; and
4) a statement of the reasons why, under the escrow agent's
circumstances, a variance or waiver is requested.
m) Any variance or waiver granted pursuant to this Subpart by the
Director or the Director's authorized representative shall be in writing and
subject to such terms and conditions as may be deemed necessary or advisable by
the Director or the Director's authorized representative to protect any escrow
relationship.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1726 RECORDS TO BE PRESERVED
Section 8100.1726 Records to
be Preserved
An independent escrowee shall
preserve for at least three (3) years from the close of escrow:
a) all bank statements of the "trust" or
"escrow" account;
b) all canceled checks drawn upon the "trust" or
"escrow" account;
c) copies of bank deposit slips with reference to the
"trust" or "escrow" account;
d) all additional records reflecting banking transactions with
reference to the "trust" or "escrow" account, including
copies of all receipts for funds transferred from interest-bearing accounts
into the "trust" or "escrow" account;
e) the Statement of Account;
f) escrow instructions and amendments thereto; and
g) all additional records pertinent to the escrow transaction.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1728 WITHDRAWALS FROM SPECIAL ACCOUNTS
Section 8100.1728
Withdrawals From Special Accounts
All money deposited in such
"trust" or "escrow" account shall be withdrawn, paid out,
or transferred to other accounts only in accordance with the written
instructions of the principals to the escrow transaction or pursuant to order of
a court of competent jurisdiction.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1730 DEBIT BALANCES PROHIBITED
Section 8100.1730 Debit
Balances Prohibited
An independent escrowee shall
not withdraw, pay out or transfer moneys from any particular escrow account in
excess of the amount to the credit of such account at the time of such
withdrawal, payment or transfer.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1732 DELIVERY OF DOCUMENTS OR PROPERTY
Section 8100.1732 Delivery
of Documents or Property
An independent escrowee shall
use documents or other property deposited in escrow only in accordance with the
written instructions of the principals to the escrow transaction, or if not
otherwise directed by written instructions, in accordance with sound escrow
practice, or pursuant to order of a court of competent jurisdiction.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1734 DATED INSTRUCTIONS
Section 8100.1734 Dated
Instructions
All escrow instructions shall be
dated.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1738 PRINTED INSTRUCTIONS
Section 8100.1738 Printed
Instructions
a) A preprinted form of escrow instructions shall not contain:
1) an authorization or direction to disburse any money except to
an authorized independent escrowee prior to recordation of instruments in
escrows relating to real property or prior to consummation of sale in escrows
relating to bulk sales of personal property; or
2) an authorization or direction to deliver, except to a duly
authorized subescrow agent or record instruments affecting ownership or
interest in real or personal property, prior to deposit with the independent
escrowee of the full sum of money required to be deposited in escrow under
escrow instruction.
b) Nothing contained in this Section shall prohibit:
1) the insertion of such authorization in the form of escrow
instructions, in handwriting or typewriting, at the direction of the party
executing such instructions; or
2) an instruction authorizing disbursements in payment of
services, fees or other items of expense.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1740 WITHDRAWAL OF ESCROW FEES
Section 8100.1740 Withdrawal
of Escrow Fees
Earned escrow fees shall be
withdrawn from such "trust" or "escrow" account at least
once each month.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1742 NOTICE OF INTEREST
Section 8100.1742 Notice of
Interest
An independent escrowee shall
act without partiality to any of the parties to an escrow transaction. If an
independent escrowee or a person or company related to or affiliated with the
independent escrowee is a principal to the escrow transaction or is acting or
has acted in a capacity which can be construed as a conflict of interest in
relation to the escrow transaction, the independent escrowee shall advise in
writing all parties to the escrow transaction of such relationship or
affiliation before being employed as independent escrowee in connection with
such transaction. Such advice shall be on the face of the escrow instructions
in not less that eight (8) point bold type or its equivalent.
| TITLE 50: INSURANCE
CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1744 TRANSFERS BETWEEN ESCROWS
Section 8100.1744 Transfers
Between Escrows
Transfers of funds between
escrows may not be accomplished by the making of book entries alone, but must
be accomplished by the actual writing of a check from one escrow to the other,
and by the depositing of such check for the account of, and the writing of a
receipt for, the escrow to which the funds are being transferred. Such
transfers must also be properly supported and documented in the escrow files by
inclusion of the reasons for, and the appropriate approval of, the transfer.
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CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1746 ESCROW RECEIPTS
Section 8100.1746 Escrow
Receipts
An independent escrowee shall
issue consecutively prenumbered receipts for all escrow money or checks
deposited with or mailed to the independent escrowee and retain copies of such
receipts in a separate file.
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CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1748 DRAWING OF CHECKS
Section 8100.1748 Drawing of
Checks
A check shall not be drawn,
executed or dated prior to the existence, in the particular escrow account
against which it is drawn, executed or dated, of a sufficient credit balance to
cover said check.
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CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.1750 STATEMENT OF ACCOUNT
Section 8100.1750 Statement
of Account
Upon completion of an escrow
transaction, an independent escrowee shall render to each principal to the
escrow transaction a statement of the principal's account in writing. Such
statement shall specify all receipts and disbursements of escrow funds for the
principal's account. Charges made by the independent escrowee for its services
shall be clearly designated as such and shall be shown separately. Payments
outside of escrow, if shown in the statement, shall be set forth separately
from payments by or to the independent escrowee.
SUBPART G: EVIDENTIARY MATTERS AND NON-BINDING STATEMENTS
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CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.2010 REQUEST FOR NON-BINDING STATEMENTS
Section 8100.2010 Request
for Non-Binding Statements
a) Required information and format:
1) All requests for non-binding statements shall be in writing.
The request shall be filed with the Division and shall contain the following:
A) a brief summary of the Sections of the Act and of the Sections
of this Part to which the request pertains;
B) a detailed factual representation concerning every relevant
aspect of the proposed transaction, event or circumstance. Requests should be
limited to the particular situation, and should not attempt to include every
possible type of situation that may arise in the future;
C) a discussion of current statutes, rules and legal principles
relevant to the facts set forth;
D) a statement by the person requesting the non-binding statement that
states the person's own opinion in the matter and the basis for that opinion;
and
E) a representation that the transaction in question has not been
commenced or, if it has commenced, the present status of the transaction.
2) The Division will not respond to requests for non-binding
statements involving the anti-fraud provisions of the Act.
3) The Division will not respond to requests for non-binding
statements with respect to transactions that have already taken place.
4) The Division will not respond to requests based upon
hypothetical facts or involving unnamed parties.
b) Review procedure under the Act:
1) The Division's review of requests for non-binding statements
require an in-depth examination of the information presented and the applicable
law. Therefore, a considerable time period may elapse before the statement is
issued.
2) After a review of the relevant facts presented, in light of
existing judicial, legislative and administrative history, the Division shall
either decline to issue any findings or issue its finding as to the
applicability of the Act to the situation presented in the form of a
non-binding statement, stating that it will or will not recommend that
enforcement action be initiated against the parties involved if all the facts
are true and complete. Facts or conditions different than those presented will
require different conclusions and persons other than those requesting the
statement should not rely on the statement. Non-binding statements do not have
precedent value.
c) Availability of non-binding statements issued by the Division:
1) The Division will maintain an index by statutory Section
involved and chronologically of all non-binding statements issued.
2) Copies of statements can be reviewed in the Division's
Springfield office and copies may be obtained upon payment of the cost of
duplication as set forth in 2 Ill. Adm. Code 901.80.
(Source: Amended at 34 Ill.
Reg. 852, effective December 29, 2009)
SUBPART H: PROCEDURES FOR ADMINISTRATIVE HEARINGS
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CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.2100 HEARINGS
Section 8100.2100 Hearings
All administrative hearings
shall be conducted in accordance with 38 Ill. Adm. Code 100.
(Source: Amended at 46 Ill.
Reg. 12582, effective July 8, 2022)
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CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.2102 QUALIFICATIONS AND DUTIES OF THE HEARING OFFICER (REPEALED)
Section 8100.2102
Qualifications and Duties of the Hearing Officer (Repealed)
(Source: Repealed at 46 Ill. Reg. 12582, effective July 8, 2022)
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CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.2104 NOTICE OF HEARING (REPEALED)
Section 8100.2104 Notice of
Hearing (Repealed)
(Source: Repealed at 46 Ill.
Reg. 12582, effective July 8, 2022)
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CHAPTER V: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 8100
TITLE INSURANCE ACT
SECTION 8100.2106 INSTITUTION OF A CONTESTED CASE BY THE DIVISION (REPEALED)
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