103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4941

 

Introduced 2/7/2024, by Rep. Terra Costa Howard

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 155/3  from Ch. 73, par. 1403
215 ILCS 155/5  from Ch. 73, par. 1405
215 ILCS 155/16  from Ch. 73, par. 1416
215 ILCS 155/16.2 new

    Amends the Title Insurance Act. Provides for the licensure of title insurance agents (instead of registration of title insurance agents by title insurance companies). Makes changes in the definition of "financial interest". Defines "core title agent services". Sets forth requirements for licensure, including examination and educational requirements. Sets forth exemptions from the examination and educational requirements. Provides that it is unlawful for any person, firm, partnership, association, corporation, or other legal entity to act as or hold itself out to be a title insurance agent unless first procuring from the Secretary a license. Provides that no person, firm, association, partnership, or corporation may operate as a pre-licensing or continuing education provider or administer examinations unless the provider holds a certification issued by the Department of Financial and Professional Regulation. Sets forth provisions concerning the Department's approval of applications for a certificate. Makes other changes. Effective immediately.


LRB103 36347 RPS 66446 b

 

 

A BILL FOR

 

HB4941LRB103 36347 RPS 66446 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Title Insurance Act is amended by changing
5Sections 3, 5, and 16 and by adding Section 16.2 as follows:
 
6    (215 ILCS 155/3)  (from Ch. 73, par. 1403)
7    Sec. 3. As used in this Act, the words and phrases
8following shall have the following meanings unless the context
9requires otherwise:
10    (1) "Title insurance business" or "business of title
11insurance" means:
12        (A) Issuing as insurer or offering to issue as insurer
13    title insurance; and
14        (B) Transacting or proposing to transact one or more
15    of the following activities when conducted or performed in
16    contemplation of or in conjunction with the issuance of
17    title insurance;
18            (i) soliciting or negotiating the issuance of
19        title insurance;
20            (ii) guaranteeing, warranting, or otherwise
21        insuring the correctness of title searches for all
22        instruments affecting titles to real property, any
23        interest in real property, cooperative units and

 

 

HB4941- 2 -LRB103 36347 RPS 66446 b

1        proprietary leases, and for all liens or charges
2        affecting the same;
3            (iii) handling of escrows, settlements, or
4        closings;
5            (iv) executing title insurance policies;
6            (v) effecting contracts of reinsurance;
7            (vi) abstracting, searching, or examining titles;
8        or
9            (vii) issuing insured closing letters or closing
10        protection letters;
11        (C) Guaranteeing, warranting, or insuring searches or
12    examinations of title to real property or any interest in
13    real property, with the exception of preparing an
14    attorney's opinion of title; or
15        (D) Guaranteeing or warranting the status of title as
16    to ownership of or liens on real property and personal
17    property by any person other than the principals to the
18    transaction; or
19        (E) Doing or proposing to do any business
20    substantially equivalent to any of the activities listed
21    in this subsection, provided that the preparation of an
22    attorney's opinion of title pursuant to paragraph (1)(C)
23    is not intended to be within the definition of "title
24    insurance business" or "business of title insurance".
25    (1.5) "Title insurance" means insuring, guaranteeing,
26warranting, or indemnifying owners of real or personal

 

 

HB4941- 3 -LRB103 36347 RPS 66446 b

1property or the holders of liens or encumbrances thereon or
2others interested therein against loss or damage suffered by
3reason of liens, encumbrances upon, defects in, or the
4unmarketability of the title to the property; the invalidity
5or unenforceability of any liens or encumbrances thereon; or
6doing any business in substance equivalent to any of the
7foregoing. "Warranting" for purpose of this provision shall
8not include any warranty contained in instruments of
9encumbrance or conveyance. Title insurance is a single line
10form of insurance, also known as monoline. An attorney's
11opinion of title pursuant to paragraph (1)(C) is not intended
12to be within the definition of "title insurance".
13    (2) "Title insurance company" means any domestic company
14organized under the laws of this State for the purpose of
15conducting the business of title insurance and any title
16insurance company organized under the laws of another State,
17the District of Columbia or foreign government and authorized
18to transact the business of title insurance in this State.
19    (3) "Title insurance agent" or "agent" means a person,
20firm, partnership, association, corporation, or other legal
21entity licensed under this Act registered by a title insurance
22company and authorized by a title insurance such company to
23(i) perform core title agent services and (ii) determine
24insurability of title in accordance with generally acceptable
25underwriting rules and standards in reliance on either the
26public records or a search package prepared from a title

 

 

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1plant, or both, and authorized by such title insurance company
2in addition to do any of the following: act as an escrow agent
3pursuant to subsections (f), (g), and (h) of Section 16 of this
4Act, solicit title insurance, collect premiums, or issue title
5insurance commitments, policies, and endorsements of the title
6insurance company. "Title ; provided, however, the term "title
7insurance agent" or "agent" does shall not include officers
8and salaried employees of any title insurance company.
9    (4) "Producer of title business" is any person, firm,
10partnership, association, corporation or other legal entity
11engaged in this State in the trade, business, occupation or
12profession of (i) buying or selling interests in real
13property, (ii) making loans secured by interests in real
14property, or (iii) acting as broker, agent, attorney, or
15representative of natural persons or other legal entities that
16buy or sell interests in real property or that lend money with
17such interests as security.
18    (5) "Associate" is any firm, association, partnership,
19corporation or other legal entity organized for profit in
20which a producer of title business is a director, officer, or
21partner thereof, or owner of a financial interest, as defined
22herein, in such entity; any legal entity that controls, is
23controlled by, or is under common control with a producer of
24title business; and any natural person or legal entity with
25whom a producer of title business has any agreement,
26arrangement, or understanding or pursues any course of conduct

 

 

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1the purpose of which is to evade the provisions of this Act.
2    (6) "Financial interest" is any ownership interest, legal
3or beneficial, of more than 1% in a privately held or except
4ownership of publicly traded company stock.
5    (7) "Refer" means to place or cause to be placed, or to
6exercise any power or influence over the placing of title
7business, whether or not the consent or approval of any other
8person is sought or obtained with respect to the referral.
9    (8) "Escrow Agent" means any title insurance company or
10any title insurance agent, including independent contractors
11of either, acting on behalf of a title insurance company,
12which receives deposits, in trust, of funds or documents, or
13both, for the purpose of effecting the sale, transfer,
14encumbrance or lease of real property to be held by such escrow
15agent until title to the real property that is the subject of
16the escrow is in a prescribed condition. An escrow agent
17conducting closings shall be subject to the provisions of
18paragraphs (1) through (4) of subsection (e) of Section 16 of
19this Act.
20    (9) "Independent Escrowee" means any firm, person,
21partnership, association, corporation or other legal entity,
22other than a title insurance company or a title insurance
23agent, which receives deposits, in trust, of funds or
24documents, or both, for the purpose of effecting the sale,
25transfer, encumbrance or lease of real property to be held by
26such escrowee until title to the real property that is the

 

 

HB4941- 6 -LRB103 36347 RPS 66446 b

1subject of the escrow is in a prescribed condition. Federal
2and State chartered banks, savings and loan associations,
3credit unions, mortgage bankers, banks or trust companies
4authorized to do business under the Illinois Corporate
5Fiduciary Act, licensees under the Consumer Installment Loan
6Act, real estate brokers licensed pursuant to the Real Estate
7License Act of 2000, as such Acts are now or hereafter amended,
8and licensed attorneys when engaged in the attorney-client
9relationship are exempt from the escrow provisions of this
10Act. "Independent Escrowee" does not include employees or
11independent contractors of a title insurance company or title
12insurance agent authorized by a title insurance company to
13perform closing, escrow, or settlement services.
14    (10) "Single risk" means the insured amount of any title
15insurance policy, except that where 2 or more title insurance
16policies are issued simultaneously covering different estates
17in the same real property, "single risk" means the sum of the
18insured amounts of all such title insurance policies. Any
19title insurance policy insuring a mortgage interest, a claim
20payment under which reduces the insured amount of a fee or
21leasehold title insurance policy, shall be excluded in
22computing the amount of a single risk to the extent that the
23insured amount of the mortgage title insurance policy does not
24exceed the insured amount of the fee or leasehold title
25insurance policy.
26    (11) "Department" means the Department of Financial and

 

 

HB4941- 7 -LRB103 36347 RPS 66446 b

1Professional Regulation.
2    (12) "Secretary" means the Secretary of Financial and
3Professional Regulation.
4    (13) "Insured closing letter" or "closing protection
5letter" means an indemnification or undertaking to a party to
6a real property transaction, from a principal such as a title
7insurance company, setting forth in writing the extent of the
8principal's responsibility for intentional misconduct or
9errors in closing the real property transaction on the part of
10a settlement agent, such as a title insurance agent or other
11settlement service provider, or an indemnification or
12undertaking given by a title insurance company or an
13independent escrowee setting forth in writing the extent of
14the title insurance company's or independent escrowee's
15responsibility to a party to a real property transaction which
16indemnifies the party against the intentional misconduct or
17errors in closing the real property transaction on the part of
18the title insurance company or independent escrowee and
19includes protection afforded pursuant to subsections (f), (g),
20and (h) of Section 16, Section 16.1, subsection (h) of Section
2117, and Section 17.1 of this Act even if such protection is
22afforded by contract.
23    (14) "Residential real property" means a building or
24buildings consisting of one to 4 residential units or a
25residential condominium unit where at least one of the
26residential units or condominium units is occupied or intended

 

 

HB4941- 8 -LRB103 36347 RPS 66446 b

1to be occupied as a residence by the purchaser or borrower, or
2in the event that the purchaser or borrower is the trustee of a
3trust, by a beneficiary of that trust.
4    (15) "Financial institution" means any bank subject to the
5Illinois Banking Act, any savings and loan association subject
6to the Illinois Savings and Loan Act of 1985, any savings bank
7subject to the Savings Bank Act, any credit union subject to
8the Illinois Credit Union Act, and any federally chartered
9commercial bank, savings and loan association, savings bank,
10or credit union organized and operated in this State pursuant
11to the laws of the United States.
12    (16) "Core title agent services" means the performance of
13the following services for which liability arises, and that is
14separate from and not duplicative of any other professional
15service, including, without limitation, the practice of law
16and the performance of services as a real estate licensee:
17        (A) reviewing and evaluating title, tax, judgment,
18    lien, and other searches or search products; private title
19    plant records; records of grantor-grantee and other
20    indices; public records and other records; and any other
21    information and materials that are relevant to a
22    particular property and transaction to determine
23    insurability of title to the property;
24        (B) issuing or causing to be issued the title
25    commitments on behalf of a title insurance company,
26    including the determination of the conditions under which

 

 

HB4941- 9 -LRB103 36347 RPS 66446 b

1    the title insurance company will issue the required title
2    insurance policies required in a particular transaction;
3        (C) determining whether, in accordance with applicable
4    law and the title insurance company's underwriting
5    requirements, principles, and guidelines, objections
6    stated on the title insurance commitments may be cleared
7    and the requirements that must be met prior to the
8    issuance of the title insurance policies to waive or
9    insure over the objections; and
10        (D) issuing or causing to be issued the title
11    insurance policies for a particular transaction when all
12    conditions for the issuance have been satisfied.
13    (17) "Affiliated business arrangements" has the meaning
14given to that term in 12 U.S.C. 2602(7).
15(Source: P.A. 100-485, eff. 9-8-17.)
 
16    (215 ILCS 155/5)  (from Ch. 73, par. 1405)
17    Sec. 5. Certificate of authority required to engage in
18activities under this Act.
19    (a) It is unlawful for any company to engage or to continue
20in the business of title insurance without first procuring
21from the Secretary a certificate of authority stating that the
22company has complied with the requirements of Section 4 of
23this Act. An insurer that transacts any class of insurance
24other than title insurance anywhere in the United States is
25not eligible for the issuance of a certificate of authority to

 

 

HB4941- 10 -LRB103 36347 RPS 66446 b

1transact title insurance in this State nor for a renewal of a
2certificate of authority.
3    (b) It is unlawful for any person, firm, partnership,
4association, corporation, or other legal entity to act as or
5hold itself out to be a title insurance agent unless first
6procuring from the Secretary a license subject to the
7conditions of Section 16.
8    (c) As used in this Act, the terms "license" and
9"certificate of authority" have the same meaning.
10    (d) All title insurance agents, including affiliated and
11unaffiliated business arrangements, must comply with 12 CFR
121024 and the Real Estate Settlement Procedures Act (12 U.S.C.
132601 et seq.) and its associated regulations.
14(Source: P.A. 94-893, eff. 6-20-06.)
 
15    (215 ILCS 155/16)  (from Ch. 73, par. 1416)
16    Sec. 16. Title insurance agents.
17    (a) No person, firm, partnership, association, corporation
18or other legal entity shall act as or hold itself out to be a
19title insurance agent unless it (i) has been issued a license
20by the Secretary; and (ii) is authorized by at least one title
21insurance company to perform core title agent services duly
22registered by a title insurance company with the Secretary.
23Every title insurance agent registered after the effective
24date of this amendatory Act of the 103rd General Assembly
25shall satisfy the requirements for a license under this Act

 

 

HB4941- 11 -LRB103 36347 RPS 66446 b

1until January 1 of the calendar year immediately following the
2Department's adoption of rules necessary to administer the
3licensing of title insurance agents and until the related
4application is approved or disapproved. The continued
5recognition of such title insurance agent registrations during
6this period does not relieve title insurance agents or title
7insurance companies of their other obligations under this Act
8before or after the effective date of this amendatory Act of
9the 103rd General Assembly.
10    (b) Each application for a license registration shall be
11made on a form specified by the Secretary and prepared by each
12title insurance company which the agent represents. The title
13insurance company shall retain the copy of the application and
14forward a copy to the Secretary.
15    (c) (Blank). Every applicant for registration, except a
16firm, partnership, association, limited liability company, or
17corporation, must be 18 years or more of age. Included in every
18application for registration of a title insurance agent,
19including a firm, partnership, association, limited liability
20company, or corporation, shall be an affidavit of the
21applicant title insurance agent, signed and notarized in front
22of a notary public, affirming that the applicant and every
23owner, officer, director, principal, member, or manager of the
24applicant has never been convicted or pled guilty to any
25felony or misdemeanor involving a crime of theft or dishonesty
26or otherwise accurately disclosing any such felony or

 

 

HB4941- 12 -LRB103 36347 RPS 66446 b

1misdemeanor involving a crime of theft or dishonesty. No
2person who has had a conviction or pled guilty to any felony or
3misdemeanor involving theft or dishonesty may be registered by
4a title insurance company without a written notification to
5the Secretary disclosing the conviction or plea, and no such
6person may serve as an owner, officer, director, principal, or
7manager of any registered title insurance agent without the
8written permission of the Secretary.
9    (c-5) License applications shall comply with the
10following:
11        (1) Every applicant for a license, except a firm,
12    partnership, association, corporation, or other legal
13    entity, must be 18 or more years of age.
14        (2) Every applicant for a license that is a firm,
15    partnership, association, corporation or other legal
16    entity shall designate and name at least one licensed
17    individual who (i) has a financial interest in the
18    licensee or is an employee for the licensee, and (ii) is
19    authorized by at least one title insurance company to
20    perform core title agent services.
21        (3) The application, including an application from a
22    firm, partnership, association, corporation, or other
23    legal entity, must include an affidavit of the applicant
24    title insurance agent, which must be signed and notarized
25    in front of a notary public, either affirming that the
26    applicant and every owner, officer, director, principal,

 

 

HB4941- 13 -LRB103 36347 RPS 66446 b

1    member, or manager of the applicant has never been
2    convicted of or pled guilty to any felony or misdemeanor
3    involving a crime of theft or dishonesty or accurately
4    disclosing any such felony or misdemeanor involving a
5    crime of theft or dishonesty. No person who has been
6    convicted of or pled guilty to any felony or misdemeanor
7    involving theft or dishonesty may be issued a license by
8    the Secretary or appointed by a title insurance company
9    without a written notification to the Secretary disclosing
10    the conviction or plea, and no such person may serve as an
11    owner, officer, director, principal, or manager of any
12    title insurance agent without the written permission of
13    the Secretary.
14        (4) The initial application or the first renewal
15    application after the effective date of this amendatory
16    Act of the 103rd General Assembly for a license of a title
17    insurance agent shall include:
18            (A) Proof that the applicant is exempt pursuant to
19        subsection (c-10), (c-15), or (c-20) or has passed,
20        within 365 days before submission of the application,
21        with a score of no less than 70%, an examination
22        required by the Secretary demonstrating reasonable
23        familiarity with:
24                (i) ethical practices, duties, and
25            responsibilities of a title agent;
26                (ii) how title insurance policy claims arise;

 

 

HB4941- 14 -LRB103 36347 RPS 66446 b

1                (iii) introduction to title insurance,
2            including the requirements of the Title Insurance
3            Act and administrative rules;
4                (iv) Illinois real property law, including,
5            but not limited to, forms of ownership,
6            conveyances, testate or intestate succession of
7            title, taxes, judgments, liens, and surveys;
8                (v) core title agent services;
9                (vi) title examinations and methods, title
10            objections, policy and endorsement forms, waivers
11            of policy exceptions, and escrow procedures;
12                (vii) introduction to escrow and settlement
13            regulations;
14                (viii) accounting practices for escrow agents
15            and title agents;
16                (ix) financial responsibilities of a title
17            agent outside of escrow; and
18                (x) principles of the federal Real Estate
19            Settlement Procedures Act (12 U.S.C. 2601 et
20            seq.).
21            (B) Proof that the applicant has satisfied a
22        pre-licensing education requirement of at least 8
23        credit hours on the subjects set forth in subparagraph
24        (A) of this paragraph prior to taking the examination
25        required by the Secretary.
26            (C) For initial applicants, the requirements in

 

 

HB4941- 15 -LRB103 36347 RPS 66446 b

1        subparagraphs (A) and (B) of this paragraph must be
2        met prior to filing the application, unless proof is
3        provided with the application that the applicant is
4        exempt pursuant to subsection (c-10), (c-15), or
5        (c-20).
6    (c-10) Applicants who are attorneys in good standing and
7currently registered with the Attorney Registration and
8Disciplinary Commission of the Supreme Court of Illinois are
9exempt from the requirements in subparagraphs (A) and (B) of
10paragraph (4).
11    (c-15) Applicants holding a current title of Illinois
12Title Professional or Illinois Escrow Professional issued by
13the Illinois Land Title Association or a current National
14Title Professional designation issued by the American Land
15Title Association are exempt from the requirements in
16subparagraphs (A) and (B) of paragraph (4).
17    (c-20) Applicants that have previously been registered by
18a title insurance company as a title insurance agent for no
19less than 10 years before the effective date of this
20amendatory Act of the 103rd General Assembly are exempt from
21the requirements in subparagraphs (A) and (B) of paragraph
22(4).
23    (c-25) Every applicant shall obtain and maintain errors
24and omissions insurance or its equivalent, such as malpractice
25insurance covering title insurance agent services, in a
26coverage and deductible amount acceptable to the title

 

 

HB4941- 16 -LRB103 36347 RPS 66446 b

1insurance company authorizing the agent, but in any event in
2an amount no less than $250,000 per claim and an aggregate
3limit of $500,000. A title insurance company shall not provide
4the insurance directly or indirectly on behalf of a title
5insurance agent. If errors and omissions insurance is
6unavailable generally, the Department shall adopt rules for
7alternative methods to comply with this paragraph.
8    (c-30) The Secretary shall review and approve all initial
9applications and renewal applications within a 30-day period
10from the date submitted by the applicant, unless the applicant
11has not met the requirements as set out in this Section. The
12Secretary shall notify any applicant of requirements that have
13not been met within a 60-day period.
14    (d) A license shall be renewed by the first day of February
15every 2 years by a filing with the Secretary. The applicable
162-year renewal deadline shall occur on the first day of
17February of even-numbered years for agents whose last names or
18entities with names that begin with the letters A through M,
19and on the first day of February of odd-numbered years for
20agents whose last names or entities with names that begin with
21the letters N through Z. The years of the first renewal periods
22for agents registered prior to the effective date of this
23amendatory Act of the 103rd General Assembly shall be set
24forth in the rules adopted by the Secretary to implement this
25amendatory Act of the 103rd General Assembly. Supplemental
26filings for a new title insurance agent to be added between

 

 

HB4941- 17 -LRB103 36347 RPS 66446 b

1license renewals shall be made from time to time in the manner
2provided by the Secretary. Licenses shall remain in effect
3during the applicable 2-year period unless revoked or
4suspended by the Secretary or voluntarily withdrawn by the
5title insurance agent, or the title insurance company.
6    (d-5) Agents applying for renewal must complete a
7continuing education requirement of at least 8 credit hours on
8the subjects set forth in subparagraph (A) of paragraph (4) of
9subsection (c-5) prior to submission of the renewal
10application. Proof the agent has completed the continuing
11education requirement must be submitted with the renewal
12application. Agents who are attorneys in good standing and
13currently registered with the Attorney Registration and
14Disciplinary Commission of the Supreme Court of Illinois are
15exempt from the requirements in this subsection (d-5) by
16virtue of satisfying their minimum continuing legal education
17requirement if at least 8 hours of the minimum continuing
18legal education requirement is fulfilled with topics related
19to real estate transactions or title insurance.
20Registration shall be made annually by a filing with the
21Secretary; supplemental registrations for new title insurance
22agents to be added between annual filings shall be made from
23time to time in the manner provided by the Secretary;
24registrations shall remain in effect unless revoked or
25suspended by the Secretary or voluntarily withdrawn by the
26registrant or the title insurance company.

 

 

HB4941- 18 -LRB103 36347 RPS 66446 b

1    (e) Funds deposited in connection with any escrows,
2settlements, or closings shall be deposited in a separate
3fiduciary trust account or accounts in a bank or other
4financial institution insured by an agency of the federal
5government unless the instructions provide otherwise. The
6funds shall be the property of the person or persons entitled
7thereto under the provisions of the escrow, settlement, or
8closing and shall be segregated by escrow, settlement, or
9closing in the records of the escrow agent. The funds shall not
10be subject to any debts of the escrowee and shall be used only
11in accordance with the terms of the individual escrow,
12settlement, or closing under which the funds were accepted.
13    Interest received on funds deposited with the escrow agent
14in connection with any escrow, settlement, or closing shall be
15paid to the depositing party unless the instructions provide
16otherwise.
17    The escrow agent shall maintain separate records of all
18receipts and disbursements of escrow, settlement, or closing
19funds.
20    The escrow agent shall comply with any rules adopted by
21the Secretary pertaining to escrow, settlement, or closing
22transactions.
23    (f) A title insurance agent shall not act as an escrow
24agent in a nonresidential real property transaction where the
25amount of settlement funds on deposit with the escrow agent is
26less than $2,000,000 or in a residential real property

 

 

HB4941- 19 -LRB103 36347 RPS 66446 b

1transaction unless the title insurance agent, title insurance
2company, or another authorized title insurance agent has
3committed for the issuance of title insurance in that
4transaction and the title insurance agent is authorized to act
5as an escrow agent on behalf of the title insurance company for
6which the commitment for title insurance has been issued. The
7authorization under the preceding sentence shall be given
8either (1) by an agency contract with the title insurance
9company which contract, in compliance with the requirements
10set forth in subsection (g) of this Section, authorizes the
11title insurance agent to act as an escrow agent on behalf of
12the title insurance company or (2) by a closing protection
13letter in compliance with the requirements set forth in
14Section 16.1 of this Act, issued by the title insurance
15company to the seller, buyer, borrower, and lender. A closing
16protection letter shall not be issued by a title insurance
17agent. The provisions of this subsection (f) shall not apply
18to the authority of a title insurance agent to act as an escrow
19agent under subsection (g) of Section 17 of this Act.
20    (g) If an agency contract between the title insurance
21company and the title insurance agent is the source of the
22authority under subsection (f) of this Section for a title
23insurance agent to act as escrow agent for a real property
24transaction, then the agency contract shall provide for no
25less protection from the title insurance company to all
26parties to the real property transaction than the title

 

 

HB4941- 20 -LRB103 36347 RPS 66446 b

1insurance company would have provided to those parties had the
2title insurance company issued a closing protection letter in
3conformity with Section 16.1 of this Act.
4    (h) A title insurance company shall be liable for the acts
5or omissions of its title insurance agent as an escrow agent if
6the title insurance company has authorized the title insurance
7agent under subsections (f) and (g) of this Section 16 and only
8to the extent of the liability undertaken by the title
9insurance company in the agency agreement or closing
10protection letter. The liability, if any, of the title
11insurance agent to the title insurance company for acts and
12omissions of the title insurance agent as an escrow agent
13shall not be limited or otherwise modified because the title
14insurance company has provided closing protection to a party
15or parties to a real property transaction escrow, settlement,
16or closing. The escrow agent shall not charge a fee for
17protection provided by a title insurance company to parties to
18real property transactions under subsections (f) and (g) of
19this Section 16 and Section 16.1, but shall collect from the
20parties the fee charged by the title insurance company and
21shall promptly remit the fee to the title insurance company.
22The title insurance company may charge the parties a
23reasonable fee for protection provided pursuant to subsections
24(f) and (g) of this Section 16 and Section 16.1 and shall not
25pay any portion of the fee to the escrow agent. The payment of
26any portion of the fee to the escrow agent by the title

 

 

HB4941- 21 -LRB103 36347 RPS 66446 b

1insurance company, shall be deemed a prohibited inducement or
2compensation in violation of Section 24 of this Act.
3    (i) The Secretary shall adopt and amend such rules as may
4be required for the proper administration and enforcement of
5this Section 16 consistent with the federal Real Estate
6Settlement Procedures Act and Section 24 of this Act.
7(Source: P.A. 98-398, eff. 1-1-14; 98-832, eff. 1-1-15;
899-104, eff. 1-1-16.)
 
9    (215 ILCS 155/16.2 new)
10    Sec. 16.2. Education and testing providers.
11    (a) No person, firm, association, partnership, or
12corporation may operate as a pre-licensing or continuing
13education provider or administer examinations unless the
14provider holds a certification issued by the Department. The
15Department shall adopt rules regarding the approval of
16education and examination providers.
17    (b) Upon receipt of a properly executed application for
18certification, the Department shall investigate the
19qualifications of the provider applicant to determine whether
20to grant or deny the application for certification. The
21Department shall acknowledge receipt of the application within
2230 days. If the Department has failed to notify the provider
23applicant of approval or basis for denial within 60 days after
24the date on which the Department acknowledged receipt of the
25application for certification, the approval of the Department

 

 

HB4941- 22 -LRB103 36347 RPS 66446 b

1shall be deemed to have been given.
2    (c) A certificate issued to a provider shall be valid for 5
3years.
4    (d) A provider holding a provider certificate shall submit
5to the Department materials for courses of study and testing
6for approval. Upon receipt of materials, the Department shall
7review the materials for compliance with subparagraph (A) of
8paragraph (4) of subsection (c-5) of Section 16. Upon receipt
9of properly submitted materials, the Department shall
10acknowledge the receipt of the materials within 30 days. If
11the Department has failed to notify the provider of approval
12or the basis for denial of the materials within 60 days of the
13date on which the Department acknowledged receipt of the
14materials, the approval of the Department shall be deemed to
15have been given.
16    (e) If a provider wishes to substantially change approved
17materials for courses of study or testing, a copy of the
18proposed revisions must be sent to the Department for
19approval. The Department shall acknowledge receipt of the
20proposed revisions within 30 days. If the Department has
21failed to notify the provider within 60 days of the date on
22which the Department acknowledged receipt of the proposed
23revisions, the approval of the Department shall be deemed to
24have been given.
25    (f) The Department shall adopt rules regarding minimum
26standards for pre-licensing education, continuing education,

 

 

HB4941- 23 -LRB103 36347 RPS 66446 b

1and testing and may biennially review and approve
2pre-licensing education, continuing education, and testing
3content from approved providers.
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.