Illinois General Assembly - Bill Status for HB3464

Amends the Title Insurance Act. Adds a definition of "monoline insurance". Makes changes in provisions concerning deposits, the requirement of a certificate of authority, reinsurance, impairment of capital, discontinuance of issuance of new policies, reserves, the statutory premium reserve, examinations, annual statements, fees, independent escrowees, referral payments and kickbacks, regulatory actions, and violations and penalties. Provides that title insurance agents acting as escrow agents must deposit funds in separate fiduciary accounts unless instructed otherwise. Provides that the funds will not be subject to any debts of the escrowee and can be used only in accordance with the terms of acceptance. Provides that a title insurance agent not qualified as an independent escrowee may act in the capacity of an escrow agent in certain circumstances. Provides standards for receivers and involuntary liquidation. Requires the Secretary of Financial and Professional Regulation to provide notice for any action. Provides that the notice must be made personally or by registered or certified mail, and by telephone facsimile or electronic mail, or regular mail. Requires title insurance companies to retain certain records. Effective immediately.

Replaces everything after the enacting clause with the bill as introduced with the following changes. Makes changes to the definition of "title insurance" and deletes a definition of "monoline insurance". Changes the definition of "Department" to mean the Department of Financial and Professional Regulation. Replaces references to the Director of Financial Institutions with Secretary of Financial and Professional Regulation and makes corresponding changes to the definition of "Director". Provides that changes made to a Section concerning reinsurance apply only to policies issued on or after the effective date of the amendatory Act. Provides that a title insurance company may continue to issue policies and perform other actions that are required to complete contractual obligations entered into prior to receiving notice from the Secretary to discontinue doing business until its capital has been made good. Requires title insurance companies to maintain reserves for losses independent of any other form of insurance and prohibits the issuance of other lines of insurance. Provides that the Secretary may impose a fine for a violation of the Act. Makes other changes. Effective immediately.

With respect to the definition of "Independent Escrowee", restores the provision that states that real estate brokers licensed pursuant to the Real Estate License Act of 2000 are exempt from the escrow provisions of the Title Insurance Act (rather than exempting them from the provisions of the Act only when they are acting pursuant to a listing or sale agreement).

×