Bill Title: Amends the Title Insurance Act. Provides that a title insurance company or title insurance agent is not authorized to act as an escrow agent in a residential real property transaction unless a commitment, binder, or title insurance policy and closing protection letters have been issued. Provides that closing protection letters shall indemnify the parties in a real property transaction against actual loss, not to exceed the amount of the settlement funds deposited with the escrow agent, when the loss arises out of certain circumstances. Sets forth the circumstances under which indemnification under a closing protection letter may include limitations on the liability of the title insurance. Provides that when a title insurance company reimburses the indemnified party, the company shall be subrogated to all the rights and remedies that the indemnified party would have had. Provides that an indemnified party may demand arbitration for a claim if the title insurance policy for the transaction is less than $2,000,000; if the policy is more than $2,000,000, then arbitration must be agreed to by both the title insurance company and the indemnified party. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-06-27 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3374 Detail]

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Bill Drafts

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Amendments

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No bill amendments currently on file for Illinois SB3374

Supplemental Documents

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No supplemental documents for Illinois SB3374 currently on file.

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