Bill Text: IL SB1317 | 2019-2020 | 101st General Assembly | Engrossed

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Bill Title: Amends the Title Insurance Act. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB1317 Detail]

Download: Illinois-2019-SB1317-Engrossed.html

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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Title Insurance Act is amended by changing
Sections 3, 5, 12, 14, 14.1, 16, 18, 21, and 23 and by adding
Section 18.2 as follows:
(215 ILCS 155/3) (from Ch. 73, par. 1403)
Sec. 3. As used in this Act, the words and phrases
following shall have the following meanings unless the context
requires otherwise:
(1) "Title insurance business" or "business of title
insurance" means:
(A) Issuing as insurer or offering to issue as insurer
title insurance; and
(B) Transacting or proposing to transact one or more of
the following activities when conducted or performed in
contemplation of or in conjunction with the issuance of
title insurance;
(i) soliciting or negotiating the issuance of
title insurance;
(ii) guaranteeing, warranting, or otherwise
insuring the correctness of title searches for all
instruments affecting titles to real property, any

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interest in real property, cooperative units and
proprietary leases, and for all liens or charges
affecting the same;
(iii) handling of escrows, settlements, or
closings;
(iv) executing title insurance policies;
(v) effecting contracts of reinsurance;
(vi) abstracting, searching, or examining titles;
or
(vii) issuing insured closing letters or closing
protection letters;
(C) Guaranteeing, warranting, or insuring searches or
examinations of title to real property or any interest in
real property, with the exception of preparing an
attorney's opinion of title; or
(D) Guaranteeing or warranting the status of title as
to ownership of or liens on real property and personal
property by any person other than the principals to the
transaction; or
(E) Doing or proposing to do any business substantially
equivalent to any of the activities listed in this
subsection, provided that the preparation of an attorney's
opinion of title pursuant to paragraph (1)(C) is not
intended to be within the definition of "title insurance
business" or "business of title insurance".
(1.5) "Title insurance" means insuring, guaranteeing,

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warranting, or indemnifying owners of real or personal property
or the holders of liens or encumbrances thereon or others
interested therein against loss or damage suffered by reason of
liens, encumbrances upon, defects in, or the unmarketability of
the title to the property; the invalidity or unenforceability
of any liens or encumbrances thereon; or doing any business in
substance equivalent to any of the foregoing. "Warranting" for
purpose of this provision shall not include any warranty
contained in instruments of encumbrance or conveyance. Title
insurance is a single line form of insurance, also known as
monoline. An attorney's opinion of title pursuant to paragraph
(1)(C) is not intended to be within the definition of "title
insurance".
(2) "Title insurance company" means any domestic company
organized under the laws of this State for the purpose of
conducting the business of title insurance and any title
insurance company organized under the laws of another State,
the District of Columbia or foreign government and authorized
to transact the business of title insurance in this State.
(3) "Title insurance agent" means a person, firm,
partnership, association, corporation or other legal entity
licensed under this Act registered by a title insurance company
and authorized by a title insurance such company to determine
insurability of title in accordance with generally acceptable
underwriting rules and standards in reliance on either the
public records or a search package prepared from a title plant,

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

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which is to evade the provisions of this Act.
(6) "Financial interest" is any ownership interest, legal
or beneficial, except ownership of publicly traded stock.
(7) "Refer" means to place or cause to be placed, or to
exercise any power or influence over the placing of title
business, whether or not the consent or approval of any other
person is sought or obtained with respect to the referral.
(8) "Escrow Agent" means any title insurance company or any
title insurance agent, including independent contractors of
either, acting on behalf of a title insurance company, which
receives deposits, in trust, of funds or documents, or both,
for the purpose of effecting the sale, transfer, encumbrance or
lease of real property to be held by such escrow agent until
title to the real property that is the subject of the escrow is
in a prescribed condition. An escrow agent conducting closings
shall be subject to the provisions of paragraphs (1) through
(4) of subsection (e) of Section 16 of this Act.
(9) "Independent Escrowee" means any firm, person,
partnership, association, corporation or other legal entity,
other than a title insurance company or a title insurance
agent, which receives deposits, in trust, of funds or
documents, or both, for the purpose of effecting the sale,
transfer, encumbrance or lease of real property to be held by
such escrowee until title to the real property that is the
subject of the escrow is in a prescribed condition. Federal and
State chartered banks, savings and loan associations, credit

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unions, mortgage bankers, banks or trust companies authorized
to do business under the Illinois Corporate Fiduciary Act,
licensees under the Consumer Installment Loan Act, real estate
brokers licensed pursuant to the Real Estate License Act of
2000, as such Acts are now or hereafter amended, and licensed
attorneys when engaged in the attorney-client relationship are
exempt from the escrow provisions of this Act. "Independent
Escrowee" does not include employees or independent
contractors of a title insurance company or title insurance
agent authorized by a title insurance company to perform
closing, escrow, or settlement services.
(10) "Single risk" means the insured amount of any title
insurance policy, except that where 2 or more title insurance
policies are issued simultaneously covering different estates
in the same real property, "single risk" means the sum of the
insured amounts of all such title insurance policies. Any title
insurance policy insuring a mortgage interest, a claim payment
under which reduces the insured amount of a fee or leasehold
title insurance policy, shall be excluded in computing the
amount of a single risk to the extent that the insured amount
of the mortgage title insurance policy does not exceed the
insured amount of the fee or leasehold title insurance policy.
(11) "Department" means the Department of Financial and
Professional Regulation.
(12) "Secretary" means the Secretary of Financial and
Professional Regulation.

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(13) "Insured closing letter" or "closing protection
letter" means an indemnification or undertaking to a party to a
real property transaction, from a principal such as a title
insurance company, setting forth in writing the extent of the
principal's responsibility for intentional misconduct or
errors in closing the real property transaction on the part of
a settlement agent, such as a title insurance agent or other
settlement service provider, or an indemnification or
undertaking given by a title insurance company or an
independent escrowee setting forth in writing the extent of the
title insurance company's or independent escrowee's
responsibility to a party to a real property transaction which
indemnifies the party against the intentional misconduct or
errors in closing the real property transaction on the part of
the title insurance company or independent escrowee and
includes protection afforded pursuant to subsections (f), (g),
and (h) of Section 16, Section 16.1, subsection (h) of Section
17, and Section 17.1 of this Act even if such protection is
afforded by contract.
(14) "Residential real property" means a building or
buildings consisting of one to 4 residential units or a
residential condominium unit where at least one of the
residential units or condominium units is occupied or intended
to be occupied as a residence by the purchaser or borrower, or
in the event that the purchaser or borrower is the trustee of a
trust, by a beneficiary of that trust.

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(15) "Financial institution" means any bank subject to the
Illinois Banking Act, any savings and loan association subject
to the Illinois Savings and Loan Act of 1985, any savings bank
subject to the Savings Bank Act, any credit union subject to
the Illinois Credit Union Act, and any federally chartered
commercial bank, savings and loan association, savings bank, or
credit union organized and operated in this State pursuant to
the laws of the United States.
(Source: P.A. 100-485, eff. 9-8-17.)
(215 ILCS 155/5) (from Ch. 73, par. 1405)
Sec. 5. Certificate of authority required to engage in
activities under this Act.
(a) It is unlawful for any company to engage or to continue
in the business of title insurance without first procuring from
the Secretary a certificate of authority stating that the
company has complied with the requirements of Section 4 of this
Act. An insurer that transacts any class of insurance other
than title insurance anywhere in the United States is not
eligible for the issuance of a certificate of authority to
transact title insurance in this State nor for a renewal of a
certificate of authority.
(b) 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 certificate of authority subject

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to the conditions of subsection (a) of Section 16.
(Source: P.A. 94-893, eff. 6-20-06.)
(215 ILCS 155/12) (from Ch. 73, par. 1412)
Sec. 12. Examinations; compliance.
(a) The Secretary or his authorized representative shall
have the power and authority, and it shall be his duty, to
cause to be visited and examined annually any title insurance
company doing business under this Act, and to verify and compel
compliance with the provisions of law governing it.
(b) The Secretary or his authorized representative agent
shall have power and authority to compel compliance with the
provisions of this Act and may visit and shall, only upon the
showing of good cause, require a title insurance agent or
independent escrowee to make appropriate records any title
insurance company to take all legal means to obtain the
appropriate records of its registered agents and make them
available for examination at a time and place designated by the
Secretary. Expenses incurred in the course of such examinations
will be the responsibility of the title insurance company. In
the event that a present or former registered agent or its
successor refuses or is unable to cooperate with a title
insurance company in furnishing the records requested by the
Secretary or his or her authorized agent, then the Secretary or
his or her authorized agent shall have the power and authority
to obtain those records directly from the registered agent.

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(c) The Secretary or the Secretary's authorized
representative shall have power and authority to compel an
independent escrowee's compliance with the provisions of this
Act pursuant to subsection (f) of Section 17 of this Act.
(Source: P.A. 94-893, eff. 6-20-06.)
(215 ILCS 155/14) (from Ch. 73, par. 1414)
Sec. 14. Fees.
(a) Every title insurance company and every independent
escrowee subject to this Act shall pay the following fees:
(1) for filing the original application for a
certificate of authority and receiving the deposit
required under this Act, $500;
(2) for the certificate of authority, $10;
(3) for every copy of a paper filed in the Department
under this Act, $1 per folio;
(4) for affixing the seal of the Department and
certifying a copy, $2; and
(5) for filing the annual statement, $50.
(b) Each title insurance company shall remit, for all of
its title insurance agents subject to this Act for filing an
annual registration of its agents, an amount equal to $3 for
each policy issued by all of its title insurance agents in the
immediately preceding calendar year.
(c) Every title insurance agent subject to this Act shall
pay the following fees:

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(1) for a resident of the State, filing the original
application for a certification of authority and for the
certificate of authority, $80;
(2) for a nonresident of the State, filing the original
application for a certification of authority and for the
certificate of authority, $120;
(3) for a resident and nonresident of the State, filing
for renewal of a certificate, $80; and
(4) for a resident and nonresident of the State, filing
for reinstatement of a lapsed certificate, $120.
(Source: P.A. 99-104, eff. 1-1-16.)
(215 ILCS 155/14.1)
Sec. 14.1. Financial Institution Fund. All moneys received
by the Department of Financial and Professional Regulation
under this Act shall be deposited in the Financial Institution
Fund created under Section 6z-26 of the State Finance Act for
expenses incurred in administering this Act.
(Source: P.A. 98-463, eff. 8-16-13.)
(215 ILCS 155/16) (from Ch. 73, par. 1416)
Sec. 16. Title insurance agents.
(a) No person, firm, partnership, association, corporation
or other legal entity shall act as or hold itself out to be a
title insurance agent unless it has been issued a certificate
of authority by duly registered by a title insurance company

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with the Secretary. Every title insurance agent registration
before or after the effective date of this amendatory Act of
the 101st General Assembly shall satisfy the requirements for a
certificate of authority under this amendatory Act of the 101st
General Assembly until January 1 of the calendar year
immediately following the adoption of such rules that the
Secretary shall adopt as may be necessary for the
administration of granting of the certificates of authority for
title insurance agents under this amendatory Act of the 101st
General Assembly, and until the related application is either
approved or disapproved; the continued recognition of such
title insurance agent registrations during this period does not
relieve title insurance agents and title insurance companies of
their other obligations under this Act before the effective
date of this amendatory Act of the 101st General Assembly.
(b) Each application for a certificate of authority
registration shall be made on a form specified by the Secretary
and prepared by each title insurance agent company which the
agent represents. The title insurance agent and company
authorizing the agent shall retain the copy of the application
and issued certificate of authority forward a copy to the
Secretary.
(c) Every applicant for a certificate of authority
registration, except a firm, partnership, association, limited
liability company, or corporation, must be 18 years or more of
age.

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(1) Every applicant for a certificate of authority that
is a firm, partnership, association, corporation, or other
legal entity shall designate and name at least one
individual who (i) has a financial or other beneficial
interest in the licensee and (ii) is authorized by at least
one title insurance company to determine insurability of
title.
(2) Included in every application for a certificate of
authority registration of a title insurance agent,
including a firm, partnership, association, limited
liability company, or corporation, shall be an affidavit of
the applicant title insurance agent, signed and notarized
in front of a notary public, affirming that the applicant
and every owner, officer, director, principal, member, or
manager of the applicant has never been convicted or pled
guilty to any felony or misdemeanor involving a crime of
theft or dishonesty or otherwise accurately disclosing any
such felony or misdemeanor involving a crime of theft or
dishonesty. No person who has had a conviction or pled
guilty to any felony or misdemeanor involving theft or
dishonesty may be registered by a title insurance agent
company without a written notification to the Secretary
disclosing the conviction or plea, and no such person may
serve as an owner, officer, director, principal, or manager
of any registered title insurance agent without the written
permission of the Secretary.

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(3) An applicant for a certificate of authority of a
title insurance agent, including a firm, partnership,
association, limited liability company, or corporation,
shall include an affidavit of the applicant, signed and
notarized in front of a notary public, affirming that the
applicant is authorized by one or more title insurance
companies to determine insurability of title, stating the
title insurance company or companies with which it is
authorized, and listing the individuals authorized.
(4) Every applicant shall obtain and maintain errors
and omissions insurance, or its equivalent, in an amount
acceptable to the title insurance company authorizing the
agent, but in no event in an amount less than $250,000 per
claim and an aggregate limit of $500,000 with a deductible
no greater than $25,000. A title insurance company shall
not provide the insurance directly or indirectly on behalf
of a title insurance agent. In the event errors and
omissions insurance is unavailable generally, the
Department shall adopt rules for alternative methods to
comply with this paragraph.
(d) A certificate of authority Registration shall be
renewed on January 1 every 2 years made annually by a filing
with the Secretary; supplemental filings registrations for a
new agency agreement with a title insurance company agents to
be added between certificate of authority renewal annual
filings shall be made by the title insurance agent from time to

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time in the manner provided by the Secretary; certificates of
authority registrations shall remain in effect unless revoked
or suspended by the Secretary or voluntarily withdrawn by the
title insurance agent, registrant or the title insurance agent
no longer has any agency agreement with a title insurance
company.
(e) Funds deposited in connection with any escrows,
settlements, or closings shall be deposited in a separate
fiduciary trust account or accounts in a bank or other
financial institution insured by an agency of the federal
government unless the instructions provide otherwise. The
funds shall be the property of the person or persons entitled
thereto under the provisions of the escrow, settlement, or
closing and shall be segregated by escrow, settlement, or
closing in the records of the escrow agent. The funds shall not
be subject to any debts of the escrowee and shall be used only
in accordance with the terms of the individual escrow,
settlement, or closing under which the funds were accepted.
Interest received on funds deposited with the escrow agent
in connection with any escrow, settlement, or closing shall be
paid to the depositing party unless the instructions provide
otherwise.
The escrow agent shall maintain separate records of all
receipts and disbursements of escrow, settlement, or closing
funds.
The escrow agent shall comply with any rules adopted by the

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Secretary pertaining to escrow, settlement, or closing
transactions.
(f) A title insurance agent shall not act as an escrow
agent in a nonresidential real property transaction where the
amount of settlement funds on deposit with the escrow agent is
less than $2,000,000 or in a residential real property
transaction unless the title insurance agent, title insurance
company, or another authorized title insurance agent has
committed for the issuance of title insurance in that
transaction and the title insurance agent is authorized to act
as an escrow agent on behalf of the title insurance company for
which the commitment for title insurance has been issued. The
authorization under the preceding sentence shall be given
either (1) by an agency contract with the title insurance
company which contract, in compliance with the requirements set
forth in subsection (g) of this Section, authorizes the title
insurance agent to act as an escrow agent on behalf of the
title insurance company or (2) by a closing protection letter
in compliance with the requirements set forth in Section 16.1
of this Act, issued by the title insurance company to the
seller, buyer, borrower, and lender. A closing protection
letter shall not be issued by a title insurance agent. The
provisions of this subsection (f) shall not apply to the
authority of a title insurance agent to act as an escrow agent
under subsection (g) of Section 17 of this Act.
(g) If an agency contract between the title insurance

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company and the title insurance agent is the source of the
authority under subsection (f) of this Section for a title
insurance agent to act as escrow agent for a real property
transaction, then the agency contract shall provide for no less
protection from the title insurance company to all parties to
the real property transaction than the title insurance company
would have provided to those parties had the title insurance
company issued a closing protection letter in conformity with
Section 16.1 of this Act.
(h) A title insurance company shall be liable for the acts
or omissions of its title insurance agent as an escrow agent if
the title insurance company has authorized the title insurance
agent under subsections (f) and (g) of this Section 16 and only
to the extent of the liability undertaken by the title
insurance company in the agency agreement or closing protection
letter. The liability, if any, of the title insurance agent to
the title insurance company for acts and omissions of the title
insurance agent as an escrow agent shall not be limited or
otherwise modified because the title insurance company has
provided closing protection to a party or parties to a real
property transaction escrow, settlement, or closing. The
escrow agent shall not charge a fee for protection provided by
a title insurance company to parties to real property
transactions under subsections (f) and (g) of this Section 16
and Section 16.1, but shall collect from the parties the fee
charged by the title insurance company and shall promptly remit

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the fee to the title insurance company. The title insurance
company may charge the parties a reasonable fee for protection
provided pursuant to subsections (f) and (g) of this Section 16
and Section 16.1 and shall not pay any portion of the fee to
the escrow agent. The payment of any portion of the fee to the
escrow agent by the title insurance company, shall be deemed a
prohibited inducement or compensation in violation of Section
24 of this Act.
(i) The Secretary shall adopt and amend such rules as may
be required for the proper administration and enforcement of
this Section 16 consistent with the federal Real Estate
Settlement Procedures Act and Section 24 of this Act.
(Source: P.A. 98-398, eff. 1-1-14; 98-832, eff. 1-1-15; 99-104,
eff. 1-1-16.)
(215 ILCS 155/18) (from Ch. 73, par. 1418)
Sec. 18. Disclosure of financial interests No referral
payments; kickbacks.
(a) Application of this Section is limited to residential
properties of 4 or fewer units, at least one of which units is
occupied or to be occupied by an owner, legal or beneficial.
(b) No title insurance company, independent escrowee, or
title insurance agent may issue a title insurance policy to, or
provide services to an applicant if it knows or has reason to
believe that the applicant was referred to it by any producer
of title business or by any associate of such producer, where

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the producer, the associate, or both, have a financial interest
in the title insurance company, independent escrowee, or title
insurance agent to which business is referred unless the
producer has disclosed to any party paying for the products or
services, or his representative, the financial interest of the
producer of title business or associate referring the title
business and a disclosure of an estimate of those charges to be
paid as described in Section 19. Such disclosure must be made
in writing on forms prescribed by the Secretary prior to the
time that the commitment for title insurance is issued. The
title insurance company, independent escrowee, or title
insurance agent shall maintain the disclosure forms for a
period of 3 years.
(c) Each title insurance company, independent escrowee,
and title insurance agent shall file with the Secretary, on
forms prescribed by the Secretary, reports setting forth the
names and addresses of those persons, if any, who have had a
financial interest in the title insurance company, independent
escrowee, or title insurance agent during the calendar year,
who are known or reasonably believed by the title insurance
company, independent escrowee, or title insurance agent to be
producers of title business or associates of producers.
(1) Each title insurance company and independent
escrowee shall file the report required under this
subsection with its application for a certificate of
authority and at any time there is a change in the

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information provided in the last report.
(2) Each title insurance agent shall file the report
required under this subsection with its title insurance
company for inclusion with its application for
registration and at any time there is a change in the
information provided in its last report.
(3) Each title insurance company, independent
escrowee, or title insurance agent doing business on the
effective date of this Act shall file the report required
under this subsection within 90 days after such effective
date.
(Source: P.A. 94-893, eff. 6-20-06.)
(215 ILCS 155/18.2 new)
Sec. 18.2. Rate and service fee filings.
(a) Rate and service fee filing requirements.
(1) Every title insurance company shall file with the
Secretary every manual of classifications, rules, plans,
forms, and schedules of fees and every modification of any
of the foregoing relating to the rates that it proposes to
use. Every such filing shall state the proposed effective
date and shall indicate the character and extent of the
coverage contemplated. Every title insurance company and
independent escrowee shall file with the Secretary the
specification of services and schedule of fees for each fee
intended to be charged to the parties to a transaction

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pursuant to paragraph (5) of subsection (k) of this
Section.
(2) A title insurance company may satisfy its
obligations to make such filings by becoming a member of,
or a subscriber to, a licensed rating organization that
makes such filings and by authorizing the Secretary to
accept such filings on its behalf.
(3) The Secretary shall make such review of the filings
as may be necessary to carry out the provisions of this Act
and either approve or disapprove a filing or any part of a
filing, including the proposed effective date.
(4) Subject to the provisions of paragraphs (5) and (6)
and either approval or disapproval of the Secretary, each
filing shall be on file for a period of 30 days before it
can become effective only by approval of the Secretary. The
Secretary may, upon written notice to the person making the
filing within the 30-day period, extend the period no more
than 30 days to enable the Secretary to complete the review
of the filing. Further extensions of the waiting period may
be made with the consent of the title insurance company or
rating organization making the filing. Upon written
application by the title insurance company or rating
organization making the filing, the Secretary may
authorize a filing or any part of a filing to become
effective before the expiration of the waiting period or
any extension.

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(5) When the Secretary finds that any rate for a
particular kind or class of risk cannot practicably be
filed before it is used, or any contract or kind of title
insurance, by reason of rarity or peculiar circumstances,
does not lend itself to advance determination and filing of
rates, the Secretary may permit the rates to be used
without a previous filing and waiting period, and such
rates can be effective only by approval of the Secretary.
(6) A rate in excess of a filing may be used on any
specific risk upon the written consent of the insured,
filed with the Secretary, explaining the applicability of
the rate to the specific risk; the rate becomes effective
when the consent is filed.
(b) Justification for rates. A rate filing shall be
accompanied by a statement of the title insurance company or
rating organization making the filing setting forth the basis
upon which the rate was fixed and the fees are to be computed.
Any filing may be justified by:
(1) the experience or judgment of the title insurance
company or rating organization making the filing;
(2) the experience of other title insurance companies
or rating organizations; or
(3) any other factors that the title insurance company
or rating organization deems relevant.
(c) Making of rates.
(1) In making rates, due consideration shall be given

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to past and prospective loss experience, to exposure to
loss, to underwriting practice and judgment, to the extent
appropriate, to past and prospective expenses, the
expenses incurred by title insurance companies, to a
reasonable margin for profit and contingencies, and to all
other relevant factors both within and outside of this
State.
(2) Rates shall not be inadequate or unfairly
discriminatory, nor shall rates be excessive; that is, such
as to permit title insurance companies to earn a greater
profit, after payment of all taxes upon all income, than is
necessary to enable them to earn over the years sufficient
amounts to pay their actual expenses and losses arising in
the conduct of their title insurance business, including
the actual costs of maintaining a title plant, plus a
reasonable profit.
(3) In ascertaining the estimated future earnings of
title insurance companies, the Secretary shall utilize a
properly weighted cross section of title insurance
companies operating in this State representative of the
average of normally efficiently operated title insurance
companies including on a weighted basis, both title
insurance companies having their own title plants, and
those not operating upon the title plant system. In
ascertaining what is a reasonable profit after payment of
all taxes on such income, the Secretary shall give due

SB1317 Engrossed - 24 - LRB101 09891 RAB 54993 b
consideration to the following matters:
(A) the average rates of profit after payment of
taxes on all income earned by other industry generally;
(B) the desirability for stability of rate
structure;
(C) the necessity of insuring through growth in
assets in times of high business activity, the
financial solvency of title insurance companies in
times of economic depression; and
(D) The necessity for earning sufficient dividends
on the stock of title insurance companies to induce
capital to be invested in title insurance companies.
(4) The systems of expense provisions and the amount of
expense charged against each class of contract or policy
may vary between title insurance companies. Rates may, in
the discretion of any title insurance company, be less than
the cost of performing the work in the case of smaller
insurances, and the excess may be charged against the
larger insurances without rendering the rates unfairly
discriminatory.
(d) Disapproval of filings. If the Secretary finds that the
filing or a part of the filing does not meet the requirements
of this Act, the Secretary shall issue an order specifying in
what respects it fails to meet the requirements of this Act. If
the filing or part of the filing already has become effective,
the order shall also state when, within a reasonable period,

SB1317 Engrossed - 25 - LRB101 09891 RAB 54993 b
such filing or part shall be deemed no longer effective. A
title insurance company or rating organization shall have the
right at any time to withdraw a filing or a part of the filing,
subject to the provisions of subsection (f) of this Section
regarding deviations. Copies of the order shall be sent to
every such title insurance company and rating organization. The
order shall not affect any contract or policy made or issued
prior to the expiration of the period set forth in the order.
(e) Rating organizations.
(1) A corporation, an unincorporated association, a
partnership, or an individual, whether located within or
outside this State, may make application to the Secretary
for a license as a rating organization for title insurance
companies.
(A) An entity seeking a license as a rating
organization shall file:
(i) a copy of its constitution, its articles of
agreement or association or its certificate of
incorporation, and of its bylaws, rules, and
regulations governing the conduct of its business;
(ii) a list of its members and subscribers;
(iii) the name and address of a resident of
this State upon whom notices or orders of the
Secretary or process affecting such rating
organization may be served; and
(iv) a statement of its qualifications as a

SB1317 Engrossed - 26 - LRB101 09891 RAB 54993 b
rating organization.
(B) If the Secretary finds that the applicant is
competent, trustworthy, and otherwise qualified to act
as a rating organization, and that its constitution,
articles of agreement or association or certificate of
incorporation, and its bylaws, rules, and regulations
governing the conduct of its business conforms to the
requirements of law, the Secretary shall issue a
license authorizing the applicant to act as a rating
organization for title insurance. Every such
application shall be granted or denied in whole or in
part by the Secretary within 60 days after the date of
its filing. Licenses issued under this Section shall
remain in effect for 3 years unless sooner suspended or
revoked by the Secretary or withdrawn by the licensee.
The fee for the license shall be $25. Licenses issued
under this Section may be suspended or revoked by the
Secretary, after hearing upon notice, in the event the
rating organization ceases to meet the requirements of
this subsection.
(C) Every rating organization shall notify the
Secretary promptly of every change in:
(i) its constitution, its articles of
agreement or association or its certificate of
incorporation, and its bylaws, rules, and
regulations governing the conduct of its business;

SB1317 Engrossed - 27 - LRB101 09891 RAB 54993 b
(ii) its list of members and subscribers; and
(iii) the name and address of the resident of
this State designated by it upon whom notices or
orders of the Secretary or process affecting such
rating organization may be served.
(2) Subject to rules adopted by the Secretary, each
rating organization shall permit any title insurance
company not a member to be a subscriber to its rating
services. Each rating organization shall furnish its
rating services without discrimination to its members and
subscribers. The furnishing of rating services without
discrimination to its members and subscribers, or the
refusal of any rating organization to admit a title
insurance company as a subscriber, shall, at the request of
any subscriber or any such title insurance company, be
reviewed by the Secretary at a hearing held upon at least
10 days' written notice to such rating organization and to
such subscriber or title insurance company. If the
Secretary finds that the actions of the rating organization
were discriminatory, the Secretary shall order that such
actions cease. If the rating organization fails to grant or
reject an application of a title insurance company for
subscribership within 30 days after it was made, the title
insurance company may request a review by the Secretary as
if the application had been rejected. If the Secretary
finds that the title insurance company has been refused

SB1317 Engrossed - 28 - LRB101 09891 RAB 54993 b
admittance to the rating organization as a subscriber
without justification, the Secretary shall order the
rating organization to admit the title insurance company as
a subscriber. If the Secretary finds that the action of the
rating organization was justified, the Secretary shall
make an order affirming its action.
(3) Cooperation among rating organizations, or among
rating organizations and title insurance companies, and
concert of action among title insurance companies under the
same general management and control in rate making or in
other matters within the scope of this Act is hereby
authorized, provided that the filings are subject to all
the provisions of this Act that are applicable to filings
generally. The Secretary may review such activities and
practices and if, after a hearing, the Secretary finds that
any such activity or practice is unfair or unreasonable or
otherwise inconsistent with the provisions of this Act, the
Secretary may issue a written order specifying in what
respects such activity or practice is unfair or
unreasonable or otherwise inconsistent with the provisions
of this Act and requiring the discontinuance of such
activity or practice.
(f) Deviations. Every member of or subscriber to a rating
organization shall adhere to the filings made on its behalf by
such organization, except that any title insurance company that
is a member of or subscriber to a rating organization may file

SB1317 Engrossed - 29 - LRB101 09891 RAB 54993 b
with the Secretary a decrease or increase to be applied to any
or all elements of the fees produced by the rating system so
filed for a class of title insurance that is found by the
Secretary to be a proper rating unit for the application of
such uniform decrease or increase, or to be applied to the
rates for a particular area. Such deviation filing shall
specify the basis for the modification and shall be accompanied
by the data or historical pattern upon which the applicant
relies. A copy of the filing and data shall be sent
simultaneously to such rating organization. Any such deviation
filing shall be on file for a waiting period of 30 days before
it becomes effective. The Secretary shall make such review of
the deviation filing as may be necessary to carry out the
provisions of this Act, and either approve or disapprove the
filing or any part of the filing, including the proposed
effective date. Extension of the waiting period may be made in
the same manner that the period is extended in the case of rate
filings. Upon written application of the person making the
filing, the Secretary may authorize a deviation filing or any
part of the filing to become effective before the expiration of
the waiting period or any extension. Deviation filings shall be
subject to the provisions of subsection (d) of this Section.
Each deviation shall be effective for at least one year after
the date such deviation is approved unless terminated sooner
with the approval of the Secretary, or in accordance with the
provisions of subsection (d) of this Section.

SB1317 Engrossed - 30 - LRB101 09891 RAB 54993 b
(g) Examinations of rating organizations. The Secretary
shall, at least once in 5 years, make or cause to be made an
examination of a rating organization licensed under this Act in
this State. The reasonable costs of the examination shall be
paid by the rating organization examined upon presentation to
it of a detailed account of such costs. The officers, managers,
agents, and employees of the rating organization may be
examined at any time under oath and shall exhibit all books,
records, accounts, documents, or agreements governing its
method of operation. The Secretary shall furnish 2 copies of
the examination report to the organization examined and shall
notify such organization that it may, within 20 days, request a
hearing on the report or on any facts or recommendations
contained in the report. Before filing the report for public
inspection, the Secretary shall grant a hearing to the
organization examined. The report of the examination, when
filed for public inspection, shall be admissible in evidence in
any action or proceeding brought by the Secretary against the
organization examined, or its officers or agents, and shall be
prima facie evidence of facts stated in the report. The
Secretary may withhold the report of the examination from
public inspection for such time as the Secretary may deem
proper. In lieu of the examination, the Secretary may accept
the report of an examination made by the title insurance
supervisory official of another state pursuant to the laws of
that state.

SB1317 Engrossed - 31 - LRB101 09891 RAB 54993 b
(h) Rate administration.
(1) The Secretary shall adopt reasonable rules and
statistical plans, reasonably adapted to each of the rating
systems on file with the Secretary, which may be modified
from time to time, and which shall be used by each title
insurance company in the recording and reporting of the
composition of its business, its loss and countrywide
expense experience and those of its title insurance
underwriters in order that the experience of all title
insurance companies may be made available, at least
annually, in such form and detail as may be necessary to
aid the Secretary in determining whether rating systems
comply with the standards set forth in this Act. The rules
and plans may also provide for the recording and reporting
of expense experience items that are specially applicable
to this State and are not susceptible of determination by a
prorating of countrywide expense experience. In adopting
the rules and plans, the Secretary shall give due
consideration to the rating systems on file with the
Secretary, and in order that the rules and plans may be as
uniform as is practicable among the several states, to the
rules and to form of the plans used for such rating systems
in other states. The rules and plans shall not place an
unreasonable burden of expense on any title insurance
company. No title insurance company shall be required to
record or report its expense and loss experience on a

SB1317 Engrossed - 32 - LRB101 09891 RAB 54993 b
classification basis that is inconsistent with the rating
system filed by it, nor shall any title insurance company
be required to report its experience to any agency of which
it is not a member or subscriber. The Secretary may
designate one or more rating organizations or other
agencies to assist the Secretary in gathering such
experience and making compilations, and such compilations
shall be made available, subject to reasonable rules
adopted by the Secretary, to title insurance companies and
rating organizations.
(2) Reasonable rules and plans may be adopted by the
Secretary for the interchange of data necessary for the
application of rating plans.
(3) In order to further uniform administration of rate
regulatory laws, the Secretary and every title insurance
company and rating organization may exchange information
and experience data with title insurance supervisory
officials, title insurance companies, and title insurance
rating organizations in other states, and may consult with
them with respect to rate making and the application of
rating systems.
(4) In addition to any powers expressly enumerated in
this Act, the Secretary shall have full power and
authority, and it shall be their duty, to enforce and carry
out by rules, orders, or otherwise the provisions of this
Act and the full intent. The Secretary may adopt rules

SB1317 Engrossed - 33 - LRB101 09891 RAB 54993 b
consistent with this Act as may be necessary or proper in
the exercise of his or her powers or for the performance of
his or her duties under this Act.
(i) False or misleading information. No person or
organization shall willfully withhold information from or
knowingly give false or misleading information to the
Secretary, any statistical agency designated by the Secretary,
any rating organization, or any title insurance company that
will affect the rates or fees chargeable under this Act.
(j) Penalties.
(1) The Secretary may, if the Secretary finds that any
person or organization has violated any provision of this
Section, impose a penalty of not more than $500 for each
such violation, but if the Secretary finds such violation
to be willful, the Secretary may impose a penalty of not
more than $5,000 for each such violation. Such penalties
may be in addition to any other penalty provided by law.
(2) The Secretary may suspend the license of a rating
organization or the certificate of authority of a title
insurance company that fails to comply with an order of the
Secretary within the time limited by such order, or any
extension that the Secretary may grant. The Secretary shall
not suspend the license of any rating organization or the
certificate of authority of a title insurance company for
failure to comply with an order until the time prescribed
for an appeal has expired or, if an appeal has been taken,

SB1317 Engrossed - 34 - LRB101 09891 RAB 54993 b
until such order has been affirmed. The Secretary may
determine when a suspension of license shall become
effective, and it shall remain in effect for the period
fixed by the Secretary, unless the Secretary modifies or
rescinds the suspension, or until the order upon which the
suspension is based is modified, rescinded, or reversed.
(3) No penalty shall be imposed and no license or
certificate of authority shall be suspended or revoked
pursuant to this Section except upon a written order of the
Secretary stating his or her findings made after a hearing
held upon not less than 10 days' written notice to the
holder specifying the alleged violation.
(4) All hearings provided for in this Section shall be
conducted, and the decision of the Secretary on the issue
or filing involved shall be rendered, in accordance with
the Administrative Review Law.
(k) In all circumstances, whether involving rates filed by
a rating organization or title insurance company:
(1) separate filings shall be provided for the 2
following geographic zones:
(A) Zone 1 comprising the counties of Cook, Lake,
DuPage, McHenry, Kane, Will, Grundy, and Kendall; and
(B) Zone 2 comprising all other counties within the
State.
The Secretary shall submit a report to the Governor and
General Assembly no later than January 1, 2023 as to

SB1317 Engrossed - 35 - LRB101 09891 RAB 54993 b
whether multiple zones are justified based on differences
in costs between the zones.
(2) Rates shall be separated into classes based on
monetary insurance ranges without distinction of
commercial or residential use of the property.
(3) From the owner's policy premium, loan policy
premium, and residential real property endorsement
charges, which does not include closing protection letter
charges, a title agent shall retain 80% and remit 20% to a
title insurance company if services are performed by the
title insurance agent to at least (i) determine
insurability of title, which includes title examination
and title clearance, and (ii) issue title insurance
commitments, policies, and endorsements. For endorsement
charges that are not for residential real property as
defined in Section 3 of this Act, which does not include
closing protection letter charges, a title agent shall
retain 80% and remit 20% to a title insurance company
provided the title agent is authorized pursuant to its
agency contract to issue the endorsement and completes the
work necessary to issue the endorsement. If the title agent
is not authorized pursuant to its agency agreement to issue
the endorsement and does not complete the work necessary to
issue the endorsement, the title agent shall retain 0% and
remit 100% of the charge to a title insurance company.
(4) Any fees charged to the parties to the transaction

SB1317 Engrossed - 36 - LRB101 09891 RAB 54993 b
other than the owner's policy premium, loan policy premium,
and endorsement charges shall not be retained or remitted
between a title insurance company and title insurance
agent, or with any other entity or individual, unless the
charges are being retained or remitted in an amount
directly related to services actually performed.
(5) Subject to all other provisions of this Section
regarding rate filing requirements, a filing shall also
include a specification of services to be performed and
schedule of fees for each fee intended to be charged to the
parties to the transaction, which includes, but is not
limited to, closing fees, escrow fees, settlement fees,
closing protection letter fees subject to Section 16.1 of
this Act, and like charges, and is applicable to services
provided by an independent escrowee, which must similarly
file a specification of services and schedule of fees with
the Secretary.
(215 ILCS 155/21) (from Ch. 73, par. 1421)
Sec. 21. Regulatory action.
(a) The Secretary may refuse to grant, and may suspend or
revoke, any certificate of authority, registration, or license
issued pursuant to this Act or may impose a fine for a
violation of this Act if he determines that the holder of or
applicant for such certificate, registration, or license:
(1) has intentionally made a material misstatement or

SB1317 Engrossed - 37 - LRB101 09891 RAB 54993 b
fraudulent misrepresentation in relation to a matter
covered by this Act;
(2) has misappropriated or tortiously converted to its
own use, or illegally withheld, monies held in a fiduciary
capacity;
(3) has demonstrated untrustworthiness or incompetency
in transacting the business of guaranteeing titles to real
estate in such a manner as to endanger the public;
(4) has materially misrepresented the terms or
conditions of contracts or agreements to which it is a
party;
(5) has paid any commissions, discounts or any part of
its premiums, fees or other charges to any person in
violation of any State or federal law or regulations or
opinion letters issued under the federal Real Estate
Settlement Procedures Act of 1974;
(5.1) has accepted or referred a title order or
performed title services with knowledge that the order was
placed in exchange for the express or implicit promise that
a consumer has been or will be referred to that provider
for services;
(5.2) has given or accepted any portion of any charge
made or received for the rendering of a real estate
settlement service in connection with a transaction other
than for services actually performed;
(5.3) has disbursed funds prior to the actual delivery

SB1317 Engrossed - 38 - LRB101 09891 RAB 54993 b
of funds acceptable to the closing and settlement services
agent;
(5.4) has disbursed of closing and settlement services
funds before all necessary conditions of the transaction
have been met;
(5.5) has paid for, furnished or offered to pay for or
furnish any reward or compensation for any past, present,
or future title insurance business or closing and
settlement services or any other title business,
including, but not limited to, the payment of a fee to an
attorney for the referral of title business;
(5.6) has paid or offered to pay any fee to a producer
of title business for making an inspection or appraisal of
property;
(5.7) has received securities of the title insurance
company, title insurance agent, or independent escrowee at
prices below the normal market price, or bonds or
debentures that guarantee a higher than normal interest
rate, whether or not the consummation of the transaction is
directly or indirectly related to the number of closing and
settlement services or title orders coming to the title
insurance company, title insurance agent or independent
escrowee through the efforts of that person;
(5.8) has furnished to any producer of title business
or associate of a producer reports containing publicly
recorded information, appraisals, estimates of income

SB1317 Engrossed - 39 - LRB101 09891 RAB 54993 b
production potential, information kits, or similar
packages containing information about one or more parcels
of real property helpful to any producer of title business
without making a charge that is commensurate with the
actual cost of the work performed and the material
furnished; Additionally:
(A) There must be a written service agreement
between a title agent and any entity providing any
closing, title, or ancillary related services on
behalf of a title agent. Pursuant to this written
service agreement, a service fee must be charged to the
title agent and paid by the title agent to the service
provider. The service fee charge is in addition to any
search fee charged to the title agent and cannot be
added on to the charges to the seller, buyer, borrower,
or lender. The charge for a service fee shall be no
less than $350; and
(B) Pursuant to an agency agreement or service
agreement, the cost of searches procured on behalf of
the title agent must be charged to the title agent and
paid by the title agent to the provider of such
searches in an amount commensurate with the actual cost
of the work performed and the material furnished. The
search fee charge is in addition to any service fee
charged to the title agent and cannot be added on to
the charges to the seller, buyer, borrower, or lender.

SB1317 Engrossed - 40 - LRB101 09891 RAB 54993 b
(5.9) has made or guaranteed or has offered to make or
guarantee, either directly or indirectly, any loan to any
producer of title business or associate of a producer with
terms more favorable than otherwise available to the
producer;
(5.10) has guaranteed, or offered to guarantee the
proper performance of closing and settlement services or
undertakings that are to be performed by any producer of
title business, except as authorized pursuant to Sections
16 and 16.1 of this Act;
(5.11) has provided, or offered to provide, either
directly or indirectly, a compensating balance or deposit
in a lending institution either for the express or implied
purpose of influencing the placement or channeling of title
insurance business by the lending institution; this
provision does not prohibit the maintenance by a title
insurance company, title agent, or independent escrowee of
demand deposits or escrow deposits that are reasonably
necessary for use in the ordinary course of the business of
the title insurance company, title agent, or independent
escrowee;
(5.12) has paid for or offered to pay for the fees or
charges of an outside professional, such as an attorney,
engineer, appraiser, or surveyor, whose services are
required by any producer of title business to structure or
complete a particular transaction;

SB1317 Engrossed - 41 - LRB101 09891 RAB 54993 b
(5.13) has provided or offered to provide non-title
services, such as computerized bookkeeping, forms
management, computer programming, or any similar benefit,
without a charge that is commensurate with the actual cost
to any producer of title business or to any associate of a
producer of title business;
(5.14) has furnished or offered to furnish all or any
part of the time or productive effort of any employee of
the title insurance company, title insurance agent, or
independent escrowee, such as office manager, escrow
officer, secretary, clerk, or messenger, to any producer of
the title business or associate of a producer of title
business;
(5.15) has paid for or offered to pay for all or any
part of the salary of an employee of any producer of title
business;
(5.16) has paid for or offered to pay for the salary or
any part of the salary of a relative of any producer of
title business if that payment is in excess of the
reasonable value of work performed by the relative on
behalf of the title insurance company, title insurance
agent or independent escrowee;
(5.17) has paid for or offered to pay for services by
any producer of title business that are ordinarily to be
performed by the producer of title business in his or her
licensed capacity as a real estate or mortgage broker or

SB1317 Engrossed - 42 - LRB101 09891 RAB 54993 b
salesman or agent;
(5.18) has furnished or offered to furnish, or paid for
or offered to pay for, furniture, office supplies,
telephones, facsimile machines, equipment, or automobiles
to any producer of title business, or has paid for or
offered to pay for any portion of the cost of renting,
leasing, operating or maintaining any of these items;
(5.19) has paid for, furnished, or waived, or offered
to pay for, furnish, or waive, all or any part of the rent
for space occupied by any producer of title business;
(5.20) has rented or offered to rent space from any
producer of title business, regardless of the purpose, at a
rent that is excessive when compared with rents for
comparable space in the geographic area, or has paid or
offered to pay rent based in whole or in part on the volume
of business generated by any producer of title business;
(5.21) has paid for or offered to pay for gifts,
vacations, business trips, convention expenses, travel
expenses, membership fees, registration fees, lodging, or
meals on behalf of a producer of title insurance, directly
or indirectly, or supplied letters of credit, credit cards,
or any such benefits;
(5.22) has paid for or offered to pay for the
cancellation fee for a title report or other fee on behalf
of any producer of title business either before or after
inducing the producer of title business to cancel an order

SB1317 Engrossed - 43 - LRB101 09891 RAB 54993 b
with another title insurance company, title insurance
agent, or independent escrowee;
(5.23) has paid for, furnished, or offered to pay for
or furnish any business form to any producer of title
business, other than a form regularly used in the conduct
of the title insurance company's business, that is
furnished for the convenience of the title insurance
company and does not constitute a direct monetary benefit
to any producer of title business;
(5.24) has given trading stamps, cash redemption
coupons, or similar items to any producer of title
business;
(6) has failed to comply with the deposit and reserve
requirements of this Act or any other requirements of this
Act;
(7) has committed fraud or misrepresentation in
applying for or procuring any certificate of authority,
registration, or license issued pursuant to this Act;
(8) has a conviction or plea of guilty or plea of nolo
contendere in this State or any other jurisdiction to (i)
any felony or (ii) a misdemeanor, an essential element of
which is dishonesty or fraud or larceny, embezzlement, or
obtaining money, property, or credit by false pretenses or
by means of a confidence game;
(9) has been disciplined by another state, the District
of Columbia, a territory, foreign nation, a governmental

SB1317 Engrossed - 44 - LRB101 09891 RAB 54993 b
agency, or any entity authorized to impose discipline if at
least one of the grounds for that discipline is the same as
or equivalent to one of the grounds for which a title
insurance company, title insurance agent, or independent
escrowee may be disciplined under this Act or if at least
one of the grounds for that discipline involves dishonesty;
a certified copy of the record of the action by the other
state or jurisdiction shall be prima facie evidence
thereof;
(10) has advertising that is inaccurate, misleading,
or contrary to the provisions of this Act;
(11) has knowingly and willfully made any substantial
misrepresentation or untruthful advertising;
(12) has made any false promises of a character likely
to influence, persuade, or induce;
(13) has knowingly failed to account for or remit any
money or documents coming into the possession of a title
insurance company, title insurance agent, or independent
escrowee that belong to others;
(14) has engaged in dishonorable, unethical, or
unprofessional conduct of a character likely to deceive,
defraud, or harm the public;
(15) has violated the terms of a disciplinary order
issued by the Department;
(16) has disregarded or violated any provision of this
Act or the published rules adopted by the Department to

SB1317 Engrossed - 45 - LRB101 09891 RAB 54993 b
enforce this Act or has aided or abetted any individual,
partnership, registered limited liability partnership,
limited liability company, or corporation in disregarding
any provision of this Act or the published rules; or
(17) has acted as a title insurance company, title
insurance agent, or independent escrowee without a
certificate of authority, registration, or license after
the title insurance company, title insurance agent, or
independent escrowee's certificate of authority,
registration, or license was inoperative.
(a-1) Nothing in subsection (a) shall be construed as
prohibiting:
(1) publishing or printing and disseminating any
educational information, notwithstanding that the
information may be of benefit to a producer of title
business;
(2) distributing information, whether printed or oral,
advertising novelties, and gift items not to exceed $25 in
value that bear the name of the giver (but not the name of
the recipient) to producers of title business;
(3) providing reasonable promotional and educational
activities that are not conditioned on the referral of
business and that do not involve the defraying of expenses
that otherwise would be incurred by persons in a position
to refer settlement services or business incident to those
services, such as a reception by a title company, seminars

SB1317 Engrossed - 46 - LRB101 09891 RAB 54993 b
on title matters offered to professionals, furnishing
property descriptions and names of record owners without
charge to lenders, real estate brokers, attorneys, or
others, or distribution of calendars and other promotional
material that do not exceed $25 in value;
(4) the payment of a fee:
(A) that bears a reasonable relationship to the
value of the services rendered or performed:
(i) by any person or party to attorneys at law
for services actually rendered;
(ii) by a title company to its duly appointed
agent for services actually performed in the
issuance of a policy of title insurance; or
(iii) by a lender to its duly appointed agent
for services actually performed in the making of a
loan; and
(B) to a settlement service provider for services
outside of the normal scope of that provider's services
to the parties to the transaction;
(5) the payment of a bona fide salary or compensation
or other payment for goods or facilities actually furnished
or for services actually performed, so long as the salary,
compensation, or other payment bears a reasonable
relationship to the value of the services, goods, or
facilities;
(6) proportionate returns on an ownership or franchise

SB1317 Engrossed - 47 - LRB101 09891 RAB 54993 b
interest;
(7) ordinary and customary business entertainment or
promotional activities with reasonable frequency not to
exceed $100 in value per person, per event by title
insurance companies, title insurance agents, or
independent escrowees that are not directly or indirectly
consideration as an inducement or compensation for the
referral of title business or for the referral of any
escrow or other service from a title insurance company,
title insurance agent, or independent escrowee.
(b) In every case where a registration or certificate is
suspended or revoked, or an application for a registration or
certificate or renewal thereof is refused, the Secretary shall
serve notice of his action, including a statement of the
reasons for his action, as provided by this Act. When a notice
of suspension or revocation of a certificate of authority is
given to a title insurance company, the Secretary shall also
notify all the registered agents of that title insurance
company of the Secretary's action.
(c) In the case of a refusal to issue or renew a
certificate or accept a registration, the applicant or
registrant may request in writing, within 30 days after the
date of service, a hearing. In the case of a refusal to renew,
the expiring registration or certificate shall be deemed to
continue in force until 30 days after the service of the notice
of refusal to renew, or if a hearing is requested during that

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period, until a final order is entered pursuant to such
hearing.
(d) The suspension or revocation of a registration or
certificate shall take effect upon service of notice thereof.
The holder of any such suspended registration or certificate
may request in writing, within 30 days of such service, a
hearing.
(e) In cases of suspension or revocation of registration
pursuant to subsection (a), the Secretary may, in the public
interest, issue an order of suspension or revocation which
shall take effect upon service of notification thereof. Such
order shall become final 60 days from the date of service
unless the registrant requests in writing, within such 60 days,
a formal hearing thereon. In the event a hearing is requested,
the order shall remain temporary until a final order is entered
pursuant to such hearing.
(f) Hearing shall be held at such time and place as may be
designated by the Secretary either in the City of Springfield,
the City of Chicago, or in the county in which the principal
business office of the affected registrant or certificate
holder is located.
(g) The suspension or revocation of a registration or
certificate or the refusal to issue or renew a registration or
certificate shall not in any way limit or terminate the
responsibilities of any registrant or certificate holder
arising under any policy or contract of title insurance to

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which it is a party. No new contract or policy of title
insurance may be issued, nor may any existing policy or
contract to title insurance be renewed by any registrant or
certificate holder during any period of suspension or
revocation of a registration or certificate.
(h) The Secretary may issue a cease and desist order to a
title insurance company, agent, or other entity doing business
without the required license or registration, when in the
opinion of the Secretary, the company, agent, or other entity
is violating or is about to violate any provision of this Act
or any law or of any rule or condition imposed in writing by
the Department.
The Secretary may issue the cease and desist order without
notice and before a hearing.
The Secretary shall have the authority to prescribe rules
for the administration of this Section.
If it is determined that the Secretary had the authority to
issue the cease and desist order, he may issue such orders as
may be reasonably necessary to correct, eliminate or remedy
such conduct.
Any person or company subject to an order pursuant to this
Section is entitled to judicial review of the order in
accordance with the provisions of the Administrative Review
Law.
The powers vested in the Secretary by this Section are
additional to any and all other powers and remedies vested in

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the Secretary by law, and nothing in this Section shall be
construed as requiring that the Secretary shall employ the
powers conferred in this Section instead of or as a condition
precedent to the exercise of any other power or remedy vested
in the Secretary.
(Source: P.A. 98-398, eff. 1-1-14.)
(215 ILCS 155/23) (from Ch. 73, par. 1423)
Sec. 23. Violation; penalties; actual damages; injunctive
relief.
(a) Any violation of any of the provisions of this Act and,
beginning January 1, 2013, any violation of any of the
provisions of Article 3 of the Residential Real Property
Disclosure Act shall constitute a business offense and shall
subject the party violating the same to a penalty of $1000 for
each offense.
(b) A violation of paragraphs (5.1) through (5.24) of
subsection (a) of Section 21 is a Class A misdemeanor.
(c) A person who violates the prohibitions or limitations
of subsection (a) of Section 21 shall be liable to the person
or persons charged for the settlement service involved in the
violation for actual damages.
(d) A title insurance company, a title insurance agent, or
an independent escrowee who violates the prohibitions or
limitations of subsection (a) of Section 21 shall be subject to
injunctive relief. If a permanent injunction is granted, the

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court may award actual damages. Reasonable attorney's fees and
costs may be awarded to the prevailing party.
(e) (b) Nothing contained in this Section shall affect the
right of the Secretary to revoke or suspend a title insurance
company's, title insurance agent's, or independent escrowee's
certificate of authority or a title insurance agent's
registration under any other Section of this Act.
(Source: P.A. 97-891, eff. 8-3-12.)
(215 ILCS 155/19 rep.)
(215 ILCS 155/24 rep.)
(215 ILCS 155/25 rep.)
Section 10. The Title Insurance Act is amended by repealing
Sections 19, 24, and 25.