Bill Text: IL SB1667 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Title Insurance Act. In provisions concerning reinsurance, provides that a title insurance company may obtain reinsurance for all or any part of its liability under one or more of its title insurance policies from an assuming insurer with a financial strength rating of A- or better from A.M. Best Company, Inc., or with an alternative rating the Department of Insurance may approve that the Department determines is an equivalent rating by another recognized rating organization. In provisions concerning retained liability, provides that the net retained liability of a title insurance company for a single risk on property located in the State, whether assumed directly or as reinsurance, may not exceed the total surplus (rather than 50% of the total surplus) to policyholders as shown in the most recent annual statement of the title insurance company on file with the Department. Provides that each title insurance company shall file annually with the Department a notice describing its professional reinsurance business, if any, and describing how risks are placed through reinsurance outside of the title insurance industry.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed) 2017-05-26 - Final Action Deadline Extended-9(b) May 31, 2017 [SB1667 Detail]

Download: Illinois-2017-SB1667-Engrossed.html



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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 6, 8, and 13 as follows:
6 (215 ILCS 155/6) (from Ch. 73, par. 1406)
7 Sec. 6. Reinsurance.
8 (a) A title insurance company may obtain reinsurance for
9all or any part of its liability under one or more of its title
10insurance policies or reinsurance agreements and may also
11reinsure title insurance policies issued by other title
12insurance companies on risks located in this State or
13elsewhere.
14 (a-5) Notwithstanding any other provision of this Act, a
15title insurance company may obtain reinsurance for all or any
16part of its liability under one or more of its title insurance
17policies from an assuming insurer with a financial strength
18rating of A- or better from A.M. Best Company, Inc., or with an
19alternative rating the Department may approve that the
20Department determines is an equivalent rating by another
21recognized rating organization.
22 (b) A title insurance company licensed to do business in
23this State shall retain at least $100,000 of primary liability

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1for policies it issues, unless a lesser sum is authorized by
2the Secretary. A lesser sum may be retained at the request of
3an insured for a particular policy. This subsection (b) applies
4only to policies issued on or after the effective date of this
5amendatory Act of the 94th General Assembly.
6(Source: P.A. 94-893, eff. 6-20-06.)
7 (215 ILCS 155/8) (from Ch. 73, par. 1408)
8 Sec. 8. Retained liability.
9 (a) The net retained liability of a title insurance company
10for a single risk on property located in this State, whether
11assumed directly or as reinsurance, may not exceed 50% of the
12total surplus to policyholders as shown in the most recent
13annual statement of the title insurance company on file with
14the Department.
15 (b) The Secretary may waive the limitation of this Section
16for a particular risk upon application of the title insurance
17company and for good cause shown.
18(Source: P.A. 94-893, eff. 6-20-06.)
19 (215 ILCS 155/13) (from Ch. 73, par. 1413)
20 Sec. 13. Annual statement.
21 (a) Each title insurance company shall file with the
22Department during the month of March of each year, a statement
23under oath, of the condition of such company on the
24thirty-first day of December next preceding disclosing the

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1assets, liabilities, earnings and expenses of the company. The
2report shall be in such form and shall contain such additional
3statements and information as to the affairs, business, and
4conditions of the company as the Secretary may from time to
5time prescribe or require.
6 (b) By June 1 of each year, a title insurance company must
7file with the Department a copy of its most recent audited
8financial statements.
9 (c) If determined to be necessary and appropriate by the
10Department, a title insurance company shall provide a summary
11describing its professional reinsurance placed outside of the
12title insurance industry.
13(Source: P.A. 94-893, eff. 6-20-06.)
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