Bill Text: IL SB1667 | 2017-2018 | 100th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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: (Passed) 2017-12-15 - Public Act . . . . . . . . . 100-0570 [SB1667 Detail]
Download: Illinois-2017-SB1667-Engrossed.html
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: (Passed) 2017-12-15 - Public Act . . . . . . . . . 100-0570 [SB1667 Detail]
Download: Illinois-2017-SB1667-Engrossed.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Title Insurance Act is amended by changing | ||||||
5 | Sections 6, 8, and 13 as follows:
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6 | (215 ILCS 155/6) (from Ch. 73, par. 1406)
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7 | Sec. 6. Reinsurance.
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8 | (a) A title insurance company may obtain reinsurance for | ||||||
9 | all or
any part of its liability under one or more of its title | ||||||
10 | insurance policies
or reinsurance agreements and may also | ||||||
11 | reinsure title insurance policies
issued by other title | ||||||
12 | insurance companies on risks located in this State
or | ||||||
13 | elsewhere. | ||||||
14 | (a-5) Notwithstanding any other provision of this Act, a | ||||||
15 | title insurance company may obtain reinsurance for all or any | ||||||
16 | part of its liability under one or more of its title insurance | ||||||
17 | policies from an assuming insurer with a financial strength | ||||||
18 | rating of A- or better from A.M. Best Company, Inc., or with an | ||||||
19 | alternative rating the Department may approve that the | ||||||
20 | Department determines is an equivalent rating by another | ||||||
21 | recognized rating organization. | ||||||
22 | (b) A title insurance company licensed to do business in | ||||||
23 | this State shall retain at least $100,000 of primary liability |
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1 | for policies it issues, unless a lesser sum is authorized by | ||||||
2 | the Secretary. A lesser sum may be retained at the request of | ||||||
3 | an insured for a particular policy. This subsection (b) applies | ||||||
4 | only to policies issued on or after the effective date of this | ||||||
5 | amendatory Act of the 94th General Assembly.
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6 | (Source: P.A. 94-893, eff. 6-20-06.)
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7 | (215 ILCS 155/8) (from Ch. 73, par. 1408)
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8 | Sec. 8. Retained liability.
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9 | (a) The net retained liability of a title insurance company
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10 | for a single risk on property located in this State, whether | ||||||
11 | assumed
directly or as reinsurance, may not exceed 50% of the | ||||||
12 | total
surplus to policyholders as shown in the most recent | ||||||
13 | annual statement of
the title insurance company on file with | ||||||
14 | the Department.
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15 | (b) The Secretary may waive the limitation of this Section | ||||||
16 | for a
particular risk upon application of the title insurance | ||||||
17 | company and
for good cause shown.
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18 | (Source: P.A. 94-893, eff. 6-20-06.)
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19 | (215 ILCS 155/13) (from Ch. 73, par. 1413)
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20 | Sec. 13. Annual statement.
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21 | (a)
Each title insurance company shall file with the | ||||||
22 | Department
during the month of March of each year, a statement | ||||||
23 | under oath, of the
condition of such company on the | ||||||
24 | thirty-first day of December next
preceding disclosing the |
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1 | assets, liabilities, earnings and expenses of the
company. The | ||||||
2 | report shall be in such form and shall contain such additional
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3 | statements and information as to the affairs, business, and | ||||||
4 | conditions of
the company as the Secretary may from time to | ||||||
5 | time prescribe or require. | ||||||
6 | (b) By June 1 of each year, a title insurance company must | ||||||
7 | file with the Department a copy of its most recent audited | ||||||
8 | financial statements.
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9 | (c) If determined to be necessary and appropriate by the | ||||||
10 | Department, a title insurance company shall provide a summary | ||||||
11 | describing its professional reinsurance placed outside of the | ||||||
12 | title insurance industry. | ||||||
13 | (Source: P.A. 94-893, eff. 6-20-06.)
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