Bill Text: IL SB2262 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Title Insurance Act Provides that the Secretary of Financial and Professional Regulation may refuse to issue and may suspend or revoke a certificate of authority, registration, or license under the Act or discipline the holder of such for referring a consumer to another producer of title business on the express or implicit condition that the producer of title business to whom that consumer is referred use a particular title insurance company or title insurance agent. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2021-01-13 - Session Sine Die [SB2262 Detail]
Download: Illinois-2019-SB2262-Introduced.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 | Section 21 as follows:
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6 | (215 ILCS 155/21) (from Ch. 73, par. 1421)
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7 | Sec. 21. Regulatory action.
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8 | (a) The Secretary may refuse to grant, and may suspend or
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9 | revoke, any certificate of authority, registration,
or license | |||||||||||||||||||
10 | issued
pursuant to this Act or may impose a fine for a | |||||||||||||||||||
11 | violation of this Act if he determines that the holder of or | |||||||||||||||||||
12 | applicant for
such certificate, registration or license:
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13 | (1) has intentionally made a material misstatement or | |||||||||||||||||||
14 | fraudulent
misrepresentation in relation to a matter | |||||||||||||||||||
15 | covered by this Act;
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16 | (2) has misappropriated or tortiously converted to its | |||||||||||||||||||
17 | own use, or
illegally withheld, monies held in a fiduciary | |||||||||||||||||||
18 | capacity;
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19 | (3) has demonstrated untrustworthiness or incompetency | |||||||||||||||||||
20 | in transacting
the business of guaranteeing titles to real | |||||||||||||||||||
21 | estate in such a manner as to
endanger the public;
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22 | (4) has materially misrepresented the terms or | |||||||||||||||||||
23 | conditions of contracts
or agreements to which it is a |
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1 | party;
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2 | (5) has paid any commissions, discounts or any part of | ||||||
3 | its premiums,
fees or other charges to any person in | ||||||
4 | violation of any State or federal
law or regulations or | ||||||
5 | opinion letters issued under the federal Real Estate
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6 | Settlement Procedures Act of 1974;
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7 | (6) has failed to comply with the deposit and reserve | ||||||
8 | requirements of
this Act or any other requirements of this | ||||||
9 | Act; | ||||||
10 | (7) has committed fraud or misrepresentation in | ||||||
11 | applying for or procuring any certificate of authority, | ||||||
12 | registration, or license issued pursuant to this Act; | ||||||
13 | (8) has a conviction or plea of guilty or plea of nolo | ||||||
14 | contendere in this State or any other jurisdiction to (i) | ||||||
15 | any felony or (ii) a misdemeanor, an essential element of | ||||||
16 | which is dishonesty or fraud or larceny, embezzlement, or | ||||||
17 | obtaining money, property, or credit by false pretenses or | ||||||
18 | by means of a confidence game; | ||||||
19 | (9) has been disciplined by another state, the District | ||||||
20 | of Columbia, a territory, foreign nation, a governmental | ||||||
21 | agency, or any entity authorized to impose discipline if at | ||||||
22 | least one of the grounds for that discipline is the same as | ||||||
23 | or equivalent to one of the grounds for which a title | ||||||
24 | insurance company, title insurance agent, or independent | ||||||
25 | escrowee may be disciplined under this Act or if at least | ||||||
26 | one of the grounds for that discipline involves dishonesty; |
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1 | a certified copy of the record of the action by the other | ||||||
2 | state or jurisdiction shall be prima facie evidence | ||||||
3 | thereof; | ||||||
4 | (10) has advertising that is inaccurate, misleading, | ||||||
5 | or contrary to the provisions of this Act; | ||||||
6 | (11) has knowingly and willfully made any substantial | ||||||
7 | misrepresentation or untruthful advertising; | ||||||
8 | (12) has made any false promises of a character likely | ||||||
9 | to influence, persuade, or induce; | ||||||
10 | (13) has knowingly failed to account for or remit any | ||||||
11 | money or documents coming into the possession of a title | ||||||
12 | insurance company, title insurance agent, or independent | ||||||
13 | escrowee that belong to others; | ||||||
14 | (14) has engaged in dishonorable, unethical, or | ||||||
15 | unprofessional conduct of a character likely to deceive, | ||||||
16 | defraud, or harm the public; | ||||||
17 | (15) has violated the terms of a disciplinary order | ||||||
18 | issued by the Department; | ||||||
19 | (16) has disregarded or violated any provision of this | ||||||
20 | Act or the published rules adopted by the Department to | ||||||
21 | enforce this Act or has aided or abetted any individual, | ||||||
22 | partnership, registered limited liability partnership, | ||||||
23 | limited liability company, or corporation in disregarding | ||||||
24 | any provision of this Act or the published rules; or | ||||||
25 | (17) has acted as a title insurance company, title | ||||||
26 | insurance agent, or independent escrowee without a |
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1 | certificate of authority, registration, or license after | ||||||
2 | the title insurance company, title insurance agent, or | ||||||
3 | independent escrowee's certificate of authority, | ||||||
4 | registration, or license was inoperative ; or . | ||||||
5 | (18) has referred a consumer
to another producer of | ||||||
6 | title business on the express or
implicit condition that | ||||||
7 | the producer of title business
to whom that consumer is | ||||||
8 | referred use a particular
title insurance company or title | ||||||
9 | insurance agent.
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10 | (b) In every case where a registration or certificate is | ||||||
11 | suspended or
revoked, or an application for a registration or | ||||||
12 | certificate or renewal
thereof is refused, the Secretary shall | ||||||
13 | serve notice of his action,
including a statement of the | ||||||
14 | reasons for his action, as provided by this Act. When a notice | ||||||
15 | of suspension or revocation of a certificate of authority is | ||||||
16 | given to a title insurance company, the Secretary shall also | ||||||
17 | notify all the registered agents of that title insurance | ||||||
18 | company of the Secretary's action.
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19 | (c) In the case of a refusal to issue or renew a | ||||||
20 | certificate or accept a
registration, the applicant or | ||||||
21 | registrant may request in writing, within 30
days after the | ||||||
22 | date of service, a hearing. In the case of a
refusal to renew, | ||||||
23 | the expiring registration or certificate shall be deemed
to | ||||||
24 | continue in force until 30 days after the service of the notice | ||||||
25 | of
refusal to renew, or if a hearing is requested during that | ||||||
26 | period, until a
final order is entered pursuant to such |
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1 | hearing.
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2 | (d) The suspension or revocation of a registration or | ||||||
3 | certificate shall
take effect upon service of notice thereof. | ||||||
4 | The holder of any such
suspended registration or certificate | ||||||
5 | may request in writing, within 30
days of such service, a | ||||||
6 | hearing.
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7 | (e) In cases of suspension or revocation of registration | ||||||
8 | pursuant to
subsection (a), the Secretary may, in the public | ||||||
9 | interest, issue an order of
suspension or revocation which | ||||||
10 | shall take effect upon service of
notification thereof. Such | ||||||
11 | order shall become final 60 days from the date
of service | ||||||
12 | unless the registrant requests in writing, within such 60 days,
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13 | a formal hearing thereon. In the event a hearing is requested, | ||||||
14 | the order
shall remain temporary until a final order is entered | ||||||
15 | pursuant to such hearing.
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16 | (f) Hearing shall be held at such time and place as may be | ||||||
17 | designated by
the Secretary either in the City of Springfield, | ||||||
18 | the City of Chicago, or in
the county in which the principal | ||||||
19 | business office of the affected
registrant or certificate | ||||||
20 | holder is located.
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21 | (g) The suspension or revocation of a registration or | ||||||
22 | certificate or the
refusal to issue or renew a registration or | ||||||
23 | certificate shall not in any
way limit or terminate the | ||||||
24 | responsibilities of any registrant or
certificate holder | ||||||
25 | arising under any policy or contract of title insurance
to | ||||||
26 | which it is a party. No new contract or policy of title |
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1 | insurance may
be issued, nor may any existing policy or | ||||||
2 | contract to title insurance be
renewed by any registrant or | ||||||
3 | certificate holder during any period of
suspension or | ||||||
4 | revocation of a registration or certificate.
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5 | (h) The Secretary may issue a cease and desist order to a | ||||||
6 | title insurance
company, agent, or other entity doing business | ||||||
7 | without the required license or
registration, when in the | ||||||
8 | opinion of the Secretary, the company, agent, or other
entity | ||||||
9 | is violating or is about to violate any provision of this Act | ||||||
10 | or any
law or of
any
rule or condition imposed in writing by | ||||||
11 | the Department.
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12 | The Secretary may issue the cease and desist order without | ||||||
13 | notice and before a
hearing.
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14 | The Secretary shall have the authority to prescribe rules | ||||||
15 | for the
administration of this Section.
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16 | If it is determined that the Secretary had the authority to | ||||||
17 | issue the cease
and desist order, he may issue such orders as | ||||||
18 | may be reasonably necessary to
correct, eliminate or remedy | ||||||
19 | such conduct.
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20 | Any person or company subject to an order pursuant to this | ||||||
21 | Section is
entitled to judicial review of the order in | ||||||
22 | accordance with the provisions of
the Administrative Review | ||||||
23 | Law.
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24 | The powers vested in the Secretary by this Section are | ||||||
25 | additional to any and
all other powers and remedies vested in | ||||||
26 | the Secretary by law, and nothing in
this Section shall be |
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1 | construed as requiring that the Secretary
shall employ the
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2 | powers conferred in this Section instead of or as a condition | ||||||
3 | precedent to the
exercise of any other power or remedy vested | ||||||
4 | in the Secretary.
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5 | (Source: P.A. 98-398, eff. 1-1-14.)
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6 | Section 99. Effective date. This Act takes effect upon | ||||||
7 | becoming law.
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