102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3064
 
Introduced , by Rep. Camille Y. Lilly
 
SYNOPSIS AS INTRODUCED:

                        
215 ILCS 155/3 from Ch. 73, par. 1403
215 ILCS 155/5 from Ch. 73, par. 1405
215 ILCS 155/12 from Ch. 73, par. 1412
215 ILCS 155/14 from Ch. 73, par. 1414
215 ILCS 155/14.1
215 ILCS 155/16 from Ch. 73, par. 1416
215 ILCS 155/18 from Ch. 73, par. 1418
215 ILCS 155/18.2 new
215 ILCS 155/21 from Ch. 73, par. 1421
215 ILCS 155/23 from Ch. 73, par. 1423
215 ILCS 155/19 rep.
215 ILCS 155/24 rep.
215 ILCS 155/25 rep.

 Amends the Title Insurance Act. Provides that 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 of Financial and Professional Regulation a certificate of authority. Provides that the Secretary of Financial and Professional Regulation or the Secretary's authorized representative shall have power and authority to compel an independent escrowee's compliance with specified provisions of the Title Insurance Act. Establishes fees for title insurance agents. Provides that 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 (1) has a financial or other beneficial interest in the licensee and (2) is authorized by at least one title insurance company to determine insurability of title. Establishes requirements for the issuance of certificates of authority to title insurance agents. Changes provisions concerning criminal penalties and injunctive relief for violations and referrals. Makes other changes. Effective immediately, except that the provisions concerning the filing of title insurance rates take effect September 1, 2022.


LRB102 14548 BMS 19901 b


 
 
A BILL FOR
 


HB3064LRB102 14548 BMS 19901 b



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 3, 5, 12, 14, 14.1, 16, 18, 21, and 23 and by adding 
6Section 18.2 as follows:




7 (215 ILCS 155/3) (from Ch. 73, par. 1403)


8 Sec. 3. As used in this Act, the words and phrases 
9following shall
have the following meanings unless the context 
10requires otherwise:

11 (1) "Title insurance business" or "business of title 
12insurance" means:

13  (A) Issuing as insurer or offering to issue as insurer 
14 title insurance;
and

15  (B) Transacting or proposing to transact one or more 
16 of the following
activities when
conducted or performed in 
17 contemplation of or in conjunction with the issuance
of 
18 title insurance;

19   (i) soliciting or negotiating the issuance of 
20 title insurance;

21   (ii) guaranteeing, warranting, or otherwise 
22 insuring the correctness of
title
searches for all 
23 instruments affecting titles to real property, any 
 
 
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1 interest in
real property, cooperative units and 
2 proprietary leases, and for all liens or
charges 
3 affecting the same;

4   (iii) handling of escrows, settlements, or 
5 closings;

6   (iv) executing title insurance policies;

7   (v) effecting contracts of reinsurance;

8   (vi) abstracting, searching, or examining titles; 
9 or

10   (vii) issuing insured closing letters or closing 
11 protection letters;

12  (C) Guaranteeing, warranting, or insuring searches or 
13 examinations of
title to real property or any interest in 
14 real property, with the exception of
preparing an 
15 attorney's opinion of title; or

16  (D) Guaranteeing or warranting the status of title as 
17 to ownership of or
liens on real property and personal 
18 property by any person other than the
principals to the 
19 transaction; or

20  (E) Doing or proposing to do any business 
21 substantially equivalent to any
of the activities listed 
22 in this subsection,
provided that the preparation of an 
23 attorney's opinion
of title pursuant to paragraph (1)(C) 
24 is not intended to be within the
definition of "title 
25 insurance business" or "business of title insurance".

26 (1.5) "Title insurance" means insuring, guaranteeing, 
 
 
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1warranting, or
indemnifying owners of real or personal 
2property or the holders of liens or
encumbrances thereon or 
3others interested therein against loss or damage
suffered by 
4reason of liens, encumbrances upon, defects in, or the

5unmarketability of the title to the property; the invalidity 
6or
unenforceability of any liens or encumbrances thereon; or 
7doing any business in
substance equivalent to any of the 
8foregoing.
"Warranting" for purpose of this provision shall 
9not
include any warranty contained in instruments of 
10encumbrance or conveyance.
Title insurance is a single line 
11form of insurance, also known as monoline. An attorney's 
12opinion of title pursuant to paragraph (1)(C) is not intended 
13to
be within the definition of "title insurance".

14 (2) "Title insurance company" means any domestic company 
15organized under
the laws of this State for the purpose of 
16conducting the business of
title insurance and any title 
17insurance
company organized under the laws of another State, 
18the District of Columbia
or foreign government and authorized 
19to transact the business of
title insurance in this State.

20 (3) "Title insurance agent" means a person, firm, 
21partnership,
association, corporation or other legal entity 
22issued a certificate of authority under this Act registered by 
23a title
insurance company and authorized by a title insurance 
24such company to determine insurability
of title in accordance 
25with generally acceptable underwriting rules and
standards in 
26reliance on either the public records or a search package

 
 
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1prepared from a title plant, or both, and authorized by such 
2title insurance company in addition to do any
of the 
3following: act as an escrow agent pursuant to subsections (f), 
4(g), and (h) of Section 16 of this Act, solicit title 
5insurance, collect
premiums, or issue title insurance 
6commitments,
policies, and endorsements of the title insurance 
7company; provided, however, the term "title insurance agent"

8shall not include officers and salaried employees of any title 
9insurance
company.

10 (4) "Producer of title business" is any person, firm, 
11partnership,
association, corporation or other legal entity 
12engaged in this State in the
trade, business, occupation or 
13profession of (i) buying or selling
interests in real 
14property, (ii) making loans secured by interests in real

15property, or (iii) acting as broker, agent, attorney, or 
16representative of
natural persons or other legal entities that 
17buy or sell interests in real
property or that lend money with 
18such interests as security.

19 (5) "Associate" is any firm, association, partnership, 
20corporation or
other legal entity organized for profit in 
21which a producer of title
business is a director, officer, or 
22partner thereof, or owner of a
financial interest, as defined 
23herein, in such entity; any legal entity
that controls, is 
24controlled by, or is under common control with a producer
of 
25title business; and any natural person or legal entity with 
26whom a
producer of title business has any agreement, 
 
 
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1arrangement, or understanding
or pursues any course of conduct 
2the purpose of which is to evade the
provisions of this Act.

3 (6) "Financial interest" is any ownership interest, legal 
4or beneficial,
except ownership of publicly traded stock.

5 (7) "Refer" means to place or cause to be placed, or to 
6exercise any
power or influence over the placing of title 
7business, whether or not the
consent or approval of any other 
8person is sought or obtained with respect
to the referral.

9 (8) "Escrow Agent" means any title insurance company or 
10any title
insurance agent, including independent contractors 
11of either, acting on behalf of a title insurance company, 
12which
receives deposits, in trust, of funds or documents, or 
13both, for the purpose
of effecting the sale, transfer, 
14encumbrance or lease of real property to
be held by such escrow 
15agent until title to the real property that is the
subject of 
16the escrow is in a prescribed condition. An escrow agent 
17conducting closings shall be subject to the provisions of 
18paragraphs (1) through (4) of subsection (e) of Section 16 of 
19this Act.


20 (9) "Independent Escrowee" means any firm, person, 
21partnership,
association, corporation or other
legal entity, 
22other than a title insurance company or a title insurance

23agent, which receives deposits, in trust, of funds or 
24documents, or both, for
the purpose of effecting the sale, 
25transfer, encumbrance or lease of real
property to be held by 
26such escrowee until title to the real property that
is the 
 
 
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1subject of the escrow is in a prescribed condition. Federal 
2and
State chartered banks, savings and loan associations, 
3credit unions,
mortgage bankers, banks or trust companies 
4authorized to do business under
the Illinois Corporate 
5Fiduciary Act, licensees under the Consumer
Installment Loan 
6Act, real estate brokers licensed pursuant to the Real
Estate 
7License Act of 2000, as such Acts are now or hereafter amended, 
8and
licensed attorneys when engaged in the attorney-client 
9relationship are
exempt from the escrow provisions of this 
10Act. "Independent Escrowee" does not include employees or 
11independent contractors of a title insurance company or title 
12insurance agent authorized by a title insurance company to 
13perform closing, escrow, or settlement services.


14 (10) "Single risk" means the insured amount of any title 
15insurance
policy, except that where 2 or more title insurance 
16policies are issued
simultaneously covering different estates 
17in the same real property, "single
risk" means the sum of the 
18insured amounts of all such title insurance
policies. Any 
19title insurance policy insuring a mortgage interest, a claim

20payment under which reduces the insured amount of a fee or 
21leasehold title
insurance policy, shall be excluded in 
22computing the amount of a single
risk to the extent that the 
23insured amount of the mortgage title insurance
policy does not 
24exceed the insured amount of the fee or leasehold title

25insurance policy.

26 (11) "Department" means the Department of Financial and 
 
 
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1Professional Regulation.

2 (12) "Secretary" means the Secretary
of Financial and 
3Professional Regulation.

4 (13) "Insured closing letter" or "closing protection 
5letter" means
an indemnification or undertaking to a party to 
6a real property transaction, from
a principal such as a title 
7insurance company, setting forth
in writing the extent of the 
8principal's responsibility for intentional
misconduct or 
9errors in closing the real property transaction on the part of 
10a
settlement agent, such as a title insurance agent or other 
11settlement service
provider, or an indemnification or 
12undertaking given by a title insurance company or an 
13independent escrowee setting forth in writing the extent of 
14the title insurance company's or independent escrowee's 
15responsibility to a party to a real property transaction which 
16indemnifies the party against the intentional misconduct or 
17errors in closing the real property transaction on the part of 
18the title insurance company or independent escrowee and 
19includes protection afforded pursuant to subsections (f), (g), 
20and (h) of Section 16, Section 16.1, subsection (h) of Section 
2117, and Section 17.1 of this Act even if such protection is 
22afforded by contract.

23 (14) "Residential real property" means a building or 
24buildings consisting of one to 4 residential units or a 
25residential condominium unit where at least one of the 
26residential units or condominium units is occupied or intended 
 
 
HB3064- 8 -LRB102 14548 BMS 19901 b


1to be occupied as a residence by the purchaser or borrower, or 
2in the event that the purchaser or borrower is the trustee of a 
3trust, by a beneficiary of that trust.

4 (15) "Financial institution" means any bank subject to the 
5Illinois Banking Act, any savings and loan association subject 
6to the Illinois Savings and Loan Act of 1985, any savings bank 
7subject to the Savings Bank Act, any credit union subject to 
8the Illinois Credit Union Act, and any federally chartered 
9commercial bank, savings and loan association, savings bank, 
10or credit union organized and operated in this State pursuant 
11to the laws of the United States. 
12(Source: P.A. 100-485, eff. 9-8-17.)





13 (215 ILCS 155/5) (from Ch. 73, par. 1405)



14 Sec. 5. Certificate of authority required to engage in 
15activities under this Act.

16 (a) It is unlawful for any company
to engage or to continue 
17in the business of title insurance without first procuring 
18from the Secretary a certificate of
authority stating that the

19company has complied with the requirements of
Section 4 of 
20this Act. An insurer that transacts any class of insurance 
21other than title insurance anywhere in the United States is 
22not eligible for the issuance of a certificate of authority to 
23transact title insurance in this State nor for a renewal of a 
24certificate of authority.

25 (b) It is unlawful for any person, firm, partnership, 
 
 
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1association, corporation, or other legal entity to act as or 
2hold itself out to be a title insurance agent unless first 
3procuring from the Secretary a certificate of authority 
4subject to the conditions of subsection (a) of Section 16. 
5(Source: P.A. 94-893, eff. 6-20-06.)





6 (215 ILCS 155/12) (from Ch. 73, par. 1412)



7 Sec. 12. Examinations; compliance.


8 (a) The Secretary or his authorized representative shall 
9have
the power and authority, and it shall be his duty, to 
10cause to be visited
and examined annually any title insurance 
11company doing business under this
Act, and to verify and 
12compel compliance with the provisions of law governing it.

13 (b) The Secretary or his authorized representative agent 
14shall have power and authority to
compel compliance with the 
15provisions of this Act and may visit and shall, only upon the

16showing of good cause, require a title insurance agent or 
17independent escrowee to make appropriate records any title 
18insurance company to take all legal means to obtain the

19appropriate records of its registered agents and make them 
20available for
examination at a time and place designated by 
21the Secretary. Expenses incurred in
the course of such 
22examinations will be the responsibility of the title insurance

23company. In the event that a present or former registered 
24agent or its successor refuses or is unable to cooperate with a 
25title insurance company in furnishing the records requested by 
 
 
HB3064- 10 -LRB102 14548 BMS 19901 b


1the Secretary or his or her authorized agent, then the 
2Secretary or his or her authorized agent shall have the power 
3and authority to obtain those records directly from the 
4registered agent.


5 (c) The Secretary or the Secretary's authorized 
6representative shall have power and authority to compel an 
7independent escrowee's compliance with the provisions of this 
8Act pursuant to subsection (f) of Section 17 of this Act. 
9(Source: P.A. 94-893, eff. 6-20-06.)




10 (215 ILCS 155/14) (from Ch. 73, par. 1414)



11 Sec. 14. Fees.

12 (a)
Every title insurance company and
every independent

13escrowee subject to this Act shall pay the following fees:

14  (1) for filing the original application for a 
15 certificate of authority
and receiving the deposit 
16 required under this Act, $500;

17  (2) for the certificate of authority, $10;

18  (3) for every copy of a paper filed in the Department 
19 under this Act,
$1 per folio;

20  (4) for affixing the seal of the Department and 
21 certifying a copy, $2; and


22  (5) for filing the annual statement, $50.

23 (b)
Each title insurance company shall remit, for all of 
24its title
insurance agents subject to this Act for filing an 
25annual registration of
its agents, an amount equal to $3 for 
 
 
HB3064- 11 -LRB102 14548 BMS 19901 b


1each policy issued by
all
of its title insurance
agents
in the 
2immediately preceding calendar year.

3 (c) Every title insurance agent subject to this Act shall 
4pay the following fees:
5  (1) for a resident of the State, filing the original 
6 application for a certification of authority and for the 
7 certificate of authority, $80;
8  (2) for a nonresident of the State, filing the 
9 original application for a certification of authority and 
10 for the certificate of authority, $120;
11  (3) for a resident and nonresident of the State, 
12 filing for renewal of a certificate, $80; and
13  (4) for a resident and nonresident of the State, 
14 filing for reinstatement of a lapsed certificate, $120. 
15(Source: P.A. 99-104, eff. 1-1-16.)





16 (215 ILCS 155/14.1)



17 Sec. 14.1. Financial Institution Fund.
All moneys received 
18by the Department of Financial and Professional Regulation

19under this Act shall be deposited in the Financial Institution 
20Fund created
under Section 6z-26 of the State Finance Act for 
21expenses incurred in administering this Act.

22(Source: P.A. 98-463, eff. 8-16-13.)




23 (215 ILCS 155/16) (from Ch. 73, par. 1416)



24 Sec. 16. Title insurance agents. 

 
 
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1 (a) No person, firm, partnership, association, corporation 
2or other
legal entity shall act as or hold itself out to be a 
3title insurance agent
unless it has been issued a certificate 
4of authority by duly registered by a title insurance company 
5with the Secretary. Every title insurance agent registration 
6before or after the effective date of this amendatory Act of 
7the 102nd General Assembly shall satisfy the requirements for 
8a certificate of authority under this amendatory Act of the 
9102nd General Assembly until January 1 of the calendar year 
10immediately following the adoption of such rules that the 
11Secretary shall adopt as may be necessary for the 
12administration of granting of the certificates of authority 
13for title insurance agents under this amendatory Act of the 
14102nd General Assembly, and until the related application is 
15either approved or disapproved; the continued recognition of 
16such title insurance agent registrations during this period 
17does not relieve title insurance agents and title insurance 
18companies of their other obligations under this Act before the 
19effective date of this amendatory Act of the 102nd General 
20Assembly. 

21 (b) Each application for a certificate of authority 
22registration shall be made on a form specified
by the 
23Secretary and prepared by each title insurance agent company

24which the agent represents. The title insurance agent and 
25company authorizing the agent shall retain the
copy of the 
26application and issued certificate of authority forward a copy 
 
 
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1to the Secretary.

2 (c) Every applicant for a certificate of authority 
3registration, except a firm, partnership,
association, limited 
4liability company, or corporation, must be 18 years or more of 
5age. 
6  (1) Every applicant for a certificate of authority 
7 that is a firm, partnership, association, corporation, or 
8 other legal entity shall designate and name at least one 
9 individual who (i) has a financial or other beneficial 
10 interest in the licensee and (ii) is authorized by at 
11 least one title insurance company to determine 
12 insurability of title. 
13  (2) Included in every application for a certificate of 
14 authority registration of a title insurance agent, 
15 including a firm, partnership,
association, limited 
16 liability company, or corporation, shall be an affidavit 
17 of the applicant title insurance agent, signed and 
18 notarized in front
of a notary public, affirming that the 
19 applicant and every owner, officer, director, principal, 
20 member, or
manager of the applicant has never been 
21 convicted or pled guilty to any felony or misdemeanor 
22 involving a crime of
theft or dishonesty or otherwise 
23 accurately disclosing any such felony or misdemeanor 
24 involving a crime of
theft or dishonesty. No person who 
25 has had a conviction or pled guilty to any felony or

26 misdemeanor involving theft or dishonesty may be 
 
 
HB3064- 14 -LRB102 14548 BMS 19901 b


1 registered by a title insurance agent company without a 
2 written notification to the Secretary disclosing the 
3 conviction or plea, and no such
person may serve as an 
4 owner, officer, director, principal, or manager of any 
5 registered title insurance
agent without the written 
6 permission of the Secretary. 

7  (3) An applicant for a certificate of authority of a 
8 title insurance agent, including a firm, partnership, 
9 association, limited liability company, or corporation, 
10 shall include an affidavit of the applicant, signed and 
11 notarized in front of a notary public, affirming that the 
12 applicant is authorized by one or more title insurance 
13 companies to determine insurability of title, stating the 
14 title insurance company or companies with which it is 
15 authorized, and listing the individuals authorized. 
16  (4) Every applicant shall obtain and maintain errors 
17 and omissions insurance, or its equivalent, in an amount 
18 acceptable to the title insurance company authorizing the 
19 agent, but in no event in an amount less than $250,000 per 
20 claim and an aggregate limit of $500,000 with a deductible 
21 no greater than $25,000. A title insurance company shall 
22 not provide the insurance directly or indirectly on behalf 
23 of a title insurance agent. In the event errors and 
24 omissions insurance is unavailable generally, the 
25 Department shall adopt rules for alternative methods to 
26 comply with this paragraph. 
 
 
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1 (d) A certificate of authority Registration shall be 
2renewed on January 1 every 2 years made annually by a filing 
3with the Secretary;
supplemental filings registrations for a 
4new agency agreement with a title insurance company agents to 
5be added
between certificate of authority renewal annual 
6filings shall be made by the title insurance agent from time to 
7time in the manner
provided by the Secretary; certificates of 
8authority registrations shall remain in effect unless
revoked 
9or suspended by the Secretary or
voluntarily withdrawn by the 
10title insurance agent,
registrant or the title insurance agent 
11no longer has any agency agreement with a title insurance 
12company.

13 (e) Funds deposited in connection with any escrows, 
14settlements, or closings shall be deposited in a separate 
15fiduciary trust account or accounts in a bank or other 
16financial institution insured by an agency of the federal 
17government unless the instructions provide otherwise. The 
18funds shall be the property of the person or persons entitled 
19thereto under the provisions of the escrow, settlement, or 
20closing and shall be segregated by escrow, settlement, or 
21closing in the records of the escrow agent. The funds shall not 
22be subject to any debts of the escrowee and shall be used only 
23in accordance with the terms of the individual escrow, 
24settlement, or closing under which the funds were accepted.
25 Interest received on funds deposited with the escrow agent 
26in connection with any escrow, settlement, or closing shall be 
 
 
HB3064- 16 -LRB102 14548 BMS 19901 b


1paid to the depositing party unless the instructions provide 
2otherwise.
3 The escrow agent shall maintain separate records of all 
4receipts and disbursements of escrow, settlement, or closing 
5funds.
6 The escrow agent shall comply with any rules adopted by 
7the Secretary pertaining to escrow, settlement, or closing 
8transactions.
9 (f) A title insurance agent shall not act as an escrow 
10agent in a nonresidential real property transaction where the 
11amount of settlement funds on deposit with the escrow agent is 
12less than $2,000,000 or in a residential real property 
13transaction unless the title insurance agent, title insurance 
14company, or another authorized title insurance agent has 
15committed for the issuance of title insurance in that 
16transaction and the title insurance agent is authorized to act 
17as an escrow agent on behalf of the title insurance company for 
18which the commitment for title insurance has been issued. The 
19authorization under the preceding sentence shall be given 
20either (1) by an agency contract with the title insurance 
21company which contract, in compliance with the requirements 
22set forth in subsection (g) of this Section, authorizes the 
23title insurance agent to act as an escrow agent on behalf of 
24the title insurance company or (2) by a closing protection 
25letter in compliance with the requirements set forth in 
26Section 16.1 of this Act, issued by the title insurance 
 
 
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1company to the seller, buyer, borrower, and lender. A closing 
2protection letter shall not be issued by a title insurance 
3agent. The provisions of this subsection (f) shall not apply 
4to the authority of a title insurance agent to act as an escrow 
5agent under subsection (g) of Section 17 of this Act.
6 (g) If an agency contract between the title insurance 
7company and the title insurance agent is the source of the 
8authority under subsection (f) of this Section for a title 
9insurance agent to act as escrow agent for a real property 
10transaction, then the agency contract shall provide for no 
11less protection from the title insurance company to all 
12parties to the real property transaction than the title 
13insurance company would have provided to those parties had the 
14title insurance company issued a closing protection letter in 
15conformity with Section 16.1 of this Act. 
16 (h) A title insurance company shall be liable for the acts 
17or omissions of its title insurance agent as an escrow agent if 
18the title insurance company has authorized the title insurance 
19agent under subsections (f) and (g) of this Section 16 and only 
20to the extent of the liability undertaken by the title 
21insurance company in the agency agreement or closing 
22protection letter. The liability, if any, of the title 
23insurance agent to the title insurance company for acts and 
24omissions of the title insurance agent as an escrow agent 
25shall not be limited or otherwise modified because the title 
26insurance company has provided closing protection to a party 
 
 
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1or parties to a real property transaction escrow, settlement, 
2or closing. The escrow agent shall not charge a fee for 
3protection provided by a title insurance company to parties to 
4real property transactions under subsections (f) and (g) of 
5this Section 16 and Section 16.1, but shall collect from the 
6parties the fee charged by the title insurance company and 
7shall promptly remit the fee to the title insurance company. 
8The title insurance company may charge the parties a 
9reasonable fee for protection provided pursuant to subsections 
10(f) and (g) of this Section 16 and Section 16.1 and shall not 
11pay any portion of the fee to the escrow agent. The payment of 
12any portion of the fee to the escrow agent by the title 
13insurance company, shall be deemed a prohibited inducement or 
14compensation in violation of Section 24 of this Act. 
15 (i) The Secretary shall adopt and amend such rules as may 
16be required for the proper administration and enforcement of 
17this Section 16 consistent with the federal Real Estate 
18Settlement Procedures Act and Section 24 of this Act. 
19(Source: P.A. 98-398, eff. 1-1-14; 98-832, eff. 1-1-15; 
2099-104, eff. 1-1-16.)





21 (215 ILCS 155/18) (from Ch. 73, par. 1418)



22 Sec. 18. Disclosure of financial interests No referral 
23payments; kickbacks.

24 (a) Application of this Section is limited to residential

25properties of 4 or fewer units, at least one of which units is 
 
 
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1occupied or
to be occupied by an owner, legal or beneficial.

2 (b) No title insurance company, independent escrowee, or

3title insurance agent may issue a title insurance
policy to, 
4or provide services to an applicant if it knows or has reason

5to believe that the applicant was referred to it by any 
6producer of title
business or by any associate of such 
7producer, where the producer, the
associate, or both, have a 
8financial interest in the title insurance
company, independent 
9escrowee, or title insurance agent to which business
is 
10referred unless the producer has disclosed to any party paying 
11for the
products or services, or his representative, the 
12financial interest of the
producer of title business or 
13associate referring the title business and a
disclosure of an 
14estimate of those charges to be paid as described in
Section 
1519. Such disclosure must be made in writing on forms 
16prescribed by
the Secretary prior to the time that the 
17commitment for title insurance is
issued. The title insurance 
18company, independent escrowee, or title
insurance agent shall 
19maintain the disclosure forms for a period of 3 years.

20 (c)
Each title insurance company, independent escrowee, 
21and title
insurance agent shall file with the Secretary, on 
22forms prescribed by the
Secretary, reports setting forth the 
23names and addresses of those persons,
if any, who have had a 
24financial interest in the title insurance company,
independent 
25escrowee, or title insurance agent during the calendar year,

26who are known or reasonably believed by the title insurance 
 
 
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1company,
independent escrowee, or title insurance agent to be 
2producers of title
business or associates of producers.


3  (1)
Each title insurance company and independent 
4 escrowee shall file the
report required under this 
5 subsection with its application for a
certificate of 
6 authority and at any time there is a change in the

7 information provided in the last report.


8  (2)
Each title insurance agent shall file the report 
9 required under
this subsection with its title insurance 
10 company for inclusion with its
application for 
11 registration and at any time there is a change in the

12 information provided in its last report.


13  (3)
Each title insurance company, independent 
14 escrowee, or title
insurance agent doing business on the 
15 effective date of this Act shall file
the report required 
16 under this subsection within 90 days after such
effective 
17 date.

18(Source: P.A. 94-893, eff. 6-20-06.)


19 (215 ILCS 155/18.2 new)
20 Sec. 18.2. Rate and service fee filings.
21 (a) Rate and service fee filing requirements.
22  (1) Every title insurance company shall file with the 
23 Secretary every manual of classifications, rules, plans, 
24 forms, and schedules of fees and every modification of any 
25 of the foregoing relating to the rates that it proposes to 
 
 
HB3064- 21 -LRB102 14548 BMS 19901 b


1 use. Every such filing shall state the proposed effective 
2 date and shall indicate the character and extent of the 
3 coverage contemplated. Every title insurance company and 
4 independent escrowee shall file with the Secretary the 
5 specification of services and schedule of fees for each 
6 fee intended to be charged to the parties to a transaction 
7 pursuant to paragraph (5) of subsection (k) of this 
8 Section.
9  (2) A title insurance company may satisfy its 
10 obligations to make such filings by becoming a member of, 
11 or a subscriber to, a licensed rating organization that 
12 makes such filings and by authorizing the Secretary to 
13 accept such filings on its behalf.
14  (3) The Secretary shall make such review of the 
15 filings as may be necessary to carry out the provisions of 
16 this Act and either approve or disapprove a filing or any 
17 part of a filing, including the proposed effective date.
18  (4) Subject to the provisions of paragraphs (5) and 
19 (6) and either approval or disapproval of the Secretary, 
20 each filing shall be on file for a period of 30 days before 
21 it can become effective only by approval of the Secretary. 
22 The Secretary may, upon written notice to the person 
23 making the filing within the 30-day period, extend the 
24 period no more than 30 days to enable the Secretary to 
25 complete the review of the filing. Further extensions of 
26 the waiting period may be made with the consent of the 
 
 
HB3064- 22 -LRB102 14548 BMS 19901 b


1 title insurance company or rating organization making the 
2 filing. Upon written application by the title insurance 
3 company or rating organization making the filing, the 
4 Secretary may authorize a filing or any part of a filing to 
5 become effective before the expiration of the waiting 
6 period or any extension.
7  (5) When the Secretary finds that any rate for a 
8 particular kind or class of risk cannot practicably be 
9 filed before it is used, or any contract or kind of title 
10 insurance, by reason of rarity or peculiar circumstances, 
11 does not lend itself to advance determination and filing 
12 of rates, the Secretary may permit the rates to be used 
13 without a previous filing and waiting period, and such 
14 rates can be effective only by approval of the Secretary.
15  (6) A rate in excess of a filing may be used on any 
16 specific risk upon the written consent of the insured, 
17 filed with the Secretary, explaining the applicability of 
18 the rate to the specific risk; the rate becomes effective 
19 when the consent is filed.
20 (b) Justification for rates. A rate filing shall be 
21accompanied by a statement of the title insurance company or 
22rating organization making the filing setting forth the basis 
23upon which the rate was fixed and the fees are to be computed. 
24Any filing may be justified by:
25  (1) the experience or judgment of the title insurance 
26 company or rating organization making the filing;
 
 
HB3064- 23 -LRB102 14548 BMS 19901 b


1  (2) the experience of other title insurance companies 
2 or rating organizations; or
3  (3) any other factors that the title insurance company 
4 or rating organization deems relevant.
5 (c) Making of rates.
6  (1) In making rates, due consideration shall be given 
7 to past and prospective loss experience, to exposure to 
8 loss, to underwriting practice and judgment, to the extent 
9 appropriate, to past and prospective expenses, the 
10 expenses incurred by title insurance companies, to a 
11 reasonable margin for profit and contingencies, and to all 
12 other relevant factors both within and outside of this 
13 State.
14  (2) Rates shall not be inadequate or unfairly 
15 discriminatory, nor shall rates be excessive; that is, 
16 such as to permit title insurance companies to earn a 
17 greater profit, after payment of all taxes upon all 
18 income, than is necessary to enable them to earn over the 
19 years sufficient amounts to pay their actual expenses and 
20 losses arising in the conduct of their title insurance 
21 business, including the actual costs of maintaining a 
22 title plant, plus a reasonable profit.
23  (3) In ascertaining the estimated future earnings of 
24 title insurance companies, the Secretary shall utilize a 
25 properly weighted cross section of title insurance 
26 companies operating in this State representative of the 
 
 
HB3064- 24 -LRB102 14548 BMS 19901 b


1 average of normally efficiently operated title insurance 
2 companies including on a weighted basis, both title 
3 insurance companies having their own title plants, and 
4 those not operating upon the title plant system. In 
5 ascertaining what is a reasonable profit after payment of 
6 all taxes on such income, the Secretary shall give due 
7 consideration to the following matters:
8   (A) the average rates of profit after payment of 
9 taxes on all income earned by other industry 
10 generally;
11   (B) the desirability for stability of rate 
12 structure;
13   (C) the necessity of insuring through growth in 
14 assets in times of high business activity, the 
15 financial solvency of title insurance companies in 
16 times of economic depression; and
17   (D) The necessity for earning sufficient dividends 
18 on the stock of title insurance companies to induce 
19 capital to be invested in title insurance companies.
20  (4) The systems of expense provisions and the amount 
21 of expense charged against each class of contract or 
22 policy may vary between title insurance companies. Rates 
23 may, in the discretion of any title insurance company, be 
24 less than the cost of performing the work in the case of 
25 smaller insurances, and the excess may be charged against 
26 the larger insurances without rendering the rates unfairly 
 
 
HB3064- 25 -LRB102 14548 BMS 19901 b


1 discriminatory.
2 (d) Disapproval of filings. If the Secretary finds that 
3the filing or a part of the filing does not meet the 
4requirements of this Act, the Secretary shall issue an order 
5specifying in what respects it fails to meet the requirements 
6of this Act. If the filing or part of the filing already has 
7become effective, the order shall also state when, within a 
8reasonable period, such filing or part shall be deemed no 
9longer effective. A title insurance company or rating 
10organization shall have the right at any time to withdraw a 
11filing or a part of the filing, subject to the provisions of 
12subsection (f) of this Section regarding deviations. Copies of 
13the order shall be sent to every such title insurance company 
14and rating organization. The order shall not affect any 
15contract or policy made or issued prior to the expiration of 
16the period set forth in the order.
17 (e) Rating organizations.
18  (1) A corporation, an unincorporated association, a 
19 partnership, or an individual, whether located within or 
20 outside this State, may make
application to the Secretary 
21 for a license as a rating organization for title insurance 
22 companies.
23   (A) An entity seeking a license as a rating 
24 organization shall file:
25    (i) a copy of its constitution, its articles 
26 of agreement or association or its certificate of 
 
 
HB3064- 26 -LRB102 14548 BMS 19901 b


1 incorporation, and of its bylaws, rules, and 
2 regulations governing the conduct of its business;
3    (ii) a list of its members and subscribers;
4    (iii) the name and address of a resident of 
5 this State upon whom notices or orders of the 
6 Secretary or process affecting such rating 
7 organization may be served; and
8    (iv) a statement of its qualifications as a 
9 rating organization.
10   (B) If the Secretary finds that the applicant is 
11 competent, trustworthy, and otherwise qualified to act 
12 as a rating organization, and that its constitution, 
13 articles of agreement or association or certificate of 
14 incorporation, and its bylaws, rules, and regulations 
15 governing the conduct of its business conforms to the 
16 requirements of law, the Secretary shall issue a 
17 license authorizing the applicant to act as a rating 
18 organization for title insurance. Every such 
19 application shall be granted or denied in whole or in 
20 part by the Secretary within 60 days after the date of 
21 its filing. Licenses issued under this Section shall 
22 remain in effect for 3 years unless sooner suspended 
23 or revoked by the Secretary or withdrawn by the 
24 licensee. The fee for the license shall be $25. 
25 Licenses issued under this Section may be suspended or 
26 revoked by the Secretary, after hearing upon notice, 
 
 
HB3064- 27 -LRB102 14548 BMS 19901 b


1 in the event the rating organization ceases to meet 
2 the requirements of this subsection.
3   (C) Every rating organization shall notify the 
4 Secretary promptly of every change in:
5    (i) its constitution, its articles of 
6 agreement or association or its certificate of 
7 incorporation, and its bylaws, rules, and 
8 regulations governing the conduct of its business;
9    (ii) its list of members and subscribers; and
10    (iii) the name and address of the resident of 
11 this State designated by it upon whom notices or 
12 orders of the Secretary or process affecting such 
13 rating organization may be served.
14  (2) Subject to rules adopted by the Secretary, each 
15 rating organization shall permit any title insurance 
16 company not a member to be a subscriber to its rating 
17 services. Each rating organization shall furnish its 
18 rating services without discrimination to its members and 
19 subscribers. The furnishing of rating services without 
20 discrimination to its members and subscribers, or the 
21 refusal of any rating organization to admit a title 
22 insurance company as a subscriber, shall, at the request 
23 of any subscriber or any such title insurance company, be 
24 reviewed by the Secretary at a hearing held upon at least 
25 10 days' written notice to such rating organization and to 
26 such subscriber or title insurance company. If the 
 
 
HB3064- 28 -LRB102 14548 BMS 19901 b


1 Secretary finds that the actions of the rating 
2 organization were discriminatory, the Secretary shall 
3 order that such actions cease. If the rating organization 
4 fails to grant or reject an application of a title 
5 insurance company for subscribership within 30 days after 
6 it was made, the title insurance company may request a 
7 review by the Secretary as if the application had been 
8 rejected. If the Secretary finds that the title insurance 
9 company has been refused admittance to the rating 
10 organization as a subscriber without justification, the 
11 Secretary shall order the rating organization to admit the 
12 title insurance company as a subscriber. If the Secretary 
13 finds that the action of the rating organization was 
14 justified, the Secretary shall make an order affirming its 
15 action.
16  (3) Cooperation among rating organizations, or among 
17 rating organizations and title insurance companies, and 
18 concert of action among title insurance companies under 
19 the same general management and control in rate making or 
20 in other matters within the scope of this Act is hereby 
21 authorized, provided that the filings are subject to all 
22 the provisions of this Act that are applicable to filings 
23 generally. The Secretary may review such activities and 
24 practices and if, after a hearing, the Secretary finds 
25 that any such activity or practice is unfair or 
26 unreasonable or otherwise inconsistent with the provisions 
 
 
HB3064- 29 -LRB102 14548 BMS 19901 b


1 of this Act, the Secretary may issue a written order 
2 specifying in what respects such activity or practice is 
3 unfair or unreasonable or otherwise inconsistent with the 
4 provisions of this Act and requiring the discontinuance of 
5 such activity or practice.
6 (f) Deviations. Every member of or subscriber to a rating 
7organization shall adhere to the filings made on its behalf by 
8such organization, except that any title insurance company 
9that is a member of or subscriber to a rating organization may 
10file with the Secretary a decrease or increase to be applied to 
11any or all elements of the fees produced by the rating system 
12so filed for a class of title insurance that is found by the 
13Secretary to be a proper rating unit for the application of 
14such uniform decrease or increase, or to be applied to the 
15rates for a particular area. Such deviation filing shall 
16specify the basis for the modification and shall be 
17accompanied by the data or historical pattern upon which the 
18applicant relies. A copy of the filing and data shall be sent 
19simultaneously to such rating organization. Any such deviation 
20filing shall be on file for a waiting period of 30 days before 
21it becomes effective. The Secretary shall make such review of 
22the deviation filing as may be necessary to carry out the 
23provisions of this Act, and either approve or disapprove the 
24filing or any part of the filing, including the proposed 
25effective date. Extension of the waiting period may be made in 
26the same manner that the period is extended in the case of rate 
 
 
HB3064- 30 -LRB102 14548 BMS 19901 b


1filings. Upon written application of the person making the 
2filing, the Secretary may authorize a deviation filing or any 
3part of the filing to become effective before the expiration 
4of the waiting period or any extension. Deviation filings 
5shall be subject to the provisions of subsection (d) of this 
6Section. Each deviation shall be effective for at least one 
7year after the date such deviation is approved unless 
8terminated sooner with the approval of the Secretary, or in 
9accordance with the provisions of subsection (d) of this 
10Section.
11 (g) Examinations of rating organizations. The Secretary 
12shall, at least once in 5 years, make or cause to be made an 
13examination of a rating organization licensed under this Act 
14in this State. The reasonable costs of the examination shall 
15be paid by the rating organization examined upon presentation 
16to it of a detailed account of such costs. The officers, 
17managers, agents, and employees of the rating organization may 
18be examined at any time under oath and shall exhibit all books, 
19records, accounts, documents, or agreements governing its 
20method of operation. The Secretary shall furnish 2 copies of 
21the examination report to the organization examined and shall 
22notify such organization that it may, within 20 days, request 
23a hearing on the report or on any facts or recommendations 
24contained in the report. Before filing the report for public 
25inspection, the Secretary shall grant a hearing to the 
26organization examined. The report of the examination, when 
 
 
HB3064- 31 -LRB102 14548 BMS 19901 b


1filed for public inspection, shall be admissible in evidence 
2in any action or proceeding brought by the Secretary against 
3the organization examined, or its officers or agents, and 
4shall be prima facie evidence of facts stated in the report. 
5The Secretary may withhold the report of the examination from 
6public inspection for such time as the Secretary may deem 
7proper. In lieu of the examination, the Secretary may accept 
8the report of an examination made by the title insurance 
9supervisory official of another state pursuant to the laws of 
10that state.
11 (h) Rate administration.
12  (1) The Secretary shall adopt reasonable rules and 
13 statistical plans, reasonably adapted to each of the 
14 rating systems on file with the Secretary, which may be 
15 modified from time to time, and which shall be used by each 
16 title insurance company in the recording and reporting of 
17 the composition of its business, its loss and countrywide 
18 expense experience and those of its title insurance 
19 underwriters in order that the experience of all title 
20 insurance companies may be made available, at least 
21 annually, in such form and detail as may be necessary to 
22 aid the Secretary in determining whether rating systems 
23 comply with the standards set forth in this Act. The rules 
24 and plans may also provide for the recording and reporting 
25 of expense experience items that are specially applicable 
26 to this State and are not susceptible of determination by 
 
 
HB3064- 32 -LRB102 14548 BMS 19901 b


1 a prorating of countrywide expense experience. In adopting 
2 the rules and plans, the Secretary shall give due 
3 consideration to the rating systems on file with the 
4 Secretary, and in order that the rules and plans may be as 
5 uniform as is practicable among the several states, to the 
6 rules and to form of the plans used for such rating systems 
7 in other states. The rules and plans shall not place an 
8 unreasonable burden of expense on any title insurance 
9 company. No title insurance company shall be required to 
10 record or report its expense and loss experience on a 
11 classification basis that is inconsistent with the rating 
12 system filed by it, nor shall any title insurance company 
13 be required to report its experience to any agency of 
14 which it is not a member or subscriber. The Secretary may 
15 designate one or more rating organizations or other 
16 agencies to assist the Secretary in gathering such 
17 experience and making compilations, and such compilations 
18 shall be made available, subject to reasonable rules 
19 adopted by the Secretary, to title insurance companies and 
20 rating organizations.
21  (2) Reasonable rules and plans may be adopted by the 
22 Secretary for the interchange of data necessary for the 
23 application of rating plans.
24  (3) In order to further uniform administration of rate 
25 regulatory laws, the Secretary and every title insurance 
26 company and rating organization may exchange information 
 
 
HB3064- 33 -LRB102 14548 BMS 19901 b


1 and experience data with title insurance supervisory 
2 officials, title insurance companies, and title insurance 
3 rating organizations in other states, and may consult with 
4 them with respect to rate making and the application of 
5 rating systems.
6  (4) In addition to any powers expressly enumerated in 
7 this Act, the Secretary shall have full power and 
8 authority, and it shall be their duty, to enforce and 
9 carry out by rules, orders, or otherwise the provisions of 
10 this Act and the full intent. The Secretary may adopt 
11 rules consistent with this Act as may be necessary or 
12 proper in the exercise of his or her powers or for the 
13 performance of his or her duties under this Act.
14 (i) False or misleading information. No person or 
15organization shall willfully withhold information from or 
16knowingly give false or misleading information to the 
17Secretary, any statistical agency designated by the Secretary, 
18any rating organization, or any title insurance company that 
19will affect the rates or fees chargeable under this Act.
20 (j) Penalties.
21  (1) The Secretary may, if the Secretary finds that any 
22 person or organization has violated any provision of this 
23 Section, impose a penalty of not more than $500 for each 
24 such violation, but if the Secretary finds such violation 
25 to be willful, the Secretary may impose a penalty of not 
26 more than $5,000 for each such violation. Such penalties 
 
 
HB3064- 34 -LRB102 14548 BMS 19901 b


1 may be in addition to any other penalty provided by law.
2  (2) The Secretary may suspend the license of a rating 
3 organization or the certificate of authority of a title 
4 insurance company that fails to comply with an order of 
5 the Secretary within the time limited by such order, or 
6 any extension that the Secretary may grant. The Secretary 
7 shall not suspend the license of any rating organization 
8 or the certificate of authority of a title insurance 
9 company for failure to comply with an order until the time 
10 prescribed for an appeal has expired or, if an appeal has 
11 been taken, until such order has been affirmed. The 
12 Secretary may determine when a suspension of license shall 
13 become effective, and it shall remain in effect for the 
14 period fixed by the Secretary, unless the Secretary 
15 modifies or rescinds the suspension, or until the order 
16 upon which the suspension is based is modified, rescinded, 
17 or reversed.
18  (3) No penalty shall be imposed and no license or 
19 certificate of authority shall be suspended or revoked 
20 pursuant to this Section except upon a written order of 
21 the Secretary stating his or her findings made after a 
22 hearing held upon not less than 10 days' written notice to 
23 the holder specifying the alleged violation.
24  (4) All hearings provided for in this Section shall be 
25 conducted, and the decision of the Secretary on the issue 
26 or filing involved shall be rendered, in accordance with 
 
 
HB3064- 35 -LRB102 14548 BMS 19901 b


1 the Administrative Review Law.
2 (k) In all circumstances, whether involving rates filed by 
3a rating organization or title insurance company:
4  (1) separate filings shall be provided for the 2 
5 following geographic zones:
6   (A) Zone 1 comprising the counties of Cook, Lake, 
7 DuPage, McHenry, Kane, Will, Grundy, and Kendall; and
8   (B) Zone 2 comprising all other counties within 
9 the State.
10  The Secretary shall submit a report to the Governor 
11 and General Assembly no later than January 1, 2025 as to 
12 whether multiple zones are justified based on differences 
13 in costs between the zones.
14  (2) Rates shall be separated into classes based on 
15 monetary insurance ranges without distinction of 
16 commercial or residential use of the property.
17  (3) From the owner's policy premium, loan policy 
18 premium, and residential real property endorsement 
19 charges, which does not include closing protection letter 
20 charges, a title agent shall retain 80% and remit 20% to a 
21 title insurance company if services are performed by the 
22 title insurance agent to at least (i) determine 
23 insurability of title, which includes title examination 
24 and title clearance, and (ii) issue title insurance 
25 commitments, policies, and endorsements. For endorsement 
26 charges that are not for residential real property as 
 
 
HB3064- 36 -LRB102 14548 BMS 19901 b


1 defined in Section 3 of this Act, which does not include 
2 closing protection letter charges, a title agent shall 
3 retain 80% and remit 20% to a title insurance company 
4 provided the title agent is authorized pursuant to its 
5 agency contract to issue the endorsement and completes the 
6 work necessary to issue the endorsement. If the title 
7 agent is not authorized pursuant to its agency agreement 
8 to issue the endorsement and does not complete the work 
9 necessary to issue the endorsement, the title agent shall 
10 retain 0% and remit 100% of the charge to a title insurance 
11 company.
12  (4) Any fees charged to the parties to the transaction 
13 other than the owner's policy premium, loan policy 
14 premium, and endorsement charges shall not be retained or 
15 remitted between a title insurance company and title 
16 insurance agent, or with any other entity or individual, 
17 unless the charges are being retained or remitted in an 
18 amount directly related to services actually performed.
19  (5) Subject to all other provisions of this Section 
20 regarding rate filing requirements, a filing shall also 
21 include a specification of services to be performed and 
22 schedule of fees for each fee intended to be charged to the 
23 parties to the transaction, which includes, but is not 
24 limited to, closing fees, escrow fees, settlement fees, 
25 closing protection letter fees subject to Section 16.1 of 
26 this Act, and like charges, and is applicable to services 
 
 
HB3064- 37 -LRB102 14548 BMS 19901 b


1 provided by an independent escrowee, which must similarly 
2 file a specification of services and schedule of fees with 
3 the Secretary. 




4 (215 ILCS 155/21) (from Ch. 73, par. 1421)



5 Sec. 21. Regulatory action. 

6 (a) The Secretary may refuse to grant, and may suspend or

7revoke, any certificate of authority, registration,
or license 
8issued
pursuant to this Act or may impose a fine for a 
9violation of this Act if he determines that the holder of or 
10applicant for
such certificate, registration, or license:


11  (1) has intentionally made a material misstatement or 
12 fraudulent
misrepresentation in relation to a matter 
13 covered by this Act;


14  (2) has misappropriated or tortiously converted to its 
15 own use, or
illegally withheld, monies held in a fiduciary 
16 capacity;


17  (3) has demonstrated untrustworthiness or incompetency 
18 in transacting
the business of guaranteeing titles to real 
19 estate in such a manner as to
endanger the public;


20  (4) has materially misrepresented the terms or 
21 conditions of contracts
or agreements to which it is a 
22 party;


23  (5) has paid any commissions, discounts or any part of 
24 its premiums,
fees or other charges to any person in 
25 violation of any State or federal
law or regulations or 
 
 
HB3064- 38 -LRB102 14548 BMS 19901 b


1 opinion letters issued under the federal Real Estate

2 Settlement Procedures Act of 1974;

3  (5.1) has accepted or referred a title order or 
4 performed title services with knowledge that the order was 
5 placed in exchange for the express or implicit promise 
6 that a consumer has been or will be referred to that 
7 provider for services;
8  (5.2) has given or accepted any portion of any charge 
9 made or received for the rendering of a real estate 
10 settlement service in connection with a transaction other 
11 than for services actually performed;
12  (5.3) has disbursed funds prior to the actual delivery 
13 of funds acceptable to the closing and settlement services 
14 agent;
15  (5.4) has disbursed of closing and settlement services 
16 funds before all necessary conditions of the transaction 
17 have been met;
18  (5.5) has paid for, furnished or offered to pay for or 
19 furnish any reward or compensation for any past, present, 
20 or future title insurance business or closing and 
21 settlement services or any other title business, 
22 including, but not limited to, the payment of a fee to an 
23 attorney for the referral of title business;
24  (5.6) has paid or offered to pay any fee to a producer 
25 of title business for making an inspection or appraisal of 
26 property;
 
 
HB3064- 39 -LRB102 14548 BMS 19901 b


1  (5.7) has received securities of the title insurance 
2 company, title insurance agent, or independent escrowee at 
3 prices below the normal market price, or bonds or 
4 debentures that guarantee a higher than normal interest 
5 rate, whether or not the consummation of the transaction 
6 is directly or indirectly related to the number of closing 
7 and settlement services or title orders coming to the 
8 title insurance company, title insurance agent or 
9 independent escrowee through the efforts of that person;
10  (5.8) has furnished to any producer of title business 
11 or associate of a producer reports containing publicly 
12 recorded information, appraisals, estimates of income 
13 production potential, information kits, or similar 
14 packages containing information about one or more parcels 
15 of real property helpful to any producer of title business 
16 without making a charge that is commensurate with the 
17 actual cost of the work performed and the material 
18 furnished; Additionally:
19   (A) There must be a written service agreement 
20 between a title agent and any entity providing any 
21 closing, title, or ancillary related services on 
22 behalf of a title agent. Pursuant to this written 
23 service agreement, a service fee must be charged to 
24 the title agent and paid by the title agent to the 
25 service provider. The service fee charge is in 
26 addition to any search fee charged to the title agent 
 
 
HB3064- 40 -LRB102 14548 BMS 19901 b


1 and cannot be added on to the charges to the seller, 
2 buyer, borrower, or lender. The charge for a service 
3 fee shall be no less than $350; and
4   (B) Pursuant to an agency agreement or service 
5 agreement, the cost of searches procured on behalf of 
6 the title agent must be charged to the title agent and 
7 paid by the title agent to the provider of such 
8 searches in an amount commensurate with the actual 
9 cost of the work performed and the material furnished. 
10 The search fee charge is in addition to any service fee 
11 charged to the title agent and cannot be added on to 
12 the charges to the seller, buyer, borrower, or lender.
13  (5.9) has made or guaranteed or has offered to make or 
14 guarantee, either directly or indirectly, any loan to any 
15 producer of title business or associate of a producer with 
16 terms more favorable than otherwise available to the 
17 producer;
18  (5.10) has guaranteed, or offered to guarantee the 
19 proper performance of closing and settlement services or 
20 undertakings that are to be performed by any producer of 
21 title business, except as authorized pursuant to Sections 
22 16 and 16.1 of this Act;
23  (5.11) has provided, or offered to provide, either 
24 directly or indirectly, a compensating balance or deposit 
25 in a lending institution either for the express or implied 
26 purpose of influencing the placement or channeling of 
 
 
HB3064- 41 -LRB102 14548 BMS 19901 b


1 title insurance business by the lending institution; this 
2 provision does not prohibit the maintenance by a title 
3 insurance company, title agent, or independent escrowee of 
4 demand deposits or escrow deposits that are reasonably 
5 necessary for use in the ordinary course of the business 
6 of the title insurance company, title agent, or 
7 independent escrowee;
8  (5.12) has paid for or offered to pay for the fees or 
9 charges of an outside professional, such as an attorney, 
10 engineer, appraiser, or surveyor, whose services are 
11 required by any producer of title business to structure or 
12 complete a particular transaction;
13  (5.13) has provided or offered to provide non-title 
14 services, such as computerized bookkeeping, forms 
15 management, computer programming, or any similar benefit, 
16 without a charge that is commensurate with the actual cost 
17 to any producer of title business or to any associate of a 
18 producer of title business;
19  (5.14) has furnished or offered to furnish all or any 
20 part of the time or productive effort of any employee of 
21 the title insurance company, title insurance agent, or 
22 independent escrowee, such as office manager, escrow 
23 officer, secretary, clerk, or messenger, to any producer 
24 of the title business or associate of a producer of title 
25 business;
26  (5.15) has paid for or offered to pay for all or any 
 
 
HB3064- 42 -LRB102 14548 BMS 19901 b


1 part of the salary of an employee of any producer of title 
2 business;
3  (5.16) has paid for or offered to pay for the salary or 
4 any part of the salary of a relative of any producer of 
5 title business if that payment is in excess of the 
6 reasonable value of work performed by the relative on 
7 behalf of the title insurance company, title insurance 
8 agent or independent escrowee;
9  (5.17) has paid for or offered to pay for services by 
10 any producer of title business that are ordinarily to be 
11 performed by the producer of title business in his or her 
12 licensed capacity as a real estate or mortgage broker or 
13 salesman or agent;
14  (5.18) has furnished or offered to furnish, or paid 
15 for or offered to pay for, furniture, office supplies, 
16 telephones, facsimile machines, equipment, or automobiles 
17 to any producer of title business, or has paid for or 
18 offered to pay for any portion of the cost of renting, 
19 leasing, operating or maintaining any of these items;
20  (5.19) has paid for, furnished, or waived, or offered 
21 to pay for, furnish, or waive, all or any part of the rent 
22 for space occupied by any producer of title business;
23  (5.20) has rented or offered to rent space from any 
24 producer of title business, regardless of the purpose, at 
25 a rent that is excessive when compared with rents for 
26 comparable space in the geographic area, or has paid or 
 
 
HB3064- 43 -LRB102 14548 BMS 19901 b


1 offered to pay rent based in whole or in part on the volume 
2 of business generated by any producer of title business;
3  (5.21) has paid for or offered to pay for gifts, 
4 vacations, business trips, convention expenses, travel 
5 expenses, membership fees, registration fees, lodging, or 
6 meals on behalf of a producer of title insurance, directly 
7 or indirectly, or supplied letters of credit, credit 
8 cards, or any such benefits;
9  (5.22) has paid for or offered to pay for the 
10 cancellation fee for a title report or other fee on behalf 
11 of any producer of title business either before or after 
12 inducing the producer of title business to cancel an order 
13 with another title insurance company, title insurance 
14 agent, or independent escrowee;
15  (5.23) has paid for, furnished, or offered to pay for 
16 or furnish any business form to any producer of title 
17 business, other than a form regularly used in the conduct 
18 of the title insurance company's business, that is 
19 furnished for the convenience of the title insurance 
20 company and does not constitute a direct monetary benefit 
21 to any producer of title business;
22  (5.24) has given trading stamps, cash redemption 
23 coupons, or similar items to any producer of title 
24 business; 

25  (6) has failed to comply with the deposit and reserve 
26 requirements of
this Act or any other requirements of this 
 
 
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1 Act;
2  (7) has committed fraud or misrepresentation in 
3 applying for or procuring any certificate of authority, 
4 registration, or license issued pursuant to this Act;
5  (8) has a conviction or plea of guilty or plea of nolo 
6 contendere in this State or any other jurisdiction to (i) 
7 any felony or (ii) a misdemeanor, an essential element of 
8 which is dishonesty or fraud or larceny, embezzlement, or 
9 obtaining money, property, or credit by false pretenses or 
10 by means of a confidence game;
11  (9) has been disciplined by another state, the 
12 District of Columbia, a territory, foreign nation, a 
13 governmental agency, or any entity authorized to impose 
14 discipline if at least one of the grounds for that 
15 discipline is the same as or equivalent to one of the 
16 grounds for which a title insurance company, title 
17 insurance agent, or independent escrowee may be 
18 disciplined under this Act or if at least one of the 
19 grounds for that discipline involves dishonesty; a 
20 certified copy of the record of the action by the other 
21 state or jurisdiction shall be prima facie evidence 
22 thereof;
23  (10) has advertising that is inaccurate, misleading, 
24 or contrary to the provisions of this Act;
25  (11) has knowingly and willfully made any substantial 
26 misrepresentation or untruthful advertising;
 
 
HB3064- 45 -LRB102 14548 BMS 19901 b


1  (12) has made any false promises of a character likely 
2 to influence, persuade, or induce;
3  (13) has knowingly failed to account for or remit any 
4 money or documents coming into the possession of a title 
5 insurance company, title insurance agent, or independent 
6 escrowee that belong to others;
7  (14) has engaged in dishonorable, unethical, or 
8 unprofessional conduct of a character likely to deceive, 
9 defraud, or harm the public;
10  (15) has violated the terms of a disciplinary order 
11 issued by the Department;
12  (16) has disregarded or violated any provision of this 
13 Act or the published rules adopted by the Department to 
14 enforce this Act or has aided or abetted any individual, 
15 partnership, registered limited liability partnership, 
16 limited liability company, or corporation in disregarding 
17 any provision of this Act or the published rules; or
18  (17) has acted as a title insurance company, title 
19 insurance agent, or independent escrowee without a 
20 certificate of authority, registration, or license after 
21 the title insurance company, title insurance agent, or 
22 independent escrowee's certificate of authority, 
23 registration, or license was inoperative. 

24 (a-1) Nothing in subsection (a) shall be construed as 
25prohibiting:
26  (1) publishing or printing and disseminating any 
 
 
HB3064- 46 -LRB102 14548 BMS 19901 b


1 educational information, notwithstanding that the 
2 information may be of benefit to a producer of title 
3 business;
4  (2) distributing information, whether printed or oral, 
5 advertising novelties, and gift items not to exceed $25 in 
6 value that bear the name of the giver (but not the name of 
7 the recipient) to producers of title business;
8  (3) providing reasonable promotional and educational 
9 activities that are not conditioned on the referral of 
10 business and that do not involve the defraying of expenses 
11 that otherwise would be incurred by persons in a position 
12 to refer settlement services or business incident to those 
13 services, such as a reception by a title company, seminars 
14 on title matters offered to professionals, furnishing 
15 property descriptions and names of record owners without 
16 charge to lenders, real estate brokers, attorneys, or 
17 others, or distribution of calendars and other promotional 
18 material that do not exceed $25 in value;
19  (4) the payment of a fee:
20   (A) that bears a reasonable relationship to the 
21 value of the services rendered or performed:
22    (i) by any person or party to attorneys at law 
23 for services actually rendered;
24    (ii) by a title company to its duly appointed 
25 agent for services actually performed in the 
26 issuance of a policy of title insurance; or
 
 
HB3064- 47 -LRB102 14548 BMS 19901 b


1    (iii) by a lender to its duly appointed agent 
2 for services actually performed in the making of a 
3 loan; and
4   (B) to a settlement service provider for services 
5 outside of the normal scope of that provider's 
6 services to the parties to the transaction;
7  (5) the payment of a bona fide salary or compensation 
8 or other payment for goods or facilities actually 
9 furnished or for services actually performed, so long as 
10 the salary, compensation, or other payment bears a 
11 reasonable relationship to the value of the services, 
12 goods, or facilities;
13  (6) proportionate returns on an ownership or franchise 
14 interest;
15  (7) ordinary and customary business entertainment or 
16 promotional activities with reasonable frequency not to 
17 exceed $100 in value per person, per event by title 
18 insurance companies, title insurance agents, or 
19 independent escrowees that are not directly or indirectly 
20 consideration as an inducement or compensation for the 
21 referral of title business or for the referral of any 
22 escrow or other service from a title insurance company, 
23 title insurance agent, or independent escrowee. 
24 (b) In every case where a registration or certificate is 
25suspended or
revoked, or an application for a registration or 
26certificate or renewal
thereof is refused, the Secretary shall 
 
 
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1serve notice of his action,
including a statement of the 
2reasons for his action, as provided by this Act. When a notice 
3of suspension or revocation of a certificate of authority is 
4given to a title insurance company, the Secretary shall also 
5notify all the registered agents of that title insurance 
6company of the Secretary's action.

7 (c) In the case of a refusal to issue or renew a 
8certificate or accept a
registration, the applicant or 
9registrant may request in writing, within 30
days after the 
10date of service, a hearing. In the case of a
refusal to renew, 
11the expiring registration or certificate shall be deemed
to 
12continue in force until 30 days after the service of the notice 
13of
refusal to renew, or if a hearing is requested during that 
14period, until a
final order is entered pursuant to such 
15hearing.

16 (d) The suspension or revocation of a registration or 
17certificate shall
take effect upon service of notice thereof. 
18The holder of any such
suspended registration or certificate 
19may request in writing, within 30
days of such service, a 
20hearing.

21 (e) In cases of suspension or revocation of registration 
22pursuant to
subsection (a), the Secretary may, in the public 
23interest, issue an order of
suspension or revocation which 
24shall take effect upon service of
notification thereof. Such 
25order shall become final 60 days from the date
of service 
26unless the registrant requests in writing, within such 60 
 
 
HB3064- 49 -LRB102 14548 BMS 19901 b


1days,
a formal hearing thereon. In the event a hearing is 
2requested, the order
shall remain temporary until a final 
3order is entered pursuant to such hearing.

4 (f) Hearing shall be held at such time and place as may be 
5designated by
the Secretary either in the City of Springfield, 
6the City of Chicago, or in
the county in which the principal 
7business office of the affected
registrant or certificate 
8holder is located.

9 (g) The suspension or revocation of a registration or 
10certificate or the
refusal to issue or renew a registration or 
11certificate shall not in any
way limit or terminate the 
12responsibilities of any registrant or
certificate holder 
13arising under any policy or contract of title insurance
to 
14which it is a party. No new contract or policy of title 
15insurance may
be issued, nor may any existing policy or 
16contract to title insurance be
renewed by any registrant or 
17certificate holder during any period of
suspension or 
18revocation of a registration or certificate.

19 (h) The Secretary may issue a cease and desist order to a 
20title insurance
company, agent, or other entity doing business 
21without the required license or
registration, when in the 
22opinion of the Secretary, the company, agent, or other
entity 
23is violating or is about to violate any provision of this Act 
24or any
law or of
any
rule or condition imposed in writing by 
25the Department.

26 The Secretary may issue the cease and desist order without 
 
 
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1notice and before a
hearing.

2 The Secretary shall have the authority to prescribe rules 
3for the
administration of this Section.

4 If it is determined that the Secretary had the authority 
5to issue the cease
and desist order, he may issue such orders 
6as may be reasonably necessary to
correct, eliminate or remedy 
7such conduct.

8 Any person or company subject to an order pursuant to this 
9Section is
entitled to judicial review of the order in 
10accordance with the provisions of
the Administrative Review 
11Law.

12 The powers vested in the Secretary by this Section are 
13additional to any and
all other powers and remedies vested in 
14the Secretary by law, and nothing in
this Section shall be 
15construed as requiring that the Secretary
shall employ the

16powers conferred in this Section instead of or as a condition 
17precedent to the
exercise of any other power or remedy vested 
18in the Secretary.

19(Source: P.A. 98-398, eff. 1-1-14.)





20 (215 ILCS 155/23) (from Ch. 73, par. 1423)



21 Sec. 23. Violation; penalties; actual damages; injunctive 
22relief.

23 (a) Any violation of any of the provisions of this Act and, 
24beginning January 1, 2013, any violation of any of the 
25provisions of Article 3 of the Residential Real Property 
 
 
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1Disclosure Act shall
constitute a business offense and shall 
2subject the party violating the
same to a penalty of $1000 for 
3each offense.

4 (b) A violation of paragraphs (5.1) through (5.24) of 
5subsection (a) of Section 21 is a Class A misdemeanor.
6 (c) A person who violates the prohibitions or limitations 
7of subsection (a) of Section 21 shall be liable to the person 
8or persons charged for the settlement service involved in the 
9violation for actual damages.
10 (d) A title insurance company, a title insurance agent, or 
11an independent escrowee who violates the prohibitions or 
12limitations of subsection (a) of Section 21 shall be subject 
13to injunctive relief. If a permanent injunction is granted, 
14the court may award actual damages. Reasonable attorney's fees 
15and costs may be awarded to the prevailing party. 
16 (e) (b) Nothing contained in this Section shall affect the 
17right of the Secretary to revoke or suspend a title insurance 
18company's, title insurance agent's, or independent escrowee's 
19certificate of authority or a title insurance agent's 
20registration under any other Section of this Act.
21(Source: P.A. 97-891, eff. 8-3-12.)



22 (215 ILCS 155/19 rep.)


23 (215 ILCS 155/24 rep.)


24 (215 ILCS 155/25 rep.)

25 Section 10. The Title Insurance Act is amended by 
 
 
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1repealing Sections 19, 24, and 25.