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Public Act 098-0832 Public Act 0832 98TH GENERAL ASSEMBLY |
Public Act 098-0832 | SB2947 Enrolled | LRB098 19574 RPM 54764 b |
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| AN ACT concerning regulation.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Title Insurance Act is amended by changing | Section 16 as follows:
| (215 ILCS 155/16) (from Ch. 73, par. 1416)
| Sec. 16. Title insurance agents.
| (a) No person, firm, partnership, association, corporation | or other
legal entity shall act as or hold itself out to be a | title insurance agent
unless duly registered by a title | insurance company with the Secretary.
| (b) Each application for registration shall be made on a | form specified
by the Secretary and prepared in duplicate by | each title insurance company
which the agent represents. The | title insurance company shall retain the
copy of the | application and forward the original to the Secretary with the
| appropriate fee.
| (c) Every applicant for registration, except a firm, | partnership,
association, limited liability company, or | corporation, must be 18 years or more of age. Included in every | application for registration of a title insurance agent, | including a firm, partnership,
association, limited liability | company, or corporation, shall be an affidavit of the applicant |
| title insurance agent, signed and notarized in front
of a | notary public, affirming that the applicant and every owner, | officer, director, principal, member, or
manager of the | applicant has never been convicted or pled guilty to any felony | or misdemeanor involving a crime of
theft or dishonesty or | otherwise accurately disclosing any such felony or misdemeanor | involving a crime of
theft or dishonesty . No person who has had | a conviction or pled guilty to any felony or
misdemeanor | involving theft or dishonesty may be registered by a title | insurance company without a separate written notification to | the Secretary disclosing the conviction or plea, and no such
| person may serve as an owner, officer, director, principal, or | manager of any registered title insurance
agent without the | written permission of the Secretary.
| (d) Registration shall be made annually by a filing with | the Secretary;
supplemental registrations for new title | insurance agents to be added
between annual filings shall be | made from time to time in the manner
provided by the Secretary; | registrations shall remain in effect unless
revoked or | suspended by the Secretary or
voluntarily withdrawn by the
| registrant or the title insurance company.
| (e) Funds deposited in connection with any escrows, | settlements, or closings shall be deposited in a separate | fiduciary trust account or accounts in a bank or other | financial institution insured by an agency of the federal | government unless the instructions provide otherwise. The |
| funds shall be the property of the person or persons entitled | thereto under the provisions of the escrow, settlement, or | closing and shall be segregated by escrow, settlement, or | closing in the records of the escrow agent. The funds shall not | be subject to any debts of the escrowee and shall be used only | in accordance with the terms of the individual escrow, | settlement, or closing under which the funds were accepted. | Interest received on funds deposited with the escrow agent | in connection with any escrow, settlement, or closing shall be | paid to the depositing party unless the instructions provide | otherwise. | The escrow agent shall maintain separate records of all | receipts and disbursements of escrow, settlement, or closing | funds. | The escrow agent shall comply with any rules adopted by the | Secretary pertaining to escrow, settlement, or closing | transactions. | (f) A title insurance agent shall not act as an escrow | agent in a nonresidential real property transaction where the | amount of settlement funds on deposit with the escrow agent is | less than $2,000,000 or in a residential real property | transaction unless the title insurance agent, title insurance | company, or another authorized title insurance agent has | committed for the issuance of title insurance in that | transaction and the title insurance agent is authorized to act | as an escrow agent on behalf of the title insurance company for |
| which the commitment for title insurance has been issued. The | authorization under the preceding sentence shall be given | either (1) by an agency contract with the title insurance | company which contract, in compliance with the requirements set | forth in subsection (g) of this Section, authorizes the title | insurance agent to act as an escrow agent on behalf of the | title insurance company or (2) by a closing protection letter | in compliance with the requirements set forth in Section 16.1 | of this Act, issued by the title insurance company to the | seller, buyer, borrower, and lender. A closing protection | letter shall not be issued by a title insurance agent. The | provisions of this subsection (f) shall not apply to the | authority of a title insurance agent to act as an escrow agent | under subsection (g) of Section 17 of this Act. | (g) If an agency contract between the title insurance | company and the title insurance agent is the source of the | authority under subsection (f) of this Section for a title | insurance agent to act as escrow agent for a real property | transaction, then the agency contract shall provide for no less | protection from the title insurance company to all parties to | the real property transaction than the title insurance company | would have provided to those parties had the title insurance | company issued a closing protection letter in conformity with | Section 16.1 of this Act. | (h) A title insurance company shall be liable for the acts | or omissions of its title insurance agent as an escrow agent if |
| the title insurance company has authorized the title insurance | agent under subsections (f) and (g) of this Section 16 and only | to the extent of the liability undertaken by the title | insurance company in the agency agreement or closing protection | letter. The liability, if any, of the title insurance agent to | the title insurance company for acts and omissions of the title | insurance agent as an escrow agent shall not be limited or | otherwise modified because the title insurance company has | provided closing protection to a party or parties to a real | property transaction escrow, settlement, or closing. The | escrow agent shall not charge a fee for protection provided by | a title insurance company to parties to real property | transactions under subsections (f) and (g) of this Section 16 | and Section 16.1, but shall collect from the parties the fee | charged by the title insurance company and shall promptly remit | the fee to the title insurance company. The title insurance | company may charge the parties a reasonable fee for protection | provided pursuant to subsections (f) and (g) of this Section 16 | and Section 16.1 and shall not pay any portion of the fee to | the escrow agent. The payment of any portion of the fee to the | escrow agent by the title insurance company, shall be deemed a | prohibited inducement or compensation in violation of Section | 24 of this Act. | (i) The Secretary shall adopt and amend such rules as may | be required for the proper administration and enforcement of | this Section 16 consistent with the federal Real Estate |
| Settlement Procedures Act and Section 24 of this Act. | (Source: P.A. 98-398, eff. 1-1-14.)
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Effective Date: 1/1/2015
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