Love it or hate it, the Illinois Title Insurance Act is outdated and requires mending. While the federal Real Estate Settlement Practices Act spells out in detail how the settlement business is to be practiced, it is up to the individual states to regulate that practice and, until recently, the Illinois legislature has been unwilling or unable to give the Illinois Department of Financial and Professional Regulation the authority it needs to properly police the practice of real estate settlement in our state.
Times have changed, and there is currently much momentum behind amendments to the Act supported by the Illinois Land Title Association that have already passed the Illinois Senate. As of our publication date the legislation is still being considered by the House.
ILTA’s market conduct reform legislation, SB1317, seeks to amend the Illinois Title Insurance Act to create a structured rate environment, provide for agent licensing, and codify certain prohibited market conduct activities.
My purpose here is not to persuade you about what I see as the merits of the legislation. I was a member of the ILTA committee that formulated the recommended amendments and it’s no secret that I stand behind the work we have done.
Printed below is the text of an advisory bulletin sent out by ATG, one of our underwriters, that discusses the legislation in depth. It is for your information and consideration. Note that some of the particulars may change as the legislation makes its way through the process in Springfield.
Please call or email me if you would like to discuss this issue further.
**UPDATE: During the 2019 legislative session, the bill did not make it out of the Illinois House as legislators dealt with many other complex issues. However, it will be reintroduced in the next session.**