TITLE INS-ESCROW AGENTS House SponsorsRep. André M. Thapedi-Karen A. Yarbrough-Anthony DeLuca-Robert Rita-Renée Kosel Senate Sponsors(Sen. Iris Y. Martinez-Jacqueline Y. Collins-William R. Haine and A. J. Wilhelmi) 8/20/2010HousePublic Act . . . . . . . . . 96-1454 215 ILCS 155/3from Ch. 73, par. 1403215 ILCS 155/16from Ch. 73, par. 1416 Amends the Title Insurance Act. In the provision concerning definitions, makes changes to the definition of "title insurance agent". Provides that a title insurance agent shall not act as an escrow agent in a 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 and the title insurance agent is authorized to act as an escrow agent on behalf of the title insurance company. Provides that closing protection letters shall indemnify the parties in a real property transaction against actual loss, not to exceed the amount of the settlement funds deposited with the escrow agent, when the loss arises out of certain circumstances. Sets forth the circumstances under which indemnification under a closing protection letter may include limitations on the liability of the title insurance. Provides that 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 and only to the extent of the liability undertaken by the title insurance company in the agency agreement or closing protection letter. Makes other changes.House Floor Amendment No. 1 Adds reference to:215 ILCS 155/16.1 newDeletes everything after the enacting clause. Reinserts the contents of the bill as introduced with the following changes. Provides that if an agency contract between the title insurance company and the title insurance agent is the source of the authority 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. Provides that the liability 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 modified because the title insurance company has provided closing protection in a real property transaction. Provides that a title insurance company or 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 certain specified conditions are met. Provides that closing protection letters are not required under certain circumstances but shall be issued if requested under other circumstances. Sets forth provisions concerning closing or settlement protection. Provides that unless otherwise agreed to between a title insurance company and a protected person or entity, a closing protection letter shall indemnify all parties to a real property transaction against actual loss, not to exceed the amount of the settlement funds deposited with the escrow agent. Provides that the indemnification under a closing protection letter may include limitations on the liability of the title insurance company for fraud, dishonesty, or negligence of an employee, agent, attorney, or broker, who is not also the escrow agent or an independent contract closer of the escrow agent, of the indemnified party to the real property transaction. Makes other changes.Senate Committee Amendment No. 1 Replaces everything after the enacting clause with the contents of the engrossed bill and the following changes. Makes changes to the definition of "insured closing letter". In the provision that permits an escrow agent to collect certain fees, deletes a reference to the provision concerning closing or settlement protection. Deletes language that provides that the entire fee for the closing protection letter shall be remitted by the title insurance agent to the title insurance company and that title insurance agents shall not charge any additional amount for closing protection letters issued under the provision concerning closing or settlement protection. Makes other changes.Senate Floor Amendment No. 2 Includes in the provisions under which a title insurance company may charge a reasonable fee, the provision concerning closing or settlement protection. Effective January 1, 2011.Senate Floor Amendment No. 3 Provides that the Secretary of Financial and Professional Regulation shall adopt and amend such rules as may be required for the proper administration and enforcement of the provisions concerning title insurance agents and closing or settlement protection consistent with the federal Real Estate Settlement Procedures Act and the provision of the Title Insurance Act concerning referral fees and penalties. 2/4/2010HouseFiled with the Clerk by Rep. André M. Thapedi 2/5/2010HouseFirst Reading 2/5/2010HouseReferred to Rules Committee 3/2/2010HouseAssigned to Judiciary I - Civil Law Committee 3/10/2010HouseDo Pass / Short Debate Judiciary I - Civil Law Committee; 016-000-000 3/10/2010HousePlaced on Calendar 2nd Reading - Short Debate 3/23/2010HouseHouse Floor Amendment No. 1 Filed with Clerk by Rep. André M. Thapedi 3/23/2010HouseHouse Floor Amendment No. 1 Referred to Rules Committee 3/24/2010HouseHouse Floor Amendment No. 1 Rules Refers to Judiciary I - Civil Law Committee 3/24/2010HouseAdded Chief Co-Sponsor Rep. Karen A. Yarbrough 3/24/2010HouseAdded Chief Co-Sponsor Rep. Anthony DeLuca 3/24/2010HouseAdded Chief Co-Sponsor Rep. Robert Rita 3/24/2010HouseAdded Chief Co-Sponsor Rep. Renée Kosel 3/24/2010HouseHouse Floor Amendment No. 1 Recommends Be Adopted Judiciary I - Civil Law Committee; 016-000-000 3/25/2010HouseSecond Reading - Short Debate 3/25/2010HouseHouse Floor Amendment No. 1 Adopted by Voice Vote 3/25/2010HousePlaced on Calendar Order of 3rd Reading - Short Debate 3/26/2010HouseThird Reading - Short Debate - Passed 102-000-000 4/6/2010SenateArrive in Senate 4/6/2010SenatePlaced on Calendar Order of First Reading 4/6/2010SenateChief Senate Sponsor Sen. Iris Y. Martinez 4/6/2010SenateFirst Reading 4/6/2010SenateReferred to Assignments 4/6/2010SenateAssigned to Judiciary 4/14/2010SenatePostponed - Judiciary 4/14/2010SenateSenate Committee Amendment No. 1 Filed with Secretary by Sen. Iris Y. Martinez 4/14/2010SenateSenate Committee Amendment No. 1 Referred to Assignments 4/14/2010SenateSenate Committee Amendment No. 1 Assignments Refers to Judiciary 4/20/2010SenateSenate Committee Amendment No. 1 Adopted 4/20/2010SenateDo Pass as Amended Judiciary; 006-001-001 4/20/2010SenatePlaced on Calendar Order of 2nd Reading April 21, 2010 4/27/2010SenateSecond Reading 4/27/2010SenatePlaced on Calendar Order of 3rd Reading April 28, 2010 4/28/2010SenateSenate Floor Amendment No. 2 Filed with Secretary by Sen. Iris Y. Martinez 4/28/2010SenateSenate Floor Amendment No. 2 Referred to Assignments 4/29/2010SenateSenate Floor Amendment No. 2 Assignments Refers to Judiciary 4/29/2010SenateSenate Floor Amendment No. 2 Recommend Do Adopt Judiciary; 008-000-001 4/30/2010SenateSenate Floor Amendment No. 3 Filed with Secretary by Sen. Iris Y. Martinez 4/30/2010SenateSenate Floor Amendment No. 3 Referred to Assignments 5/3/2010SenateSenate Floor Amendment No. 3 Assignments Refers to Judiciary 5/4/2010SenateSenate Floor Amendment No. 3 Recommend Do Adopt Judiciary; 006-002-001 5/5/2010SenateRecalled to Second Reading 5/5/2010SenateSenate Floor Amendment No. 2 Adopted; Martinez 5/5/2010SenateSenate Floor Amendment No. 3 Adopted; Martinez 5/5/2010SenatePlaced on Calendar Order of 3rd Reading 5/5/2010SenateAdded as Alternate Chief Co-Sponsor Sen. Jacqueline Y. Collins 5/5/2010SenateAdded as Alternate Chief Co-Sponsor Sen. William R. Haine 5/5/2010SenateThird Reading - Passed; 041-012-003 5/5/2010HouseArrived in House 5/5/2010HousePlaced on Calendar Order of Concurrence Senate Amendment(s) 1, 2, 3 5/5/2010HouseSenate Committee Amendment No. 1 Motion Filed Concur Rep. André M. Thapedi 5/5/2010HouseSenate Floor Amendment No. 2 Motion Filed Concur Rep. André M. Thapedi 5/5/2010HouseSenate Floor Amendment No. 3 Motion Filed Concur Rep. André M. Thapedi 5/5/2010HouseSenate Committee Amendment No. 1 Motion to Concur Referred to Rules Committee 5/5/2010HouseSenate Floor Amendment No. 2 Motion to Concur Referred to Rules Committee 5/5/2010HouseSenate Floor Amendment No. 3 Motion to Concur Referred to Rules Committee 5/7/2010HouseSenate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Rules Committee; 004-000-000 5/7/2010HouseSenate Floor Amendment No. 2 Motion to Concur Recommends Be Adopted Rules Committee; 004-000-000 5/7/2010HouseSenate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Rules Committee; 004-000-000 5/7/2010SenateAdded as Alternate Co-Sponsor Sen. A. J. Wilhelmi 5/26/2010HouseSenate Committee Amendment No. 1 House Concurs 111-000-000 5/26/2010HouseSenate Floor Amendment No. 2 House Concurs 111-000-000 5/26/2010HouseSenate Floor Amendment No. 3 House Concurs 111-000-000 5/26/2010HousePassed Both Houses 6/24/2010HouseSent to the Governor 8/20/2010HouseGovernor Approved 8/20/2010HouseEffective Date January 1, 2011 8/20/2010HousePublic Act . . . . . . . . . 96-1454