Title Industry Comments

For comments related to Illinois Title Insurance Act market conduct reforms, please direct them to the Illinois Land Title Association (ILTA) executive director, Mike Lane at mike@pamsinc.co, or ILTA's lobbyist, Brian Wojcicki at bwojcicki@ilcapitolgroup.com.

For summaries and background regarding market conduct reform research and proposals, please refer back to the Market Conduct Policy page (click here) and see below for the town hall presentation slides from the Illinois Land Title Association's 2019 annual convention. A summary of comments received from stakeholders are also included below.

ILTA 2019 Town Hall on Market Conduct Reforms

(Hyperlinks in the video are accessible through the PowerPoint and Keynote slides)

Some areas of focus from the 2019 ILTA Convention Town Hall, in particular for title agents:

  • Why bother with reforms? (slides 3-10)
  • Why didn’t we know more? (slide 11)
  • Why authorize a rating bureau? (slide 13) note: the legislation does not mandate a rating bureau; what it does is mandate that title insurance and other related insurance and closing fees paid by a consumer must be approved by IDFPR
  • How can agents make money? (slides 17-18 and 26-27)
  • Why can agents retain only 80% of the title insurance (i.e. premiums and endorsements)? (slides 16-18)
  • Why switch the registration system currently in place? (slide 20)
  • What level of regulatory examination aids market conduct reform without being unduly burdensome? (slide 21)
  • What is an improper referral and how should it be regulated? (slides 23-25)

Title Industry Comments & Considerations

  • What justifies a title insurance premium or endorsement rate, are profits sufficiently protected for both underwriters and agents, and will artificial races to the bottom be adequately avoided? See Sec. 18.2(b) & (c)
  • How can filing requirements for non-premium or endorsement fees adequately consider agent business practices and set parameters for regulatory review? See Sec. 18.2(k)(5)
  • What role can agents serve in submitting fees to IDFPR for approval? See Secs. 18.2(a),(b),(c),(d),(e)&(f)
  • How can the process and fees for agent licensing be streamlined and connected to regulatory/administrative functions (e.g. online endorsement process-Nationwide Multistate Licensing System & Registry or Sircon)? See Sec. 16
  • What is the appropriate cost and scope of authority for what is subject to regulatory review when IDFPR conducts a market conduct examination and what enforcement powers are sufficient? See Sec. 12
  • How can anti-trust violations be avoided with state approval, but be a process that allows for efficient rate entry into the market? See Secs. 18.2(a) & (d)
  • What split is appropriate (currently 80/20), to what should it apply (currently all premiums and residential endorsements), and what liabilities and services does it cover (e.g. title examination, clearance, and issuance)? See Sec. 18.2(k)(3)
  • What justifies an agent retaining fees paid by the consumer, and how can agents make enough money (e.g. “core title services,” amounts “directly related to services actually performed,” “commensurate with the actual cost of work,” and retention of charges when the agent "completes the work necessary")? See Secs. 18.2(k)(3), (4) & (5), and 21(a)(5.8)
  • How can the integrity of title insurance activities be preserved through scope of practice definitions? See Secs. 3(3) and 18.2(k)(3)
  • How can artificially low fees be avoided while also protecting against duplicative fees (i.e. requirements to charge and pay for services provided and requested, with possible minimums, and parameters to what gets 'passed on' to consumers)? See Sec. 18.2(c)(2), 18.2(k)(3), (4) & (5), and 21(a)(5.8)
  • What is an improper referral and how should it be regulated? See Secs. 21(a)5.1 and 24
  • Should commercial title transactions be subject to either rate regulation and "new" prohibited acts? See Secs. 18.2(a)(1),(b),(c) and (k), and Secs. 21(a)(5.1) through (5.24) and (a-1).
  • What, if any, professional liability insurance is justified and adequate for work done by an agent, and should it apply to independent contractors or other title activities? See Sec. 16(c)(4)
  • What are sufficient thresholds for the regulation of business entertainment or promotional activities? See Sec. 21(a-1)(7)
  • What educational activities can coincide or be integrated into market conduct reform efforts (e.g. advisory groups, informational material, etc.)? See e.g. American Land Title Association Homeowner Outreach Program-HOP)