Sec. 18. No referral payments; kickbacks.
411 words·~2 min read·
/il/chapter-215/act-155/18A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 18. No referral payments; kickbacks.
(a)Application of this Section is limited to residential properties of 4 or fewer units, at least one of which units is occupied or to be occupied by an owner, legal or beneficial.
(b)No title insurance company, independent escrowee, or title insurance agent may issue a title insurance policy to, or provide services to an applicant if it knows or has reason to believe that the applicant was referred to it by any producer of title business or by any associate of such producer, where the producer, the associate, or both, have a financial interest in the title insurance company, independent escrowee, or title insurance agent to which business is referred unless the producer has disclosed to any party paying for the products or services, or his representative, the financial interest of the producer of title business or associate referring the title business and a disclosure of an estimate of those charges to be paid as described in Section 19. Such disclosure must be made in writing on forms prescribed by the Secretary prior to the time that the commitment for title insurance is issued. The title insurance company, independent escrowee, or title insurance agent shall maintain the disclosure forms for a period of 3 years.
(c)Each title insurance company, independent escrowee, and title insurance agent shall file with the Secretary, on forms prescribed by the Secretary, reports setting forth the names and addresses of those persons, if any, who have had a financial interest in the title insurance company, independent escrowee, or title insurance agent during the calendar year, who are known or reasonably believed by the title insurance company, independent escrowee, or title insurance agent to be producers of title business or associates of producers.
(1)Each title insurance company and independent escrowee shall file the report required
under this subsection with its application for a certificate of authority and at any time there is a change in the information provided in the last report.
(2)Each title insurance agent shall file the report required under this subsection with
its title insurance company for inclusion with its application for registration and at any time there is a change in the information provided in its last report.
(3)Each title insurance company, independent escrowee, or title insurance agent doing
business on the effective date of this Act shall file the report required under this subsection within 90 days after such effective date.