SB1996 Summary

• Amends the Illinois Title Insurance Act to restrict the issuance of "insured closing letters" or "closing protection letters" to title insurance companies only.

• Prohibits title insurance agents, independent escrowees, and any other person or entity from issuing closing protection letters.

• Modifies the definition of "insured closing letter" to clarify that it is an indemnification from a title insurance company (not other principals) covering settlement agent errors or intentional misconduct.

• Adds a new subsection to Section 17 explicitly stating that independent escrowees shall not issue closing protection letters.

• Takes effect immediately upon becoming law.