HB3701 Summary

• Makes title insurance agent licensing mandatory through the Secretary of Financial and Professional Regulation; changes from registration system to licensing system effective January 1, 2024.

• Extends title insurance agent license renewal from annually to every 2 years and allows Secretary to require participation in third-party multi-state licensing system.

• Establishes licensing requirements for title insurance agents including errors and omissions insurance ($250,000 per claim minimum), felony/misdemeanor disclosures, and designation of individuals authorized to determine insurability of title.

• Adds new Section 18.2 requiring title insurance agents to retain 85% and remit 15% of owner's and loan policy premiums and endorsement charges for residential real property transactions where core title services are performed.

• Expands Section 21 regulatory violations for residential real property transactions to include prohibitions on improper fee payments, kickbacks, referral compensation, and various inducements to producers of title business, with specific minimum service payment requirements ($350 in Cook/collar counties, $175 elsewhere).