Commentary Period Extended for Proposed Title Insurance Agent Compensation Guidance

The Illinois Department of Financial and Professional Regulation (IDFPR) has extended the deadline for comment on its proposed guidance on the process by which title insurance underwriters compensate their agents. The process of paying a percentage of the premium and/or closing fees that are assessed, known as “splitting premium” or “splitting fees,” appears to be significantly increasing the costs of closing residential transactions.

Before it is formalized, IDFPR is seeking comment from the title insurance industry, affected peripheral industries (real estate brokers and lenders, etc.) and the general public. This proposed guidance is neither official legal opinion nor interpretation of law.

Proposed Guidance may be viewed by clicking here.

Comments on Proposed Guidance may be directed to Susan Clardy of the Division of Financial Institutions, at susan.clardy-white@illinois.gov.