On May 20th, the Illinois Department of Financial and Professional Regulation (IDFPR) agreed to halt implementation of a new 2022 Disclosure of Financial Interest (DS-1) Form and revert to use of the 1997 DS-1 Form for the foreseeable future.
In summary, the settlement agreement indicates:
- “the producer or associate provides the 1997 DS-1 Form in compliance with the disclosure requirements under 215 ILCS 155/18(b)”;
- “a producer of title business (or associate thereof)” will not be penalized “for failing to provide the 1997 DS-1 Form if the only interest such producer, any associate of the producer, or both, have in the title insurance company, independent escrowee, or title insurance agent to which business is referred is receipt of a percentage of the premium for the transaction at issue or any other interest that is not an ownership interest, legal or beneficial”; and
- IDFPR may seek “an intervening Amendment to the Act or other binding change in the law [that] alters the Department’s authority or applicable legal requirements” regarding financial disclosure requirements.
As always, it is important to understand both the Section 18(b) referral payments and kickbacks provision of the Illinois Title Insurance Act as well as the statutory definitions of “producer,” “associate,” and “financial interest” when evaluating your DS-1 Form compliance.
Questions that continue being raised include, but are not limited to:
- Impact on attorney-agents;
- Determination of ownership interest, legal or beneficial, in an individual versus an entity; and
- What, if any changes, will be sought in the next years regarding IDFPR’s authority.
Thank you to those able to join us on June 2nd for our short “lunch and learn” webinar to get caught up on the latest DS-1 form clarifications being sought from the state regulator. If wanting to review or catch up, CLICK HERE to follow our Your Tube channel with the DS-1 webinar recording.