New Title Insurance Regulations in Indiana Reduce Costs and Add Efficiency

Title Insurance Agents Enjoy Simplified Application Process in Illinois

The state of Illinois initiated new title insurance regulations that began on January 1, 2016. The updates made revisions to the application for agents and presented a new renewal process for title insurance companies licensed in the state of Illinois.

New title insurance regulations set forth by the Illinois Department of Financial and Professional Regulation (IDFPR) change the way title insurance agents do business statewide. Bryan Schneider, Secretary of IDFPR, reported, “by revising the title agent application and renewal processes, we are able to provide the same regulatory oversight, while reducing the workload for both underwriters and the Department.” These updates to the application and license renewal process reduce overall costs and increase efficiency for underwriters.

Regulations are Set to Save Title Agents’ Time

According to Sue Humphris, Agency Services Manager at an Illinois title insurance company, “IDFPR upgrades to the title agent application and registration process saves valuable time and resources, while minimizing processing times and reducing our backlog of applications.” Aligning these two processes is expected to result in less hours spent on each agent application and renewals for both title insurance underwriters and IDFPR. In fact, this one change in process will save the state of Illinois an estimated $275,000 to total almost $500,000 over the course of the next five years.

In addition, Humphris states, “the real-time agent application reduces administrative functions for underwriters, while allowing for a quick turnaround and reduction in required documents… Once implemented, it promises to significantly reduce the very cumbersome, labor intensive and time consuming annual registration.”

New Process Reduce Time on Applications

Efficiency is an important aspect of title insurance, especially after the “Know Before You Owe” rule implemented shorter deadlines that must be met to achieve compliance. Saving time is more important for title insurance companies now than ever before.

It’s estimated that IDFPR receives approximately 2,000 title insurance applications per year with only 30 minutes spent reviewing every application. With these new Illinois title insurance regulations, only about six or seven minutes will be required to review the applications. As a result, title insurance agents and IDFPR professionals will save a up to 80 percent of the time spent on reviewing applications. This allows more time to focus on customer service.

The new processes also leave less room for error and free title insurance agents from mistakes to add accuracy to the process. It also reduces any excessive details that are not regulated or required to be included by underwriters with the Title Insurance Act.

IDFPR Secretary Schneider reinforces the importance of the new updates stating, “these revisions eliminate 50,000 pages of irrelevant documents that required submission by underwriters and review by the Department. These upgrades afford a significant savings of time and a better allocation of resources for both the underwriter and IDFPR.”

To be an underwriter in the state of Illinois, a license is required, and you must be registered by IDFPR. Only 18 title insurance companies are licensed to do business in Illinois, but over 18,000 title insurance agents are also authorized underwriters.

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