Illinois Administrative Code › Title 50 - INSURANCE › Part 202 - MORTGAGE GUARANTY INSURANCE › Section 202.60 - General

Current through Register Vol. 48, No. 28, July 12, 2024
a) Forms - All
			 policy forms for mortgage guaranty insurance must be filed with and approved by
			 the Director pursuant to Section 143 of the Illinois Insurance Code prior to
			 their utilization in the State of Illinois.
b) Prohibition Against Deficiency Judgment -
			 With respect to owner-occupied single family homes, a borrower shall not be
			 liable to any mortgage guaranty insurance company for any deficiency arising
			 upon a foreclosure sale except for foreclosures arising from fraud or
			 misrepresentation by the borrower;
c) Agents, Brokers and Solicitors - Any
			 person proposing engage in the sale of mortgage guaranty insurance or mortgage
			 pool insurance shall first obtain the requisite fire and casualty license
			 pursuant to the provisions of Article XXXI of the Illinois Insurance
			 Code.
d) Prohibition on Real Estate
			 Investments - A mortgage guaranty insurance company may not invest in notes or
			 other evidences of indebtedness secured by a lien on real property except if
			 same are acquired in the course of the good faith settlement of claims or in
			 the good faith disposition of real property pursuant to said
			 settlement.
e) Conflict of Interest
			 - No mortgage guaranty insurance company shall insure any loans originated by a
			 lender if such lender or any service corporation affiliate, or any other
			 affiliate or controlling person thereof, owns any equity interest of any type
			 of such mortgage guaranty insurance company.
f) Advertising - No bank, savings and loan
			 association or insurance company, any of whose real estate securities are
			 insured pursuant to this Part 202 may advertise that its real estate loans are
			 insured or are "insurance loans" only if clearly stating that they are insured
			 by private mortgage insurance giving the names of the mortgage guaranty
			 insurance companies writing such insurance.
g) Applicability of Other Regulations - All
			 of the applicable provisions of the Illinois Insurance Department's Rules and
			 Regulations shall govern the conduct and operation of a mortgage guaranty
			 insurance company except to the extent inconsistent with or in conflict with
			 this Part 202.
h) Applicability of
			 Part - Unless this Part specifically provides to the contrary, no mortgage
			 guaranty insurance company licensed to transact business in this State may
			 continue to hold its Certificate of Authority if it anywhere transacts mortgage
			 guaranty insurance in a manner not in conformity with this Part unless it does
			 so pursue to a statute or regulation more stringent than similar provisions
			 contained herein. Section
			 202.30(b)(12)
			 and (13) apply only to business written in
			 Illinois and are exempted from this provision. The Certificate of Authority of
			 a mortgage guaranty insurer shall not be suspended or revoked unless such
			 insurer fails within 30 days after notice from the Director to correct any
			 noncompliance with the provisions of this Part 202.