Ill. Admin. Code tit. 50 § 202.60
Current through Register Vol. 48, No. 45, November 8, 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.Ill. Admin. Code tit. 50, § 202.60