The Trusted Adviser
August 2018 | Volume 11 · Number 6

Update on ATG's Litigation Regarding the IDFPR's Proposed DS-1 Disclosure

Hearing Held on Restraining Order

Henry L. Shulruff photoIn June, days before the proposed effective date, ATG filed a motion against the Illinois Department of Financial and Professional Regulation (IDFPR) for a temporary restraining order (TRO) to stay implementation of proposed revisions to the DS-1 disclosure form. (See Consumer Protection: ATG Files Suit to Enjoin the State from Implementing New DS-1 Disclosure of Financial Interest Form.)

The judge granted ATG's request until a hearing on the merits (see ATG Prevails: Judge Enjoins State from Implementing DS-1 Disclosure of Financial Interest Form on July 1). While we have several concerns with the revised form, our most compelling issues relate to the following defects:

  • contains provisions and requirements that we believe are beyond the authority granted to the IDFPR by the Illinois Title Insurance Act;
  • could mislead or confuse consumers of title insurance services; and
  • impermissibly attempts to regulate attorneys and violates protections contained in the attorney-client relationship.

At a status hearing on August 9, 2018, it was agreed that the TRO issued in the case would be continued until final resolution of the matter. The next status hearing is scheduled for October 15, 2018. Since the TRO was filed, the court has allowed the Illinois Land Title Association to join in ATG's case. Additionally, a separate law suit was filed several days later by Professional National Title Network.That lawsuit will run on a concurrent track with the ATG litigation.

We are maintaining an ongoing dialogue with the IDFPR and we are hopeful that we will come to a resolution of this matter that is satisfactory to all parties. In the meantime, ATG agents should continue to use the DS-1 disclosure that is posted on the IDFPR website and that has been in use since 1997.

As always, we thank you for your support and appreciate your feedback. Feel free to Contact Us with any questions or comments.

Henry L. Shulruff
ATG Senior Vice President - Business Development

[Last update: 8-20-18]

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