Bill Text: AZ SB1042 | 2024 | Fifty-sixth Legislature 2nd Regular | Chaptered
Bill Title: Title companies; recorded documents; DIFI
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2024-04-08 - Chapter 103 [SB1042 Detail]
Download: Arizona-2024-SB1042-Chaptered.html
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House Engrossed Senate Bill
cremation (now: title companies; recorded documents; DIFI)
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State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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CHAPTER 103
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SENATE BILL 1042 |
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An Act
amending section 20-1591, Arizona Revised Statutes; relating to title insurance.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-1591, Arizona Revised Statutes, is amended to read:
20-1591. Forms of policies and other contracts of title insurance; approval or disapproval
A. Every title insurer shall file with the director all forms of title policies and other contracts of title insurance before issuance of any policy or contract. A title insurance rating organization may make filings on behalf of all of its members or subscribers. A title insurer shall not issue any policy or contract until thirty days after the policy or contract has been filed with the director. A policy or contract is approved thirty days after filing unless the director has issued, within the thirty day thirty-day period, an order affirmatively approving or disapproving the form. On written notice given within the thirty day thirty-day period to the person making the filing, the director may extend the period for up to fifteen additional days to enable the director to complete the review of the filing.
B. Forms of title policies and other contracts of insurance, as used in this section, shall specifically exclude:
1. Reinsurance contracts or agreements. ,
2. All specific defects in title that may be ascertained from an examination of the risk and excepted in reports, binders or policies, together with any affirmative assurance of the title insurer with respect to the defects whether given by endorsement or otherwise. , and
3. Further exceptions from coverage by reason of limitations on the examination of the risk imposed by an applicant for insurance or through failure of an applicant for insurance to provide the date requisite to a judgment of insurability.
C. An agreement by a person to indemnify or hold harmless a title insurer from risks that arise from an instrument that is or becomes properly recorded and indexed in the office of the county recorder is only enforceable if the agreement is in writing and any of the following applies:
1. The instrument was not of record at the time the agreement was executed.
2. The instrument is specifically described in the agreement.
3. The instrument is shown as an exception from coverage in the title insurance policy.
4. The instrument is or secures a monetary obligation of the person and remains an outstanding and enforceable debt. An improvement district assessment is not a monetary obligation of the person.
5. The agreement indemnifies for or holds harmless against liens that arise from work or labor done or professional services, materials, machinery, fixtures or tools furnished on the insured property.
D. Subsection C of this section does not affect the enforceability of title warranties provided by a person in a deed or mortgage.
E. An agreement pursuant to subsection C must be separate from and not included in the title insurance policy.
Sec. 2. Legislative intent
The legislature intends that the amendments to section 20-1591, Arizona Revised Statutes, as amended by this act, are clarifying changes only and do not constitute substantive changes to existing law.
APPROVED BY THE GOVERNOR APRIL 8, 2024.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 8, 2024.
