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House Engrossed
DIFI; title companies; recorded documents |
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State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024
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HOUSE BILL 2738 |
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An Act
amending sections 20-1580 and 20-1591, Arizona Revised Statutes; relating to title insurers.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-1580, Arizona Revised Statutes, is amended to read:
20-1580. Title insurance agents to be licensed; responsibility; recorded documents
A. Title insurance agents shall be licensed by the director. Application for license shall be made on forms approved by the director, and the director shall issue a license upon on completion and filing the application and payment of the license fee specified in section 20-167.
B. Licenses of title insurance agents shall expire quadrennially at midnight on the last day of the same month four years after the license was issued or renewed unless sooner terminated by the withdrawal by the insurer of authority in the agent, or unless revoked by the director.
C. Title insurance agents' licenses shall be renewed quadrennially on the filing of an application containing such information as the director deems necessary.
D. The director may grant a temporary license to a corporation or limited liability company that is qualified for licensing as a title insurance agent. The license shall remain in force and effect for a period of six months. If the applicant fails to qualify for a regular title insurance agent's license as provided in this section, no a renewal or extension may not be granted.
E. title insurance agents are responsible for recording documents related to the transaction of property.
Sec. 2. Section 20-1591, Arizona Revised Statutes, is amended to read:
20-1591. Forms of policies and other contracts of title insurance; approval or disapproval; attorney fees
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. A title insurer or its agents may not enter into any agreement with an applicant for insurance, or with an owner or occupant of real property for which insurance has been or may be issued, that shifts liability for its errors or omissions to the insured. Any contract or provision in a contract to the contrary is void as a matter of public policy.