ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

House: FICO DP 7-0-1-0 | 3rd Read 21-5-4-0

SB 1042: cremation

S/E: DIFI; title companies; recorded documents

Sponsor: Senator Shope, LD 16

Committee on Regulatory Affairs

Summary of the Strike-Everything Amendment to SB 1042

Overview

Prescribes requirements relating to the enforceability of title insurance agreements.

History

The Arizona Department of Insurance and Financial Institutions (DIFI) licenses and regulates the title insurance industry as part of its duties. DIFI stipulates that a business enterprise must be formed as a corporation or limited liability company and must be licensed in Arizona to solicit business, collect premiums or countersign policies on a title insurer's behalf. Additionally, a title insurance agent is a stock corporation or limited liability company authorized by a title insurer to solicit insurance and collect premiums for insurance that covers owners of real property or others with interest in the real property against loss or damage suffered by liens, encumbrances, defects or unmarketability of the title to the property (A.R.S. § 20-1562). 

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteStipulates that an agreement to indemnify or hold harmless from risks that arise from an instrument that is properly recorded by the county recorder may only be enforced if:

a)   the instrument had not been recorded at the time the agreement was executed;

b)   the agreement specifically describes the instrument;

c) the title insurance policy specifically exempts the instrument;

d)   the agreement indemnifies or holds harmless against liens from completed work or labor or professional services, materials, machinery, fixtures or tools furnished on the insured property; or

e)   the instrument secures a monetary obligation and remains an outstanding and enforceable debt. (Sec. 1)

2.   States that the enforceability of title warranties that are provided by a person in a deed or mortgage is not affected by the provisions. (Sec. 1)

3.   Specifies that the agreement must be in writing to be enforceable. (Sec. 1)

4.   Adds a legislative intent clause. (Sec. 2)

5.   Makes technical changes. (Sec. 1)

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9.                     SB 1042

10.  Initials DC/RP     Page 0 Regulatory Affairs

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