The bill amends section 20-1591 of the Arizona Revised Statutes, clarifying the enforceability of agreements to indemnify title insurers from risks associated with properly recorded instruments. The bill stipulates that such an indemnity agreement is only enforceable if it is in writing and meets one of the following conditions: the instrument was not of record when the agreement was executed, the instrument is specifically described in the agreement, it is shown as an exception in the title insurance policy, it secures a monetary obligation of the person and remains an outstanding debt (excluding improvement district assessments), or it indemnifies against liens from work or services provided on the insured property. Additionally, the bill requires that these indemnity agreements be separate from the title insurance policy and does not affect the enforceability of title warranties in deeds or mortgages. The bill also makes technical changes, such as correcting the term "thirty day" to "thirty-day" and is intended to be a clarifying change, not a substantive alteration of existing law.

Statutes affected:
Introduced Version: 20-1580, 20-1591, 20-167
House Engrossed Version: 20-1580, 20-1591, 20-167
Senate Engrossed Version: 20-1591