Arizona Laws 20-1567. Determination of insurability required
A. No policy or contract of title insurance shall be written on any risk located in this state except by a title insurer authorized to do business in this state, nor unless and until the title insurer has caused to be conducted a reasonable examination of the title and has caused to be made a determination of insurability of title in accordance with sound underwriting practices for title insurers.
Terms Used In Arizona Laws 20-1567
- Contract: A legal written agreement that becomes binding when signed.
- Population: means the population according to the most recent United States decennial census. See Arizona Laws 1-215
- Title insurance: means insuring, guaranteeing or indemnifying owners of real property or others interested therein against loss or damage suffered by reason of liens, encumbrances upon, defects in or the unmarketability of the title to such property, guaranteeing, warranting or otherwise insuring the correctness of searches relating to the title to real property, or doing any business in substance equivalent to any of the foregoing. See Arizona Laws 20-1562
- Title insurance agent: means a domestic or foreign stock corporation or limited liability company authorized in writing by a title insurer to solicit insurance and collect premiums and to issue or countersign policies in its behalf, except that the term "title insurance agent" shall not include officers or salaried employees of any title insurer authorized to do a title insurance business within this state. See Arizona Laws 20-1562
- Title insurance plant: means a set of records in which an entry has been made of all documents or matters which under the law impart constructive notice of matters affecting title to real property or any interest therein or encumbrance thereon and which have been filed or recorded in the county for which such title plant is maintained for a period of not less than the immediately preceding twenty years. See Arizona Laws 20-1562
- Title insurance policy: means a written instrument or contract by means of which title insurance liability is accepted. See Arizona Laws 20-1562
- Title insurer: means any domestic company organized under the provisions of this title for the purpose of insuring titles to real property, any title insurance company organized under the laws of another state and licensed to insure titles to real estate within this state pursuant to the provisions of this article, and any domestic or foreign company having the power and authorized to insure titles to real estate within this state as of January 1, 1968 which meet the requirements of this article. See Arizona Laws 20-1562
B. No title insurer shall write title insurance in, nor issue any title insurance policy with respect to risks located in, any county of this state with a population, as shown by the latest decennial census, in excess of one hundred thousand persons, unless the title insurer or its agent in that county maintains a title insurance plant covering title records of such county, or unless the insurer issues its policy based on a policy issued to it by another title insurance company, or its agent, who meets the requirements of this section provided, however, that for the purposes of this subsection a title insurer or title insurance agent shall be deemed to maintain a title insurance plant if it is a lessee thereof or joint owner or has a beneficial interest in such a plant.
C. This section shall not apply to a reinsurer or an excess coinsurer, provided the originating insurer complies with subsections A and B.