AR SB309

Amends Arkansas Code § 23-103-402 to revise definitions related to title insurance, including clarifying that "closing" involves executing documents and managing funds, and defining "title insurance business" to include issuing closing protection letters.

Modifies § 23-103-403 to prohibit appointed title insurance agencies from issuing closing protection letters or title insurance policies; only title insurers may issue closing protection.

Updates § 23-103-404 to establish that only title insurers may issue closing protection letters or title insurance policies as insurers.

Amends § 23-103-405 to require title insurers to provide notice of closing protection availability, allow issuance of closing protection letters upon written request to licensed title insurance agencies, and permit discretionary issuance to non-licensed closing agents under contract with specific requirements including privity of contract.

Establishes that closing protection letters must conform to filed forms with the Insurance Commissioner, indemnify against theft or misappropriation of closing funds, and cannot be issued unless the title insurer contemplates issuing a title insurance policy to a party in the transaction.