AZ SB1047

Amends Arizona Revised Statutes section 6-841.02 regarding liability of title insurers and closing protection letters for escrow agents.

Expands closing protection letter availability to any party to a transaction where a title insurance policy will be issued, not just residential dwelling buyers and sellers.

Permits closing protection letters to indemnify insured parties against theft or misappropriation of settlement monies and failure to comply with written closing instructions by settlement agents, but only to the extent relating to title status or mortgage lien validity and enforceability.

Requires title insurers to charge a fee for closing protection letters not to exceed $25 per transaction covering all beneficiaries (buyer, borrower, seller, and lender), with fees earned at closing and not subject to division agreements.

Prohibits title insurers from providing other types of indemnity protection related to improper acts or omissions of settlement or closing service providers.