MI HB6276

Amends Section 7304 to clarify that title insurers cannot authorize prohibited acts under 1917 PA 354 (MCL 450.681) and reinforces that title insurers cannot suggest parties do not need independent legal counsel for real estate transactions.

Requires title insurers or producers to offer closing or settlement protection when a title insurance policy order is placed, covering lenders, borrowers, sellers, and applicants.

Closing or settlement protection must indemnify against loss of settlement funds from theft, misappropriation, fraud, or failure to disburse funds, and from failure to comply with written closing instructions; cost capped at $50.00.

Establishes requirements for title insurance producers maintaining escrow or trust accounts: must be noninterest-bearing demand accounts at federally insured financial institutions, with surety bond maintained and disbursements made per signed party agreements.

Requires producers to maintain detailed bookkeeping systems including chronological journals of receipts and disbursements, transaction-specific ledgers, and running balances; all records must be retained for at least 5 years.