Arkansas Bill Clarifying Agent Duty to Insured Awaits Governor Signature

April 13, 2017

A bill in Arkansas that would clarify that no cause of action exists for negligence by an insured against a title insurance agency or agency for lack of reasonable care in a title search awaits the governor’s signature.

Gov. Asa Hutchinson has until April 29 to sign HB 1828 or it becomes law without a signature. The bill passed the state’s Senate by a vote of 26-3 and passed the House by a vote of 75-0.

According to the bill, title agents conducting a search are acting only as agents of the title insurer and owe no duty to the insured. The exclusive remedy of the insured for defects in title to the property that are not identified by the title search is to file a claim against the title insurance policy subject to the terms and conditions of the title insurance policy.

 


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