71-1-310. Liability of title insurer or title insurance producer. A title insurer or title insurance producer who reconveys a trust indenture is liable to the beneficiary for damages suffered by the beneficiary as a result of the reconveyance if:

(1) the obligation secured by the trust indenture is not fully paid;

(2) the title insurer or title insurance producer failed to comply with the provisions of 71-1-308; or

(3) the title insurer or title insurance producer acted with gross negligence or in bad faith in reconveying the trust indenture.