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.