An unpaid claim is a covered claim if:
(1) the claim is made by an insured under a title insurance policy to which this chapter applies;
(2) the claim arises out of the policy and is within the coverage and applicable limits of the policy, subject to all applicable policy provisions and defenses available under the policy and applicable law;
(3) the title insurance company that issued the policy or assumed the policy under an assumption certificate is an impaired title insurance company; and
(4) the insured real property or a lien on the property is located in this state.