1st Engrossment - 87th Legislature (2011 - 2012) Posted on 05/04/2011 04:37pm
A bill for an act
relating to commerce; regulating the provision of certain goods and services of
residential contractors; providing enforcement; amending Minnesota Statutes
2010, sections 325E.66; 326B.811, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2010, section 325E.66, is amended to read:
contractor providing new text beginnew text endresidential roofing deleted text begingoods and servicesdeleted text end
new text beginnew text endto be paid by an insured from the proceeds of a property or casualty insurance
policy shall notnew text beginnew text end advertise or promise to pay deleted text beginor rebatedeleted text endnew text beginnew text end all or part of any
applicable insurance deductiblenew text beginnew text end. If a residential contractor violates this section, the insurer to whom
the insured tendered the claim shall not be obligated to consider the estimate prepared by
the residential contractor.
For purposes of this section, "residential contractor" means a residential roofer, as
defined in section 326B.802, subdivision 14; a residential contractor, as defined in section
326B.802, subdivision 11; and a residential remodeler, as defined in section 326B.802,
subdivision 12new text beginnew text end.
If a residential contractor violates subdivision
1, the insured or the applicable insurer may bring an action against the residential
contractor in a court of competent jurisdiction for damages sustained by the insured or
insurer as a consequence of the residential deleted text beginroofer'sdeleted text end new text beginnew text endviolation.
new text begin new text end
Minnesota Statutes 2010, section 326B.811, subdivision 1, is amended to read:
A person who has entered into a written contract with
a deleted text begincontractordeleted text end new text beginnew text endto provide deleted text beginresidential roofingdeleted text end goods and services to be paid by the
insured from the proceeds of a property or casualty insurance policy has the right to
cancel the contract within 72 hours after the insured has been notified by the insurer
that the claim has been denied. Cancellation is evidenced by the insured giving written
notice of cancellation to the contractor at the address stated in the contract. Notice of
cancellation, if given by mail, is effective upon deposit in a mailbox, properly addressed
to the contractor and postage prepaid. Notice of cancellation need not take a particular
form and is sufficient if it indicates, by any form of written expression, the intention of the
insured not to be bound by the contract.