HF 2060

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 03/04/2010 11:26am

A bill for an act
relating to commerce; regulating contract cancellations and insurance claims
for residential roofing goods and services; amending Minnesota Statutes 2008,
section 72B.135, subdivision 4; proposing coding for new law in Minnesota
Statutes, chapters 325E; 326B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 72B.135, subdivision 4, is amended to read:

Subd. 4.

Prohibited practices.

No public adjuster shall:

(1) pay money or give anything of value to a person in consideration of a direct or
indirect referral of a client or potential client;

(2) pay money or give anything of value to a person as an inducement to refer
business or clients;

(3) rebate to a client a part of a fee specified in an employment contract;

(4) initiate contact with a prospective client between the hours of 8 p.m. and 8 a.m.;

(5) split the fee received or pay money to a person for services rendered to a client
unless the other person is also licensed as a public adjuster;

(6) have an interest directly or indirectly in a construction firm, salvage firm, or
appraisal firm. "Firm" includes a corporation, partnership, association, or individual firm;

(7) in connection with the transaction of business as a public adjuster, make a willful
or knowing misrepresentation of facts or advise a person on questions of law;

(8) make willful or knowing false statements about an insurance company or its
employees, agents, or representatives;

(9) solicit employment of a client in connection with a loss that is the subject of an
employment contract with another public adjuster;

(10) represent both an insurer and insured simultaneously; deleted text begin or
deleted text end

(11) advance money to a client pending the settlement of a loss where the amount
would be included in a final settlement deleted text begin . deleted text end new text begin ;
new text end

new text begin (12) receive a commission that exceeds ten percent of the amount of the insurance
settlement on the claim;
new text end

new text begin (13) receive a commission consisting of a percentage of the total amount paid by an
insurer to resolve a claim on a claim on which the insurer, not later than 72 hours after
the date on which the loss is reported to the insurer, either pays or commits in writing to
pay to the insured the policy limit of the insurance policy;
new text end

new text begin (14) sign and endorse any payment draft or check on behalf of an insured; or
new text end

new text begin (15) solicit or attempt to solicit a client for employment during the progress of a
loss-producing natural disaster occurrence.
new text end

Sec. 2.

new text begin [325E.66] INSURANCE CLAIMS FOR RESIDENTIAL ROOFING
GOODS AND SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Payment or rebate of insurance deductible. new text end

new text begin A residential roofer as
defined in section 326B.802, subdivision 14, providing goods and services to be paid by an
insured from the proceeds of a property or casualty insurance policy, shall not advertise or
promise to pay or rebate all or part of any applicable insurance deductible. If a residential
roofer violates this section, the insurer to whom the insured tendered the claim shall not be
obligated to consider the estimate prepared by the residential roofer.
new text end

new text begin Subd. 2. new text end

new text begin Violation. new text end

new text begin If a residential roofer violates subdivision 1, the insured or
the applicable insurer may bring an action against the roofer in a court of competent
jurisdiction for damages sustained by the insured or insurer as a consequence of the
residential roofer's violation.
new text end

Sec. 3.

new text begin [326B.811] RESIDENTIAL ROOFING CONTRACT; RIGHT TO
CANCEL.
new text end

new text begin Subdivision 1. new text end

new text begin Required. new text end

new text begin A person who has entered into a written contract with
a residential roofer to provide 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 residential roofer 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 residential
roofer 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.
new text end

new text begin Subd. 2. new text end

new text begin Writing required; notice of right to cancel; notice of cancellation. new text end

new text begin (a)
Before entering a contract referred to in subdivision 1, the residential roofer must:
new text end

new text begin (1) furnish the insured with a statement in boldface type of a minimum size of ten
points, in substantially the following form:
new text end

new text begin "You may cancel this contract at any time within 72 hours after you have been
notified that your insurer has denied your claim to pay for the goods and services to be
provided under this contract. See attached notice of cancellation form for an explanation
of this right."; and
new text end

new text begin (2) furnish each insured a fully completed form in duplicate, captioned, "NOTICE
OF CANCELLATION," which shall be attached to the contract and easily detachable,
and which shall contain in boldface type of a minimum size of ten points the following
information and statements:
new text end

new text begin "NOTICE OF CANCELLATION
new text end

new text begin If your insurer denies your claim to pay for goods and services to be provided under
this contract, you may cancel the contract by mailing or delivering a signed and dated copy
of this cancellation notice or any other written notice to (name of residential roofer) at
(address of residential roofer's place of business) at any time within 72 hours after you
have been notified that your claim has been denied. If you cancel, any payments made by
you under the contract will be returned within ten business days following receipt by the
residential roofer of your cancellation notice.
new text end

	new text begin I HEREBY CANCEL THIS TRANSACTION. new text end
	new text begin . new text end
	new text begin (date) new text end
	new text begin . new text end
	new text begin (Insured's signature)" new text end

new text begin Subd. 3. new text end

new text begin Return of payments; compensation. new text end

new text begin Within ten days after a contract
referred to in subdivision 1 has been canceled, the residential roofer must tender to the
insured any payments made by the insured and any note or other evidence of indebtedness.
However, if the residential roofer has performed any emergency services, the residential
roofer is entitled to compensation for such services.
new text end