SF 1886

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 03/22/2010 12:17pm

A bill for an act
relating to commerce; regulating contracts and insurance claims for residential
roofing goods and services; proposing coding for new law in Minnesota Statutes,
chapters 325E; 326B.

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

Section 1.

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 building
contractor, as defined in section 326B.802, subdivision 11, who is providing roofing
services or 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. 2.

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 48 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 48 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 48 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