Minnesota Session Laws - 2011, Regular Session

CHAPTER 63--S.F.No. 249

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:

Section 1.

Minnesota Statutes 2010, section 325E.66, is amended to read:

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

Subdivision 1.

Payment or rebate of insurance deductible.

A residential contractor providing new text begin the repair or replacement of new text end residential roofing deleted text begin goods and services deleted text end new text begin or siding new text end to be paid by an insured from the proceeds of a property or casualty insurance policy shall not new text begin , as an inducement to the sale or provision of goods or services to an insured, new text end advertise or promise to pay deleted text begin or rebate deleted text end new text begin , directly or indirectly, new text end all or part of any applicable insurance deductible new text begin or offer to compensate an insured for providing any service to the insured new 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 12 new text begin ; and a siding contractor registered under section 326B.802, subdivision 15 new text end .

Subd. 2.

deleted text begin Violation deleted text end new text begin Private remedy new 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 begin roofer's deleted text end new text begin contractor's new text end violation.

new text begin Subd. 3. new text end

new text begin Public enforcement. new text end

new text begin The commissioner of labor and industry shall enforce this section under sections 326B.081 to 326B.085. new text end

Sec. 2.

Minnesota Statutes 2010, section 326B.811, subdivision 1, is amended to read:

Subdivision 1.

Required.

A person who has entered into a written contract with a deleted text begin contractor deleted text end new text begin residential roofer or a siding contractor registered under section 326B.802, subdivision 15, new text end to provide deleted text begin residential roofing deleted 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.

Presented to the governor May 23, 2011

Signed by the governor May 24, 2011, 2:27 p.m.