HB3034 97TH GENERAL ASSEMBLY

LRB097 09449 AEK 49584 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3034

Introduced 2/23/2011, by Rep. Ann Williams

SYNOPSIS AS INTRODUCED:

815 ILCS 513/18 new

Amends the Home Repair and Remodeling Act. Provides that a residential contractor shall not advertise or promise to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of goods or services. Provides that a person who has entered into a written contract with a residential contractor to provide goods or services to be paid from the proceeds of a property and casualty insurance policy may cancel the contract prior to midnight on the fifth business day after the insured has received written notice from the insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. Requires a residential contractor to provide a statement informing the insured about his or her right to cancel and a pre-made form for him or her to do so. Provides that within 10 days of such a cancellation, the residential contractor shall return all payments made by the insured, except for emergency services provided by the contractor and agreed to by the insured. Provides that a residential contractor shall not represent or negotiate, or offer or advertise to represent or negotiate, on behalf of an owner or possessor of residential real estate on any insurance claim in connection with the repair or replacement of roof systems, or the performance of any other exterior repair, replacement, construction, or reconstruction work.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Home Repair and Remodeling Act is amended by adding Section 18 as follows:

(815 ILCS 513/18 new)

Sec. 18. Repairs following damaging weather.

(a) As used in this Section:

(1) "residential contractor" means a person or entity in the business of contracting or offering to contract with an owner or possessor of residential real estate to repair or replace roof systems or perform any other exterior repair, replacement, construction, or reconstruction work on residential real estate;

(2) "residential real estate" means a new or existing building constructed for habitation by one to four families, including detached garages; and

(3) "roof system" means roof coverings, roof sheathing, roof weatherproofing, or roof insulation.

(b) A residential contractor shall not advertise or promise to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of goods or services. As used in this Section, a promise to pay or rebate includes granting any allowance or offering any discount against the fees to be charged or paying the insured or any person directly or indirectly associated with the property any form of compensation, gift, prize, bonus, coupon, credit, referral fee, or other item of monetary value for any reason, including but not limited to permitting the residential contractor to display a sign or any other type of advertisement at the insured's premises.

(c) A person who has entered into a written contract with a residential contractor to provide goods or services to be paid from the proceeds of a property and casualty insurance policy may cancel the contract prior to midnight on the fifth business day after the insured has received written notice from the insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. Cancellation is evidenced by the insured giving written notice of cancellation to the residential contractor at the address stated in the contract. Notice of cancellation, if given by mail, is effective upon deposit into the United States mail, postage prepaid and properly addressed to the contractor. 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.

(d) Before entering a contract referred to in subsection (c) of this Section, the residential contractor shall:

(1) furnish the insured with a statement in at least 10 point boldface type, in substantially the following form:

"You may cancel this contract at any time before midnight on the fifth business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. See attached notice of cancellation form for an explanation of this right."; and

(2) furnish each insured with a form captioned "NOTICE OF CANCELLATION", which shall be attached to the contract, and which shall contain in at least 10 point boldface type the following statement with the appropriate fields completed by the residential contractor:

"NOTICE OF CANCELLATION

If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, 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 contractor) at (address of contractor's place of business) at any time prior to midnight on the fifth business day after you have received written notice from your insurer. If you cancel, payments made by you under the contract will be returned to you within 10 business days following receipt by the contractor of your cancellation notice, unless otherwise provided by law.

I HEREBY CANCEL THIS TRANSACTION

................................

(date)

................................

(insured's signature)".

(e) Within 10 days after a contract referred to in subsection (c) of this Section has been cancelled, the contractor shall tender to the insured any payments, partial payments, or deposits made by the insured and any note or other evidence of indebtedness. If, however, the contractor has performed any emergency services, acknowledged by the insured in writing to be necessary to prevent damage to the premises, the contractor is entitled to the reasonable value of such services. Any provision in a contract referred to in subsection (c) of this Section that requires the payment of any fee for anything except emergency services shall not be enforceable against any insured who has cancelled a contract pursuant to this Section.

(f) A residential contractor shall not represent or negotiate, or offer or advertise to represent or negotiate, on behalf of an owner or possessor of residential real estate on any insurance claim in connection with the repair or replacement of roof systems, or the performance of any other exterior repair, replacement, construction, or reconstruction work.