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.


LRB097 09449 AEK 49584 b

 

 

A BILL FOR

 

HB3034LRB097 09449 AEK 49584 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Home Repair and Remodeling Act is amended by
5adding Section 18 as follows:
 
6    (815 ILCS 513/18 new)
7    Sec. 18. Repairs following damaging weather.
8    (a) As used in this Section:
9        (1) "residential contractor" means a person or entity
10    in the business of contracting or offering to contract with
11    an owner or possessor of residential real estate to repair
12    or replace roof systems or perform any other exterior
13    repair, replacement, construction, or reconstruction work
14    on residential real estate;
15        (2) "residential real estate" means a new or existing
16    building constructed for habitation by one to four
17    families, including detached garages; and
18        (3) "roof system" means roof coverings, roof
19    sheathing, roof weatherproofing, or roof insulation.
20    (b) A residential contractor shall not advertise or promise
21to pay or rebate all or any portion of any insurance deductible
22as an inducement to the sale of goods or services. As used in
23this Section, a promise to pay or rebate includes granting any

 

 

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1allowance or offering any discount against the fees to be
2charged or paying the insured or any person directly or
3indirectly associated with the property any form of
4compensation, gift, prize, bonus, coupon, credit, referral
5fee, or other item of monetary value for any reason, including
6but not limited to permitting the residential contractor to
7display a sign or any other type of advertisement at the
8insured's premises.
9    (c) A person who has entered into a written contract with a
10residential contractor to provide goods or services to be paid
11from the proceeds of a property and casualty insurance policy
12may cancel the contract prior to midnight on the fifth business
13day after the insured has received written notice from the
14insurer that all or any part of the claim or contract is not a
15covered loss under the insurance policy. Cancellation is
16evidenced by the insured giving written notice of cancellation
17to the residential contractor at the address stated in the
18contract. Notice of cancellation, if given by mail, is
19effective upon deposit into the United States mail, postage
20prepaid and properly addressed to the contractor. Notice of
21cancellation need not take a particular form and is sufficient
22if it indicates, by any form of written expression, the
23intention of the insured not to be bound by the contract.
24    (d) Before entering a contract referred to in subsection
25(c) of this Section, the residential contractor shall:
26        (1) furnish the insured with a statement in at least 10

 

 

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1    point boldface type, in substantially the following form:
2        "You may cancel this contract at any time before
3    midnight on the fifth business day after you have received
4    written notification from your insurer that all or any part
5    of the claim or contract is not a covered loss under the
6    insurance policy. See attached notice of cancellation form
7    for an explanation of this right."; and
8        (2) furnish each insured with a form captioned "NOTICE
9    OF CANCELLATION", which shall be attached to the contract,
10    and which shall contain in at least 10 point boldface type
11    the following statement with the appropriate fields
12    completed by the residential contractor:
13        
"NOTICE OF CANCELLATION
14            If you are notified by your insurer that all or any
15        part of the claim or contract is not a covered loss
16        under the insurance policy, you may cancel the contract
17        by mailing or delivering a signed and dated copy of
18        this cancellation notice or any other written notice to
19        (name of contractor) at (address of contractor's place
20        of business) at any time prior to midnight on the fifth
21        business day after you have received written notice
22        from your insurer. If you cancel, payments made by you
23        under the contract will be returned to you within 10
24        business days following receipt by the contractor of
25        your cancellation notice, unless otherwise provided by
26        law.

 

 

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1            I HEREBY CANCEL THIS TRANSACTION
2            ................................
3            (date)
4            ................................
5            (insured's signature)".
6    (e) Within 10 days after a contract referred to in
7subsection (c) of this Section has been cancelled, the
8contractor shall tender to the insured any payments, partial
9payments, or deposits made by the insured and any note or other
10evidence of indebtedness. If, however, the contractor has
11performed any emergency services, acknowledged by the insured
12in writing to be necessary to prevent damage to the premises,
13the contractor is entitled to the reasonable value of such
14services. Any provision in a contract referred to in subsection
15(c) of this Section that requires the payment of any fee for
16anything except emergency services shall not be enforceable
17against any insured who has cancelled a contract pursuant to
18this Section.
19    (f) A residential contractor shall not represent or
20negotiate, or offer or advertise to represent or negotiate, on
21behalf of an owner or possessor of residential real estate on
22any insurance claim in connection with the repair or
23replacement of roof systems, or the performance of any other
24exterior repair, replacement, construction, or reconstruction
25work.