97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5881

 

Introduced 2/16/2012, by Rep. Chapin Rose

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 513/18

    Amends the Home Repair and Remodeling Act. Provides that provisions concerning home repair services following damaging weather shall not be construed to prohibit a contractor from discounting the total cost of any home repair or remodeling project when a person requesting services performs some of the work necessary to complete the requested home repair or remodeling project. Provides that when a written contract with a contractor offering home repair or remodeling services to provide goods or services to be paid from the proceeds of a property and casualty insurance policy is cancelled, the contractor shall tender to the insured only those payments, partial payments, or deposits made by the insured that are in excess of any restocking fees paid by the contractor upon returning materials or supplies bought in anticipation of full performance under the contract. Provides that a contractor offering home repair or remodeling services may post a bond in order to ensure that full contract performance is completed and upon posting of a bond, full payment shall be rendered to the contractor.


LRB097 15534 JLS 65706 b

 

 

A BILL FOR

 

HB5881LRB097 15534 JLS 65706 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
5changing Section 18 as follows:
 
6    (815 ILCS 513/18)
7    Sec. 18. Repairs following damaging weather.
8    (a) As used in this Section, "catastrophe" means a natural
9occurrence, including but not limited to flood, drought,
10earthquake, tornado, windstorm, or hailstorm, which damages or
11destroys more than one residence.
12    (b) A contractor offering home repair or remodeling
13services shall not advertise or promise to pay or rebate all or
14any portion of any insurance deductible as an inducement to the
15sale of goods or services. As used in this Section, a promise
16to pay or rebate includes granting any allowance or offering
17any discount against the fees to be charged or paying the
18insured or any person directly or indirectly associated with
19the property any form of compensation. Nothing in this Section
20shall be construed to prohibit a contractor from discounting
21the total cost of any home repair or remodeling project when a
22person requesting services performs some of the work necessary
23to complete the requested home repair or remodeling project.

 

 

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1    (c) A contractor offering home repair or remodeling
2services shall not accept money or any form of compensation in
3exchange for allowing an out of area contractor to use its
4business name or license.
5    (d) A contractor offering home repair or remodeling
6services shall include its Illinois State roofing contractor
7license name and number as it appears on its Illinois State
8roofing license on all contracts, bids, and advertisements
9involving roofing work as required by the Illinois Roofing
10Industry Licensing Act.
11    (e) A person who has entered into a written contract with a
12contractor offering home repair or remodeling services to
13provide goods or services to be paid from the proceeds of a
14property and casualty insurance policy may cancel the contract
15prior to midnight on the earlier of the fifth business day
16after the insured has received written notice from the insurer
17that all or any part of the claim or contract is not a covered
18loss under the insurance policy or the thirtieth business day
19after receipt of a properly executed proof of loss by the
20insurer from the insured. Cancellation is evidenced by the
21insured giving written notice of cancellation to the contractor
22offering home repair or remodeling services at the address
23stated in the contract. Notice of cancellation, if given by
24mail, is effective upon deposit into the United States mail,
25postage prepaid and properly addressed to the contractor.
26Notice of cancellation may be given by delivering or mailing a

 

 

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1signed and dated copy of the written notice of cancellation to
2the contractor's business address as stated in the contract.
3Notice of cancellation shall include a copy of the written
4notice from the insurer to the effect that all or part of the
5claim is not a covered loss under the insurance policy. Notice
6of cancellation need not take a particular form and is
7sufficient if it indicates, by any form of written expression,
8the intention of the insured not to be bound by the contract.
9    (f) Any contract referred to in subsection (e), must
10contain a statement in at least 10 point boldface, in
11substantially the following form:
12        "You may cancel this contract at any time before
13        midnight on the earlier of the fifth business day after
14        you have received written notification from your
15        insurer that all or any part of the claim or contract
16        is not a covered loss under the insurance policy or the
17        thirtieth business day after your insurer has received
18        properly executed proof(s) of loss from you. See
19        attached notice of cancellation form for an
20        explanation of this right."
21    (g) Upon executing a contract referred to in subsection
22(e), furnish each insured a fully completed form in duplicate,
23captioned "NOTICE OF CANCELLATION", which shall be attached to
24the contract but easily detachable, and which shall contain
25boldface type of a minimum size of 10 points the following
26statement with the appropriate fields completed by the

 

 

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1contractor:
2
"NOTICE OF CANCELLATION
3            If you are notified by your insurer that all or any
4        part of the claim or contract is not a covered loss
5        under the insurance policy, you may cancel the contract
6        by mailing or delivering a signed and dated copy of
7        this cancellation notice or any other written notice to
8        (name of contractor) at (address of contractor's place
9        of business) at any time prior to midnight on the
10        earlier of the fifth business day after you have
11        received such notice from your insurer or the thirtieth
12        business day after your insurer has received properly
13        executed proof(s) of loss from you. If you cancel, any
14        payments made by you under the contract, other than
15        payments for goods or services related to a catastrophe
16        which you agreed in writing to be necessary to prevent
17        damage to your property, will be returned to you within
18        10 business days following receipt by the contractor of
19        your cancellation notice.
20            I HEREBY CANCEL THIS TRANSACTION
21            ................................
22            (date)
23            ................................
24            (insured's signature)".
25    (h) Within 10 days after a contract referred to in
26subsection (e) has been cancelled, the contractor offering home

 

 

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1repair or remodeling services shall tender to the insured any
2payments, partial payments, or deposits made by the insured, in
3excess of any restocking fees paid by the contractor upon
4returning materials or supplies bought in anticipation of full
5performance under the contract, and any note or other evidence
6of indebtedness. If, however, the contractor has provided any
7goods or services related to a catastrophe, acknowledged and
8agreed to by the insured in writing to be necessary to prevent
9damage to the premises, the contractor is entitled to the
10reasonable value of such goods and services. Any provision in a
11contract referred to in subsection (e) that requires the
12payment of any fee for anything except goods or services
13related to a catastrophe shall not be enforceable against any
14insured who has cancelled a contract pursuant to this Section.
15    (i) A contractor offering home repair or remodeling
16services shall not represent, or offer or advertise to
17represent, on behalf of a homeowner on any insurance claim in
18connection with the repair or replacement of roof systems, or
19the performance of any other interior or exterior repair,
20replacement, construction or reconstruction work; or otherwise
21violate the Public Adjusters Law (Public Act 96-1332). A Public
22Adjuster means any person who acts on behalf of the insured in
23preparing and adjusting a claim for loss or damage covered by
24an insurance contract. A contractor offering home repair or
25remodeling services shall not call in or file a claim to an
26insurance carrier on the insured's behalf. A contractor

 

 

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1offering home repair or remodeling services shall not climb on
2a roof or inspect for exterior damage without the insured's
3express permission. Nothing in this subsection shall be
4construed to prohibit a residential contractor from: (1)
5providing an insured an estimate for repair, replacement,
6construction, or reconstruction of the insured's property and
7any such estimate may be submitted to the insured's insurance
8company; (2) conferring with an insurance company's
9representative about damage to an insured's property; or (3)
10discussing repair or replacement options with an insurance
11company's representative or the insured about options for the
12repair or replacement of the damage.
13    (j) A contractor offering home repair or remodeling
14services may post a bond in order to ensure that full contract
15performance is completed and upon posting of a bond, full
16payment shall be rendered to the contractor.
17(Source: P.A. 97-235, eff. 1-1-12.)