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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Home Repair and Remodeling Act is amended by | ||||||
5 | changing 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 | ||||||
9 | occurrence, including but not limited to flood, drought, | ||||||
10 | earthquake, tornado, windstorm, or hailstorm, which damages or | ||||||
11 | destroys 3 or more residences than one residence . | ||||||
12 | (b) A contractor offering home repair or remodeling | ||||||
13 | services shall not advertise or promise to pay or rebate all or | ||||||
14 | any portion of any insurance deductible as an inducement to the | ||||||
15 | sale of goods or services. As used in this Section, a promise | ||||||
16 | to pay or rebate includes granting any allowance or offering | ||||||
17 | any discount against the fees to be charged or paying the | ||||||
18 | insured or any person directly or indirectly associated with | ||||||
19 | the property any form of compensation. | ||||||
20 | (c) A contractor offering home repair or remodeling | ||||||
21 | services shall not accept money or any form of compensation in | ||||||
22 | exchange for allowing an out of area contractor to use its | ||||||
23 | business name or license. |
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1 | (d) A contractor offering home repair or remodeling | ||||||
2 | services shall include its Illinois State roofing contractor | ||||||
3 | license name and number as it appears on its Illinois State | ||||||
4 | roofing license on all contracts, bids, and advertisements | ||||||
5 | involving roofing work as required by the Illinois Roofing | ||||||
6 | Industry Licensing Act. | ||||||
7 | (e) A person who has entered into a written contract with a | ||||||
8 | contractor offering home repair or remodeling services to | ||||||
9 | provide goods or services to be paid from the proceeds of a | ||||||
10 | property and casualty insurance policy may cancel the contract | ||||||
11 | prior to midnight on the earlier of the fifth business day | ||||||
12 | after the insured has received written notice from the insurer | ||||||
13 | that all or any part of the claim or contract is not a covered | ||||||
14 | loss under the insurance policy or the thirtieth business day | ||||||
15 | after receipt of a properly executed proof of loss by the | ||||||
16 | insurer from the insured. Cancellation is evidenced by the | ||||||
17 | insured giving written notice of cancellation to the contractor | ||||||
18 | offering home repair or remodeling services at the address | ||||||
19 | stated in the contract. Notice of cancellation, if given by | ||||||
20 | mail, is effective upon deposit into the United States mail, | ||||||
21 | postage prepaid and properly addressed to the contractor. | ||||||
22 | Notice of cancellation may be given by delivering or mailing a | ||||||
23 | signed and dated copy of the written notice of cancellation to | ||||||
24 | the contractor's business address as stated in the contract. | ||||||
25 | Notice of cancellation shall include a copy of the written | ||||||
26 | notice from the insurer to the effect that all or part of the |
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1 | claim is not a covered loss under the insurance policy. Notice | ||||||
2 | of cancellation need not take a particular form and is | ||||||
3 | sufficient if it indicates, by any form of written expression, | ||||||
4 | the intention of the insured not to be bound by the contract. | ||||||
5 | (f) Any contract referred to in subsection (e), must | ||||||
6 | contain a statement in at least 10 point boldface, in | ||||||
7 | substantially the following form: | ||||||
8 | "You may cancel this contract at any time before | ||||||
9 | midnight on the earlier of the fifth business day after | ||||||
10 | you have received written notification from your | ||||||
11 | insurer that all or any part of the claim or contract | ||||||
12 | is not a covered loss under the insurance policy or the | ||||||
13 | thirtieth business day after your insurer has received | ||||||
14 | properly executed proof(s) of loss from you. See | ||||||
15 | attached notice of cancellation form for an | ||||||
16 | explanation of this right." | ||||||
17 | (g) Upon executing a contract referred to in subsection | ||||||
18 | (e), furnish each insured a fully completed form in duplicate, | ||||||
19 | captioned "NOTICE OF CANCELLATION", which shall be attached to | ||||||
20 | the contract but easily detachable, and which shall contain | ||||||
21 | boldface type of a minimum size of 10 points the following | ||||||
22 | statement with the appropriate fields completed by the | ||||||
23 | contractor: | ||||||
24 | "NOTICE OF CANCELLATION | ||||||
25 | If you are notified by your insurer that all or any | ||||||
26 | part of the claim or contract is not a covered loss |
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1 | under the insurance policy, you may cancel the contract | ||||||
2 | by mailing or delivering a signed and dated copy of | ||||||
3 | this cancellation notice or any other written notice to | ||||||
4 | (name of contractor) at (address of contractor's place | ||||||
5 | of business) at any time prior to midnight on the | ||||||
6 | earlier of the fifth business day after you have | ||||||
7 | received such notice from your insurer or the thirtieth | ||||||
8 | business day after your insurer has received properly | ||||||
9 | executed proof(s) of loss from you. If you cancel, any | ||||||
10 | payments made by you under the contract, other than | ||||||
11 | payments for goods or services related to a catastrophe | ||||||
12 | which you agreed in writing to be necessary to prevent | ||||||
13 | damage to your property, will be returned to you within | ||||||
14 | 10 business days following receipt by the contractor of | ||||||
15 | your cancellation notice. | ||||||
16 | I HEREBY CANCEL THIS TRANSACTION | ||||||
17 | ................................ | ||||||
18 | (date) | ||||||
19 | ................................ | ||||||
20 | (insured's signature)". | ||||||
21 | (h) Within 10 days after a contract referred to in | ||||||
22 | subsection (e) has been cancelled, the contractor offering home | ||||||
23 | repair or remodeling services shall tender to the insured any | ||||||
24 | payments, partial payments, or deposits made by the insured and | ||||||
25 | any note or other evidence of indebtedness. If, however, the | ||||||
26 | contractor has provided any goods or services related to a |
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1 | catastrophe, acknowledged and agreed to by the insured in | ||||||
2 | writing to be necessary to prevent damage to the premises, the | ||||||
3 | contractor is entitled to the reasonable value of such goods | ||||||
4 | and services. Any provision in a contract referred to in | ||||||
5 | subsection (e) that requires the payment of any fee for | ||||||
6 | anything except goods or services related to a catastrophe | ||||||
7 | shall not be enforceable against any insured who has cancelled | ||||||
8 | a contract pursuant to this Section. | ||||||
9 | (i) A contractor offering home repair or remodeling | ||||||
10 | services shall not represent, or offer or advertise to | ||||||
11 | represent, on behalf of a homeowner on any insurance claim in | ||||||
12 | connection with the repair or replacement of roof systems, or | ||||||
13 | the performance of any other interior or exterior repair, | ||||||
14 | replacement, construction or reconstruction work; or otherwise | ||||||
15 | violate the Public Adjusters Law (Public Act 96-1332). A Public | ||||||
16 | Adjuster means any person who acts on behalf of the insured in | ||||||
17 | preparing and adjusting a claim for loss or damage covered by | ||||||
18 | an insurance contract. A contractor offering home repair or | ||||||
19 | remodeling services shall not call in or file a claim to an | ||||||
20 | insurance carrier on the insured's behalf. A contractor | ||||||
21 | offering home repair or remodeling services shall not climb on | ||||||
22 | a roof or inspect for exterior damage without the insured's | ||||||
23 | express permission. Nothing in this subsection shall be | ||||||
24 | construed to prohibit a residential contractor from: (1) | ||||||
25 | providing an insured an estimate for repair, replacement, | ||||||
26 | construction, or reconstruction of the insured's property and |
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1 | any such estimate may be submitted to the insured's insurance | ||||||
2 | company; (2) conferring with an insurance company's | ||||||
3 | representative about damage to an insured's property; or (3) | ||||||
4 | discussing repair or replacement options with an insurance | ||||||
5 | company's representative or the insured about options for the | ||||||
6 | repair or replacement of the damage.
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7 | (Source: P.A. 97-235, eff. 1-1-12.)
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