Full Text of HB3034 97th General Assembly
HB3034 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3034 Introduced 2/23/2011, by Rep. Ann Williams SYNOPSIS AS INTRODUCED: |
| |
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 |
|
| | | HB3034 | | LRB097 09449 AEK 49584 b |
|
| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Home Repair and Remodeling Act is amended by | 5 | | adding 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 | 21 | | to pay or rebate all
or any portion of any insurance deductible | 22 | | as an inducement to the sale of
goods or services. As used in | 23 | | this Section, a promise to pay or rebate
includes granting any |
| | | HB3034 | - 2 - | LRB097 09449 AEK 49584 b |
|
| 1 | | allowance or offering any discount against the fees to
be | 2 | | charged or paying the insured or any person directly or | 3 | | indirectly
associated with the property any form of | 4 | | compensation, gift, prize, bonus,
coupon, credit, referral | 5 | | fee, or other item of monetary value for any reason,
including | 6 | | but not limited to permitting the residential contractor to | 7 | | display a
sign or any other type of advertisement at the | 8 | | insured's premises. | 9 | | (c) A person who has entered into a written contract with a | 10 | | residential
contractor to provide goods or services to be paid | 11 | | from the proceeds of a
property and casualty insurance policy | 12 | | may cancel the contract prior to
midnight on the fifth business | 13 | | day after the insured has received written
notice from the | 14 | | insurer that all or any part of the claim or contract is not a
| 15 | | covered loss under the insurance policy. Cancellation is | 16 | | evidenced by the
insured giving written notice of cancellation | 17 | | to the residential contractor
at the address stated in the | 18 | | contract. Notice of cancellation, if given by
mail, is | 19 | | effective upon deposit into the United States mail, postage
| 20 | | prepaid and properly addressed to the contractor. Notice of | 21 | | cancellation
need not take a particular form and is sufficient | 22 | | if it indicates, by any
form of written expression, the | 23 | | intention 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 |
| | | HB3034 | - 3 - | LRB097 09449 AEK 49584 b |
|
| 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. |
| | | HB3034 | - 4 - | LRB097 09449 AEK 49584 b |
|
| 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 | 7 | | subsection (c) of this Section
has been cancelled, the | 8 | | contractor shall tender to the insured any
payments, partial | 9 | | payments, or deposits made by the insured and any note
or other | 10 | | evidence of indebtedness. If, however, the contractor has
| 11 | | performed any emergency services, acknowledged by the insured | 12 | | in
writing to be necessary to prevent damage to the premises, | 13 | | the contractor
is entitled to the reasonable value of such | 14 | | services. Any provision in a
contract referred to in subsection | 15 | | (c) of this Section that requires the
payment of any fee for | 16 | | anything except emergency services shall not be
enforceable | 17 | | against any insured who has cancelled a contract pursuant to
| 18 | | this Section. | 19 | | (f) A residential contractor shall not represent or | 20 | | negotiate, or offer or
advertise to represent or negotiate, on | 21 | | behalf of an owner or possessor of
residential real estate on | 22 | | any insurance claim in connection with the
repair or | 23 | | replacement of roof systems, or the performance of any other
| 24 | | exterior repair, replacement, construction, or reconstruction | 25 | | work.
|
|