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| | SB1539 Engrossed | | LRB098 07659 JLS 37731 b |
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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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