Relating to post-loss assignment of rights to residential contractors for repair or services performed on residential real estate covered by property and casualty insurance, and making penalties applicable

The post-loss assignment must also include a total itemized amount for the work to be performed. The bill requires that the post-loss assignment include a statement and a notice, in point type, that the residential contractor has not represented that the claimed loss will be fully covered by insurance. The bill requires an additional notice, as detailed in the bill, advising the named insured of the named insured’s right to cancel the assignment and of the process for canceling the assignment. The assignment is prohibited from impairing the interest of a named mortgagee on the property, or from preventing the insurer from communicating with the named insured or a named mortgagee. The bill requires that after the post-loss assignment is executed, a copy must be provided to the insurer of the residential real estate within five business days. The named insured has the right to cancel the assignment for any reason within those five business days. If the named insured cancels the assignment, the residential contractor must return any payments made by the named insured, the landowner, or the possessor of the real estate. Any written contract, estimate, or work order prepared by the residential contractor must include a notice, as detailed in the bill, advising the named insured that the named insured is responsible for payment to the residential contractor for any goods or services provided by the contractor, even if the named insured does not receive payment from a property and casualty insurance policy. The notice also advises the named insured that if the residential contractor advertises or promises to rebate the named insured’s deductible, or represents or negotiates, or offers to represent or negotiate with the named insured’s property and casualty insurer on behalf of the named insured, the named insured is not responsible for payment to the contractor under the contract, estimate, or work order. A copy of the document, signed by the named insured, must be sent to the named insured’s insurance company prior to the residential contractor being paid from the proceeds of the property and casualty insurance.16, and the contract between the named insured and the residential contractors is void, if a residential contractor violates any requirement related to the post-loss assignment of rights or benefits by the named insured to the residential contractor.