Bill Text: IA HF417 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act 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. (Formerly HSB 33.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2019-04-11 - Withdrawn. H.J. 843. [HF417 Detail]
Download: Iowa-2019-HF417-Introduced.html
House
File
417
-
Introduced
HOUSE
FILE
417
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
33)
A
BILL
FOR
An
Act
relating
to
post-loss
assignment
of
rights
to
1
residential
contractors
for
repair
or
services
performed
on
2
residential
real
estate
covered
by
property
and
casualty
3
insurance,
and
making
penalties
applicable.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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417
Section
1.
NEW
SECTION
.
515.137A
Post-loss
assignment
of
1
rights
or
benefits
to
a
residential
contractor.
2
1.
This
section
may
be
cited
as
the
“Insured
Homeowner’s
3
Protection
Act”
.
4
2.
As
used
in
this
section,
unless
the
context
otherwise
5
requires:
6
a.
“Catastrophe”
means
the
same
as
defined
in
section
7
103A.71.
8
b.
“Residential
contractor”
means
the
same
as
defined
in
9
section
103A.71.
10
c.
“Residential
real
estate”
means
the
same
as
defined
in
11
section
103A.71.
12
d.
“Roof
system”
means
the
same
as
defined
in
section
13
103A.71.
14
3.
A
post-loss
assignment
by
a
named
insured
of
rights
15
or
benefits
to
a
residential
contractor
under
a
property
and
16
casualty
insurance
policy
insuring
residential
real
estate
17
shall
be
subject
to
all
of
the
following
requirements:
18
a.
The
assignment
shall
only
authorize
a
residential
19
contractor
to
be
named
as
a
co-payee
for
the
payment
of
20
benefits
under
a
property
and
casualty
insurance
policy
21
covering
residential
real
estate.
22
b.
The
assignment
shall
include
all
of
the
following:
23
(1)
An
itemized
description
of
the
work
to
be
performed.
24
(2)
An
itemized
description
of
the
materials,
labor,
and
25
fees
for
the
work
to
be
performed.
26
(3)
A
total
itemized
amount
to
be
paid
for
the
work
to
be
27
performed.
28
c.
The
assignment
shall
include
a
statement
that
the
29
residential
contractor
has
made
no
assurances
that
the
claimed
30
loss
will
be
fully
covered
by
an
insurance
contract
and
shall
31
include
the
following
notice
in
capitalized
fourteen
point
32
type:
33
YOU
ARE
AGREEING
TO
GIVE
UP
CERTAIN
RIGHTS
YOU
HAVE
UNDER
34
YOUR
INSURANCE
POLICY.
PLEASE
READ
AND
UNDERSTAND
THIS
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417
DOCUMENT
BEFORE
SIGNING.
1
THE
ITEMIZED
DESCRIPTION
OF
THE
WORK
TO
BE
DONE
SHOWN
IN
THIS
2
ASSIGNMENT
FORM
HAS
NOT
BEEN
AGREED
TO
BY
THE
INSURER.
THE
3
INSURER
HAS
THE
RIGHT
TO
PAY
ONLY
FOR
THE
COST
TO
REPAIR
OR
4
REPLACE
DAMAGED
PROPERTY
CAUSED
BY
A
COVERED
PERIL.
5
d.
The
assignment
shall
include
the
following
notice
in
6
capitalized
fourteen
point
type
located
in
the
immediate
7
proximity
of
the
space
reserved
in
the
assignment
for
the
8
signature
of
the
named
insured:
9
YOU
MAY
CANCEL
THIS
ASSIGNMENT
WITHOUT
PENALTY
WITHIN
FIVE
10
(5)
BUSINESS
DAYS
FROM
THE
LATER
OF
THE
DATE
THE
ASSIGNMENT
11
IS
EXECUTED
OR
THE
DATE
ON
WHICH
YOU
RECEIVE
A
COPY
OF
THE
12
EXECUTED
ASSIGNMENT.
13
YOU
MUST
CANCEL
THE
ASSIGNMENT
IN
WRITING
AND
THE
14
CANCELLATION
MUST
BE
DELIVERED
TO
(name
and
address
of
15
residential
contractor
as
provided
by
the
residential
16
contractor).
IF
MAILED,
THE
CANCELLATION
MUST
BE
POSTMARKED
17
BEFORE
THE
FIVE
(5)
BUSINESS
DAY
DEADLINE.
IF
YOU
CANCEL
THIS
18
ASSIGNMENT,
THE
RESIDENTIAL
CONTRACTOR
HAS
UP
TO
TEN
(10)
19
BUSINESS
DAYS
TO
RETURN
ANY
PAYMENTS
OR
DEPOSITS
YOU
HAVE
MADE.
20
e.
The
assignment
shall
not
impair
the
interest
of
a
21
mortgagee
listed
on
the
declarations
page
of
the
property
22
and
casualty
insurance
policy
which
is
the
subject
of
the
23
assignment.
24
f.
The
assignment
shall
not
prevent
or
inhibit
an
insurer
25
from
communicating
with
the
named
insured
or
mortgagee
listed
26
on
the
declarations
page
of
the
property
and
casualty
insurance
27
policy
that
is
the
subject
of
the
assignment.
28
g.
A
copy
of
the
executed
assignment
shall
be
provided
to
29
the
insurer
of
the
residential
real
estate
within
five
business
30
days
after
execution
of
the
assignment.
31
h.
The
named
insured
has
the
right
to
cancel
the
assignment
32
for
any
reason
within
five
business
days
from
the
later
of
33
the
date
the
assignment
is
executed
or
the
date
on
which
the
34
named
insured
receives
a
copy
of
the
executed
assignment.
The
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cancellation
must
be
made
in
writing.
Within
ten
business
1
days
of
the
date
of
the
written
cancellation,
the
residential
2
contractor
shall
tender
to
the
named
insured,
the
land
owner,
3
or
the
possessor
of
the
real
estate,
any
payments,
partial
4
payments,
or
deposits
that
have
been
made
by
such
person.
5
4.
Any
written
contract,
repair
estimate,
or
work
order
6
prepared
by
a
residential
contractor
to
provide
goods
or
7
services
to
be
paid
from
the
proceeds
of
a
property
and
8
casualty
insurance
policy
shall
include
in
capitalized
9
fourteen
point
type
the
notice
as
provided
in
section
103A.71,
10
subsection
4,
paragraph
“a”
,
which
shall
be
signed
by
the
named
11
insured,
and
sent
to
the
named
insured’s
insurance
company
12
prior
to
payment
of
proceeds
under
the
applicable
insurance
13
policy.
14
5.
a.
A
contract
entered
into
with
a
residential
contractor
15
is
void
if
the
residential
contractor
violates
any
provision
of
16
this
section.
17
b.
A
violation
of
this
section
by
a
residential
contractor
18
is
an
unlawful
practice
pursuant
to
section
714.16.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
relates
to
post-loss
assignment
of
rights
to
23
residential
contractors
for
repair
or
services
performed
on
24
residential
real
estate
covered
by
property
and
casualty
25
insurance.
26
The
bill
requires
a
post-loss
assignment
by
a
named
insured
27
of
rights
or
benefits
to
a
residential
contractor
under
a
28
property
and
casualty
insurance
policy
insuring
residential
29
real
estate
to
only
authorize
the
residential
contractor
as
a
30
co-payee
for
the
payment
of
benefits
under
the
policy.
31
The
post-loss
assignment
must
include
an
itemized
32
description
of,
and
the
materials,
labor,
and
fees
for,
the
33
work
to
be
performed.
The
post-loss
assignment
must
also
34
include
a
total
itemized
amount
for
the
work
to
be
performed.
35
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The
bill
requires
that
the
post-loss
assignment
include
a
1
statement
and
a
notice,
in
14
point
type,
that
the
residential
2
contractor
has
not
represented
that
the
claimed
loss
will
be
3
fully
covered
by
insurance.
The
bill
requires
an
additional
4
notice,
as
detailed
in
the
bill,
advising
the
named
insured
of
5
the
named
insured’s
right
to
cancel
the
assignment
and
of
the
6
process
for
canceling
the
assignment.
7
The
assignment
is
prohibited
from
impairing
the
interest
8
of
a
named
mortgagee
on
the
property,
or
from
preventing
the
9
insurer
from
communicating
with
the
named
insured
or
a
named
10
mortgagee.
11
The
bill
requires
that
after
the
post-loss
assignment
12
is
executed,
a
copy
must
be
provided
to
the
insurer
of
the
13
residential
real
estate
within
five
business
days.
The
named
14
insured
has
the
right
to
cancel
the
assignment
for
any
reason
15
within
those
five
business
days.
If
the
named
insured
cancels
16
the
assignment,
the
residential
contractor
must
return
any
17
payments
made
by
the
named
insured,
the
landowner,
or
the
18
possessor
of
the
real
estate.
19
Any
written
contract,
estimate,
or
work
order
prepared
by
20
the
residential
contractor
must
include
a
notice,
as
detailed
21
in
the
bill,
advising
the
named
insured
that
the
named
insured
22
is
responsible
for
payment
to
the
residential
contractor
for
23
any
goods
or
services
provided
by
the
contractor,
even
if
24
the
named
insured
does
not
receive
payment
from
a
property
25
and
casualty
insurance
policy.
The
notice
also
advises
the
26
named
insured
that
if
the
residential
contractor
advertises
27
or
promises
to
rebate
the
named
insured’s
deductible,
or
28
represents
or
negotiates,
or
offers
to
represent
or
negotiate
29
with
the
named
insured’s
property
and
casualty
insurer
30
on
behalf
of
the
named
insured,
the
named
insured
is
not
31
responsible
for
payment
to
the
contractor
under
the
contract,
32
estimate,
or
work
order.
A
copy
of
the
document,
signed
by
the
33
named
insured,
must
be
sent
to
the
named
insured’s
insurance
34
company
prior
to
the
residential
contractor
being
paid
from
the
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proceeds
of
the
property
and
casualty
insurance.
1
It
is
an
unlawful
practice
pursuant
to
Code
section
714.16,
2
and
the
contract
between
the
named
insured
and
the
residential
3
contractors
is
void,
if
a
residential
contractor
violates
any
4
requirement
related
to
the
post-loss
assignment
of
rights
or
5
benefits
by
the
named
insured
to
the
residential
contractor.
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