Bill Text: IN HB1237 | 2012 | Regular Session | Enrolled
Bill Title: Home improvement contracts.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Enrolled - Dead) 2012-03-15 - Signed by the Governor [HB1237 Detail]
Download: Indiana-2012-HB1237-Enrolled.html
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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AN ACT to amend the Indiana Code concerning trade regulation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 2. IC 24-5-11-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2.5. As used in this chapter, "exterior home improvement" means any alteration, repair, replacement, reconstruction, or other modification made to the exterior of residential property, including the exterior of any structure on or fixture or improvement to the property. The term also includes the alteration, repair, replacement, reconstruction, or other modification of a residential roof system.
SECTION 3. IC 24-5-11-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 3. (a) As used in this chapter, "home improvement" means any alteration, repair, replacement, reconstruction, or other modification of residential property.
(b) The term includes an exterior home improvement.
SECTION 4. IC 24-5-11-6.2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2012]: Sec. 6.2. As used in this chapter, "insured consumer"
refers to a person:
(1) who is a policyholder or an insured under a:
(A) personal line policy of property and casualty insurance
coverage; or
(B) commercial line farm insurance policy that insures
residential property; and
(2) who is or may become a consumer who enters into a home
improvement contract under this chapter.
SECTION 5. IC 24-5-11-7.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2012]: Sec. 7.5. (a) As used in this chapter, "residential
property" means real property that:
(1) contains one (1) to four (4) units; and
(2) is used in whole or in part as a dwelling of a consumer.
(b) The term includes all fixtures to, structures on, and
improvements to the real property.
SECTION 6. IC 24-5-11-7.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2012]: Sec. 7.7. As used in this chapter, "roof system" includes
roof coverings, roof sheathing, roof weatherproofing, and
insulation.
SECTION 7. IC 24-5-11-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 10. (a) The home
improvement supplier shall provide a completed home improvement
contract to the consumer before it is signed by the consumer. Except as
provided in subsection (c), the contract must contain at a minimum the
following:
(1) The name of the consumer and the address of the residential
property that is the subject of the home improvement.
(2) The name and address of the home improvement supplier and
each of the telephone numbers and names of any agent to whom
consumer problems and inquiries can be directed.
(3) The date the home improvement contract was submitted to the
consumer and any time limitation on the consumer's acceptance
of the home improvement contract.
(4) A reasonably detailed description of the proposed home
improvements.
(5) If the description required by subdivision (4) does not include
the specifications for the home improvement, a statement that the
specifications will be provided to the consumer before
commencing any work and that the home improvement contract
is subject to the consumer's separate written and dated approval
of the specifications.
(6) The approximate starting and completion dates of the home
improvements.
(7) A statement of any contingencies that would materially
change the approximate completion date.
(8) The home improvement contract price.
(9) Signature lines for the home improvement supplier or the
supplier's agent and for each consumer who is to be a party to the
home improvement contract with a legible printed or a typed
version of that person's name placed directly after or below the
signature.
(b) The home improvement contract must be in a form that each
consumer who is a party to it can reasonably read and understand.
(c) If a home improvement contract is entered into as a result of for
damage, loss, or expense that is covered, to be paid, in whole or in
part, by from the proceeds of an a personal line property and
casualty insurance policy or a commercial line farm insurance
policy that insures residential property, or for damage, loss, or
expense for which a third party is liable, the following conditions and
requirements apply to the home improvement contract:
(1) For the purpose of subsection (a)(4) through (a)(7), the
description, completion dates, and statement of contingencies
must be prepared for the proposed home improvements to the
extent that the damage, loss, or expense is reasonably known by
the home improvement supplier.
(2) For the purpose of subsection (a)(4), the requirement that a
reasonably detailed description be included in the contract may be
satisfied with a statement that the subject real estate will be
repaired or restored to the same condition in which the real estate
existed before the damage, loss, or expense occurred, or to a
comparable condition.
(3) For the purpose of subsection (a)(6), the starting and
completion dates may be expressed in terms of the number of
days elapsed from the date when sufficient approval of the
insurance carrier terms allowing for adequate repair or restoration
is obtained.
(4) For the purpose of subsection (a)(8), the consumer or insured
consumer may agree to a contract price expressed in terms of the
consumer's or insured consumer's liability for payment after the
application of insurance proceeds or payments from a liable third
party.
(5) The consumer or insured consumer may elect, in writing, to
authorize the commencement of work on the home before the
consumer or insured consumer receives complete specifications.
However, a consumer or an insured consumer who elects to
authorize the commencement of work under this subdivision is
obligated for the home improvements specified and agreed to by
the insurance carrier.
(6) This subdivision applies to a home improvement contract
that is entered into by a home improvement supplier and an
insured consumer after June 30, 2012, and that includes one
(1) or more exterior home improvements. Before entering into
a home improvement contract that is to be paid, in whole or
in part, from the proceeds of a personal line property and
casualty insurance policy or a commercial line farm insurance
policy that insures residential property, the home
improvement supplier must inform the insured consumer of
the insured consumer's rights under section 10.5(b) of this
chapter by doing the following:
(A) Furnishing to the insured consumer the following
statement: "You may cancel this contract at any time
before midnight on the third business day after you have
received written notification from your insurance company
that all or any part of the claim or contract is not a covered
loss under the insurance policy. See attached notice of
cancellation form for an explanation of this right.".
(B) Furnishing to the insured consumer a form, in
duplicate, that is captioned "NOTICE OF
CANCELLATION" and is attached to the contract but
easily detachable, and that contains the following
statement in at least 10 point, boldface type:
If you are notified by your insurance company that all or
any part of the claim or contract is not a covered loss
under the insurance policy, you may cancel the contract by
mailing or delivering a signed and dated copy of this
cancellation notice or any other written notice to (name of
home improvement supplier) at (address of home
improvement supplier's place of business) at any time
before midnight on the third business day after you have
received such notice from your insurance company.
If you cancel the contract, any payments made by you
under the contract will be returned to you within ten (10)
business days following receipt by (name of home
improvement supplier) of your cancellation notice, minus
any amounts you may owe for work already done by (name
of home improvement supplier).
I HEREBY CANCEL THIS TRANSACTION
_______________________________
(date)
_______________________________
(insured consumer's signature)".
(7) This subdivision applies to a home improvement contract
that is entered into as a result of damage, loss, or expense that
is to be paid, in whole or in part, from the proceeds of a
personal line property and casualty insurance policy or a
commercial line farm insurance policy that insures residential
property. However, this subdivision does not apply to a
consumer and a home improvement supplier that have a prior
business relationship. After June 30, 2012, a home
improvement supplier may not enter into a home
improvement contract to which this subdivision applies unless
one (1) or more of the following apply:
(A) The home improvement supplier resides, is domiciled,
or is authorized to do business in Indiana.
(B) The home improvement supplier maintains in Indiana
one (1) or more fixed physical locations from which the
home improvement supplier engages in or solicits home
improvement contracts.
(C) The home improvement supplier has appointed a
resident agent in Indiana for service of legal process.
(d) A modification to a home improvement contract is not
enforceable against a consumer unless the modification is stated in a
writing that is signed by the consumer.
SECTION 8. IC 24-5-11-10.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 10.5. (a) A home improvement
supplier shall not advertise, offer, or promise to pay or rebate any
part of an insurance deductible to induce a person to enter into a
home improvement contract or otherwise purchase goods or
services from the home improvement supplier. Acts prohibited by
this subsection include the following:
(1) Advertising, offering, or promising to grant an allowance
or a discount against the home improvement contract price or
against other fees or charges.
(2) Advertising, offering, or promising to pay to an insured
consumer, or to any other person, any form of compensation,
including a gift, prize, bonus, coupon, credit, referral fee, or
other item of monetary value for any reason, including the
display of a sign or advertisement on residential property.
(b) This subsection applies to a home improvement contract that
is entered into by a home improvement supplier and an insured
consumer after June 30, 2012, and that includes one (1) or more
exterior home improvements. An insured consumer who enters
into a home improvement contract for which the home
improvement contract price, or charges for other goods and
services under the contract, are to be paid, in whole or in part,
from the proceeds of a personal line property and casualty
insurance policy or a commercial line farm insurance policy that
insures residential property, may cancel the contract before
midnight on the third business day after the insured consumer has
received written notice from the insurance company that any part
of the claim or contract is not a covered loss under the insurance
policy. An insured consumer who seeks to cancel a home
improvement contract under this subsection must provide to the
home improvement supplier, at the address specified in the form
provided under section 10(c)(6)(B) of this chapter, written notice
of the insured consumer's intent not to be bound by the contract.
If the notice of cancellation is sent by mail, the notice is effective
upon deposit of the notice into the United States mail, with postage
prepaid and the notice properly addressed to the home
improvement supplier. Subject to subsection (c), not later than ten
(10) days after a home improvement contract is cancelled under
this subsection, the home improvement supplier shall tender to the
insured consumer:
(1) any payment or deposit made by the insured consumer;
and
(2) any note or other evidence of indebtedness of the insured
consumer.
(c) If:
(1) an insured consumer cancels a home improvement
contract under subsection (b); and
(2) the home improvement supplier has performed emergency
or temporary services that the insured consumer
acknowledged in writing before their performance to be
necessary to prevent damage to the residential property;
the home improvement supplier is entitled to the reasonable value of the emergency or temporary services performed.
(d) A home improvement supplier shall not act as a public adjuster (as defined in IC 27-1-27-1).
HEA 1237
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