Bill Text: IN HB1237 | 2012 | Regular Session | Amended
Bill Title: Home improvement contracts.
Sponsorship: Partisan Bill (Republican 3)
Status: (Enrolled - Dead) 2012-03-15 - Signed by the Governor [HB1237 Detail]
Download: Indiana-2012-HB1237-Amended.html
Citations Affected: IC 24-5.
Synopsis: Home improvement contracts. Amends the statute
governing home improvement contracts to specify that "home
improvement" includes work performed on a roof system. Defines
"insured consumer" for purposes of the statute. Provides that before
entering into a home improvement contract for a home improvement
that is or may be covered by a personal line property and casualty
insurance policy, a home improvement supplier must furnish the
insured consumer: (1) a statement of the consumer's right to cancel the
contract under the statute; and (2) a cancellation form that may used by
the consumer to cancel the contract. Provides that 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. Provides that an insured consumer who
enters into a home improvement contract may cancel the contract
before midnight on the third business day after the insured consumer
receives written notice from the insurance company that any part of the
claim or contract is not a covered loss. Provides that within 10 days
after a contract is cancelled, 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. Provides that the home improvement supplier
is entitled to the reasonable value of any emergency or other services
actually performed. Prohibits a home improvement supplier from
representing or negotiating on behalf of an insured consumer (or
offering or advertising to do so) in connection with an insurance claim
concerning any home improvement.
Effective: July 1, 2012.
January 9, 2012, read first time and referred to Committee on Judiciary.
January 25, 2012, reported _ Do Pass.
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A BILL FOR AN ACT to amend the Indiana Code concerning trade
regulation.
(b) The term includes the alteration, repair, replacement, reconstruction, or other modification of a roof system.
(1) in whose name a personal line of property and casualty
insurance coverage is issued or who is insured under the
terms of the policy; and
(2) who is or may become a consumer who enters into a home
improvement contract under this chapter.
(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.
(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
damage, loss, or expense that is or may be covered, in whole or in part,
by the proceeds of an a personal line property and casualty insurance
policy, or damage, loss, or expense for which a third party is liable, the
following conditions and requirements apply to the 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 insured consumer
may agree to a contract price expressed in terms of the insured
consumer's liability for payment after the application of insurance
proceeds or payments from a liable third party.
(5) The insured consumer may elect, in writing, to authorize the
commencement of work on the home before the insured
consumer receives complete specifications. However, a 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
entered into after June 30, 2012. Before entering into a home
improvement contract to which this subsection applies, 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)".
(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.
[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
entered into after June 30, 2012. 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, will or may be paid from the proceeds
of a claim under a personal line of property and casualty
insurance, 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 a home improvement supplier has performed:
(1) emergency services, acknowledged in writing by the
insured consumer to be necessary to prevent damage to the
residential property; or
(2) any other services, acknowledged in writing by the insured
consumer;
the home improvement supplier is entitled to the reasonable value
of the emergency services or other services performed.
(d) A home improvement supplier shall not:
(1) represent or negotiate on behalf of an insured consumer;
(2) offer to represent or negotiate on behalf of an insured
consumer; or
(3) advertise that the home improvement supplier will
represent or negotiate on behalf of an insured consumer;
in connection with an insurance claim concerning any home
improvement involving residential property.
