Bill Text: MN SF249 | 2011-2012 | 87th Legislature | Chaptered

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Bill Title: Residential contractors insurance claims for goods and services regulation

Sponsorship: Slight Partisan Bill (Republican 7-3)

Status: (Passed) 2011-05-24 - Governor approval [SF249 Detail]

Download: Minnesota-2011-SF249-Chaptered.html

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CHAPTER 63--S.F.No. 249

An act

relating to commerce; regulating the provision of certain goods and
services of residential contractors; providing enforcement;amending Minnesota
Statutes 2010, sections 325E.66; 326B.811, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2010, section 325E.66, is amended to read:
325E.66 INSURANCE CLAIMS FOR RESIDENTIAL ROOFING
CONTRACTING GOODS AND SERVICES.
    Subdivision 1. Payment or rebate of insurance deductible. A residential
contractor providing the repair or replacement of residential roofing goods and services
or siding to be paid by an insured from the proceeds of a property or casualty insurance
policy shall not, as an inducement to the sale or provision of goods or services to an
insured, advertise or promise to pay or rebate, directly or indirectly, all or part of any
applicable insurance deductible or offer to compensate an insured for providing any
service to the insured. If a residential contractor violates this section, the insurer to whom
the insured tendered the claim shall not be obligated to consider the estimate prepared by
the residential contractor.
For purposes of this section, "residential contractor" means a residential roofer, as
defined in section 326B.802, subdivision 14; a residential contractor, as defined in section
326B.802, subdivision 11; and a residential remodeler, as defined in section 326B.802,
subdivision 12; and a siding contractor registered under section 326B.802, subdivision 15.
    Subd. 2. Violation Private remedy. If a residential contractor violates subdivision
1, the insured or the applicable insurer may bring an action against the residential
contractor in a court of competent jurisdiction for damages sustained by the insured or
insurer as a consequence of the residential roofer's contractor's violation.
    Subd. 3. Public enforcement. The commissioner of labor and industry shall enforce
this section under sections 326B.081 to 326B.085.

    Sec. 2. Minnesota Statutes 2010, section 326B.811, subdivision 1, is amended to read:
    Subdivision 1. Required. A person who has entered into a written contract with
a contractor residential roofer or a siding contractor registered under section 326B.802,
subdivision 15, to provide residential roofing goods and services to be paid by the
insured from the proceeds of a property or casualty insurance policy has the right to
cancel the contract within 72 hours after the insured has been notified by the insurer
that the claim has been denied. Cancellation is evidenced by the insured giving written
notice of cancellation to the contractor at the address stated in the contract. Notice of
cancellation, if given by mail, is effective upon deposit in a mailbox, properly addressed
to the contractor and postage prepaid. Notice of cancellation need not take a particular
form and is sufficient if it indicates, by any form of written expression, the intention of the
insured not to be bound by the contract.
Presented to the governor May 23, 2011
Signed by the governor May 24, 2011, 2:27 p.m.