Before signing a residential real estate repair contract with an insured, a residential contractor shall furnish to the insured:
(1) The following statement in at least 10-point boldface type, the following:
"You may cancel this residential real estate repair contract at any time within three (3) business days after you have received written notification from your insurer that all or any part of the claim or residential real estate repair contract is not a covered loss under the insurance policy. See attached notice of cancellation form for an explanation of this right."; and
(2) A fully completed form in duplicate, captioned "NOTICE OF CANCELLATION", that is attached to the residential real estate repair contract for repairs to residential real estate, that is easily detachable, and contains the following in at least 10-point boldface type:
"NOTICE OF CANCELLATION
(Enter date of transaction)
If you are notified by your insurer that all or any part of the claim or residential real estate repair contract is not a covered loss under the insurance policy, you may cancel the residential real estate repair contract by mailing or delivering a signed and dated copy of this cancellation notice or another written notice to (name of residential contractor) at (address of residential contractor's place of business) at any time within three (3) business days after you have received such notice from your insurer. If you cancel, any payments made under the residential real estate repair contract except for certain emergency services already performed by the residential contractor will be returned to you within ten (10) business days following receipt by the residential contractor of your cancellation notice.
I CANCEL THIS TRANSACTION
_______________________
(DATE)
_______________________
(INSURED'S SIGNATURE)."
Section: Previous 4-88-902 4-88-903 4-88-904 4-88-905 NextLast modified: November 15, 2016