Senate
File
412
-
Enrolled
Senate
File
412
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.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
NEW
SECTION
.
515.137A
Post-loss
assignment
of
rights
or
benefits
to
a
residential
contractor.
1.
This
section
may
be
cited
as
the
“Insured
Homeowner’s
Protection
Act”
.
Senate
File
412,
p.
2
2.
As
used
in
this
section,
unless
the
context
otherwise
requires:
a.
“Catastrophe”
means
the
same
as
defined
in
section
103A.71.
b.
“Residential
contractor”
means
the
same
as
defined
in
section
103A.71.
c.
“Residential
real
estate”
means
the
same
as
defined
in
section
103A.71.
d.
“Roof
system”
means
the
same
as
defined
in
section
103A.71.
3.
A
post-loss
assignment
by
a
named
insured
of
rights
or
benefits
to
a
residential
contractor
under
a
property
and
casualty
insurance
policy
insuring
residential
real
estate
shall
be
subject
to
all
of
the
following
requirements:
a.
The
assignment
shall
only
authorize
a
residential
contractor
to
be
named
as
a
co-payee
for
the
payment
of
benefits
under
a
property
and
casualty
insurance
policy
covering
residential
real
estate.
b.
The
assignment
shall
include
all
of
the
following:
(1)
An
itemized
description
of
the
work
to
be
performed.
(2)
An
itemized
description
of
the
materials,
labor,
and
fees
for
the
work
to
be
performed.
(3)
A
total
itemized
amount
to
be
paid
for
the
work
to
be
performed.
c.
The
assignment
shall
include
a
statement
that
the
residential
contractor
has
made
no
assurances
that
the
claimed
loss
will
be
fully
covered
by
an
insurance
contract
and
shall
include
the
following
notice
in
capitalized
fourteen
point
type:
YOU
ARE
AGREEING
TO
GIVE
UP
CERTAIN
RIGHTS
YOU
HAVE
UNDER
YOUR
INSURANCE
POLICY.
PLEASE
READ
AND
UNDERSTAND
THIS
DOCUMENT
BEFORE
SIGNING.
THE
ITEMIZED
DESCRIPTION
OF
THE
WORK
TO
BE
DONE
SHOWN
IN
THIS
ASSIGNMENT
FORM
HAS
NOT
BEEN
AGREED
TO
BY
THE
INSURER.
THE
INSURER
HAS
THE
RIGHT
TO
PAY
ONLY
FOR
THE
COST
TO
REPAIR
OR
REPLACE
DAMAGED
PROPERTY
CAUSED
BY
A
COVERED
PERIL.
d.
The
assignment
shall
include
the
following
notice
in
capitalized
fourteen
point
type
located
in
the
immediate
proximity
of
the
space
reserved
in
the
assignment
for
the
Senate
File
412,
p.
3
signature
of
the
named
insured:
YOU
MAY
CANCEL
THIS
ASSIGNMENT
WITHOUT
PENALTY
WITHIN
FIVE
(5)
BUSINESS
DAYS
FROM
THE
LATER
OF
THE
DATE
THE
ASSIGNMENT
IS
EXECUTED
OR
THE
DATE
ON
WHICH
YOU
RECEIVE
A
COPY
OF
THE
EXECUTED
ASSIGNMENT.
YOU
MUST
CANCEL
THE
ASSIGNMENT
IN
WRITING
AND
THE
CANCELLATION
MUST
BE
DELIVERED
TO
(name
and
address
of
residential
contractor
as
provided
by
the
residential
contractor).
IF
MAILED,
THE
CANCELLATION
MUST
BE
POSTMARKED
BEFORE
THE
FIVE
(5)
BUSINESS
DAY
DEADLINE.
IF
YOU
CANCEL
THIS
ASSIGNMENT,
THE
RESIDENTIAL
CONTRACTOR
HAS
UP
TO
TEN
(10)
BUSINESS
DAYS
TO
RETURN
ANY
PAYMENTS
OR
DEPOSITS
YOU
HAVE
MADE.
e.
The
assignment
shall
not
impair
the
interest
of
a
mortgagee
listed
on
the
declarations
page
of
the
property
and
casualty
insurance
policy
which
is
the
subject
of
the
assignment.
f.
The
assignment
shall
not
prevent
or
inhibit
an
insurer
from
communicating
with
the
named
insured
or
mortgagee
listed
on
the
declarations
page
of
the
property
and
casualty
insurance
policy
that
is
the
subject
of
the
assignment.
g.
A
copy
of
the
executed
assignment
shall
be
provided
to
the
insurer
of
the
residential
real
estate
within
five
business
days
after
execution
of
the
assignment.
h.
The
named
insured
has
the
right
to
cancel
the
assignment
for
any
reason
within
five
business
days
from
the
later
of
the
date
the
assignment
is
executed
or
the
date
on
which
the
named
insured
receives
a
copy
of
the
executed
assignment.
The
cancellation
must
be
made
in
writing.
Within
ten
business
days
of
the
date
of
the
written
cancellation,
the
residential
contractor
shall
tender
to
the
named
insured,
the
land
owner,
or
the
possessor
of
the
real
estate,
any
payments,
partial
payments,
or
deposits
that
have
been
made
by
such
person.
4.
Any
written
contract,
repair
estimate,
or
work
order
prepared
by
a
residential
contractor
to
provide
goods
or
services
to
be
paid
from
the
proceeds
of
a
property
and
casualty
insurance
policy
shall
include
in
capitalized
fourteen
point
type
the
notice
as
provided
in
section
103A.71,
subsection
4,
paragraph
“a”
,
which
shall
be
signed
by
the
named
insured,
and
sent
to
the
named
insured’s
insurance
company
Senate
File
412,
p.
4
prior
to
payment
of
proceeds
under
the
applicable
insurance
policy.
5.
a.
A
contract
entered
into
with
a
residential
contractor
is
void
if
the
residential
contractor
violates
any
provision
of
this
section.
b.
A
violation
of
this
section
by
a
residential
contractor
is
an
unlawful
practice
pursuant
to
section
714.16.
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
______________________________
LINDA
UPMEYER
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
412,
Eighty-eighth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2019
______________________________
KIM
REYNOLDS
Governor