13-50-301. Post-loss assignment of rights or benefits to a residential contractor.
(1)
A post-loss assignment of rights or benefits to a residential contractor under a property and casualty insurance policy insuring a residential building:
Terms Used In Utah Code 13-50-301 v2
Contract: A legal written agreement that becomes binding when signed.
Mortgagee: The person to whom property is mortgaged and who has loaned the money.
Residential building: means a single or multiple family dwelling of up to four units. See Utah Code 13-50-102
Residential contractor: means a person that, for compensation, other than wages as an employee, contracts or offers to contract to:
(a)
perform repair work on a residential building;
(b)
arrange for, manage, or process repair work on a residential building; or
(c)
serve as a representative, agent, or assignee of the owner or possessor of a residential building for purposes of repair work on the residential building. See Utah Code 13-50-102
(a)
may authorize a residential contractor to be named as a copayee for the payment of benefits under a property and casualty insurance policy covering the residential building;
(b)
shall include:
(i)
an itemized description of the work to be done on the insured residential building; and
(ii)
the total amount the insured agreed to pay for the work described in Subsection (1)(b)(i);
(c)
shall include a statement that the residential contractor has made no assurances that an insurance contract will fully cover the claimed loss;
(d)
shall include a notice in substantially the following form and in capitalized 14-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.”;
(e)
may not impair the interest of a mortgagee listed on the declarations page of the property and casualty insurance policy that is the subject of the assignment; and
(f)
may not prevent or inhibit an insurer from communicating with a named insured listed on the declarations page of the property and casualty insurance policy that is the subject of the assignment.
(2)
A party receiving the assignment described in Subsection (1) shall:
(a)
deliver the assignment to the insurer of the residential building within five business days after the earlier of the day on which:
(i)
the assignment is executed; or
(ii)
repair work begins on the residential building; and
(b)
cooperate with the insurer of the residential building in an investigation into the claimed loss by:
(i)
providing each document and record the insurer requests; and
(ii)
complying with each post-loss duty included in the insurance policy.
