Utah Code 13-50-303 v2. Violation notice

13-50-303. Violation notice.

(1)

Any written contract, repair estimate, or work order that a residential contractor prepares to provide a good or service paid for from the proceeds of a property and casualty insurance policy shall include a notice of the prohibition described in Section 13-50-302 in substantially the following form and in capitalized 14-point type:
“IT IS A VIOLATION OF UTAH LAW FOR A RESIDENTIAL CONTRACTOR TO REBATE ANY PORTION OF AN INSURANCE DEDUCTIBLE AS AN INDUCEMENT TO THE INSURED TO ACCEPT A RESIDENTIAL CONTRACTOR’S PROPOSAL TO REPAIR DAMAGED PROPERTY. REBATE OF A DEDUCTIBLE INCLUDES GRANTING ANY ALLOWANCE OR OFFERING ANY DISCOUNT AGAINST THE FEES TO BE CHARGED FOR WORK TO BE PERFORMED OR PAYING THE INSURED POLICYHOLDER THE DEDUCTIBLE AMOUNT SET FORTH IN THE INSURANCE POLICY.
THE INSURED POLICY HOLDER IS PERSONALLY RESPONSIBLE FOR PAYMENT OF THE DEDUCTIBLE.”.

Terms Used In Utah Code 13-50-303 v2

Contract: A legal written agreement that becomes binding when signed.
Property: includes both real and personal property. See Utah Code 68-3-12.5
Rebate: means :

(a)	any allowance or discount against charged fees; or

(b)

payment of any form of compensation, except for an item of nominal value, to:

(i)	an insured; or

(ii)

a person directly or indirectly associated with a residential building. 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

(2)

Under any agreement in which a residential contractor provides a good or service paid for from the proceeds of a property and casualty insurance policy, no payment may be made to the residential contractor until:

(a)	the named insured signs the notice described in Subsection (1); and

(b)	the residential contractor delivers the notice signed in accordance with Subsection (2)(a) to the named insured’s insurance company.

Enacted by Chapter 88, 2020 General Session

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