SB 101 2
22 property and casualty insurance policy may cancel the contract prior
23 to midnight on the fifth business day after the insured party has
24 received written notice from the insurer that all or any part of the
25 claim or contract is not a covered loss under the insurance
26 policy. Cancellation shall be evidenced by the insured party giving
27 written notice of cancellation to the residential contractor at the
28 address stated in the contract. Notice of cancellation, if given by mail,
29 shall be effective upon deposit into the United States mail, postage
30 prepaid and properly addressed to the residential contractor. Notice
31 of cancellation need not take a particular form and shall be sufficient
32 if it indicates, by any form of written expression, the intention of the
33 insured party not to be bound by the contract.
34 4. Before entering a contract referred to in subsection 3 of this
35 section, the residential contractor shall:
36 (1) Furnish the insured party a statement in boldface type of a
37 minimum size of ten points, in substantially the following form:
38 "You may cancel this contract at any time before midnight
39 on the fifth business day after you have received written
40 notification from your insurer that all or any part of the
41 claim or contract is not a covered loss under the insurance
42 policy. See attached notice of cancellation form for an
43 explanation of this right."; and
44 (2) Furnish each insured a fully completed form in duplicate,
45 captioned "NOTICE OF CANCELLATION", which shall be attached to the
46 contract but easily detachable, and which shall contain, in boldface
47 type of a minimum size of ten points, the following statement:
48 "NOTICE OF CANCELLATION
49 If you are notified by your insurer that all or any part of the claim or
50 contract is not a covered loss under the insurance policy, you may
51 cancel the contract by mailing or delivering a signed and dated copy of
52 this cancellation notice or any other written notice to (name of
53 contractor) at (address of contractor's place of business) at any time
54 prior to midnight on the fifth business day after you have received such
55 notice from your insurer. If you cancel, any payments made by you
56 under the contract, except for certain emergency work already
57 performed by the contractor, will be returned to you within ten
58 business days following receipt by the contractor of your cancellation