§ 24-5-11-10 — Contract requirements; insurance policies; exterior improvements; statement of right to cancel; notice of cancellation; supplier's nexus with Indiana; contract modifications; third party suppliers; consumer's rights not subject to assignment; contract to reflect full amount of contract price less discounts; impersonation of consumer

Indiana § 24-5-11-10

• Jurisdiction: Indiana
• Art. 5: CONSUMER SALES
• Ch. 11: Home Improvement Contracts

Text

(a) A real property improvement supplier
shall provide a completed real property improvement contract to the
consumer before it is signed by the consumer. Except as provided in
subsection (c), and subject to subsection (e) and section 10.6 of this
chapter for contracts entered into after June 30, 2017, the contract must
contain at a minimum the following:
(1) The name of the consumer and the address of the real property
that is the subject of the real property improvement.
(2) The following information:
(A) The name and address of the real property improvement
supplier and, for a real property improvement contract executed
after June 30, 2017, an electronic mail address maintained and
used by the real property improvement supplier to communicate
with consumers.
(B) The following information with respect to each owner,
officer, employee, or agent of the real property improvement
supplier to whom consumer problems and inquiries can be
directed:
(i) Name.
(ii) Telephone number.
(iii) For a real property improvement contract executed after
June 30, 2017, an electronic mail address maintained and
used by the owner, officer, employee, or agent to
communicate with consumers.
(3) The date the real property improvement contract was
submitted to the consumer and any time limitation on the
consumer's acceptance of the real property improvement contract.
(4) A reasonably detailed description of the proposed real
property improvements.
(5) If the description required by subdivision (4) does not include
the specifications for the real property improvement, a statement
that the specifications will be provided to the consumer before
any work is commenced under the real property improvement
contract and that the real property improvement contract is
subject to the consumer's separate written and dated approval of
the specifications.
(6) The approximate starting and completion dates of the real
property improvements.
(7) A statement of any contingencies that would materially
change the approximate completion date.
(8) The real property improvement contract price.
(9) Subject to subsections (b) and (c)(8), for a real property
improvement contract executed after June 30, 2017, a statement
as to whether any third party, including any:
(A) subcontractor;
(B) vendor; or
(C) other person;
that is not a party to the contract, will lease or furnish any labor,
services, material, equipment, or machinery to, or on behalf of,
the real property improvement supplier in connection with the
real property improvement.
(10) Signature lines for the real property improvement supplier or
the supplier's agent and for each consumer who is to be a party to
the real property improvement contract with a legible printed or
a typed version of that person's name placed directly after or
below the signature.
(b) The real property improvement contract must be in a form that
each consumer who is a party to it can reasonably read and understand.
(c) If a real property improvement contract is entered into for
damage, loss, or expense that is to be paid, in whole or in part, from the
proceeds of an insurance policy, or for damage, loss, or expense for
which a third party is liable, the following conditions and requirements
apply to the real property improvement contract:
(1) For the purpose of subsection (a)(4) through (a)(7), the
description, completion dates, and statement of contingencies
must be prepared for the proposed real property improvements to
the extent that the damage, loss, or expense is reasonably known
by the real property improvement supplier.
(2) For the purpose of subsection (a)(4), the requirement that a
reasonably detailed description be included in the contract may be
satisfied with a statement that the subject real estate will be
repaired or restored to the same condition in which the real estate
existed before the damage, loss, or expense occurred, or to a
comparable condition.
(3) For the purpose of subsection (a)(6), the starting and
completion dates may be expressed in terms of the number of
days elapsed from the date when sufficient approval of the
insurance carrier terms allowing for adequate repair or restoration
is obtained.
(4) For the purpose of subsection (a)(8), the consumer or insured
consumer may agree to a contract price expressed in terms of the
consumer's or insured consumer's liability for payment after the
application of insurance proceeds or payments from a liable third
party.
(5) The consumer or insured consumer may elect, in writing, to
authorize the commencement of work on the real property before
the consumer or insured consumer receives complete
specifications. However, a consumer or an insured consumer who
elects to authorize the commencement of work under this
subdivision is obligated for the real property improvements
specified and, if applicable, agreed to by the insurance carrier.
(6) This subdivision applies to a real property improvement
contract that is entered into by a real property improvement
supplier and an insured consumer after June 30, 2012, and before
July 1, 2017, and that includes one (1) or more exterior
improvements. Before entering into a real property improvement
contract that is to be paid, in whole or in part, from the proceeds
of an insurance policy, the real property improvement supplier
must inform the insured consumer of the insured consumer's
rights under section 10.5(b) of this chapter by doing the
following:
(A) Furnishing to the insured consumer the following
statement: "You may cancel this contract at any time before
midnight on the third business day after you have received
written notification from your insurance company that all or any
part of the claim or contract is not a covered loss under the
insurance policy. See attached notice of cancellation form for
an explanation of this right.".
(B) Furnishing to the insured consumer a form, in duplicate,
that is captioned "NOTICE OF CANCELLATION" and is
attached to the contract but easily detachable, and that contains
the following statement in at least 10 point, boldface type:
"NOTICE OF CANCELLATION
If you are notified by your insurance company that all or any
part of the claim or contract is not a covered loss under the
insurance policy, you may cancel the contract by mailing or
delivering a signed and dated copy of this cancellation notice or
any other written notice to (name of real property improvement
supplier) at (address of real property improvement supplier's
place of business) at any time before midnight on the third
business day after you have received such notice from your
insurance company.
If you cancel the contract, any payments made by you under the
contract will be returned to you within ten (10) business days
following receipt by (name of real property improvement
supplier) of your cancellation notice, minus any amounts you
may owe for work already done by (name of real property
improvement supplier).
I HEREBY CANCEL THIS TRANSACTION
_______________________________
(date)
_______________________________
(insured consumer's signature)".
(7) This subdivision applies to a real property improvement
contract that is entered into as a result of damage, loss, or expense
that is to be paid, in whole or in part, from the proceeds of an
insurance policy. However, this subdivision does not apply to a
consumer and a real property improvement supplier that have a
prior business relationship. After June 30, 2012, a real property
improvement supplier may not enter into a real property
improvement contract to which this subdivision applies unless
one (1) or more of the following apply:
(A) The real property improvement supplier resides, is
domiciled, or is authorized to do business in Indiana.
(B) The real property improvement supplier maintains in
Indiana one (1) or more fixed physical locations from which the
real property improvement supplier engages in or solicits real
property improvement contracts.
(C) The real property improvement supplier has appointed a
resident agent in Indiana for service of legal process.
(8) This subdivision applies to a real property improvement
contract that is entered into by a real property improvement
supplier and an insured consumer after June 30, 2017, and in
connection with which a third party described in subsection (a)(9)
will lease or furnish labor, services, material, equipment, or
machinery to, or on behalf of, the real property improvement
supplier. Subject to subsection (b), a real property improvement
contract to which this subdivision applies must include, in
addition to the statement required under subsection (a)(9), a
statement that neither the real property improvement supplier nor
a third party described in subsection (a)(9) may initiate or pursue
a claim with the insured consumer's insurance company.
(d) A modification to a real property improvement contract is not
enforceable against a consumer unless the modification is stated in a
writing that is signed by the consumer.
(e) This subsection applies to a real property improvement contract
that is executed after June 30, 2017, and in connection with which a
third party described in subsection (a)(9) leases or furnishes labor,
services, material, equipment, or machinery to, or on behalf of, the real
property improvement supplier that is a party to the contract. Neither
the real property improvement supplier nor a party described in
subsection (a)(9) may initiate or pursue a claim with an insured
consumer's insurance company.
(f) A real property improvement contract may not assign any rights
of the consumer to any supplier or third parties.
(g) A real property improvement contract must reflect the full
amount of the contract price less any discounts offered.
(h) A real property improvement supplier or third party who
recklessly, knowingly, or intentionally impersonates a consumer
commits a Class A misdemeanor.

Legislative History

As added by P.L.251-1987, SEC.3. Amended by P.L.119-2001, SEC.1; P.L.82-2012, SEC.7; P.L.170-2017, SEC.18.