§ 26.1-39.2-04 — Post-loss assignment of rights or benefits

North Dakota § 26.1-39.2-04

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-39.2: Residential Contractor Contracts

Text

A post-loss assignment of rights or benefits to a residential contractor under a property and
casualty insurance policy insuring residential real estate is subject to each of the following:
1. The assignment may authorize a residential contractor to be named as a copayee for
the payment of benefits under a property and casualty insurance policy covering
residential real estate.
2. The assignment must be provided to the insurer of the residential real estate within
five business days after execution.
3. The assignment must include a statement that the residential contractor made no
assurances the claimed loss will be fully covered by an insurance contract and must
include the following notice in capitalized fourteen-point type:
"YOU ARE AGREEING TO ASSIGN CERTAIN RIGHTS YOU HAVE UNDER YOUR
INSURANCE POLICY. THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE
SHOWN IN THIS ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE
INSURER. PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE
SIGNING.
THE INSURER MAY ONLY PAY FOR THE COST TO REPAIR OR REPLACE
DAMAGED PROPERTY CAUSED BY A COVERED PERIL, SUBJECT TO THE
TERMS OF THE POLICY."
4. The assignment 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.
5. The assignment may 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.
6. The assignment must include a statement that the insured homeowner has the right to
cancel the assignment in accordance with subsection 1 of section 26.1-39.2-02.