§ 44-8603 — Contract to be paid from proceeds of property and casualty insurance policy; right to cancel; notice; residential contractor; duties

Nebraska § 44-8603

• Jurisdiction: Nebraska
• Ch. 44: Insurance

Text

(1)
A person who has entered into a written contract with a residential contractor
to provide goods or services to be paid from the proceeds of a property and
casualty insurance policy may cancel the contract prior to midnight on the
later of the third business day after the person has (a) entered into the
written contract or (b) received written notice from the person's insurer
that all or part of the claim or contract is not a covered loss under the
insurance policy. Cancellation shall be evidenced by the person giving written
notice of the cancellation to the residential contractor at the address of
the residential contractor's place of business as stated in the contract.
Written notice of cancellation may be given by delivering or mailing a signed
and dated copy of the written notice of cancellation to the residential contractor
at the address of the residential contractor's place of business as stated
in the contract. The notice of cancellation shall include a copy of the written
notice from the person's insurer, if applicable, to the effect that all or
part of the claim or contract is not a covered loss under the insurance policy.
Notice of cancellation given by mail shall be effective upon deposit in the
United States mail, postage prepaid, if properly addressed to the residential
contractor. Notice of cancellation is not required to be in any particular
form and is sufficient if the notice indicates, by any form of written expression,
the intent of the insured not to be bound by the contract.
(2) Within ten days after
a contract to provide goods or services to be paid from the proceeds of a
property and casualty insurance policy has been canceled by notification pursuant
to this section, the residential contractor shall tender to the person canceling
the contract any payments, partial payments, or deposits made by the person
and any note or other evidence of indebtedness, except that if the residential
contractor has provided any goods or services agreed to by such person in
writing to be necessary to prevent damage to the premises, the residential
contractor shall be entitled to be paid the reasonable value of such goods
or services. Any provision in a contract to provide goods or services to be
paid from the proceeds of a property and casualty insurance policy that requires
the payment of any fee which is not for such goods or services shall not be
enforceable against any person who has canceled a contract pursuant to this
section.

Legislative History

Source: Laws 2012, LB943, § 3.