Title 40 Trade and Commerce

40-12-705. Exterior storm damage repair contracts; right to cancel; waiver.

(a) A consumer who has entered into a written contract with a contractor to provide exterior storm damage repair goods and services has the right to cancel the contract within three (3) business days of the date on which the contract was entered into or, if the services are to be paid directly by or on behalf of the consumer from the proceeds of a property or casualty insurance policy, within three (3) business days after the consumer has received notice in writing from the insurer that the claim has been denied, in whole or in part, whichever is later. Cancellation is evidenced by the consumer giving written notice of cancellation to the contractor at the address stated in the contract. Notice of cancellation may be in electronic form, effective the date of the electronic transmission or, if given by mail, is effective upon postmark, properly addressed to the contractor and postage prepaid. Written notice also may be given to the contractor by personal delivery. Notice of cancellation need not take a particular form and is sufficient if it indicates, by any form of written expression, the intention of the consumer not to be bound by the contract. (b) The consumer may waive the three (3) day cancellation period if the insurer has provided written notice that the claim has been approved. The waiver shall be in writing, signed by the consumer and accompanied by a copy of the insurer's notice of approval. (c) Before entering a contract referred to in subsection (a) of this section, the contractor shall: (i) Furnish the consumer with a statement in boldface type of a minimum size of twelve (12) points, in substantially the following form: "You may cancel this contract at any time within three (3) business days of the date on which the contract was entered into or within three (3) business days after you have been notified that your insurer has, in whole or in part, denied your claim to pay for the goods and services to be provided under this contract, whichever is later. See attached notice of cancellation form for an explanation of this right. You may waive this right if your insurer has provided written notice that your claim has been approved. The waiver must be in writing, signed by you and accompanied by a copy of the insurer's notice of approval."; and (ii) Furnish each consumer a fully completed form captioned, "NOTICE OF CANCELLATION," which shall be attached to or accompany the contract and which shall contain in boldface type of a minimum size of twelve (12) points the following information and statements: "NOTICE OF CANCELLATION You may cancel this contract within three (3) business days from when it is entered into for any reason or, if your insurer in whole or in part denies your claim to pay for goods and services to be provided under this contract, you may cancel the contract by mailing or delivering (including via electronic transmission) a signed and dated copy of this cancellation notice or any other written notice-to (name of contractor) at (address of contractor's place of business, e-mail address and facsimile number if applicable) at any time within three (3) business days of the date on which the contract was entered into or within three (3) business days after you have been notified that your claim has been denied in whole or in part, whichever is later. Notice of cancelation, if in electronic form, is effective the date of the electronic transmission or, if given by mail, is effective upon postmark, properly addressed to the contractor and postage prepaid. If you cancel, any payments made by you under the contract will be returned within three (3) business days following receipt by the contractor of your cancellation notice. I HEREBY CANCEL THIS TRANSACTION. ...... (date) ..... (Consumer's signature)" (d) Within three (3) days after a contract referred to in subsection (a) of this section has been cancelled, the contractor shall tender to the consumer any payments made by the consumer and any note or other evidence of indebtedness. If the contractor has performed any emergency repair, the contractor is entitled to separately bill the consumer for such services if the consumer has received a detailed description and itemization of charges for those services.