# N.D. Cent. Code § 26.1-39.2-02: 26.1-39.2-02. Contract to be paid from proceeds of property and casualty insurance policy - Right to cancel - Duties > North Dakota · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-39.2_S26.1-39.2-02 ## Section - **Citation:** N.D. Cent. Code § 26.1-39.2-02 - **Heading:** 26.1-39.2-02. Contract to be paid from proceeds of property and casualty insurance policy - Right to cancel - Duties - **Jurisdiction:** North Dakota - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** ND Code / Title 26.1 / Chapter 26.1-39.2 / Section 26.1-39.2-02 ## Text 26.1-39.2-02. Contract to be paid from proceeds of property and casualty insurance policy - Right to cancel - Duties. 1. A person that enters 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 before midnight on the later of the fifth business day after the person has: a. Entered 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. 2. The written contract must include a statement that the insured homeowner has the right to cancel the contract in accordance with subsection 1. 3. The person seeking to cancel the contract shall evidence the cancellation by giving the residential contractor a signed and dated copy of written notice of the cancellation. a. The notice of cancellation may be delivered or mailed to the address of the residential contractor's place of business as stated in the contract. b. The notice of cancellation must 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. c. Notice of cancellation given by mail is effective upon deposit in the United States mail, postage prepaid, if properly addressed to the residential contractor. d. Notice of cancellation is not required to be in a particular form and is sufficient if the notice indicates the intent of the insured not to be bound by the contract. 4. 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 if the residential contractor has provided goods or services agreed to by the person in writing to be necessary to prevent damage to the premises, the residential contractor is entitled to be paid the reasonable value of those goods or services. A contract provision to provide goods or services to be paid from the proceeds of a property and casualty insurance policy requiring the payment of a fee that is not for those goods or services is not enforceable against a person that has canceled a contract pursuant to this section. ## Nearby sections - [N.D. Cent. Code § 26.1-39.2-01 26.1-39.2-01. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-39.2_S26.1-39.2-01.md) - [N.D. Cent. Code § 26.1-39.2-02 26.1-39.2-02. Contract to be paid from proceeds of property and casualty insurance policy - Right to cancel - Duties](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-39.2_S26.1-39.2-02.md) - [N.D. Cent. Code § 26.1-39.2-03 26.1-39.2-03. Prohibited acts](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-39.2_S26.1-39.2-03.md) - [N.D. Cent. Code § 26.1-39.2-04 26.1-39.2-04. Post-loss assignment of rights or benefits](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-39.2_S26.1-39.2-04.md) - [N.D. Cent. Code § 26.1-39.2-05 26.1-39.2-05. Itemized description of work](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-39.2_S26.1-39.2-05.md) - [N.D. Cent. Code § 26.1-39.2-06 26.1-39.2-06. Notice required](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-39.2_S26.1-39.2-06.md) - [N.D. Cent. Code § 26.1-39.2-07 26.1-39.2-07. Violation of the chapter](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-39.2_S26.1-39.2-07.md) - [N.D. Cent. Code § 26.1-39.2-08 26.1-39.2-08. Rulemaking authority](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-39.2_S26.1-39.2-08.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-39.2_S26.1-39.2-02. Check the current official text before relying on it. Not legal advice.