26.1-39.2-04. Post-loss assignment of rights or benefits

26.1-39.2-04. Post-loss assignment of rights or benefits

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.