26.1-39.2-06. Notice required

26.1-39.2-06. Notice required

A written contract, repair estimate, or work order prepared by a residential contractor to

provide goods or services to be paid from the proceeds of a property and casualty insurance

policy must include the following notice of the prohibition contained in section 26.1-39.2-03 in

capitalized fourteen-point type which must be signed by the named insured and sent to the

named insured's insurer before payment of proceeds under the applicable insurance policy:

"IT IS A VIOLATION OF THE INSURANCE LAWS OF NORTH DAKOTA TO REBATE ANY

PORTION OF AN INSURANCE DEDUCTIBLE AS AN INDUCEMENT TO THE INSURED TO

ACCEPT A RESIDENTIAL CONTRACTOR'S PROPOSAL TO REPAIR DAMAGED PROPERTY.

REBATE OF A DEDUCTIBLE INCLUDES GRANTING AN ALLOWANCE OR OFFERING A

DISCOUNT AGAINST THE FEES TO BE CHARGED FOR WORK TO BE PERFORMED OR

PAYING THE INSURED HOMEOWNER THE DEDUCTIBLE AMOUNT SET FORTH IN THE

INSURANCE POLICY.

THE INSURED HOMEOWNER IS PERSONALLY RESPONSIBLE FOR PAYMENT OF THE

DEDUCTIBLE. THE INSURANCE FRAUD STATUTES AND NORTH DAKOTA CRIMINAL

STATUTES PROHIBIT THE INSURED HOMEOWNER FROM ACCEPTING FROM A

RESIDENTIAL CONTRACTOR A REBATE OF THE DEDUCTIBLE OR OTHERWISE

ACCEPTING AN ALLOWANCE OR DISCOUNT FROM THE RESIDENTIAL CONTRACTOR TO

COVER THE COST OF THE DEDUCTIBLE. VIOLATIONS MAY BE PUNISHABLE BY CIVIL

OR CRIMINAL PENALTIES."