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03 February 2011

Nance: Bill Concerning Residential Contractors Heard in Committee

"The men were wet and cold from the snow, their clothes and blankets in tatters, their shoes so destroyed that they wrapped their feet in rags. But, “naked and starving as they are,” said Washington, “we cannot enough admire the incomparable patience and fidelity of the soldiery.” –George Washington, Valley Forge, 233 years ago this week.

It has been a challenging week with the blizzard covering the entire state. The legislature was pretty much snowed in with some committee work being accomplished. Due to the blizzard conditions in Jefferson City, the House convened for technical sessions Wednesday and Thursday. The State of the Judiciary address scheduled for Wednesday was postponed.

HB 163 passed out of the House. This bill alters the provisions relating to unemployment compensation statutes in order for Missouri to receive recently approved additional federal extended unemployment benefit funds.

In Committee


The Insurance Policy committee heard HB 148 which I sponsored. Storm Chasers are individuals and companies that follow storms that hit large areas and are overwhelmed with huge losses.

The bill prohibits a residential contractor from advertising or promising to pay or rebate all or any portion of an insurance deductible as an inducement to the sale of goods or services including any allowance or discount against fees or paying the insured or any person directly or indirectly associated with the property any form of compensation or other item of monetary value.

An insured individual under contract with a residential contractor to receive payment for goods or services provided from a property and casualty insurance policy can cancel the contract if the insurer has notified the individual in writing that all or part of the contract is not covered under the insurance policy. The individual must notify the contractor in writing to cancel the contract prior to midnight on the fifth business day after notification from the insurer.

Before entering into a contract, the contractor must provide a form to any insured client stating the required contract cancellation information. Within 10 days of cancelling a contract, a residential contractor must return any payments or deposits made by an insured individual and any note or other evidence of indebtedness.

However, the contractor is entitled to the reasonable value of emergency services provided and documented to be necessary to prevent damages. A residential contractor violating any provision of the bill will be subject to the sanctions prescribed under the Merchandising Practices Act.

Contractors, Insurance Companies, and citizens were all in favor of the bill.

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