A. When a person indicates a residential contractor will be paid by the proceeds of a property and casualty insurance policy and the person enters into a written contract with a residential contractor to provide goods and services with the understanding the insured is to pay from the proceeds of a property and casualty insurance policy claim, the person may cancel the contract within seventy-two (72) hours after the insured has received written notice from the insurer that all or any part of the claim has been denied. Cancellation is evidenced by the insured giving written notice of cancellation to the residential contractor at the address stated in the contract. Notice of cancellation, if given by mail, is effective upon deposit into the United States mail, postage prepaid and properly addressed to the contractor. 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 insured not to be bound by the contract. B. Before entering into a contract referred to in subsection C of this section, the residential contractor shall: 1. Furnish the insured a statement in boldface letters in a minimum size of twelve-point type, in substantially the following form: “You may cancel this contract at any time within seventy-two (72) hours after you have received written notification from your insurer that your claim to pay for the goods and services to be provided under this contract has been denied. See attached Notice of Cancellation for an explanation of this right.”; and 2. Furnish the insured a Notice of Cancellation form, fully completed in duplicate, attached to the contract, but easily detachable, containing a statement in boldface letters in a minimum size of ten-point type, containing the following statement: “NOTICE OF CANCELLATION If your insurer denies all or any part of your claim to pay for goods and services to be provided under this contract, you may cancel the contract by mailing or delivering 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) at any time within seventy-two (72) hours after you have received written notice that your claim has been denied. If you cancel, any payments made by you under the contract will be returned to you within ten (10) business days following receipt by the contractor of your cancellation notice. I HEREBY CANCEL THIS TRANSACTION ______________________ (date) ______________________ (insured’s signature)” C. Within ten (10) days after a contract referred to in subsection A of this section has been cancelled, the contractor shall tender to the insured any payments made by the insured and any note or other evidence of indebtedness. If, however, the contractor has performed any emergency services, acknowledged by the insured in writing to be necessary to prevent damage to the premises, the contractor is entitled to the reasonable value of such services. D. Any violation of this section by a residential contractor shall be considered a violation of the Roofing Contractor Registration Act, and shall be subject to the misdemeanor penalties prescribed in Section 1151.3 of Title 59 of the Oklahoma Statutes.
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