Effective - 28 Aug 2014
407.725. Work and services for insured persons, contractors not to induce sales — cancellation of contracts, requirements, contractor duties — violations, penalty. — 1. As used in this section, the following terms mean:
(1) "Contractor", a person or entity in the business of contracting or offering to contract with an owner or possessor of residential or commercial real estate to repair or replace roof systems or perform any other exterior repair, replacement, construction, or reconstruction work on any residential or commercial structure situated upon such real estate;
(2) "Roof system", includes roof coverings, roof sheathing, roof weatherproofing, and insulation.
2. A contractor shall not advertise or promise to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of goods or services. As used in this section, a promise to pay or rebate includes granting any allowance or offering any discount against the fees to be charged or paying the insured or any person directly or indirectly associated with the property any form of compensation, gift, prize, bonus, coupon, credit, referral fee, or other item of monetary value for any reason.
3. A person who has entered into a written contract with a contractor to provide goods or services to be paid under a property and casualty insurance policy may cancel the contract prior to midnight on the fifth business day after the insured party has received written notice from the insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. Cancellation shall be evidenced by the insured party giving written notice of cancellation to the contractor at the address stated in the contract. Notice of cancellation, if given by mail, shall be 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 shall be sufficient if it indicates, by any form of written expression, the intention of the insured party not to be bound by the contract.
4. Before entering a contract referred to in subsection 3 of this section, the contractor shall:
(1) Furnish the insured party a statement in boldface type of a minimum size of ten points, in substantially the following form:
You may cancel this contract at any time before midnight on the fifth business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. See attached notice of cancellation form for an explanation of this right.
; and
(2) Furnish each insured a fully completed form in duplicate, captioned "NOTICE OF CANCELLATION", which shall be attached to the contract but easily detachable, and which shall contain, in boldface type of a minimum size of ten points, the following statement:
5. Within ten days after a contract referred to in subsection 3 of this section has been cancelled, the contractor shall tender to the owner or possessor of real estate any payments, partial payments, or deposits made 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 shall be entitled to the reasonable value of such services. Any provision in a contract referred to in subsection 3 of this section that requires the payment of any fee for anything except emergency services shall not be enforceable against the owner or possessor of real estate who has cancelled a contract pursuant to this section.
6. A contractor shall not represent or negotiate, or offer or advertise to represent or negotiate, on behalf of an owner or possessor of real estate on any insurance claim in connection with the repair or replacement of roof systems, or the performance of any other exterior repair, replacement, construction, or reconstruction work.
7. Any violation of this section by a contractor shall be considered an unfair practice pursuant to the Missouri merchandising practices act as codified in this chapter.
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(L. 2011 S.B. 101, A.L. 2014 S.B. 610)
Structure Missouri Revised Statutes
Title XXVI - Trade and Commerce
Chapter 407 - Merchandising Practices
Section 407.005 - Digital electronic equipment definition.
Section 407.010 - Definitions.
Section 407.020 - Unlawful practices, penalty — exceptions.
Section 407.025 - Civil action to recover damages — class actions authorized, when — procedure.
Section 407.030 - Voluntary compliance, assurance made, effect of — violation, penalty.
Section 407.050 - Evidence, when and where produced.
Section 407.070 - Petition to extend return date, when and where filed.
Section 407.105 - Receiver, powers and duties of.
Section 407.110 - Violation of injunction or restitution order, civil penalty.
Section 407.120 - Provisions of this chapter no bar to other civil actions.
Section 407.125 - Chapter not limitation for commissioner of securities.
Section 407.130 - Assessment of court costs.
Section 407.145 - Rulemaking, authority, limitation.
Section 407.200 - Unsolicited merchandise, how disposed of.
Section 407.315 - American Indian art or craft, no sale unless authentic — penalty.
Section 407.325 - Definitions.
Section 407.330 - Contracts, in writing, required provisions — buyer's right to cancel.
Section 407.334 - Contracts, signed by buyer — duration limit — voidable, when — waiver void, when.
Section 407.335 - Holder of contract or note subject to claims and defenses, notice.
Section 407.337 - Assignment of contract, buyer's rights.
Section 407.350 - Definitions.
Section 407.400 - Definitions.
Section 407.415 - Attorney general may obtain injunction, when — bond not required.
Section 407.420 - Penalty — duty to enforce — jurisdiction of attorney general.
Section 407.430 - Citation of law.
Section 407.431 - Attorney general, authority to enforce.
Section 407.432 - Definitions.
Section 407.435 - Card scanner, illegal use of — penalty.
Section 407.436 - Defacing a credit card reader, offense of, penalty.
Section 407.450 - Short title.
Section 407.453 - Definitions.
Section 407.456 - Registration and reports, who shall file, exceptions.
Section 407.466 - Registration by fund-raisers — form — oath — fees.
Section 407.469 - Disclosure of fund-raising costs and use of professional fund-raiser.
Section 407.475 - No additional annual filing or reporting requirements, when — inapplicability.
Section 407.511 - Definitions.
Section 407.516 - Odometer fraud, first degree, penalty.
Section 407.521 - Odometer fraud, second degree, penalty.
Section 407.526 - Odometer fraud, third degree, penalty.
Section 407.542 - Attempt to commit odometer fraud in first or second degree, penalties.
Section 407.543 - Conspiracy to commit odometer fraud in first or second degree, penalty.
Section 407.544 - Prior convictions for odometer frauds, court may increase sentence, penalties.
Section 407.546 - Civil damages for odometer violations — venue.
Section 407.551 - Injunction — action may include suspension or revocation of license.
Section 407.553 - Attorney general or prosecutor to handle actions for violations, exception.
Section 407.560 - Definitions.
Section 407.563 - Law applicable to breach of new motor vehicles warranties.
Section 407.569 - Affirmative defenses.
Section 407.571 - Presumptions of nonconformity — exception.
Section 407.575 - Manufacturer with approved settlement procedure, consumer's duty.
Section 407.577 - Court action by consumer, costs, expenses, attorney's fees, how paid.
Section 407.579 - Consumer's right to other remedies — law to apply, when.
Section 407.583 - Warranty repairs, labor cost compensation to dealer.
Section 407.585 - Definitions.
Section 407.589 - Affirmative defenses.
Section 407.600 - Definitions.
Section 407.630 - Violation of regulations — penalty.
Section 407.635 - Definitions.
Section 407.637 - Credit service organization — exemptions.
Section 407.638 - Prohibited activities.
Section 407.640 - Registration statements, filing, contents, fee.
Section 407.641 - Contract, writing, contents.
Section 407.642 - Contract requirements, cancellation clause.
Section 407.643 - Waiver of buyer's rights void.
Section 407.644 - Actions — damages — penalties.
Section 407.660 - Citation of law.
Section 407.661 - Definitions.
Section 407.663 - Advertisements, requirements.
Section 407.664 - Reinstatement of agreement, when, conditions.
Section 407.670 - Citation of law.
Section 407.671 - Definitions.
Section 407.672 - Cancellation of membership.
Section 407.673 - Contract, requirements, right to cancel.
Section 407.675 - Duration of contract, renewal, terms and limitations.
Section 407.676 - Law not applicable, when.
Section 407.677 - Unlawful practices.
Section 407.678 - Waivers, unenforceable.
Section 407.679 - Violations, penalty — penalty not a bar to civil action.
Section 407.700 - Home solicitation sale defined.
Section 407.710 - Agreement of sale, required statement, exception.
Section 407.715 - Duties of seller after cancellation.
Section 407.720 - Duties of seller after cancellation — lien of buyer, when.
Section 407.730 - Definitions.
Section 407.738 - Actions, unlawful subleasing, who may bring — definitions.
Section 407.742 - Unlawful subleasing, elements of crime.
Section 407.745 - Assignment or transfer of motor vehicle, not unlawful subleasing, when.
Section 407.748 - Violations are unlawful merchandising practices — remedies not exclusive.
Section 407.754 - How to apply to successors in interest — successor in interest defined.
Section 407.755 - Action for damages and costs by retailer for violations — remedy not exclusive.
Section 407.756 - Law, applicability to existing and future contracts.
Section 407.800 - Going-out-of-business sales, requirements, limitations, extension — exceptions.
Section 407.810 - Citation of law.
Section 407.811 - Public policy statement.
Section 407.812 - Compliance with act required — applicability of act.
Section 407.815 - Definitions.
Section 407.817 - Establishment or transfer of an existing franchise, procedures for franchisor.
Section 407.818 - License required.
Section 407.824 - Facility improvements and other changes not required by franchisee, when.
Section 407.825 - Unlawful practices.
Section 407.830 - Franchisor's defenses against action by franchisee.
Section 407.831 - Indemnification and hold harmless requirements.
Section 407.832 - False advertising, prohibition.
Section 407.838 - Definitions.
Section 407.844 - Farm equipment manufacturers, certain acts prohibited.
Section 407.846 - Law applicable to dealer's agreements, when.
Section 407.848 - Damages in civil action or injunction for dealer against manufacturer, when.
Section 407.850 - Definitions.
Section 407.870 - Inventory which does not qualify for repurchase.
Section 407.875 - Liability for failure to repurchase inventory.
Section 407.885 - Application to existing contracts and future contracts.
Section 407.900 - Definitions.
Section 407.904 - Consignment, effect.
Section 407.907 - Waiver of proceeds in trust by artist, requirements.
Section 407.908 - Contracts, prior to August 13, 1984, not affected, exceptions.
Section 407.910 - Violations — punitive damage and costs authorized.
Section 407.911 - Definitions.
Section 407.925 - Definitions.
Section 407.928 - Restrictions on sales of individual packs of cigarettes.
Section 407.932 - Political subdivisions may make more stringent rules.
Section 407.935 - Definitions.
Section 407.940 - Foreclosure consultants, unlawful acts — penalty.
Section 407.941 - Waiver, void — penalty.
Section 407.950 - Definitions.
Section 407.953 - Warranty express or implied, one year required.
Section 407.955 - Nonconformity of assistive device to be repaired at no cost.
Section 407.957 - Nonconformity not repaired within reasonable time, options of consumer.
Section 407.959 - Lease, early termination — reasonable allowance for use, how computed.
Section 407.963 - Resale or lease of returned device, full disclosure required.
Section 407.967 - Action for damages, attorney's fees and costs may be brought by consumer.
Section 407.970 - Rules, procedure to adopt — suspension or revocation of rules, procedure.
Section 407.1025 - Definitions.
Section 407.1028 - Long-arm jurisdiction, motorcycle and all-terrain vehicle (ATV) businesses.
Section 407.1037 - Location of dealerships in City of St. Louis.
Section 407.1040 - License approval in metropolitan areas, minorities.
Section 407.1046 - False advertising prohibited.
Section 407.1049 - Civil action, remedies.
Section 407.1060 - Definitions.
Section 407.1062 - Structured settlement payment transfers, requirements.
Section 407.1064 - Approval by court, notice.
Section 407.1066 - Right to rescind — limitation of liability — limitation of jurisdiction.
Section 407.1068 - Application of law.
Section 407.1070 - Definitions.
Section 407.1073 - Telemarketers, required disclosures — misrepresentations prohibited.
Section 407.1076 - Unlawful telemarketing acts or practices.
Section 407.1079 - Telemarketers required to keep certain records.
Section 407.1082 - Penalties — criminal penalties — civil damages.
Section 407.1085 - Exemptions — attorney general to receive complaints.
Section 407.1090 - Required disclosures for entities soliciting contributions.
Section 407.1095 - Definitions.
Section 407.1098 - Telephone solicitation of member on no-call list prohibited.
Section 407.1120 - Definitions.
Section 407.1135 - Definitions.
Section 407.1138 - Prohibited acts — rulemaking authority, attorney general.
Section 407.1240 - Definitions.
Section 407.1246 - Renewal of registration, procedure, fee.
Section 407.1249 - Right to rescind and cancel, time period allowed.
Section 407.1252 - Complaint procedure — violations, remedy.
Section 407.1320 - Definitions.
Section 407.1326 - Termination notice, requirements, contents.
Section 407.1329 - Repurchase upon termination of agreement.
Section 407.1332 - Change in ownership, notice — rejection of change, notice.
Section 407.1335 - Succession in dealerships, conditions, restrictions and prohibitions.
Section 407.1340 - Violation of dealer agreement.
Section 407.1346 - New RV dealership, restrictions on operation or ownership by a manufacturer.
Section 407.1355 - Social Security numbers, prohibited actions involving.
Section 407.1360 - Definitions.
Section 407.1362 - Dealership agreements, good cause needed to terminate or cancel.
Section 407.1364 - Notice of termination or cancellation, contents.
Section 407.1366 - Change in ownership, notice required.
Section 407.1368 - Repurchase required, when.
Section 407.1370 - Applicability.
Section 407.1380 - Definitions.
Section 407.1384 - Agency liability for failure to comply, damages and equitable relief.
Section 407.1385 - Processing of applications for credit — effect of security freeze.
Section 407.1400 - Processing services agreements, required disclosures — inapplicability, when.
Section 407.1610 - Speculative accumulation of asphalt shingles prohibited.