HB2208 Summary

• Creates new subchapter 9 under Arkansas Code Title 4, Chapter 88 to regulate residential real estate repair contracts where payments come from property and casualty insurance proceeds.

• Requires residential contractors to provide insureds with a notice of cancellation in at least 10-point boldface type before signing any contract, along with a detachable cancellation form in duplicate.

• Grants insureds the right to cancel repair contracts within 3 business days after receiving written notice from their insurer that the claim or repair contract is not a covered loss under the insurance policy.

• Prohibits residential contractors from commencing work until the insured's 3-day cancellation period expires; if cancelled, the contractor must refund all payments within 10 days except for the reasonable value of emergency services already performed.

• Classifies violations of the subchapter as unfair and deceptive acts or practices under the Deceptive Trade Practice Act, allowing harmed insureds to pursue civil action against contractors.