|
Senate Bill 1081 |
Senate Author: Creighton |
|
Effective: 1-1-16 |
House Sponsor: Huberty |
Senate Bill 1081 amends the Insurance Code to require a principal who procures an insurance policy under a consolidated insurance program and a contractor who participates in a consolidated insurance program to disclose certain information about the consolidated insurance program before entering into a construction contract with a person if the construction contract requires the person to enroll in the consolidated insurance program. The bill prohibits a person from being required to enter into a construction contract that requires enrollment in a consolidated insurance program unless the person is provided with the required information, authorizes a person who does not receive the information by the prescribed deadline to elect not to enroll in the consolidated insurance program, and requires a person that elects not to enroll in the consolidated insurance program to obtain insurance coverage for the person's work on the construction project. The principal or contractor must compensate the person for the actual cost of that insurance coverage.
Senate Bill 1081 authorizes a contractor to request from the principal, or from a party with which the contractor has a direct contractual relationship, a complete copy of the insurance policy that provides coverage for the contractor under a consolidated insurance program. The bill establishes that it is a material breach of a contractor's construction contract if a complete copy of the requested insurance policy is not provided within a specified time frame.