Section 16-803. INSURANCE

 

803.1Each applicant for a license as a home improvement contractor shall furnish evidence satisfactory to the Director that the operations proposed to be conducted by that applicant under the authority of the license for which application is made will be covered by public liability and property damage insurance for the full period of the license.

 

803.2The insurance shall be cancelable only after thirty (30) days notice to the Director, and shall provide a minimum limit of liability of fifty thousand dollars ($ 50,000) for bodily injury or death of any one (1) person in any single accident, one hundred thousand dollars ($ 100,000) in the aggregate for more than one (1) person in any single accident, and ten thousand dollars ($ 10,000) property damage in any single accident.

 

803.3Notwithstanding the requirements of §§ 803.1 and 803.2, an applicant for a license as a contractor may qualify as a self-insurer by demonstrating to the satisfaction of the Director the following:

 

(a)That the applicant has employed, and for the period for which the applicant is to be licensed will keep employed, one (1) or more qualified persons to receive, process, adjust, and pay claims arising out of the activities of the applicant as a home improvement contractor; and

 

(b)That the applicant is, and will continue for the period of the license to be, possessed of sufficient financial resources to pay claims filed with or judgments rendered against the applicant, as evidenced by a showing of a net worth of at least one hundred thousand dollars ($ 100,000) including (as a liability) the maintenance of a reserve of at least five thousand dollars ($ 5,000) to satisfy anticipated or pending claims or lawsuits arising out of the activities as a home improvement contractor.

 

803.4The Director is authorized, in determining whether any applicant is qualified to be self-insurer under the provisions of § 803.3, to accept an affidavit of the applicant with respect to the requirements of § 803.3(a), and to accept the certificate of a Certified Public Accountant with respect to the requirements of § 803.3(b).