Section 27-7-5.3

Licenses - Limited license for self-service storage facility.

(a) As used in this section, the following terms shall have the following meanings:

(1) LIMITED LICENSEE. A person or entity authorized to sell certain coverages for personal property maintained in self-service storage facilities pursuant to this section.

(2) OCCUPANT. A person, his or her sublessee, successor, or assign entitled to the use of the storage space at a self-service storage facility under a rental agreement, to the exclusion of others.

(3) OWNER. The owner, operator, lessor, or sublessor of a self-service storage facility, his or her agent, or any other person authorized by him or her to manage the self-service storage facility or to receive rent from an occupant under a rental agreement.

(4) PERSONAL PROPERTY. Any movable property not affixed to land including, but not limited to, goods, wares, merchandise, motor vehicles, watercraft, and household items and furnishings.

(5) RENTAL AGREEMENT. Any agreement or lease, written or oral, that establishes or modifies the terms, conditions, rules, or any other provisions concerning the use and occupancy of storage space at a self-service storage facility.

(6) SELF-SERVICE STORAGE FACILITY. Any real property designed and used for the purpose of renting or leasing individual storage space to occupants who are to have access to the facility for the purpose of storing and removing personal property and not for residential purposes. The term does not include a safe-deposit box or vault maintained by banks, trust companies, or other financial entities or a public warehouse within the meaning of Article 1, commencing with Section 8-15-1, of Chapter 15, Title 8.

(7) SUPERVISING ENTITY. Any business entity that is a licensed insurance producer or insurer.

(b) Any other provision of law to the contrary notwithstanding, the commissioner may issue to an owner that is in compliance with the requirements of this section a limited license authorizing the limited licensee to offer, sell, solicit, or negotiate insurance through a licensed insurer in connection with a self-service storage facility.

(c) All limited licensees shall be exempt from the pre-qualification course and written examination requirements of Section 27-7-5, and the continuing education requirements of Chapter 8A.

(d) A limited licensee may offer, sell, solicit, or negotiate insurance on behalf of a licensed insurer, or as part of a group, commercial, or master policy to provide insurance for that limited licensee's occupants, only in connection with a rental agreement, and only for either an individual policy issued to an individual occupant or as a group, commercial, or master policy for occupants for personal property insurance. A limited licensee shall only be authorized to provide to occupants insurance coverage for the following:

(1) The loss of or damage to personal property stored at a self-service storage facility where the loss or damage occurs at the self-service storage facility or while the personal property is in transit to or from the self-storage facility during the time period covered by the occupant's rental agreement.

(2) Other loss directly related to an occupant's rental agreement.

(e) No insurance may be issued by a limited licensee pursuant to this section unless the limited licensee provides to a prospective purchaser written material that provides all of the following:

(1) A summary of the terms of insurance coverage, including the identity of the insurer.

(2) A conspicuous disclosure that the policy of insurance may provide a duplication of coverage already provided by an existing policy of insurance.

(3) A description of the process for filing a claim in the event the occupant elects to purchase coverage and experiences a covered loss.

(4) Information regarding the price, deductible, benefits, exclusions, conditions, and any other limitations of the policy.

(5) A statement that the purchase by the occupant of the kinds of coverage specified in this section from the limited licensee is not required in order to rent storage space.

(6) A statement that the limited licensee is not authorized to evaluate the adequacy of the occupant's existing insurance coverages, unless the limited licensee is otherwise licensed.

(7) A statement that the occupant may cancel the insurance at any time, and any unearned premium shall be refunded in accordance with applicable law.

(f) Any other provision of law to the contrary notwithstanding, if the kinds of coverage described in this section are required as a condition of a rental agreement, that requirement may be satisfied by an occupant or a prospective occupant:

(1) Purchasing coverage that is offered, sold, solicited, or negotiated by the limited licensee; or

(2) Presenting to the self-service storage facility evidence of other applicable insurance coverage.

(g) Any other provision of law or any rule adopted by the commissioner to the contrary notwithstanding, a limited licensee licensed pursuant to this section may not be required to treat monies collected from occupants as funds received in a fiduciary capacity, provided that the charges for coverage shall be itemized and be ancillary to a rental agreement. The sale of insurance not in conjunction with a rental agreement is not permitted.

(h) A limited licensee licensed pursuant to this section may authorize any employee or authorized representative of the limited licensee to act individually on behalf and under the supervision of the limited licensee with respect to the kinds of coverage specified in this section.

(i) Each owner licensed pursuant to this section shall provide a training program, which may be provided to the owner by a supervising entity, in which employees and authorized representatives of the owner shall receive basic instruction about the kind of coverage authorized in this section and offered for purchase by occupants or prospective occupants.

(j) As a prerequisite for issuance of a limited license under this section, there shall be filed with the commissioner an application for a limited license in such form or forms, and supplements thereto, and containing such information as the commissioner may prescribe.

(k) No limited licensee licensed pursuant to this section shall advertise, represent, or otherwise hold itself or any of its employees out as licensed insurers, insurance agents, or insurance brokers.

(l) A limited licensee may receive compensation from a supervising entity for sales, billing, and collection services. The compensation may be dependent on the sale of the types of coverage described in this section.

(Act 2018-455, §2.)