HF 177

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 06/02/2016 12:36pm

A bill for an act
relating to insurance; regulating the sale of self-service storage insurance;
proposing coding for new law in Minnesota Statutes, chapter 60K.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [60K.60] SALE OF SELF-STORAGE INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in
this subdivision have the meanings given.
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new text begin (b) "Occupant" means a person or the person's sublessee, successor, or assignee
who is entitled to the use of a leased space or spaces at a self-service storage facility, to
the exclusion of others.
new text end

new text begin (c) "Owner" means the owner or the owner's managing agent of a self-service
storage facility.
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new text begin (d) "Personal property" means movable property that is not affixed to land and
includes:
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new text begin (1) goods, wares, merchandise, household items, and furnishings;
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new text begin (2) vehicles, motor vehicles, trailers, and semitrailers; and
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new text begin (3) watercraft and motorized watercraft.
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new text begin (e) "Self-service storage facility" means any real property that is used for renting or
leasing storage space in which the occupants themselves customarily store and remove
personal property on a self-service basis.
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new text begin Subd. 2. new text end

new text begin Requirements. new text end

new text begin (a) An owner or the owner's employees and agents may
offer or sell the kinds of insurance described in this section in connection with and
incidental to the rental of space at a self-service storage facility. An owner and the owner's
employees and agents are exempt from sections 60K.30 to 60K.56, with respect to the
sale of this insurance.
new text end

new text begin (b) An owner shall file a written notice in a form prescribed by the commissioner
that the owner plans to conduct insurance sales as authorized by this section. The notice
must specify all locations in this state at which the owner plans to conduct insurance sales.
The owner shall notify the commissioner within 30 days after commencing insurance
sales at any additional locations in this state.
new text end

new text begin (c) An owner shall file the following with the commissioner:
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new text begin (1) an agreement that the owner assumes all responsibility for the authorized actions
of all unlicensed employees and agents who sell on behalf of the owner the insurance
coverage described in this section; and
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new text begin (2) an agreement that the owner and the owner's employees and agents are subject to
the sections in chapter 72A and in Minnesota Rules, chapter 2790, regarding the marketing
of the insurance coverage described in this section and the conduct of persons involved in
the sale of the insurance coverage in the same manner as if they were licensed.
new text end

new text begin (d) An owner may offer or sell insurance only in connection with and incidental to
the rental of space at a self-service storage facility as an individual policy issued to an
individual or as a group policy and only with respect to personal property insurance that
provides coverage to occupants at the self-service storage facility at which the insurance is
transacted, for the loss of or damage to stored personal property that occurs at that facility.
new text end

new text begin (e) An owner shall not offer or sell insurance under this section unless:
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new text begin (1) the owner provides to the occupant written notice that:
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new text begin (i) summarizes the material terms of insurance coverage offered to occupants,
including the identity of the insurer, premium amount, benefits, exclusions, and conditions;
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new text begin (ii) discloses that the policies offered by the owner may provide a duplication of
coverage already provided by an occupant's homeowner's insurance policy, renter's
insurance policy, vehicle insurance policy, watercraft insurance policy, or other source of
property insurance coverage and that no liability coverage is provided by the insurance
coverage. This disclosure must be displayed prominently in 12-point type or capital
letters and shall read as follows:
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new text begin [Your renters' or homeowners' policy may provide the insurance you need. Check
with your insurance agent to determine if your personal property stored at a location other
than your home or business is covered.];
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new text begin (iii) states that if insurance is required as a condition of rental, the requirement
may be satisfied by the occupant purchasing the insurance described in this section or by
presenting evidence of other applicable insurance coverage; and
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new text begin (iv) describes the process for filing a claim;
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new text begin (2) all costs related to the insurance are stated in writing;
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new text begin (3) evidence of coverage in a form approved by the insurer is provided to every
occupant who purchases the coverage; and
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new text begin (4) the insurance is provided by an insurer authorized to transact the applicable
kinds of insurance in this state.
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new text begin (f) An employee or agent of an owner may act on behalf of and under the supervision
of the owner in matters relating to the sale of insurance under this section. The conduct of
an employee or agent of an owner acting within the scope of employment or agency is
deemed the conduct of the owner for purposes of this section.
new text end

new text begin (g) Each owner shall provide a training program, which must be submitted to the
commissioner for approval, that gives employees and agents of the owner basic instruction
about the provisions of this section, including the kinds of insurance coverage described
in this section.
new text end

new text begin (h) An owner shall not:
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new text begin (1) offer or sell insurance except in connection with and incidental to the rental of
space at a self-service storage facility; or
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new text begin (2) advertise, represent, or otherwise portray itself or any of its employees or agents
as licensed insurers or insurance producers.
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new text begin (i) Nothing in this section prohibits:
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new text begin (1) an insurer from paying and an owner from receiving a commission, service fee,
or other valuable consideration dependent upon the sale of insurance; or
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new text begin (2) an owner from paying and its employees or agents from receiving production
payments or incentive payments if the payments are not dependent on the sale of insurance.
new text end

new text begin Subd. 3. new text end

new text begin Fees for services. new text end

new text begin (a) No person shall charge a fee for any services
rendered in connection with the solicitation, negotiation, or servicing of any self-service
storage insurance unless the requirements of paragraphs (b) and (c) are met.
new text end

new text begin (b) Before rendering the services, a written statement shall be provided to the
prospective occupant disclosing:
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new text begin (1) the services for which fees are charged;
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new text begin (2) the amount of the fees;
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new text begin (3) that the fees are charged in addition to premiums; and
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new text begin (4) that premiums include a commission.
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new text begin (c) The fees charged must be reasonable in relation to the services rendered.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to
self-service storage insurance sold on or after that date.
new text end