SF 26

as introduced - 89th Legislature (2015 - 2016) Posted on 03/12/2015 08:31am

A bill for an act
relating to insurance; regulating self-service storage insurance agents; 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.382] SALE OF SELF-STORAGE INSURANCE; LICENSING
OF AGENTS.
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.
new text end

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.
new text end

new text begin (d) "Personal property" means movable property that is not affixed to land and
includes:
new text end

new text begin (1) goods, wares, merchandise, household items, and furnishings;
new text end

new text begin (2) vehicles, motor vehicles, trailers, and semitrailers; and
new text end

new text begin (3) watercraft and motorized watercraft.
new text end

new text begin (e) "Self-service storage agent" means an owner who is licensed under this section.
new text end

new text begin (f) "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.
new text end

new text begin Subd. 2. new text end

new text begin Self-service storage agents; license. new text end

new text begin (a) The commissioner may issue a
self-service storage agent license to an owner who has complied with the requirements
of this section, authorizing the owner to offer or to sell the kinds of insurance prescribed
in this section in connection with and incidental to the rental of space at a self-service
storage facility.
new text end

new text begin (b) An applicant for a self-service storage agent license shall file a written application
in a form prescribed by the commissioner. The application must specify all locations in
this state at which the self-service storage agent may conduct business under the license. A
self-service storage agent is not required to have an individual licensee in each self-service
storage facility or place where insurance is transacted. The self-service storage agent shall
notify the commissioner within 30 days after commencing business under the self-service
storage agent's license at any additional locations in this state or of any locations in this
state at which the self-service storage agent has ceased to do business under the license.
new text end

new text begin (c) A self-service storage agent 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 (d) A self-service storage agent shall not offer or sell insurance under this section
unless:
new text end

new text begin (1) the self-service storage agent makes readily available to the prospective occupant
brochures or other written materials that:
new text end

new text begin (i) summarize the material terms of insurance coverage offered to occupants,
including the identity of the insurer, premium amount, benefits, exclusions, and conditions;
new text end

new text begin (ii) disclose that the policies offered by the self-service storage agent 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;
new text end

new text begin (iii) state that if insurance is required as a condition of rental, the requirement may
be satisfied by the occupant purchasing the insurance prescribed in this section or by
presenting evidence of other applicable insurance coverage; and
new text end

new text begin (iv) describe the process for filing a claim;
new text end

new text begin (2) all costs related to the insurance are stated in writing;
new text end

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 or by a surplus lines insurer under sections 60A.195 to 60A.2095.
new text end

new text begin (e) An employee or agent of a self-service storage agent may act on behalf of and
under the supervision of the self-service storage agent in matters relating to the conduct of
business under the license that is issued under this section. The conduct of an employee or
agent of a self-service storage agent acting within the scope of employment or agency is
deemed the conduct of the self-service storage agent for purposes of this section.
new text end

new text begin (f) Each self-service storage agent shall provide a training program that gives
employees and agents of the self-service storage agent basic instruction about the provisions
of this section, including the kinds of insurance coverage prescribed in this section.
new text end

new text begin (g) A self-service storage agent shall not:
new text end

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.
new text end

new text begin (h) Nothing in this section prohibits:
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new text begin (1) an insurer from paying, and a self-service storage agent 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) a self-service storage agent 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 (i) An owner is not required to be licensed under this section merely to display
and make available to prospective occupants brochures and other promotional materials
created by or on behalf of an authorized insurer or by a surplus lines insurer under sections
60A.195 to 60A.2095.
new text end

new text begin (j) A self-service storage agent is not subject to the continuing education
requirements of section 60K.56.
new text end

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