2020 -- H 7988 | |
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LC005248 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
RELATING TO INSURANCE -- SELF-SERVICE STORAGE INSURANCE | |
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Introduced By: Representative Marvin L. Abney | |
Date Introduced: March 11, 2020 | |
Referred To: House Corporations | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 27 of the General Laws entitled "INSURANCE" is hereby amended by |
2 | adding thereto the following chapter: |
3 | CHAPTER 2.8 |
4 | SELF-SERVICE STORAGE INSURANCE |
5 | 27-2.8-1. Definitions. |
6 | For purposes of this section, the following terms shall have the following meanings: |
7 | (1) "Commissioner" means the definition prescribed by § 42-14-5. |
8 | (2) "Location" means any physical location in the state of Rhode Island or any website, call |
9 | center site or similar location directed to residents of the state of Rhode Island. |
10 | (3) "Occupant" means a person, or his or her sublessee, successor, or assign, who is entitled |
11 | to the use of storage space at a self-service storage facility under a rental agreement, to the exclusion |
12 | of others. |
13 | (4) "Owner" means a person or business entity, whether a resident or non-resident of this |
14 | state, that is the proprietor, operator, lessor, or sublessor of a self-service storage facility, an agent |
15 | of any of the foregoing, or any other person or business entity authorized to manage the facility or |
16 | to receive rent from an occupant under a rental agreement. An owner is not a warehouseman, as |
17 | defined in § 6A-7-102(1)(h) except that if an owner issues a warehouse receipt, bill of lading, or |
18 | other document of title for the personal property sold, the owner is subject to the provisions of |
19 | chapter 7 of title 6A, and the provisions of this chapter shall not apply. |
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1 | (5) "Personal property" means movable property not affixed to land and includes, but is |
2 | not limited to, goods, wares, merchandise, motor vehicles, watercraft, motorcycles, trailers, |
3 | recreational vehicles (RVs), furniture or household items. |
4 | (6) "Rental agreement" means any written agreement or lease that establishes or modifies |
5 | the terms, conditions, rules, or any other provisions concerning the use and occupancy of storage |
6 | space at a self-service storage facility. |
7 | (7) "Self-service storage facility" means any real property designed and used for the |
8 | purpose of renting or leasing individual storage space to occupants who are to have access to the |
9 | space for the purpose of storing and removing personal property. No occupant shall use a self- |
10 | storage facility for any habitation or any other residential purposes. |
11 | (8) "Self-service storage insurance" means personal property insurance offered in |
12 | connection with and incidental to the rental of storage space at a self-service storage facility and |
13 | which provides coverage to occupants for the loss of or damage to personal property occurring at |
14 | the facility or when the property is in transit to or from the facility during the period of the rental |
15 | agreement. |
16 | (9) "Supervising entity" means a business entity that is a licensed insurer or insurance |
17 | producer that is authorized by an insurer to supervise the administration of a self-service storage |
18 | insurance program. |
19 | 27-2.8-2. Licensure exemption for owners. |
20 | (a) An owner and its authorized representatives and employees may sell, solicit, and offer |
21 | self-service storage insurance coverage without obtaining an insurance producer license provided |
22 | that the requirements of this chapter are met. |
23 | (b) The supervising entity shall maintain a registry of owner locations at which self-service |
24 | storage insurance is sold, solicited, or offered in this state. Upon request by the commissioner and |
25 | with ten (10) days' notice to the supervising entity, the registry shall be open to inspection and |
26 | examination by the commissioner during regular business hours of the supervising entity. |
27 | 27-2.8-3. Requirements for sale of self-service storage insurance. |
28 | (a) At every location where self-service storage insurance is offered to occupants, |
29 | brochures or other written or electronic materials must be made available which: |
30 | (1) Disclose that self-service storage insurance may provide a duplication of coverage |
31 | already provided by a homeowner's insurance policy, renter's insurance policy or other source of |
32 | coverage; |
33 | (2) State that the enrollment in the self-service storage insurance program offered by the |
34 | owner is not required in order to lease storage space at the self-service storage facility; |
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1 | (3) Provide the actual terms of the insurance coverage, or summarize the material terms of |
2 | the insurance coverage, including: |
3 | (i) The identity of the insurer; |
4 | (ii) The identity of the supervising entity; |
5 | (iii) The amount of any applicable deductible and how it is to be paid; |
6 | (iv) Benefits of the coverage; and |
7 | (v) Key terms and conditions of coverage. |
8 | (4) Summarize the process for filing a claim; and |
9 | (5) State that an occupant may cancel enrollment for self-service storage insurance |
10 | coverage at any time and the person paying the premium shall receive a refund of any applicable |
11 | unearned premium. |
12 | (b) Self-service storage insurance may be provided under a commercial, corporate, group, |
13 | or master policy. |
14 | 27-2.8-4. Authority of owners. |
15 | (a) The employees and authorized representatives of owners may sell, solicit, and offer |
16 | self-service storage insurance and shall not be subject to licensure as an insurance producer under |
17 | this title provided that: |
18 | (1) The insurer issuing the self-service storage insurance either directly supervises or |
19 | appoints a supervising entity to supervise the administration of the program including development |
20 | and implementation of a training program for employees and authorized representatives of the |
21 | owners who are directly engaged in the activity of selling, soliciting, or offering self-service storage |
22 | insurance. The training required by this subdivision shall comply with the following: |
23 | (i) The training shall be delivered to employees and authorized representatives of owners |
24 | who are directly engaged in the activity of selling, soliciting, or offering self-service storage |
25 | insurance; |
26 | (ii) The training may be provided in electronic form. The supervising entity shall |
27 | implement a system to monitor whether the electronic training has been taken by all relevant |
28 | employees; and |
29 | (iii) Each employee and authorized representative shall receive basic instruction about the |
30 | self-service storage insurance offered and the disclosures required under § 27-2.8-3(a). |
31 | (2) No employee or authorized representative of an owner shall advertise, represent or |
32 | otherwise hold himself or herself out as a licensed insurance producer, unless so licensed. |
33 | (b) Notwithstanding any other provision of law, employees or authorized representatives |
34 | of an owner shall not be compensated based primarily on the number of occupants enrolled for self- |
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1 | service storage insurance coverage but may receive compensation for self-service storage insurance |
2 | which is incidental to their overall compensation. |
3 | (c) The charges for self-service storage insurance coverage may be billed and collected by |
4 | the owner. Any charge for the self-service storage insurance coverage that is not included in the |
5 | cost associated with the lease of storage space at the self-service storage facility shall be separately |
6 | itemized on the occupant's bill. If the self-service storage insurance coverage is included in the cost |
7 | associated with the lease of storage space at the self-service storage facility, the owner shall clearly |
8 | and conspicuously disclose to the occupant that the self-service storage insurance coverage is |
9 | included in the cost associated with the lease of storage space at the self-service storage facility. |
10 | Owners billing and collecting such charges shall not be required to maintain such funds in a |
11 | segregated account provided that the owner is authorized by the insurer or supervising entity to |
12 | hold such funds in an alternative manner and remits the premiums to the insurer or supervising |
13 | entity within sixty (60) days of receipt. All premiums received by an owner from an occupant for |
14 | the sale of self-service storage insurance shall be considered funds held by the owner in a fiduciary |
15 | capacity for the benefit of the insurer. Owners may receive compensation for billing and collection |
16 | services. |
17 | 27-2.8-5. Penalties. |
18 | If an owner or its employee or authorized representative violates any provision of this |
19 | section, the commissioner, after notice and opportunity for a hearing, may impose any penalty as |
20 | appropriate pursuant to the insurance administrative penalties provided in § 42-14-16. |
21 | SECTION 2. This act shall take effect on January 1, 2021. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO INSURANCE -- SELF-SERVICE STORAGE INSURANCE | |
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1 | This act would provide for the sale of self-service storage insurance in this state. |
2 | This act would take effect on January 1, 2021. |
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LC005248 | |
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