R590. Insurance, Administration.R590-245. Self-Service Storage Insurance.
R590-245-1. Authority.
This rule is promulgated by the commissioner pursuant to Sections 31A-2-201, 31A-23a-104, 31A-23a-106, 31A-23a-110, and 31A-23a-111.
R590-245-2. Purpose and Scope.
(1) The purpose of this rule is to:
(a) recognize self-service storage as a limited line producer line of authority; and
(b) establish standards of licensing for self-service storage related insurance business.
(2) This rule applies to a person selling, soliciting, or negotiating self-service storage related insurance business.
R590-245-3. Definitions.
Terms used in this rule are defined in Sections 31A-1-301 and 31A-23a-102. Additional terms are defined as follows:
(1) "Rental agreement" means a written agreement setting forth the terms and conditions governing the use of storage space provided by a self-service storage facility.
(2) "Renter" means a person who uses storage space from a self-service storage facility pursuant to a rental agreement.
(3) "Self-service storage facility" means a person or agency engaged in the business of providing leased or rented storage space to the public.
(4) "Self-service storage insurance" means a contract of insurance issued to a renter as part of an agreement of self-service storage with respect to:
(a) hazard insurance coverage provided to a renter for loss or damage to tangible personal property in storage or in transit during the rental period; or
(b) tenant liability insurance coverage.
(5) "Self-service storage insurance license" means a limited line producer license with a self-service storage insurance limited line producer line of authority that authorizes a person licensed under this rule to offer self-service storage insurance in connection with, and incidental to, a rental agreement on behalf of an insurer.
(6) "Storage space" means a room, unit, locker, or open space offered for rental to the public for temporary storage of personal belongings or light commercial goods.
R590-245-4. Licensing and Renewal.
(1) A person involved in the sale, solicitation, or negotiation of self-service storage insurance must be licensed pursuant to Title 31A, Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries, and this rule.
(2) A self-service storage insurance license is issued for a two-year period and does not require examination or continuing education.
(3) A self-service storage insurance license must be renewed at the end of the two-year licensing period pursuant to Title 31A, Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries, and this rule.
(4) A self-service storage insurance license may be held by a self-service storage facility or a franchisee of a self-service storage facility.
(5) An individual licensed under this rule shall:
(a) be appointed by an insurance company underwriting the insurance policy the individual sells; or
(b) be designated to act by an agency licensed under this rule.
(6) An agency licensed under this rule shall:
(a) be appointed by an insurance company underwriting the insurance policies the agency sells; and
(b) designate a licensed individual to be responsible for the regulatory compliance of the agency.
(7)(a) An agency licensed under this rule may employ non-licensed personnel as a self-service storage counter sales representative to sell, solicit, or negotiate self-service storage insurance.
(b) Any non-licensed employee shall:
(i) be trained and supervised in the sale of a self-service storage insurance product; and
(ii) be responsible to a licensed individual designated by the agency.
(8) A self-service storage facility, or a franchisee of a self-service storage facility, may not offer or sell self-service storage insurance unless it complies with the requirements of this rule and is licensed by the commissioner.
R590-245-5. Severability.
If any provision of this rule, Rule R590-245, or its application to any person or situation is held invalid, such invalidity does not affect any other provision or application of this rule that can be given effect without the invalid provision or application. The remainder of this rule shall be given effect without the invalid provision or application.
KEY: self-service storage, insurance
Date of Last Change: June 21, 2022
Notice of Continuation: September 15, 2023
