HOUSE DOCKET, NO. 2989        FILED ON: 1/16/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 802

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Paul Brodeur

_________________

To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to self-storage insurance.

_______________

PETITION OF:

HOUSE DOCKET, NO. 2989        FILED ON: 1/16/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 802

The Commonwealth of Massachusetts

_______________

In the One Hundred and Eighty-Ninth General Court
(2015-2016)

_______________

An Act relative to self-storage insurance.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Chapter 175 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting the following new section at the end thereof:

Section 226.(a)The Commissioner may issue a self-service storage agent license to an operator that has complied with the requirements of this section authorizing the operator 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.

(b)An applicant for a self-service storage agent license shall file a written application in a form prescribed by the Commissioner. The application shall provide a physical address of the licensee company headquarters and maintain a list of all self-service storage facilities where self-service storage agent will conduct business under the license; and, upon request, provide the list upon thirty (30) days to the commissioner or his representatives.  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 after commencing business under the self-service storage agent's license at any additional locations in this state or of those locations in this state that cease to do business under the license within thirty days.

(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 on a master, corporate, commercial, group or individual policy basis and only with respect to personal property insurance that provides coverage to occupants at the self-service storage facility where the insurance is transacted for the loss of or damage to stored personal property that occurs at that facility.

(d).A self-service storage agent shall not offer or sell insurance pursuant to this section unless:

1. The self-service storage agent makes readily available to the prospective occupant brochures or other written materials that:

(a)  Summarize the material terms of insurance coverage offered to occupants, including the identity of the insurer, price, benefits, exclusions and conditions.

(b) 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.

(c) 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.

(d) Describe the process for filing a claim.

2. All costs related to the insurance are stated in writing.

3. Evidence of coverage in a form approved by the insurer is provided to every occupant who purchases the coverage.

4. The insurance is provided by an insurer authorized to provide the applicable kind of insurance in this state.

(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 pursuant to 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.

(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.

(g). A self-service storage agent shall not:

1.Offer or sell insurance except in connection with and incidental to the rental of space at a self-service storage facility.

2.Advertise, represent or otherwise portray itself or any of its employees or agents as licensed insurers or insurance producers.

(h). Nothing in this section shall prohibit:

1. An insurer from paying, and a self-service storage agent from receiving, a commission, service fee or other valuable consideration dependent on the sale of the type of insurance authorized under this section.

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 solely on the sale of insurance.

(i).An operator is not required to be licensed pursuant to 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.

(j).A self-service storage agent is not subject to the continuing education requirements of section 177E of this chapter.

(k). For the purposes of this section, the term "self-service storage agent" means a self-storage facility operator who is licensed pursuant to this section. The terms “occupant”, “operator”, “personal property”, and “self-storage facility” shall be as defined in section 1 of chapter 105A.