77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
House Bill 2845
Sponsored by COMMITTEE ON BUSINESS AND LABOR (at the request of
Self Storage Association)
CHAPTER ................
AN ACT
Relating to limited licenses for owners of self-service storage
facilities to sell insurance; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 8 of this 2013 Act are added to
and made a part of ORS chapter 744. + }
SECTION 2. { + As used in sections 2 to 7 of this 2013 Act:
(1) 'Insurer' means an insurer, a surplus lines insurer or an
insurance producer.
(2) 'Licensee' means an owner that receives a limited license
to sell insurance in accordance with sections 2 to 7 of this 2013
Act.
(3) 'Occupant' has the meaning given that term in ORS 87.685.
(4) 'Owner' has the meaning given that term in ORS 87.685.
(5) 'Personal property' means movable property that is not
affixed to land, examples of which are goods, merchandise,
household items and furnishings, motor vehicles, watercraft and
other vehicles, motorized or not.
(6) 'Self-service storage facility' has the meaning given that
term in ORS 87.685. + }
SECTION 3. { + (1)(a) An owner may not sell insurance to an
occupant without applying for and receiving a limited license
under this section.
(b) An owner does not require a license under this section if
the owner displays or makes available materials related to an
insurer's insurance coverage but does not sell the insurance or
otherwise benefit from the insurer's insurance sales.
(2) An owner may apply to the Director of the Department of
Consumer and Business Services for a limited license to sell
insurance under the provisions of sections 2 to 7 of this 2013
Act. The owner shall apply for the limited license on a form with
contents the director specifies by rule.
(3)(a) An owner shall disclose in the application described in
subsection (1) of this section the physical addresses for each of
the self-service storage facilities at which the owner will sell
insurance under the limited license and shall certify that the
owner is an owner with respect to each of the self-service
storage facilities.
(b) A licensee may sell insurance at a self-service storage
facility other than the self-service storage facilities the
licensee disclosed in an application under this section if the
Enrolled House Bill 2845 (HB 2845-INTRO) Page 1
licensee notifies the director 30 days before the licensee begins
to sell insurance at the other self-service storage facility.
(c) A licensee shall notify the director within 30 days after
the licensee no longer sells insurance at a self-service storage
facility.
(d) The director may issue and permit the owner to retain a
limited license to sell insurance on the condition that the owner
sells insurance only at the self-service storage facilities the
owner discloses in the application for the limited license or at
a self-service storage facility with respect to which the owner
gives the director a notice under paragraph (b) of this
subsection.
(4)(a) The director may issue a limited license to sell
insurance to an owner if the director is satisfied that the owner
has provided the information and made the disclosures the
director requires under subsection (2) of this section.
(b) A limited license that the director issues under this
subsection authorizes a licensee to sell insurance at all of the
self-service storage facilities the licensee disclosed in an
application under subsection (2) of this section. A licensee does
not need a separate limited license for each self-service storage
facility. + }
SECTION 4. { + (1) A licensee may sell insurance only:
(a) Of the type described in subsection (2) of this section;
(b) In connection with and incident to renting individual
storage space to an occupant at a self-service storage facility;
and
(c) In accordance with the requirements set forth in subsection
(3) of this section.
(2) A licensee may sell insurance that covers an occupant only
for personal property that is lost or damaged at the self-service
storage facility where the licensee sold the insurance to the
occupant.
(3)(a) A licensee that offers to sell insurance to an occupant
shall provide written material that the Director of the
Department of Consumer and Business Services approves and that:
(A) Summarizes the material terms of the insurance coverage,
identifies the insurer, states the premium price and describes
the benefits, exclusions and conditions of the insurance policy;
(B) Discloses that the insurance may duplicate or overlap with
coverage the occupant may have from other insurance policies,
such as a renter's policy, a homeowner's policy, a vehicle
policy, a watercraft policy or another source of property
insurance;
(C) States that renting individual storage space at the
self-service storage facility does not require an occupant to
purchase property insurance from the licensee or that, if renting
individual storage space does require the occupant to have
property insurance, that the occupant may satisfy the requirement
by providing evidence that the occupant has coverage from another
source of property insurance;
(D) Describes the process for filing a claim under the terms of
the insurance policy; and
(E) Lists all costs to the occupant in connection with the
insurance.
(b) A licensee that completes a transaction with an occupant
that purchases insurance from the licensee shall provide evidence
to the occupant of the insurer's coverage on a form that the
insurer has approved.
Enrolled House Bill 2845 (HB 2845-INTRO) Page 2
(4) A licensee may sell only insurance provided by an insurer
that is authorized under the Insurance Code to transact, in this
state, the line of insurance that the licensee sells.
(5) A licensee may not advertise, represent or otherwise cause
another person to understand or suppose that the licensee is a
licensed insurer. + }
SECTION 5. { + (1)(a) A licensee must provide a training
program for the licensee's employees or agents that sell
insurance on the licensee's behalf. The training program must
instruct the employees or agents about the coverage the insurance
provides and about the provisions of sections 2 to 7 of this 2013
Act.
(b) The licensee each year shall submit to the Director of the
Department of Consumer and Business Services for the director's
approval an outline of, and copies of materials the licensee uses
in, the training program.
(c) A licensee each year shall certify to the director that the
licensee's employees or agents that sell insurance have completed
or will complete the training program the licensee provides under
paragraph (a) of this subsection before the employees or agents
sell insurance.
(d) An employee or agent that has completed the training
program under paragraph (a) of this subsection is not required to
undergo continuing education in the topics covered in the
training program.
(2) The director may audit the licensee's compliance with the
provisions of subsection (1) of this section.
(3)(a) An employee or agent of a licensee may act on behalf and
under the supervision of the licensee in matters within the scope
of a license issued under section 3 of this 2013 Act.
(b) For purposes of sections 2 to 7 of this 2013 Act, the
conduct of a licensee's agent or employee who is acting within
the scope of the employee's or agent's duties toward the licensee
is the conduct of the licensee. + }
SECTION 6. { + (1) The Director of the Department of Consumer
and Business Services may suspend or revoke a limited license the
director issued under section 3 of this 2013 Act, or may impose
another penalty the director prescribes by rule, if:
(a) A licensee sells or offers to sell insurance other than
insurance described in section 4 of this 2013 Act;
(b) An owner sells or offers to sell insurance to an occupant
without obtaining a limited license in accordance with section 3
of this 2013 Act; or
(c) An owner or licensee violates another provision of sections
2 to 7 of this 2013 Act.
(2) The director may suspend or revoke a limited license under
this section with respect to all or a portion of the licensee's
self-service storage facilities. + }
SECTION 7. { + Sections 2 to 7 of this 2013 Act do not
prohibit:
(1) An insurer from paying, or a licensee from receiving, a
commission, fee or other compensation for selling the insurer's
insurance; or
(2) A licensee or owner from paying an employee or agent of the
licensee or owner a bonus, incentive payment or other
compensation if the bonus, incentive payment or compensation does
not depend on the employee's or agent's selling insurance. + }
SECTION 8. { + The Director of the Department of Consumer and
Business Services may adopt rules to implement and administer the
provisions of sections 2 to 7 of this 2013 Act. + }
Enrolled House Bill 2845 (HB 2845-INTRO) Page 3
SECTION 9. { + (1) Sections 2 to 8 of this 2013 Act become
operative on January 1, 2014.
(2) The Director of the Department of Consumer and Business
Services may take any action before the operative date specified
in subsection (1) of this section that is necessary for the
director to exercise, on and after the operative date specified
in subsection (1) of this section, all of the duties, functions
and powers conferred on the director by sections 2 to 8 of this
2013 Act. + }
SECTION 10. { + This 2013 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2013 Act takes effect on
its passage. + }
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Passed by House March 20, 2013
.............................................................
Ramona J. Line, Chief Clerk of House
.............................................................
Tina Kotek, Speaker of House
Passed by Senate May 28, 2013
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2845 (HB 2845-INTRO) Page 4
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2845 (HB 2845-INTRO) Page 5