Bill Text: HI SB2682 | 2016 | Regular Session | Introduced

Hawaii Senate Bill 2682 (Prior Session Legislation)

Introduced

Bill Title: Insurance Producers; Limited License; Self-Storage Facilities

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2016-02-19 - The committee on CPH deferred the measure. [SB2682 Detail]

Download: Hawaii-2016-SB2682-Introduced.html

THE SENATE	S.B. NO.	2682
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

relating to SELF-STORAGE INSURANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature recognizes that limited lines licenses are common solutions for insurance in industries such as self-service storage. Specifically, the self-service storage facilities offer customers an affordable insurance option if those customers do not have a homeowners' or renters' insurance policy, which would typically cover the contents within a storage unit. Many of the customers of self-storage facilities are not insured under a homeowners' or renters' insurance policy and are unlikely to seek insurance from the traditional insurance market. Moreover, the generally short-term and low‑cost nature of the underlying storage unit contract provides little economic incentive for insurance agents to pursue self-service storage customers on a regular basis, thus making it difficult for people wishing to procure insurance to protect the value of their stored property. Accordingly, authorizing the insurance commissioner to issue limited licenses will provide people with a more accessible means to obtain optional affordable coverage for their stored property.

The purpose of this Act is to authorize the insurance commissioner to issue a limited license for the solicitation or sale of insurance to a self-storage facility customer for the loss of, or damage to, personal effects or property stored at a self-service storage facility.

SECTION 2. Section 431:9A-107.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Notwithstanding any other provision of this article, the commissioner may issue:

(1) A limited license to persons selling travel tickets of a common carrier of persons or property who shall act only as to travel ticket policies of accident and health or sickness insurance or baggage insurance on personal effects;

(2) A limited license to each individual who has charge of vending machines used in this State for the effectuation of travel insurance;

(3) A limited license to any individual who sells policies of accident and health or sickness insurance as a promotional device to improve the circulation of a newspaper in this State; [or]

(4) A limited line credit insurance producer license to any individual who sells, solicits, or negotiates limited line credit insurance[.]; or

(5) A limited license to any owner, operator, or employee of a self-service storage facility to sell or solicit insurance, who shall act only as to master, corporate, individual, or group policies of property insurance on property or personal effects stored in a tenant's space at a self-service storage facility."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

Insurance Producers; Limited License; Self-Storage Facilities

Description:

Authorizes the Insurance Commissioner to issue limited licenses to self-storage facilities so that the facilities may sell to their tenants property insurance that covers the tenants' stored property.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.