Bill Text: IA HSB592 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to self-service storage insurance, and including applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-02-06 - Subcommittee recommends passage. [HSB592 Detail]
Download: Iowa-2019-HSB592-Introduced.html
House
Study
Bill
592
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
CARLSON)
A
BILL
FOR
An
Act
relating
to
self-service
storage
insurance,
and
1
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5656YC
(4)
88
ko/rn
H.F.
_____
Section
1.
NEW
SECTION
.
522F.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Commissioner”
means
the
commissioner
of
insurance.
4
2.
“Endorsee”
means
an
employee
or
an
authorized
5
representative
of
an
owner
authorized
to
sell
or
offer
6
self-service
storage
insurance
at
one
or
more
of
the
owner’s
7
locations.
8
3.
“Financial
institution”
means
any
bank,
savings
and
loan
9
association,
credit
union,
or
other
entity
subject
to
Title
10
XIII,
subtitle
2.
11
4.
“Insurance
producer”
means
the
same
as
defined
in
section
12
522B.1.
13
5.
“Insurer”
means
the
same
as
defined
in
section
522B.1.
14
6.
“License”
means
the
same
as
defined
in
section
522B.1.
15
7.
“Limited
lines
producer”
means
the
same
as
defined
in
16
section
522B.1.
17
8.
“Location”
means
any
physical
location
in
this
state,
or
18
any
internet
site,
call
center
site,
or
other
location
at
which
19
an
owner
engages
in
transactions
related
to
a
self-service
20
storage
facility
located
in
this
state.
21
9.
“Occupant”
means
a
person,
or
the
person’s
successors
or
22
assigns,
entitled
to
the
use
of
space
at
a
self-service
storage
23
facility
under
a
rental
agreement.
24
10.
“Owner”
means
a
resident
or
a
nonresident
person
that
is
25
the
owner,
operator,
property
management
company,
lessor,
or
26
sublessor
of
a
self-service
storage
facility.
“Owner”
does
not
27
mean
an
occupant.
28
11.
“Person”
means
the
same
as
defined
in
section
522B.1.
29
12.
“Personal
property”
means
movable
property
not
affixed
30
to
land,
including
goods,
wares,
merchandise,
household
items,
31
and
furnishings.
32
13.
“Rental
agreement”
means
any
written
agreement
that
33
establishes
or
modifies
the
terms
or
conditions
concerning
an
34
occupant’s
use
of
space
at
a
self-service
storage
facility.
35
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14.
“Self-service
storage
facility”
or
“facility”
means
1
any
real
property
used
for
the
purpose
of
renting
or
leasing
2
individual
storage
space
to
occupants
who
have
access
to
the
3
space
for
the
purpose
of
storing
personal
property,
but
does
4
not
include
a
garage
used
primarily
for
storage
of
motor
5
vehicles,
or
a
repository
at
a
financial
institution
used
by
6
the
financial
institution’s
customers
for
storage
of
money
or
7
valuables.
If
an
owner
issues
a
warehouse
receipt,
bill
of
8
lading,
or
other
document
of
title
for
an
occupant’s
personal
9
property
stored
at
the
facility,
the
owner
and
the
occupant
are
10
subject
to
chapter
554,
article
7,
and
this
chapter
shall
not
11
apply.
12
15.
“Self-service
storage
insurance”
means
insurance
13
providing
coverage
for
the
loss
of,
or
damage
to,
personal
14
property
that
is
contained
in
a
storage
space
at
a
facility,
or
15
is
in
transit
to
or
from
the
storage
space,
during
the
term
of
a
16
rental
agreement
covering
an
occupant’s
use
of
storage
space
at
17
the
facility.
18
16.
“Sell”
means
the
same
as
defined
in
section
522B.1.
19
17.
“Solicit”
means
the
same
as
defined
in
section
522B.1.
20
18.
“Supervising
entity”
means
a
person
licensed
as
an
21
insurance
producer
under
chapter
522B
who
is
appointed
by
an
22
insurer
to
supervise
the
administration
of
self-service
storage
23
insurance
at
an
owner’s
locations.
24
Sec.
2.
NEW
SECTION
.
522F.2
License
required.
25
1.
Except
as
provided
in
subsection
2,
an
owner
or
endorsee
26
shall
not
sell
or
solicit
self-service
storage
insurance
27
unless
the
owner
is
licensed
pursuant
to
chapter
522B
as
a
28
self-service
storage
insurance
limited
lines
producer
and
the
29
sale
or
solicitation
of
self-service
storage
insurance
is
in
30
conjunction
with
and
incidental
to
the
rental
of
self-service
31
storage
to
an
occupant.
32
2.
A
license
shall
not
be
required
for
an
owner
or
an
33
endorsee,
on
behalf
of
an
insurer,
to
display
and
provide
34
promotional
information
regarding
self-service
storage
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insurance
to
occupants
and
prospective
occupants.
1
3.
Any
owner
or
endorsee
that
has
solicited
or
sold
2
self-service
storage
insurance
before
July
1,
2020,
shall
3
obtain
a
self-service
storage
insurance
limited
lines
producer
4
license
on
or
before
October
1,
2020,
or
shall
be
prohibited
5
from
continuing
to
solicit
or
sell
self-service
storage
6
insurance
until
licensed.
Any
owner
or
endorsee
that
begins
7
to
solicit
or
sell
self-service
storage
insurance
on
or
after
8
July
1,
2020,
shall
obtain
a
self-service
storage
limited
lines
9
insurance
producer
license
prior
to
soliciting
or
selling
10
self-service
storage
insurance.
11
Sec.
3.
NEW
SECTION
.
522F.3
Application
for
license
——
12
requirements.
13
1.
The
commissioner
shall
issue
a
self-service
storage
14
insurance
limited
lines
producer
license
to
an
owner
pursuant
15
to
section
522B.6
or
522B.7
if
the
owner
satisfies
the
16
applicable
requirements
of
section
522B.5
and
as
part
of
the
17
application
for
the
license
the
owner
provides
all
of
the
18
following
information:
19
a.
The
physical
address
of
the
home
office
of
the
owner’s
20
facility
and
the
physical
address
and
internet
sites
of
all
21
locations.
22
b.
If
less
than
fifty
percent
of
the
facility’s
revenue
23
is
derived
from
the
sale
of
self-service
storage
insurance,
24
the
owner
shall
provide
the
name,
residential
address,
and
25
any
other
information
required
by
the
commissioner
for
one
26
employee
or
one
authorized
representative
of
the
owner,
or
for
27
one
employee
or
one
authorized
representative
of
a
supervising
28
entity,
designated
as
the
person
responsible
for
the
owner’s
29
compliance
with
the
requirements
of
this
chapter.
30
c.
If
fifty
percent
or
more
of
the
facility’s
revenue
is
31
derived
from
the
sale
of
self-service
storage
insurance,
the
32
owner
shall
provide
the
residential
address
and
any
other
33
information
required
by
the
commissioner
for
all
officers,
34
directors,
and
shareholders
of
record
that
have
ten
percent
or
35
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more
beneficial
ownership
of
the
facility.
1
2.
An
owner
applying
for
a
self-service
storage
limited
2
lines
producer
license
shall
be
exempt
from
the
examination
3
requirements
pursuant
to
section
522B.4
and
section
522B.5,
4
subsection
1,
paragraph
“d”
.
5
3.
An
owner
applying
to
renew
a
self-service
storage
limited
6
lines
producer
license
shall
be
exempt
from
the
continuing
7
education
requirements
pursuant
to
section
522B.6,
subsection
8
3.
9
Sec.
4.
NEW
SECTION
.
522F.4
Endorsees
——
conditions
and
10
limitations.
11
1.
An
owner
licensed
pursuant
to
section
522F.3
may
12
authorize
endorsees
to
solicit,
offer,
or
sell
self-service
13
storage
insurance
to
occupants
and
prospective
occupants
at
any
14
location.
15
2.
An
endorsee
shall
not
be
required
to
be
licensed
as
an
16
insurance
producer
if
all
of
the
following
requirements
are
17
met:
18
a.
The
endorsee
is
eighteen
years
of
age
or
older.
19
b.
The
insurer
issuing
the
self-service
storage
insurance
20
either
directly
supervises,
or
appoints
a
supervising
entity
21
to
supervise,
the
administration
of
the
self-service
storage
22
insurance,
including
the
development
and
implementation
of
a
23
training
program
for
endorsees
pursuant
to
subsection
3.
24
c.
The
owner
has
filed
an
affidavit
with
the
commissioner,
25
in
the
form
and
manner
required
by
the
commissioner,
26
acknowledging
that
the
owner
is
legally
responsible
for
the
27
actions
of
all
endorsees
relating
to
an
endorsee’s
solicitation
28
or
sale
of
self-service
storage
insurance
in
conjunction
with
29
and
incidental
to
the
rental
of
storage
space
to
an
occupant
at
30
any
location.
31
3.
An
owner,
or
the
supervising
entity,
shall
provide
32
a
training
program
for
all
endorsees
who
solicit
or
sell
33
self-service
storage
insurance.
The
training
program
shall
34
meet
all
of
the
following
requirements:
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a.
The
training
shall
be
delivered
to
each
endorsee
1
who
sells
or
offers
self-service
storage
insurance
at
any
2
location.
The
owner,
or
the
supervising
entity,
shall
maintain
3
documentation
evidencing
that
each
endorsee
has
completed
the
4
training.
The
documentation
and
all
training
materials
shall
5
be
made
available
to
the
commissioner
within
five
business
days
6
of
the
commissioner’s
request
to
review
the
documentation
or
7
the
training
materials.
8
b.
If
the
training
is
conducted
in
an
electronic
form,
the
9
supervising
entity
shall
implement
a
supplemental
education
10
program
regarding
self-service
storage
insurance
that
is
11
conducted
and
overseen
by
an
employee
of
the
supervising
entity
12
who
is
licensed
as
an
insurance
producer
pursuant
to
chapter
13
522B.
14
c.
The
training
program
shall
include
basic
information
15
about
self-service
storage
insurance
and
shall
address
all
of
16
the
following:
17
(1)
No
endorsee
shall
advertise
or
otherwise
represent
the
18
endorsee
as
a
licensed
insurance
producer
unless
the
endorsee
19
holds
a
license.
20
(2)
No
endorsee
shall
solicit
or
sell
self-service
storage
21
insurance
except
in
conjunction
with
and
incidental
to
the
22
rental
of
storage
space
to
an
occupant
at
a
location.
23
4.
An
endorsee
shall
not
be
paid
directly
by
an
insurer,
24
and
an
owner
shall
not
pay
an
endorsee
commission
or
compensate
25
an
endorsee
based
primarily
on
the
number
of
occupants
the
26
endorsee
enrolls
for
self-service
storage
insurance.
An
27
owner
may,
however,
include
an
endorsee’s
performance
related
28
to
soliciting
or
selling
self-service
storage
insurance
to
29
occupants
and
prospective
occupants
in
an
overall
performance
30
incentive
compensation
program
the
owner
offers
for
all
31
endorsees.
32
Sec.
5.
NEW
SECTION
.
522F.5
Registry
of
locations.
33
The
owner,
or
the
supervising
entity,
shall
maintain
a
34
registry
of
all
locations
and
of
all
endorsees
at
each
location
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that
are
authorized
to
sell
or
solicit
self-service
storage
1
insurance.
The
owner,
or
the
supervising
entity,
shall
make
2
the
registry
available
to
the
commissioner
within
five
business
3
days
of
the
commissioner’s
request
for
the
registry.
4
Sec.
6.
NEW
SECTION
.
522F.6
Required
documents
and
5
disclosures.
6
1.
At
any
location
where
self-service
storage
insurance
7
is
offered
to
occupants
or
prospective
occupants,
written
or
8
electronic
documents
shall
be
available
to
the
occupants
or
9
prospective
occupants
and
must
include
all
of
the
following:
10
a.
The
material
terms
of
the
self-service
storage
11
insurance
coverage,
or
a
summary
of
the
material
terms
of
the
12
self-service
storage
insurance
coverage,
including
all
of
the
13
following:
14
(1)
The
identity
of
the
insurer.
15
(2)
The
identity
of
the
supervising
entity,
if
applicable.
16
(3)
All
benefits
provided
by
the
coverage.
17
(4)
The
key
terms
and
conditions
of
the
coverage,
including
18
all
exclusions.
19
(5)
The
amount
of
any
deductibles
and
the
process
for
paying
20
a
deductible.
21
b.
A
summary
of
the
claims
process.
22
c.
A
disclosure
specifying
that
self-service
storage
23
insurance
may
be
a
duplication
of
coverage
already
provided
by
24
an
occupant’s
or
prospective
occupant’s
homeowner’s
insurance
25
policy,
renter’s
insurance
policy,
or
other
source
of
insurance
26
coverage.
27
d.
A
disclosure
specifying
that
self-service
storage
28
insurance
sold
by
the
owner
or
an
endorsee
is
not
required
as
a
29
condition
of
obtaining
a
rental
agreement.
30
e.
Any
other
disclosures
specified
by
rule
as
adopted
by
the
31
commissioner.
32
2.
The
written
or
electronic
documents
provided
pursuant
to
33
subsection
1
shall
not
be
subject
to
filing
with,
or
be
subject
34
to
the
approval
of,
the
commissioner.
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Sec.
7.
NEW
SECTION
.
522F.7
Authority
conveyed
by
license.
1
1.
All
charges
for
self-service
storage
insurance
on
a
2
master,
corporate,
group,
or
individual
policy
basis
may
be
3
billed
and
collected
by
an
owner
or
an
endorsee,
and
the
owner
4
may
receive
compensation
for
performing
billing
and
collection
5
services
if
all
of
the
following
conditions
are
met:
6
a.
If
any
charges
for
self-service
storage
insurance
are
7
not
included
in
the
costs
associated
with
an
occupant’s
rental
8
of
self-service
storage
space,
the
owner
shall
itemize
the
9
charges
for
the
self-service
storage
insurance
separately
on
10
the
occupant’s
bill.
11
b.
If
any
charges
for
self-service
storage
insurance
are
12
included
in
the
costs
associated
with
an
occupant’s
rental
13
of
self-service
storage
space,
the
owner
shall
clearly
and
14
conspicuously
disclose
that
information
to
the
occupant
in
15
writing.
16
2.
All
premiums
received
by
an
owner
or
endorsee
from
an
17
occupant
for
self-service
storage
insurance
shall
be
considered
18
funds
held
by
the
owner
in
a
fiduciary
capacity
for
the
benefit
19
of
the
insurer
that
issues
the
self-service
storage
insurance.
20
An
owner
that
bills
and
collects
such
moneys
shall
not
be
21
required
to
maintain
the
moneys
in
a
segregated
account
if
any
22
of
the
following
apply:
23
a.
The
owner
is
authorized
by
the
insurer
to
hold
the
funds
24
in
an
alternate
manner.
25
b.
The
owner
remits
the
funds
to
the
supervising
entity
as
26
required
by
the
supervising
entity.
27
Sec.
8.
NEW
SECTION
.
522F.8
License
suspension,
revocation,
28
denial,
nonrenewal.
29
The
commissioner
may
suspend,
revoke,
or
refuse
to
issue
or
30
renew
an
owner’s
limited
lines
self-service
storage
insurance
31
producer
license
pursuant
to
section
522B.11.
32
Sec.
9.
NEW
SECTION
.
522F.9
Rules.
33
The
commissioner
shall
adopt
rules
pursuant
to
chapter
17A
34
as
necessary
to
implement
and
administer
this
chapter.
35
-7-
LSB
5656YC
(4)
88
ko/rn
7/
10
H.F.
_____
Sec.
10.
NEW
SECTION
.
522F.10
Enforcement.
1
The
commissioner
may
take
any
action
within
the
2
commissioner’s
authority
to
enforce
compliance
with
this
3
chapter.
4
Sec.
11.
APPLICABILITY.
This
Act
applies
to
self-service
5
storage
insurance
that
is
delivered,
issued
for
delivery,
6
continued,
or
renewed
in
this
state
on
or
after
July
1,
2020.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
relates
to
self-service
storage
insurance.
The
11
bill
prohibits
an
owner
or
endorsee
from
soliciting
or
selling
12
self-service
storage
insurance
(insurance)
unless
the
owner
13
is
licensed
as
a
self-service
storage
insurance
limited
lines
14
producer
(limited
lines
producer)
and
the
solicitation
or
sale
15
of
the
insurance
is
in
conjunction
with
or
incidental
to
an
16
occupant’s
rental
of
storage
space
at
a
self-service
storage
17
facility
(facility).
“Self-service
storage
insurance”
is
18
defined
in
the
bill
as
insurance
providing
coverage
for
the
19
loss
of,
or
damage
to,
personal
property
that
is
contained
in
20
a
storage
space
at
a
facility,
or
is
in
transit
to
or
from
the
21
storage
space,
during
the
term
of
a
rental
agreement
covering
22
an
occupant’s
use
of
storage
space
at
the
facility.
A
license
23
is
not
required
for
an
owner
to
display
promotional
information
24
regarding
insurance
to
occupants
and
prospective
occupants.
25
“Owner”,
“endorsee”,
“self-service
storage
facility”,
26
“occupant”,
“personal
property”,
and
“rental
agreement”
are
27
also
defined
in
the
bill.
28
An
owner
or
endorsee
that
has
solicited
or
sold
insurance
29
before
July
1,
2020,
must
obtain
a
limited
lines
producer
30
license
on
or
before
October
1,
2020,
to
continue
to
solicit
or
31
sell
insurance.
Any
owner
or
endorsee
that
begins
to
solicit
32
or
sell
insurance
on
or
after
July
1,
2020,
must
obtain
a
33
limited
lines
producer
license
prior
to
soliciting
or
selling
34
insurance.
The
application
and
licensing
requirements
for
35
-8-
LSB
5656YC
(4)
88
ko/rn
8/
10
H.F.
_____
an
owner
to
obtain
a
limited
lines
producer
license,
and
the
1
conditions
and
limitations
imposed
on
endorsees,
are
contained
2
in
the
bill.
3
At
any
location
where
insurance
is
offered
to
occupants
or
4
prospective
occupants,
written
or
electronic
documents
must
5
be
available
to
the
occupants
or
prospective
occupants
and
6
must
include
the
material
terms
of
the
insurance
coverage
as
7
outlined
in
the
bill.
The
documents
are
not
subject
to
filing
8
with,
or
requiring
the
approval
of,
the
commissioner.
The
bill
9
defines
“location”
as
any
physical
location
in
this
state,
or
10
any
internet
site,
call
center
site,
or
other
location
at
which
11
an
owner
engages
in
transactions
related
to
a
facility
located
12
in
this
state.
13
An
endorsee
cannot
be
paid
directly
by
an
insurer,
and
14
an
owner
cannot
pay
an
endorsee
commission,
or
compensate
15
an
endorsee
based
primarily
on
the
number
of
occupants
the
16
endorsee
enrolls
for
insurance.
An
owner
may,
however,
include
17
an
endorsee’s
performance
related
to
soliciting
or
selling
18
insurance
to
occupants
in
an
overall
performance
incentive
19
compensation
program
the
owner
offers
all
endorsees.
20
The
bill
allows
all
charges
for
insurance
on
a
master,
21
corporate,
group,
or
individual
basis
to
be
billed
and
22
collected
by
the
owner
or
an
endorsee.
The
owner
may
receive
23
compensation
for
performing
billing
and
collection
services
if
24
the
owner
itemizes
the
charges
for
the
insurance
separately
on
25
an
occupant’s
bill
if
any
charges
for
the
insurance
are
not
26
included
in
the
costs
associated
with
the
occupant’s
rental
of
27
storage
space;
or
the
owner
clearly
and
conspicuously
discloses
28
to
the
occupant
that
the
charges
for
insurance
are
included
29
with
the
storage
space
rental.
30
All
premiums
received
by
an
owner
from
an
occupant
for
31
insurance
must
be
considered
funds
held
by
the
owner
in
a
32
fiduciary
capacity
for
the
benefit
of
the
insurer
that
issues
33
the
insurance.
An
owner
that
bills
and
collects
such
funds
34
is
not
required
to
maintain
the
funds
in
a
segregated
account
35
-9-
LSB
5656YC
(4)
88
ko/rn
9/
10
H.F.
_____
if
the
owner
is
authorized
by
the
insurer
to
hold
the
funds
1
in
an
alternate
manner,
or
the
owner
remits
the
funds
to
a
2
supervising
entity
as
required
by
the
supervising
entity,
if
3
applicable.
“Supervising
entity”
is
defined
in
the
bill
as
a
4
person
licensed
as
an
insurance
producer
who
is
appointed
by
an
5
insurer
to
supervise
the
administration
of
self-service
storage
6
insurance
at
an
owner’s
locations.
7
The
bill
gave
the
commissioner
the
authority
to
suspend,
8
revoke,
or
refuse
to
issue
or
renew
an
owner’s
limited
9
lines
producer
license.
The
commissioner
must
adopt
rules
10
as
necessary
to
implement
and
administer
the
provisions
of
11
the
bill,
and
may
take
any
action
within
the
commissioner’s
12
authority
to
enforce
compliance
with
the
provisions
of
the
13
bill.
14
The
provisions
of
the
bill
are
applicable
to
self-service
15
storage
insurance
that
is
delivered,
issued
for
delivery,
16
continued,
or
renewed
in
this
state
on
or
after
July
1,
2020.
17
-10-
LSB
5656YC
(4)
88
ko/rn
10/
10