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PRINTER'S NO. 179
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
190
Session of
2017
INTRODUCED BY McGARRIGLE, MARTIN, RAFFERTY AND KILLION,
JANUARY 26, 2017
REFERRED TO BANKING AND INSURANCE, JANUARY 26, 2017
AN ACT
Amending the act of May 17, 1921 (P.L.789, No.285), entitled, as
amended, "An act relating to insurance; establishing an
insurance department; and amending, revising, and
consolidating the law relating to the licensing,
qualification, regulation, examination, suspension, and
dissolution of insurance companies, Lloyds associations,
reciprocal and inter-insurance exchanges, and certain
societies and orders, the examination and regulation of fire
insurance rating bureaus, and the licensing and regulation of
insurance agents and brokers; the service of legal process
upon foreign insurance companies, associations or exchanges;
providing penalties, and repealing existing laws," providing
for self-service storage facility insurance.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of May 17, 1921 (P.L.789, No.285), known
as The Insurance Department Act of 1921, is amended by adding an
article to read:
ARTICLE VI-B
SELF-SERVICE STORAGE FACILITY INSURANCE
Section 601-B. Self-service storage agent licenses.
(a) Authority to issue licenses.--The Insurance Department
may issue a self-service storage agent license to an owner that
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has complied with the requirements of this section authorizing
the owner 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) Application.--
(1) An applicant for a self-service storage agent
license shall file a written application in a form prescribed
by the department. The application shall specify all
locations in this Commonwealth that the self-service storage
agent may conduct business under the license.
(2) 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.
(3) The self-service storage agent shall notify the
department within 30 days after commencing business under the
self-service storage agent's license at any additional
locations in this Commonwealth or of those locations in this
Commonwealth that cease to do business under the license.
(c) Sale of insurance.--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) Requirements.--A self-service storage agent shall not
offer or sell insurance under this section unless:
(1) The self-service storage agent makes readily
available to the prospective occupant brochures or other
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written materials that:
(i) Summarize the material terms of insurance
coverage offered to occupants, including the identity of
the insurer, price, benefits, exclusions and conditions.
(ii) 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.
(iii) 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.
(iv) 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 transact the applicable kinds of insurance in this
Commonwealth or by a surplus lines insurer under Article V.
(e) Employee or agent.--
(1) 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 under this section.
(2) The conduct of an employee or agent of a self-
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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) Training.--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) Prohibitions.--A self-service storage agent may 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) Exclusions.--Nothing in this section shall be construed
to 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 insurance.
(2) A self-service storage agent from paying, and its
employees or agent from receiving, production payments or
incentive payments if the payments are not dependent on the
sale of insurance.
(i) Promotional materials.--An owner is not required to be
licensed under this section solely 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 under this article.
(j) Continuing education.--A self-service storage agent is
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not subject to continuing education requirements.
(k) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Occupant." A person or the person's sublessee, successor or
assign who is entitled to the use of a leased space or spaces at
a self-service storage facility, to the exclusion of others.
"Owner." The owner or owner's managing agent of a self-
service storage facility.
"Personal property." Movable property that is not affixed to
land and includes:
(1) Goods, wares, merchandise, household items and
furnishings.
(2) Vehicles, motor vehicles, trailers and semitrailers.
(3) Watercraft and motorized watercraft.
"Self-service storage agent." An owner or self-service
storage facility operator who is licensed under this section.
"Self-service storage facility." Real property that is used
for renting or leasing storage space in which occupants store
and remove personal property on a self-service basis.
Section 2. This act shall take effect in 60 days.
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