PRIOR PRINTER'S NO. 179
PRINTER'S NO. 1871
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
190
Session of
2017
INTRODUCED BY McGARRIGLE, MARTIN, RAFFERTY, KILLION, STEFANO,
VULAKOVICH, COSTA, RESCHENTHALER AND BROWNE, JANUARY 26, 2017
SENATOR WHITE, BANKING AND INSURANCE, AS AMENDED, JUNE 13, 2018
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," IN
INSURANCE PRODUCERS, FURTHER PROVIDING FOR DEFINITIONS AND
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
SECTION 1. THE DEFINITION OF "LINE OF AUTHORITY" IN SECTION
601-A OF THE ACT OF MAY 17, 1921 (P.L.789, NO.285), KNOWN AS THE
INSURANCE DEPARTMENT ACT OF 1921, IS AMENDED AND THE SECTION IS
AMENDED BY ADDING A DEFINITION TO READ:
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SECTION 601-A. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
CONTEXT CLEARLY INDICATES OTHERWISE:
* * *
"LIMITED LINE SELF-SERVICE STORAGE INSURANCE." INSURANCE
OFFERED IN CONNECTION WITH AND INCIDENTAL TO THE RENTAL OF SPACE
AT A SELF-SERVICE STORAGE FACILITY.
"LINE OF AUTHORITY." THE LICENSED ABILITY TO SELL, SOLICIT
OR NEGOTIATE PARTICULAR CLASSES OR TYPES OF INSURANCE, INCLUDING
THE FOLLOWING:
(1) LIFE. INSURANCE COVERAGE ON HUMAN LIVES, INCLUDING
BENEFITS OF ENDOWMENT AND ANNUITIES, AND MAY INCLUDE BENEFITS
IN THE EVENT OF DEATH OR DISMEMBERMENT BY ACCIDENT AND
BENEFITS FOR DISABILITY INCOME.
(2) ACCIDENT AND HEALTH OR SICKNESS. INSURANCE COVERAGE
FOR SICKNESS, BODILY INJURY OR ACCIDENTAL DEATH AND MAY
INCLUDE BENEFITS FOR DISABILITY INCOME.
(3) PROPERTY. INSURANCE COVERAGE FOR THE DIRECT OR
CONSEQUENTIAL LOSS OR DAMAGE TO PROPERTY OF EVERY KIND.
(4) CASUALTY. INSURANCE COVERAGE AGAINST LEGAL
LIABILITY, INCLUDING THAT FOR DEATH, INJURY OR DISABILITY OR
DAMAGE TO REAL OR PERSONAL PROPERTY.
(5) VARIABLE LIFE AND VARIABLE ANNUITY PRODUCTS.
INSURANCE COVERAGE PROVIDED UNDER VARIABLE LIFE INSURANCE
CONTRACTS AND VARIABLE ANNUITIES.
(6) PERSONAL LINES. PROPERTY AND CASUALTY INSURANCE
COVERAGE SOLD TO INDIVIDUALS AND FAMILIES PRIMARILY FOR
NONCOMMERCIAL PURPOSES.
(7) CREDIT. LIMITED LINE CREDIT INSURANCE.
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(8) MOTOR VEHICLE RENTAL. LIMITED LINE MOTOR VEHICLE
RENTAL INSURANCE.
(8.1) SELF-SERVICE STORAGE. LIMITED LINE SELF-SERVICE
STORAGE INSURANCE.
(9) LIMITED LINE. ANY OTHER LINE OF INSURANCE AS
DETERMINED BY THE INSURANCE COMMISSIONER.
* * *
SECTION 2. SUBARTICLE B OF ARTICLE VI-A OF THE ACT IS
AMENDED BY ADDING A DIVISION TO READ:
DIVISION 2.1
SELF-SERVICE STORAGE FACILITY INSURANCE
Section 601-B 681-A . Self-service storage agent PRODUCER
licenses.
(a) Authority to issue licenses.--The Insurance Department
DEPARTMENT may issue a self-service storage agent license to an
owner that 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. THE
SELF-SERVICE STORAGE PROVIDER SHALL ALSO BE SUBJECT TO THE
REQUIREMENTS OF THIS ARTICLE, ARTICLE XI AND THE ACT OF JULY 22,
1974 (P.L.589, NO.205), KNOWN AS THE UNFAIR INSURANCE PRACTICES
ACT.
(b) Application.--
(1) An applicant for a self-service storage agent
PRODUCER 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 PRODUCER may conduct business under the
license.
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(2) A self-service storage agent PRODUCER 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 PRODUCER shall notify
the department within 30 days after commencing business under
the self-service storage agent's PRODUCER'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
PRODUCER 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 PRIMARY 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 OR WHILE THE PERSONAL PROPERTY IS IN
TRANSIT DURING THE RENTAL AGREEMENT .
(d) Requirements.--A self-service storage agent PRODUCER
shall not offer or sell insurance under this section unless:
(1) The self-service storage agent PRODUCER makes
readily available to the prospective occupant brochures or
other written materials that:
(i) Summarize the material terms of insurance
coverage offered to occupants, including the identity of
the insurer, price, benefits, DEDUCTIBLES, exclusions and
conditions.
(ii) Disclose that the policies offered by the self-
service storage agent PRODUCER may provide a duplication
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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. THE DISCLOSURE
SHALL BE PROMINENTLY DISPLAYED IN THE BROCHURE OR OTHER
WRITTEN MATERIALS WITH AT LEAST 12-POINT BOLD TYPE.
(III) STATE THAT THE INSURANCE PRESCRIBED IN THIS
SECTION IS PRIMARY COVERAGE OVER ANY OTHER COVERAGE
COVERING THE SAME LOSS.
(iii) (IV) 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.
(V) STATE THAT THE PURCHASE OF THE INSURANCE
PRESCRIBED IN THIS SECTION IS NOT REQUIRED IN ORDER TO
RENT STORAGE SPACE. THE STATEMENT SHALL BE PROMINENTLY
DISPLAYED IN THE BROCHURE OR OTHER WRITTEN MATERIALS WITH
AT LEAST 12-POINT BOLD TYPE.
(iv) (VI) Describe the process for filing a claim.
(VII) INCLUDE CONTACT INFORMATION FOR FILING A
COMPLAINT WITH THE COMMISSIONER.
(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.
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(e) Employee or agent AUTHORIZED REPRESENTATIVE .--
(1) An employee or agent AUTHORIZED REPRESENTATIVE of a
self-service storage agent PRODUCER may act on behalf of and
under the supervision of the self-service storage agent
PRODUCER 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 AUTHORIZED
REPRESENTATIVE of a self-service storage agent PRODUCER
acting within the scope of employment or agency is deemed the
conduct of the self-service storage agent PRODUCER for
purposes of this section.
(3) THE SELF-SERVICE STORAGE PRODUCER SHALL MAINTAIN A
REGISTER, ON A FORM WHICH THE COMMISSIONER REQUIRES, OF EACH
EMPLOYEE OR AUTHORIZED REPRESENTATIVE OF THE SELF-SERVICE
STORAGE PRODUCER WHO OFFERS THE INSURANCE PRESCRIBED IN THIS
SECTION ON BEHALF OF THE SELF-SERVICE STORAGE PRODUCER AND
SHALL, UPON REQUEST OF THE COMMISSIONER, SUBMIT THE REGISTER
FOR INSPECTION BY THE COMMISSIONER.
(f) Training.--Each self-service storage agent PRODUCER
shall provide , OR CAUSE A LICENSED PRODUCER TO PROVIDE, a
training program that gives employees and agents AUTHORIZED
REPRESENTATIVES of the self-service storage agent PRODUCER basic
instruction about the provisions of this section , including the
kinds of insurance coverage prescribed in this section. ,
INCLUDING THE FOLLOWING:
(1) GENERAL INFORMATION ABOUT HOMEOWNERS, RENTERS,
BUSINESS AND SIMILAR INSURANCE THAT AN OCCUPANT MAY HAVE THAT
MAY PROVIDE COVERAGE FOR PROPERTY STORED AT A SELF-SERVICE
STORAGE FACILITY.
(2) INFORMATION ABOUT THE MATERIAL TERMS OF INSURANCE
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COVERAGE OFFERED TO OCCUPANTS, INCLUDING THE PRICE, BENEFITS,
DEDUCTIBLES, EXCLUSIONS AND CONDITIONS OF THE INSURANCE.
(3) THE DISCLOSURES REQUIRED UNDER SUBSECTION (D).
(g) Prohibitions.--A self-service storage agent PRODUCER 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 AUTHORIZED REPRESENTATIVES as
licensed insurers or insurance producers.
(H) ENFORCEMENT.--A VIOLATION OF THIS SECTION SHALL
CONSTITUTE A VIOLATION OF THIS ACT AND SHALL BE SUBJECT TO THE
PROVISIONS OF SECTIONS 691-A AND 692-A.
(h) (I) Exclusions.--Nothing in this section shall be
construed to prohibit:
(1) An insurer from paying, and a self-service storage
agent PRODUCER from receiving, a commission, service fee or
other valuable consideration dependent on the sale of
insurance.
(2) A self-service storage agent PRODUCER from paying,
and its employees or agent AUTHORIZED REPRESENTATIVE from
receiving, production payments or incentive payments if the
payments are not dependent on the sale of insurance.
(i) (J) 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 . IF THE
OWNER AND ITS UNLICENSED EMPLOYEES AND AUTHORIZED
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REPRESENTATIVES DO NOT SOLICIT PROSPECTIVE OCCUPANTS TO PURCHASE
THE INSURANCE.
(j) (K) Continuing education.--A self-service storage agent
PRODUCER is not subject to continuing education requirements.
(k) (L) 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.
"OCCUPANT." AS DEFINED IN SECTION 2 OF THE ACT OF DECEMBER
20, 1982 (P.L.1404, NO.325), KNOWN AS THE SELF-SERVICE STORAGE
FACILITY ACT.
"OWNER." AS DEFINED IN SECTION 2 OF THE SELF-SERVICE STORAGE
FACILITY ACT.
"PERSONAL PROPERTY." AS DEFINED IN SECTION 2 OF THE SELF-
SERVICE STORAGE FACILITY ACT.
"Self-service storage agent PRODUCER ." 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
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and remove personal property on a self-service basis.
Section 2 3. This act shall take effect in 60 days.
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