THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY WATSON, KILLION, BOYD, FABRIZIO, GRELL, CALTAGIRONE, COHEN, D. COSTA, DALEY, DAY, ELLIS, FLECK, GEIST, GILLESPIE, GINGRICH, HORNAMAN, M. K. KELLER, KOTIK, MAHONEY, MATZIE, MILLER, MOUL, MURT, PICKETT, QUINN, RAPP, SONNEY, TAYLOR AND TOEPEL, MAY 10, 2011

REFERRED TO COMMITTEE ON INSURANCE, MAY 10, 2011  

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.  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:

"Department."  The Insurance Department of the Commonwealth.

"Limited licensee."  An owner authorized to act as an agent

of an insurance provider for purposes of selling certain

insurance coverages for personal property maintained in self-

service storage facilities under this article.

"Occupant."  A person, his sublessee, successor or assign

entitled to the use of the storage space at a self-service

storage facility under a rental agreement to the exclusion of

others.

"Owner."  The owner, operator, lessor or sublessor of a self-

service storage facility, his agent or any other person

authorized by him to manage the self-service storage facility or

to receive rent from an occupant under a rental agreement.

"Personal property."  Movable property not affixed to land.

The term includes goods, wares, merchandise, motor vehicles,

watercraft and household items and furnishings.

"Rental agreement."  Any agreement or lease, written or oral,

that establishes or modifies the terms, conditions, rules or any

other provisions concerning the use and occupancy of a self-

service storage facility.

"Self-service storage facility."  Any real property designed

and used for the purpose of renting or leasing individual

storage space to occupants who are to have access to the

individual storage space for the purpose of storing and removing

personal property. No lessee shall use a self-service storage

facility for residential purposes.

Section 602-B.  Limited license.

(a)  Issuance.--The department may issue to an owner that is

in compliance with this article a limited license to act as an

insurance agent of an insurer authorized to provide insurance in

this Commonwealth for self-service storage facilities as

provided under this article.

(b)  Agent.--A limited licensee shall be authorized to act as

an agent for an insurer in connection with a rental agreement

and for either an individual policy issued to an individual

occupant or as a group policy for occupants for personal

property insurance. A limited licensee shall be authorized to

provide to occupants insurance coverage for:

(1)  the loss of or damage to personal property stored at

a self-service storage facility where the loss or damage

occurs at the self-service storage facility during the

occupant's rental agreement; or

(2)  any other loss directly related to an occupant's

rental agreement.

(c)  Provision of material.--No insurance shall be issued

under this article unless the limited licensee provides to a

prospective occupant written material that does all of the

following:

(1)  Provides a summary of the terms of insurance

coverage, including the identity of the insurer.

(2)  Discloses that the policy of insurance may provide a

duplication of coverage already provided by an occupant's

homeowner's insurance policy, personal liability insurance

policy or other existing policy of insurance.

(3)  Describes the process for filing a claim if the

occupant elects to purchase coverage and experiences a

covered loss.

(4)  Provides information regarding the price,

deductible, benefits, exclusions, conditions and any other

limitations of the policy.

(5)  States that the limited licensee is not authorized

to evaluate the adequacy of the occupant's existing insurance

coverages, unless the limited licensee is otherwise licensed.

(6)  States that the occupant may cancel the insurance at

any time and any unearned premium will be refunded in

accordance with applicable law.

(d)  Treatment of money.--Notwithstanding any other provision

of this article or any rule or regulation adopted by the

department, a limited licensee licensed under this article shall

not be required to treat money collected from occupants under

rental agreements as funds received in a fiduciary capacity, if

the charges for coverage are itemized and are ancillary to a

rental agreement. The sale of insurance not in conjunction with

a rental agreement shall not be permitted.

(e)  Employees.--Any limited license issued under this

article shall also authorize any employee of the limited

licensee to act individually on behalf and under the supervision

of the limited licensee with respect to the kinds of coverage

specified under this article.

(f)  Training program.--Each owner licensed under this

article shall provide a training program in which employees and

authorized representatives of the owner shall be trained by a

licensed instructor and receive basic insurance instruction

about the kind of coverage authorized under this article and

offered for purchase by prospective occupants.

(g)  Application.--As a prerequisite for issuance of a

limited license under this article, an applicant shall file with

the department an application for a limited license in the form

as prescribed by the department.

(h)  Violations.--If any provision of this article is

violated by a limited licensee, the department shall be

authorized to, after notice and a hearing, impose other

penalties, including suspending the transaction of insurance at

specific rental locations where violations of this article have

occurred, as the department deems to be necessary or convenient

to carry out the purposes of this article.

(i)  Examination.--No prelicensing examination shall be

required for issuance of a limited license under this article.

Section 2.  This act shall take effect in 60 days.