1Amending the act of May 17, 1921 (P.L.789, No.285), entitled, as
2amended, "An act relating to insurance; establishing an
3insurance department; and amending, revising, and
4consolidating the law relating to the licensing,
5qualification, regulation, examination, suspension, and
6dissolution of insurance companies, Lloyds associations,
7reciprocal and inter-insurance exchanges, and certain
8societies and orders, the examination and regulation of fire
9insurance rating bureaus, and the licensing and regulation of
10insurance agents and brokers; the service of legal process
11upon foreign insurance companies, associations or exchanges;
12providing penalties, and repealing existing laws," providing
13for self-service storage facility insurance.

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

16Section 1. The act of May 17, 1921 (P.L.789, No.285), known
17as The Insurance Department Act of 1921, is amended by adding an
18article to read:

19ARTICLE VI-B

20SELF-SERVICE STORAGE FACILITY INSURANCE

21Section 601-B. Self-service storage agents and license and
22definitions.

23(a) Department.--The Insurance Department may issue a self-

1service storage agent license to an owner that has complied with
2the requirements of this section authorizing the owner to offer
3or to sell the kinds of insurance prescribed in this section in
4connection with and incidental to the rental of space at a self-
5service storage facility.

6(b) Application.--An applicant for a self-service storage
7agent license shall file a written application in a form
8prescribed by the department. The application shall specify all
9locations in this Commonwealth at which the self-service storage
10agent may conduct business under the license. A self-service
11storage agent is not required to have an individual licensee in
12each self-service storage facility or place where insurance is
13transacted. The self-service storage agent shall notify the
14department within 30 days after commencing business under the
15self-service storage agent's license at any additional locations
16in this Commonwealth or of those locations in this Commonwealth
17that cease to do business under the license.

18(c) Sale of insurance.--A self-service storage agent may
19offer or sell insurance only in connection with and incidental
20to the rental of space at a self-service storage facility on a
21master, corporate, commercial, group or individual policy basis
22and only with respect to personal property insurance that
23provides coverage to occupants at the self-service storage
24facility where the insurance is transacted for the loss of or
25damage to stored personal property that occurs at that facility.

26(d) Requirements.--A self-service storage agent shall not
27offer or sell insurance pursuant to this section unless:

28(1) The self-service storage agent makes readily
29available to the prospective occupant brochures or other
30written materials that:

1(i) Summarize the material terms of insurance
2coverage offered to occupants, including the identity of
3the insurer, price, benefits, exclusions and conditions.

4(ii) Disclose that the policies offered by the self-
5service storage agent may provide a duplication of
6coverage already provided by an occupant's homeowner's
7insurance policy, renter's insurance policy, vehicle
8insurance policy, watercraft insurance policy or other
9source of property insurance coverage.

10(iii) State that if insurance is required as a
11condition of rental, the requirement may be satisfied by
12the occupant purchasing the insurance prescribed in this
13section or by presenting evidence of other applicable
14insurance coverage.

15(iv) Describe the process for filing a claim.

16(2) All costs related to the insurance are stated in
17writing.

18(3) Evidence of coverage in a form approved by the
19insurer is provided to every occupant who purchases the
20coverage.

21(4) The insurance is provided by an insurer authorized
22to transact the applicable kinds of insurance in this
23Commonwealth or by a surplus lines insurer pursuant to
24Article V.

25(e) Employee or agent.--An employee or agent of a self-
26service storage agent may act on behalf of and under the
27supervision of the self-service storage agent in matters
28relating to the conduct of business under the license that is
29issued pursuant to this section. The conduct of an employee or
30agent of a self-service storage agent acting within the scope of

1employment or agency is deemed the conduct of the self-storage
2agent for purposes of this section.

3(f) Training.--Each self-service storage agent shall provide
4a training program that gives employees and agents of the self-
5service storage agent basic instruction about the provision of
6this section, including the kinds of insurance coverage
7prescribed in this section.

8(g) Prohibitions.--A self-service storage agent shall not:

9(1) Offer or sell insurance except in connection with
10and incidental to the rental of space at a self-service
11storage facility.

12(2) Advertise, represent or otherwise portray itself or
13any of its employees or agents as licensed insurers or
14insurance producers.

15(h) Exclusions.--Nothing in this section prohibits:

16(1) An insurer from paying, and a self-service storage
17storage agent from receiving, a commission, service fee or
18other valuable consideration dependent on the sale of
19insurance.

20(2) A self-service storage agent from paying, and its
21employees or agent from receiving, production payments or
22incentive payments if the payments are not dependent on the
23sale of insurance.

24(i) Promotional materials.--An owner is not required to be
25licensed pursuant to this section merely to display and make
26available to prospective occupants brochures and other
27promotional materials created by or on behalf of an authorized
28insurer or by a surplus lines insurer pursuant to this article.

29(j) Continuing education.--A self-service storage agent is
30not subject to continuing education requirements.

1(k) Definitions.--As used in this section, the following
2words and phrases shall have the meanings given to them in this
3subsection unless the context clearly indicates otherwise:

4"Occupant." A person or the person's sublessee, successor or
5assign who is entitled to the use of a leased space or spaces at
6a self-service facility, to the exclusion of others.

7"Owner." The owner or owner's managing agent of a self-
8service storage facility.

9"Personal property." Movable property that is not affixed to
10land and includes:

11(1) Goods, wares, merchandise, household items and
12furnishings.

13(2) Vehicles, motor vehicles, trailers and semitrailers.

14(3) Watercraft and motorized watercraft.

15"Self-service storage agent." An owner and/or self-storage
16facility operator who is licensed pursuant to this section.

17"Self-service storage facility." Any real property that is
18used for renting or leasing storage space in which the occupants
19themselves customarily store and remove personal property on a
20self-service basis.

21Section 2. This act shall take effect in 60 days.