SB 981 — AN ACT CONCERNING SELF-SERVICE STORAGE INSURANCE.

General Assembly SubstituteRaised Bill No.

981 January Session, 2019 ANLCO ACTNo. CONCERNING SELF-SERVICE STORAGE INSURANCE.

4868 Referred to Committee on INSURANCE AND REAL ESTATE Introduced by:

(INS) AN ACT CONCERNING SELF-SERVICE STORAGE INSURANCE.

This definitionLCO doesNo. not apply to payments made under a policy of life insurance.

LCO4868 \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00981-R11 of 15 SB.docxRaised Substitute Bill No.No.981 definition does not apply to payments made under a policy of life insurance.

981 (4) "Commissioner" means the Insurance Commissioner.

For purposes of this subdivision "liabilities" shall include but not be limited to reserves required by statute or by regulations adopted by the commissioner in accordance with the provisions of chapter 54 or specific requirements imposed by the commissioner upon a subject companyLCO atNo. the time of admission or subsequent thereto.

(11)4868 "Insurance"2 meansof any15 agreementRaised toBill payNo.981 acompany sumat ofthe money,time LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0092 of 15admission R01-SB.docxor }subsequent Substitutethereto. Bill No.

981(11) "Insurance" means any agreement to pay a sum of money, provide services or any other thing of value on the happening of a particular event or contingency or to provide indemnity for loss in respect to a specified subject by specified perils in return for a consideration.

(16) "Person" means an individual, a corporation, a partnership, a limitedLCO liabilityNo. company, an association, a joint stock company, a business trust, an unincorporated organization or other legal entity.

LCO4868 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00933 of 15 R01-SB.docxRaised }Bill SubstituteNo.981 Billlimited No.liability company, an association, a joint stock company, a business trust, an unincorporated organization or other legal entity.

981 (17) "Policy" means any document, including attached endorsements and riders, purporting to be an enforceable contract, which memorializes in writing some or all of the terms of an insurance contract.

(5)LCO "PersonalNo. property" has the same meaning as provided in section 42-159 of the general statutes;

LCO4868 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00944 of 15 R01-SB.docxRaised }Bill SubstituteNo.981 Bill(5) No."Personal property" has the same meaning as provided in section 42-159 of the general statutes;

981 (6) "Rental agreement" means a written agreement or lease that establishes or modifies the terms, conditions, rules or any other provisions concerning the use and occupancy of storage space at a self- service storage facility;

and (9) "Supervising person"entity" means an insurer licensed to transact insurance business in this state and authorized to write personal or commercial risk insurance business in this state, or an insurance producer licensed in this state, appointed by an insurer to supervise the owners who are offering or selling self-service storage insurance coveragepolicies on behalf of the appointing insurer.

(b) (1) No owner shall offer or sell a self-service storage insurance coveragepolicy in this state without first obtaining a self-service storage insurance license from the commissioner pursuant to this section.section, except that each owner offering or selling self-service storage insurance policies in this state prior to October 1, 2019, may continue to offer or sell such policies until the owner's initial application for such license is approved or denied by the commissioner, provided such owner files such application not later than ninety days after the date on which the commissioner prescribes a form for such application.

NotwithstandingAny the provisions of this subdivision, each owner offering or selling self-service storage insurance coverage in this state prior to October 1, 2019, may continue to offer or sell such coverage until the owner's initial application for a self-service storage insurance license isissued approved or denied by the commissioner,commissioner providedpursuant suchto ownerthis filessection suchshall applicationbe notin laterforce thanuntil ninetyJanuary daysLCO afterNo. the date on which the commissioner prescribes a form for such application.

Each4868 self-service5 storageof insurance15 licenseRaised issuedBill byNo.981 the commissioner pursuant to this section shall be in force until January thirty-first of theeach next even-numbered year, unless such license is sooner revoked or LCOsuspended {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00985by ofthe 15commissioner. R01-SB.docx } Substitute Bill No.

981 suspended by the commissioner.

(3) An owner's self-service storage insurance license shall authorize each employee and authorized representative of such owner to offer and sell self-service storage insurance coveragepolicies at each location where such owner conducts business.

(B) The insurer issuing such coverage,policies, or the supervising personentity appointed by such insurer, supervises such owner;

(i) (I) The name and residence address of, and any other information that the commissioner, in the commissioner's discretion, may require concerning, such owner or an employee or officer of such owner, or the insurer or supervising personentity supervising such owner, who will serve as the person responsible for such owner's compliance with this LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0096 of 15 R01-SB.docx } Substitute Bill No.

9814868 6 of 15 Raised Bill No.981 as the person responsible for such owner's compliance with this section;

and (II) If such owner is not ana individualnatural person and derives more than fifty per cent of such owner's revenue from the sale of self-service storage insuranceinsurance, coverage, such owner shall include the name and residence address of, and any other information that the commissioner, in the commissioner's discretion, may require for, all shareholders of such owner who are directly or indirectly the beneficial owner of ten per cent or more of any class of security of such owner, and all of the officers and directors of such owner;

(C) Each owner offering or selling self-service storage insurance coveragepolicies in this state prior to October 1, 2019, shall file an initial application with the commissioner pursuant to subparagraph (A) of this subdivision not later than ninety days after the date that the commissioner prescribes a form for such initial application.

(B) Each updated application submitted to the commissioner LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0097 of 15 R01-SB.docx } Substitute Bill No.

9814868 7 of 15 Raised Bill No.981 pursuant to subparagraph (A) of this subdivision shall be accompanied by the applicablefees feeset specifiedforth in section 38a-11 of the general statutes, as amended by this act.

(c) Each owner offering or selling self-service storage insurance coveragepolicies shall make available, at each location where such owner is offering or selling such coveragepolicies to occupants or prospective occupants in this state, brochures or other written or electronic materials containing, at a minimum, the following:

(1) A statement disclosing that self-service storage insurance coveragepolicies may provide insurance coverage that is duplicative of insurance coverage provided to occupants under their homeowners, renter's or other insurance policies;

(2) A statement disclosing that occupants are not required to purchase a self-service storage insurance coveragepolicy from such owner to lease storage space from such owner;

(3) The identity of the insurer issuing such self-service storage insurance coverage;policies;

(4) The identity of any supervising personentity appointed by the insurer identified pursuant to subdivision (3) of this subsection;

(5) The amount of any deductible under such self-service storage insurance coveragepolicies and a summary of how such deductible must be paid;

(6) A summary of the benefits under such self-service storage insurance coverage;policies;

(7) The terms and conditions of coverage under such self-service storage insurance LCOpolicies, {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0098or a summary of 15the R01-SB.docxkey }terms Substituteand BillLCO No.

9814868 coverage,8 or a summary of the15 keyRaised termsBill andNo.981 conditions of such coverage;policies;

(8) A summary of the process for filing a claim under such self- service storage insurance coverage;policies;

and (9) A statement disclosing that an occupant covered under a self- service storage insurance coveragepolicy may cancel such coveragepolicy at any time, and that the person paying the premium for such coveragepolicy will receive a refund of, or a credit for, any unearned premium under such coverage.policy.