HB 504 — An Act amending the act of May 17, 1921 (P.L.789, No.285), known as The Insurance Department Act of 1921, in insurance producers, further providing for definitions and providing for self-service storage insurance.

Self-service storage agent PRODUCER <-- licenses.

(a) Authority to issue licenses.--The Insurance Department <-- DEPARTMENT may issue a self-service storage agent PRODUCER <-- 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 PRODUCER 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 <-- 20170HB0504PN3297 - 3 - license.

(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- 20170HB0504PN3297 - 4 - service storage agent PRODUCER 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.

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.

(4) The insurance is provided by an insurer authorized to transact the applicable kinds of insurance in this 20170HB0504PN3297 - 5 - Commonwealth or by a surplus lines insurer under Article V.

(e) Employee or agentagent.-- 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-serviceself- 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 AUTHORIZEDof <--a REPRESENTATIVEself- of20170HB0504PN0530 a- self-service3 - 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)(f) THETraining.--Each SELF-SERVICEself-service STORAGEstorage PRODUCERagent SHALLshall MAINTAINprovide Aa <--training REGISTER,program ONthat Agives FORMemployees WHICHand THEagents COMMISSIONERof REQUIRES,the OFself- EACHservice EMPLOYEEstorage ORagent AUTHORIZEDbasic REPRESENTATIVEinstruction OFabout THEthe SELF-SERVICEprovisions STORAGEof PRODUCERthis WHOsection, OFFERSincluding THEthe INSURANCEkinds PRESCRIBEDof INinsurance THIScoverage SECTIONprescribed ONin BEHALFthis OFsection. THE SELF-SERVICE STORAGE PRODUCER AND SHALL, UPON REQUEST OF THE COMMISSIONER, SUBMIT THE REGISTER FOR INSPECTION BY THE COMMISSIONER.

(f)(g) Training.--EachProhibitions.--A self-service storage agent PRODUCERmay <--not: shall provide, OR CAUSE A LICENSED PRODUCER TO PROVIDE, a <-- training program APPROVED BY THE COMMISSIONER 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.

20170HB0504PN3297 - 6 - (2) INFORMATION ABOUT THE MATERIAL TERMS OF INSURANCE 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:

(2) Advertise, represent or otherwise portray itself or any of its employees or agents AUTHORIZED REPRESENTATIVES as <-- licensed insurers or insurance producers.

(H)(h) ENFORCEMENT.--AExclusions.--Nothing VIOLATIONin OFthis THISsection SECTIONshall SHALLbe <--construed CONSTITUTEto Aprohibit: VIOLATION OF THIS ACT AND SHALL BE SUBJECT TO THE PROVISIONS OF SECTIONS 691-A AND 692-A.

(h)(1) (I)An Exclusions.--Nothinginsurer infrom thispaying, sectionand shalla beself-service <--storage construedagent tofrom prohibit:receiving, a commission, service fee or other valuable consideration dependent on the sale of insurance.

(1)(2) AnA insurerself-service storage agent from paying, and aits self-serviceemployees storageor agent PRODUCER from receiving, aproduction commission,payments serviceor feeincentive orpayments <--if otherthe valuablepayments considerationare not dependent on the sale of insurance.

(2)(i) APromotional self-servicematerials.--An storageowner agentis PRODUCERnot fromrequired paying,to <--be licensed under this section solely to display and itsmake employeesavailable orto agentprospective AUTHORIZEDoccupants REPRESENTATIVESbrochures fromand <--other receiving,promotional productionmaterials paymentscreated by or incentiveon paymentsbehalf ifof thean paymentsauthorized areinsurer notor dependentby ona thesurplus salelines ofinsurer insurance.under this article.

(i)(j) (J)Continuing Promotionaleducation.--A materials.--Anself-service ownerstorage agent is not20170HB0504PN0530 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 <-- 20170HB0504PN3297 - 74 - THEnot OWNERsubject ANDto ITScontinuing UNLICENSEDeducation EMPLOYEESrequirements. AND AUTHORIZED REPRESENTATIVES DO NOT SOLICIT PROSPECTIVE OCCUPANTS TO PURCHASE THE INSURANCE.

(j)(k) (K)Definitions.--As Continuingused education.--Ain self-servicethis storagesection, agentthe <--following PRODUCERwords isand notphrases subjectshall have the meanings given to continuingthem educationin requirements.this subsection unless the context clearly indicates otherwise:

<--"Occupant." (k)A (L)person Definitions.--Asor usedthe inperson's thissublessee, section,successor theor followingassign <--who wordsis andentitled phrasesto shallthe haveuse theof meaningsa givenleased tospace themor inspaces thisat subsectiona unlessself-service thestorage contextfacility, clearlyto indicatesthe otherwise:exclusion of others.

"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.

"OCCUPANT.""Self-service ASstorage DEFINEDagent." INAn SECTIONowner 2or OFself-service THEstorage ACTfacility OFoperator DECEMBERwho <--is 20,licensed 1982under (P.L.1404,this NO.325),section. KNOWN AS THE SELF-SERVICE STORAGE FACILITY ACT.

"OWNER.""Self-service ASstorage DEFINEDfacility." INReal SECTIONproperty 2that OFis THEused SELF-SERVICEfor STORAGErenting FACILITYor ACT.leasing storage space in which the occupants themselves customarily store and remove personal property on a self-service basis.

"PERSONALSection PROPERTY."2. AS DEFINED IN SECTION 2 OF THE SELF- SERVICE STORAGE FACILITY ACT.

"SELF-SERVICE STORAGE FACILITY." 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 <-- 20170HB0504PN3297 - 8 - section.

"Self-service storage facility." Real property that is used <-- for renting or leasing storage space in which the occupants themselves customarily store and remove personal property on a self-service basis.

Section 2 3.

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