AN ACT Relating to self-service storage specialty producers; amending RCW 48.14.010 and 48.17.170; adding a new chapter to Title 48 RCW; and providing an effective date.

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Commissioner" means the insurance commissioner of this state.
     (2) "Occupant" means a person, or his or her sublessee, successor, or assign, who is entitled to the use of the storage space at a self-service storage facility under a rental agreement, to the exclusion of others.
     (3) "Owner" means the owner, operator, property management company, lessor, or sublessor of a self-service storage facility. "Owner" does not mean an occupant.
     (4) "Personal property" means movable property not affixed to land, and includes, but is not limited to, goods, merchandise, furniture, and household items.
     (5) "Self-service storage insurance producer" means any owner of a facility that is licensed as a specialty lines insurance producer under chapter 48.17 RCW to offer, sell, or solicit self-service storage insurance under this chapter.
     (6) "Self-service storage facility" or "facility" means 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 space for the purpose of storing and removing personal property on a self-service basis, but does not include a garage or other storage area in a private residence.
     (7) "Self-service storage insurance" is insurance that in connection with and incidental to the rental of space at a facility provides coverage to occupants at the facility for the loss of or damage to stored personal property that occurs at that facility.

NEW SECTION.  Sec. 2   (1) An owner; or officer, director, or employee of an owner; may not offer, sell, or solicit the purchase of self-service storage insurance unless that person is:
     (a) Licensed as an insurance producer with a property line of authority under chapter 48.17 RCW; or
     (b) Licensed as a self-service storage insurance producer under chapter 48.17 RCW and is in compliance with this chapter.
     (2) If the owner is licensed as a self-service storage insurance producer under chapter 48.17 RCW and is in compliance with this chapter, then an employee of the owner who is in compliance with section 8(1) of this act is not required to be individually licensed.
     (3) The commissioner may issue a specialty line insurance producer license to an owner that is in compliance with this chapter authorizing the owner to act as a self-service storage insurance producer under this chapter, in connection with and incidental to rental agreements, on behalf of any insurer authorized to write self-service storage insurance in this state.

NEW SECTION.  Sec. 3   An owner may apply to be licensed as a self-service storage insurance producer under, and if in compliance with, this chapter by filing the following documents with the commissioner:
     (1) A written application for licensure, signed by the applicant or by an officer of the applicant, in the form prescribed by the commissioner that includes a listing of all locations at which the owner intends to offer, sell, or solicit self-service storage insurance; and
     (2)(a) A certificate by the insurer that is to be named in self-service storage insurance producer license, stating that the insurer:
     (i) Has satisfied itself that the named applicant is trustworthy and competent to act as its self-service storage insurance producer, limited to this purpose;
     (ii) Has reviewed the employee training and education program required by section 8(1)(c) of this act and that it satisfies the statutory requirements; and
     (iii) Will appoint the applicant to act as its self-service storage insurance producer to offer, sell, or solicit self-service storage insurance, if the license for which the applicant is applying is issued by the commissioner.
     (b) The certification shall be subscribed by an authorized representative of the insurer on a form prescribed by the commissioner.

NEW SECTION. Sec. 4 An owner issued a self-service storage insurance producer license under this chapter is not subject to the prelicensure or continuing education requirements in chapter 48.17 RCW.

NEW SECTION.  Sec. 5   (1) A self-service storage insurance producer license authorizes a self-service storage insurance producer and its employees to offer and sell to, enroll in, and bill and collect premiums from occupants for insurance covering the loss of or damage to personal property stored at a facility on a master, corporate, group, or individual policy basis.
     (2) A self-service storage insurance producer is not required to treat moneys collected from occupants purchasing insurance under this chapter as funds received in a fiduciary capacity, if:
     (a) The insurer represented by the self-service storage insurance producer has consented in writing, signed by an officer of the insurer, that the premiums need not be segregated from funds received by the self-service storage insurance producer; and
     (b) The charges for insurance coverage are itemized and ancillary to the rental agreement.
     (3) An owner is not required to be licensed pursuant to this section merely to display and make available to prospective occupants brochures and other promotional materials created by or on behalf of an authorized insurer, provided that either the owner or its employees, or both, are not paid a commission or other consideration.

NEW SECTION.  Sec. 6   A self-service storage insurance producer may not solicit insurance under section 2 of this act unless:
     (1) At every location where occupants are enrolled in self-service storage insurance programs, written disclosure material regarding the program is made available to prospective occupants; and
     (2) All employees who offer and sell to, enroll in, and bill and collect premiums from occupants for insurance have completed a training program for employees of the licensed self-service storage insurance producer as approved by the commissioner.

NEW SECTION.  Sec. 7   The written disclosure material required in section (6)(1) of this act must:
     (1) Summarize the material terms of insurance coverage offered to occupants, including the name, address, telephone number of the insurer, price, benefits, exclusions, and conditions;
     (2) Prominently and conspicuously disclose that the policies offered by the self-service storage insurance 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;
     (3) State that if self-service storage insurance is required as a condition of rental, the requirement may be satisfied by the occupant purchasing the insurance being offered to the occupant by the owner or by presenting evidence of other applicable insurance coverage;
     (4) Describe the process for filing a claim;
     (5) State in writing all costs related to the insurance; and
     (6) Disclose any other information required by rule by the commissioner.

NEW SECTION.  Sec. 8   (1) An employee of a self-service storage insurance producer may be authorized to offer, sell, or solicit self- service storage insurance under the authority of the self-service storage insurance producer's license, if all of the following conditions have been satisfied:
     (a) The employee is eighteen years of age or older;
     (b) The employee is a trustworthy person and has not committed any act set forth in RCW 48.17.530;
     (c) The employee has completed a training and education program;
     (d) The self-service storage insurance producer, at the time it submits its self-service storage insurance producer license application, also submits a list of the names of all employees to its self-service storage insurance producer license on forms prescribed by the commissioner. The list shall be submitted to the commissioner annually and kept current by reporting all changes, deletions, or additions within thirty days after the change, deletion, or addition occurred. Each list shall be retained by the self-service storage insurance producer for a period of three years from submission; and
     (e) The self-service storage insurance producer submits to the commissioner with its initial self-service storage insurance producer license application, and annually thereafter, a certification subscribed by an officer of the self-service storage insurance producer on a form prescribed by the commissioner, stating all of the following:
     (i) No person other than an employee offers, sells, or solicits self-service storage insurance on its behalf or while working as an employee of the self-service storage insurance producer; and
     (ii) All employees have completed the training and education program under subsection (4) of this section.
     (2) A self-service storage insurance producer's employee may only act on behalf of the self-service storage insurance producer in the offer, sale, or solicitation of self-service storage insurance. A self-service storage insurance producer is responsible for, and must supervise, all actions of its employees related to the offering, sale, or solicitation of self-service storage insurance. The conduct of an employee is the same as the conduct of the self-service storage insurance producer for purposes of this chapter.
     (3) The manager at each location of a self-service storage insurance producer, or the direct supervisor of the self-service storage insurance producer's employees at each location, must be an employee of that self-service storage insurance producer and is responsible for the supervision of each additional employee at that location. Each self-service storage insurance producer shall identify the employee who is the manager or direct supervisor at each location in the employee list that it submits under subsection (1)(d) of this section.
     (4) Each self-service storage insurance producer shall provide a training and education program for each employee prior to allowing an employee to offer, sell, or solicit self-service storage insurance. Details of the program must be submitted to the commissioner, along with the license application, for approval prior to use, and resubmitted for approval of any changes prior to use. This training program shall meet the following minimum standards:
     (a) Each employee shall receive instruction about the insurance authorized under this chapter that may be offered for sale to prospective occupants; and
     (b) Each employee shall receive training about the requirements and limitations imposed on self-service storage insurance producer and employees under this chapter. The training must include specific instruction that the employee is prohibited by law from making any statement or engaging in any conduct express or implied, that would lead a consumer to believe that the:
     (i) Occupant does not have insurance policies in place that already provide the coverage being offered by the self-service storage producer under this chapter; or
     (ii) Employee is qualified to evaluate the adequacy of the occupant's existing insurance coverages.
     (5) The training and education program submitted to the commissioner is approved if no action is taken within thirty days of its submission.
     (6) An employee's authorization to offer, sell, or solicit self-service storage insurance expires when the employee's employment with the self-service storage insurance producer is terminated.
     (7) The self-service storage insurance producer shall retain for a period of one year from the date of each transaction records which enable it to identify the name of the employee involved in each rental transaction when an occupant purchases self-service storage insurance.

NEW SECTION. Sec. 9 The commissioner may adopt rules necessary to implement and administer this chapter.

Sec. 10 RCW 48.14.010 and 2007 c 117 s 37 are each amended to read as follows:
(1) The commissioner shall collect in advance the following fees:

(a)	For filing charter documents:
	(i)	Original charter documents, bylaws or record of organization of insurers, or certified copies thereof, required to be filed . . . . . . . . . . . .	$250.00
	(ii)	Amended charter documents, or certified copy thereof, other than amendments of bylaws . . . . . . . . . . . .	$ 10.00
	(iii)	No additional charge or fee shall be required for filing any of such documents in the office of the secretary of state.
(b)	Certificate of authority:
	(i)	Issuance . . . . . . . . . . . .	$ 25.00
	(ii)	Renewal . . . . . . . . . . . .	$ 25.00
(c)	Annual statement of insurer, filing . . . . . . . . . . . .		$ 20.00
(d)	Organization or financing of domestic insurers and affiliated corporations:
	(i)	Application for solicitation permit, filing . . . . . . . . . . . .	$100.00
	(ii)	Issuance of solicitation permit . . . . . . . . . . . .	$ 25.00
(e)	Insurance producer licenses:
	(i)	License application . . . . . . . . . . . .	$ 55.00
	(ii)	License renewal, every two years
		. . . . . . . . . . . .	$ 55.00
	(iii)	Initial appointment and renewal of appointment of each insurance producer, every two years . . . . . . . . . . . .	$ 20.00
	(iv)	Limited line insurance producer license application and renewal, every two years . . . . . . . . . . . .	$ 20.00
(f)	Reinsurance intermediary licenses:
	(i)	Reinsurance intermediary-broker, each year . . . . . . . . . . . .	$ 50.00
	(ii)	Reinsurance intermediary- manager, each year . . . . . . . . . . . .	$100.00
(g)	Surplus line broker license application and renewal, every two years . . . . . . . . . . . .		$200.00
(h)	Adjusters' licenses:
	(i)	Independent adjuster, every two years . . . . . . . . . . . .	$ 50.00
	(ii)	Public adjuster, every two years . . . . . . . . . . . .	$ 50.00
(i)	Managing general agent appointment, every two years . . . . . . . . . . . .		$200.00
(j)	Examination for license, each examination:
	All examinations, except examinations administered by an independent testing service, the fees for which are to be approved by the commissioner and collected directly by and retained by such independent testing service
	. . . . . . . . . . . .		$ 20.00
(k)	Miscellaneous services:
	(i)	Filing other documents . . . . . . . . . . . .	$ 5.00
	(ii)	Commissioner's certificate under seal . . . . . . . . . . . .	$ 5.00
	(iii)	Copy of documents filed in the commissioner's office, reasonable charge therefor as determined by the commissioner.
(l)	Self-service storage specialty insurance producer license application and renewal:
	Every two years, $130.00 for an owner with under fifty employees or $375.00 for an owner with fifty or more employees; plus a location fee of $35.00 for each additional location of an owner.

Sec. 11   RCW 48.17.170 and 2007 c 117 s 12 are each amended to read as follows:
     (1) Unless denied licensure under RCW 48.17.530, persons who have met the requirements of RCW 48.17.090 and 48.17.110 shall be issued an insurance producer license. An insurance producer may receive a license in one or more of the following lines of authority:
     (a) "Life," which is 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;
     (b) "Disability," which is insurance coverage for accident, health, and disability or sickness, bodily injury, or accidental death, and may include benefits for disability income;
     (c) "Property," which is insurance coverage for the direct or consequential loss or damage to property of every kind;
     (d) "Casualty," which is insurance coverage against legal liability, including that for death, injury, or disability or damage to real or personal property;
     (e) "Variable life and variable annuity products," which is insurance coverage provided under variable life insurance contracts, variable annuities, or any other life insurance or annuity product that reflects the investment experience of a separate account;
     (f) "Personal lines," which is property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes;
     (g) Limited lines:
     (i) Surety;
     (ii) Limited line credit insurance;
     (iii) Travel;
     (h) Specialty lines:
     (i) Communications equipment or services;
     (ii) Rental car; ((or))
     (iii) Self-service storage; or
     (i) Any other line of insurance permitted under state laws or rules.
     (2) Unless denied licensure under RCW 48.17.530, persons who have met the requirements of RCW 48.17.090(4) shall be issued a title insurance agent license.
     (3) All insurance producers', title insurance agents', and adjusters' licenses issued by the commissioner shall be valid for the time period established by the commissioner unless suspended or revoked at an earlier date.
     (4) Subject to the right of the commissioner to suspend, revoke, or refuse to renew any insurance producer's, title insurance agent's, or adjuster's license as provided in this title, the license may be renewed into another like period by filing with the commissioner by any means acceptable to the commissioner on or before the expiration date a request, by or on behalf of the licensee, for such renewal accompanied by payment of the renewal fee as specified in RCW 48.14.010.
     (5) If the request and fee for renewal of an insurance producer's, title insurance agent's, or adjuster's license is filed with the commissioner prior to expiration of the existing license, the licensee may continue to act under such license, unless sooner revoked or suspended, until the issuance of a renewal license, or until the expiration of fifteen days after the commissioner has refused to renew the license and has mailed order of such refusal to the licensee. Any request for renewal not so filed until after date of expiration may be considered by the commissioner as an application for a new license.
     (6) For all licenses, if request for renewal of an insurance producer's, title insurance agent's, or adjuster's license or payment of the fee is not received by the commissioner prior to the expiration date as required under subsection (4) of this section, the insurer or applicant for renewal shall pay to the commissioner and the commissioner shall collect, in addition to the regular fee, a surcharge as follows: For the first thirty days or part thereof of delinquency the surcharge is fifty percent of the fee; for all delinquencies extending more than thirty days, the surcharge is one hundred percent of the fee. A surcharge of two hundred percent of the renewal fee is required for any delinquency extending more than sixty days after the expiration date. This subsection shall not exempt any person from any penalty provided by law for transacting business without a valid and subsisting license or appointment, or affect the commissioner's right, at his or her discretion, to consider such delinquent application as one for a new license or appointment.
     (7) An individual insurance producer, title insurance agent, or adjuster who allows his or her license to lapse may, within twelve months after the expiration date, reinstate the same license without the necessity of passing a written examination.
     (8) A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance such as a long-term medical disability, may request a waiver of those procedures. The producer may also request a waiver of any examination requirement or any other fine or sanction imposed for failure to comply with renewal procedures.
     (9) The license shall contain the licensee's name, address, personal identification number, and the date of issuance, lines of authority, expiration date, and any other information the commissioner deems necessary.
     (10) Licensees shall inform the commissioner by any means acceptable to the commissioner of a change of address within thirty days of the change. Failure to timely inform the commissioner of a change in legal name or address may result in a penalty under either RCW 48.17.530 or 48.17.560, or both.

NEW SECTION. Sec. 12 Sections 1 through 9 of this act constitute a new chapter in Title 48 RCW.