BILL REQ. #:  H-1480.1 

Read first time 02/06/09.   Referred to Committee on Financial Institutions & Insurance.

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

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

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, lessor, or sublessor of a self-service storage facility.
     (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 producer" means any owner of a facility that is licensed 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. An occupant may not use a self-service storage facility for residential purposes.
     (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 where the insurance is transacted for the loss of or damage to stored personal property that occurs at that facility.
     (8) "Supervising producer" means a person licensed under RCW 48.17.060 who provides training as described in section 4 of this act and is affiliated to a licensed self-service storage producer.

NEW SECTION.  Sec. 2   (1) An owner that intends to offer insurance under section 3 of this act must file a self-service storage specialty producer license application with the commissioner. Before the commissioner issues a self-service storage specialty producer license, the owner must be appointed as the self-service storage insurance producer of one or more authorized appointing insurers under all self-service specialty producer license.
     (2) Upon receipt of an application, if the commissioner is satisfied that the application is complete, the commissioner may issue a self-service storage specialty producer license to the owner.
     (3) An owner issued a self-service storage specialty producer license under this chapter is:
     (a) Subject to RCW 48.17.540 through 48.17.560; and
     (b) Not subject to the prelicensure or continuing education requirements in chapter 48.17 RCW.

NEW SECTION.  Sec. 3   A self-service storage specialty producer license authorizes a self-service storage producer and its employees and authorized representatives 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.

NEW SECTION.  Sec. 4   A self-service storage producer may not issue insurance under section 3 of this act unless:
     (1) At every location where occupants are enrolled in self-service storage insurance programs, written material regarding the program is made available to prospective occupants; and
     (2) The self-service storage insurance program is operated with the participation of a supervising producer who, with authorization and approval from the appointing insurer, supervises a training program for employees of the licensed self-service storage producer.

NEW SECTION.  Sec. 5   (1) The written disclosure material required in section 4 of this act must be approved by the commissioner prior to the use of the material by the licensee. Disclosure material may not be used that is not approved by the commissioner.
     (2) The written material must:
     (a) Summarize the material terms of insurance coverage offered to occupants, including the name, address, telephone number of the insurer, price, benefits, exclusions, and conditions;
     (b) Prominently and conspicuously disclose that the policies offered by the self-service storage 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;
     (c) 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;
     (d) Describe the process for filing a claim;
     (e) State in writing all costs related to the insurance; and
     (f) Disclose any other information required by rule by the commissioner.

NEW SECTION.  Sec. 6   Employees and authorized representatives of a self-service storage producer may only act on behalf of the self-service storage producer in the offer, sale, solicitation, or enrollment of occupants in a self-service storage insurance program. The conduct of these employees and authorized representatives within the scope of their employment or agency is the same as conduct of the self-service storage producer for purposes of this title.

NEW SECTION.  Sec. 7   The commissioner may adopt rules necessary for the implementation of this chapter, including, but not limited to, rules governing:
     (1) The specialty producer license application process, including any forms required to be used;
     (2) The standards for approval and the required content of written materials required under section 5 of this act;
     (3) The approval and required content of training materials required under section 4 of this act;
     (4) Establishing license fees to defray the cost of administering the specialty producer licensure program;
     (5) Establishing requirements for the remittance of premium funds to the supervising producer under authority from the program insurer; and
     (6) Determining the applicability or nonapplicability of other provisions of this title to this chapter.

NEW SECTION.  Sec. 8   Sections 1 through 7 of this act constitute a new chapter in Title 48 RCW.

NEW SECTION.  Sec. 9   This act takes effect July 1, 2010.