Okla. Stat. tit. 36 § 1435.20a

Current through Laws 2024, c. 453.

Section 1435.20a - Sale of storage insurance by self-storage facility

A. As used in this section:

1. "Self-service storage insurance" means personal property insurance offered to occupants of a self-service storage facility in connection with and incidental to the rental of space at the self-service storage facility. Self-service storage insurance is limited to coverage against the loss of or physical damage to personal property that occurs on the premises of the self-service storage facility or when the personal property is in transit to or from the self-service storage facility during the period of the rental agreement;

2. "Occupant" means a person, or his or her sublessee, successor or assign, 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, or any person authorized by him or her to manage the facility or to receive rent from an occupant under a rental agreement;

4. "Self-service storage 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 such facility for the purpose of storing and removing personal property;

5. "Supervising entity" means a business entity that is a licensed insurer or insurance producer.

B. The owner of a self-service storage facility may sell, solicit and offer coverage for self-service storage insurance.

C. An owner is required to hold a limited lines license, pursuant to Section 1435.20 of Title 36 of the Oklahoma Statutes, to sell, solicit or offer coverage for self-service storage insurance. An owner is not required to be licensed solely to display and make available brochures and other promotional materials created by or on behalf of an authorized insurer or surplus lines insurer. A limited lines license shall authorize any employee or authorized representative of the owner to sell, solicit and offer coverage for self-service storage insurance to occupants at each location at which the owner conducts business.

D. An owner holding a limited lines license pursuant to Section 1435.20 of Title 36 of the Oklahoma Statutes is exempt from the examination requirements in Section 1435.6 of Title 36 of the Oklahoma Statutes and the continuing education requirements in Section 1435.29 of Title 36 of the Oklahoma Statutes.

E. An owner or supervising entity shall maintain a registry of agents of the owner at each self-service storage facility who are engaged in selling, soliciting or offering self-service storage insurance coverage under the authority of the limited lines license of the owner.

F. Upon request by the Insurance Commissioner and with ten-days' notice, the books and records of the owner regarding the self-service storage insurance shall be open to examination by the Insurance Commissioner during regular business hours of the supervising entity.

G. At every location where self-service storage insurance is offered, brochures or other written or electronic materials must be made available to prospective purchasers which:

1. Disclose that self-service storage insurance may provide a duplication of coverage already provided by a homeowner's insurance policy, renter's insurance policy or other source of coverage of the occupant;

2. State that the purchase of the self-service storage insurance offered by the owner is not required in order to lease storage space;

3. Provide:

a. the identity of the insurer,

b. the identity of the owner,

c. the process for filing a claim, and

d. that the insured may cancel the coverage at any time and receive a refund of any applicable unearned premium.

H. Each prospective purchaser of self-service storage insurance shall be provided, prior to the time of sale, a copy of the policy or certificate, as applicable.

I. Self-service storage insurance may be provided under an individual, master, corporate, commercial or group insurance policy.

J. Self-service storage insurance rules, rates and forms are subject to the provisions of Sections 1201 through 1219, Sections 309.1 through 309.7, and Section 1435.26 of Title 36 of the Oklahoma Statutes.

K. The insurer issuing the self-service storage insurance shall either directly supervise or appoint a supervising entity to oversee compliance with applicable law. The insurer or supervising entity shall provide a training program for employees and authorized representatives of the owner that sell, solicit or offer self-service storage insurance. The training required by this subsection shall include each employee and authorized representative that sells, solicits or offers self-service storage insurance receiving basic instruction about the self-service storage insurance offered to occupants and the disclosures required pursuant to subsection G of this section.

L. No employee or authorized representative of an owner shall advertise, represent or otherwise hold himself or herself out as a licensed insurance producer, unless so licensed.

M. The premium for self-service storage insurance coverage may be billed and collected by the owner. The premium for the coverage shall be separately itemized on the bill of the occupant. All premiums received by an owner for the sale of self-service storage insurance shall be considered funds held by the owner in a fiduciary capacity for the benefit of the insurer. An owner billing and collecting charges for self-service storage insurance shall not be required to maintain the funds in a segregated account provided that the owner is authorized by the insurer or supervising entity to hold the funds in an alternative manner and to remit the amounts to the supervising entity or insurer within sixty (60) days of receipt. Owners may receive compensation for billing and collection services.

N. A sworn application for a self-service storage insurance limited lines license provided for in Section 1435.20 of Title 36 of the Oklahoma Statutes shall be made to and filed with the Insurance Commissioner on forms prescribed and furnished by the Insurance Commissioner.

O. The application for licensure shall provide the name, residence address, principal place of business, facilities covered by the license, authorized representatives and other information required by the Insurance Commissioner for the owner and the licensed producer that is designated by the applicant as the person supervising compliance with the requirements of this section. Such information shall be updated within thirty (30) days of any change. The licensed producer that is designated by the applicant does not need to own or be employed by the owner.

P. Limited lines licenses for self-service storage insurance shall be valid for a period of twenty-four (24) months.

Q. Each owner licensed pursuant to this section shall pay to the Insurance Commissioner a fee as prescribed by the Insurance Commissioner.

Okla. Stat. tit. 36, § 1435.20a

Added by Laws 2019 , c. 263, s. 2, eff. 11/1/2019.