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HCS/HB 1225 - This act prohibits operators of self storage facilities from sell or soliciting self storage insurance coverage, as defined by the act, unless licensed by the state. Any operator wishing to sell or solicit self storage insurance coverage must apply with the Director of the Department of Insurance ("Director") and pay the established license fee. The act requires that operators authorized to sell self storage insurance must provide specific brochures to prospective occupants of the self storage facility listing material terms of the insurance coverage, that enrollment in coverage is not required for lease of a storage unit, the occupants' right to cancel enrollment, the process for filing a claim, and that self storage insurance may provide duplication of coverage by homeowner's, renter's, or other coverage. The act allows for charges for self storage insurance coverage to be billed and collected by the operator as long as certain conditions are met. The act subjects persons licensed as operators to certain provisions of the insurance producers act and the Director may suspend, revoke, or refuse to renew or issue an operator's license for any one of the enumerated causes. This act requires that operators shall be subject to the investigation and examination provisions of section 374.190. This act requires that self storage insurance coverage will be deemed primary coverage over any collateral coverage beginning January 1, 2015. Additionally insurers shall maintain all eligibility and underwriting records for a period of five years. The act requires insurers offering self storage insurance coverage through operators shall appoint a supervising business entity to supervise the administration of the program and operators authorized to sell self storage insurance. The act allows for the license supervising business entity to be suspended, revoked, refused renewal, or refused application if the Director finds a violation committed by an operator that the supervising business had knowledge of or should have knowledge of and failed to report the violation or take corrective action. This act allows an insurer to terminate or otherwise change the terms and conditions of a policy of self storage insurance under certain conditions. This act also modifies terms of the "Self-Service Storage Facilities Act" found in sections 415.400-415.425 allowing for communication through electronic mail means for required written notices. The act requires that the liability of a self storage facility owner shall be deemed to be any limit on the value of the stored property in a rental agreement, if such term is present. This act also allows for an owner of a self storage facility to treat a stored vehicle, watercraft, or trailer as an abandoned vehicle and have the vehicle towed if rent and other charges remain unpaid for sixty days. The provisions of this bill related to the sale of self storage insurance coverage will become effective January 1, 2015. MICHELA BIRK
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