§ 22:1550.1 — Speciality limited lines self-service storage property insurance producer licenses

Louisiana § 22:1550.1

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§1550.1. Speciality limited lines self-service storage property insurance producer licenses
A. As used in this Section:
(1) "Limited licensee" means a person authorized to sell certain coverages relating
to the rental of self-service storage units pursuant to the provisions of this Section.
(2) "Rental agreement" means any written agreement setting forth the terms and
conditions governing the use of a storage unit provided by the owner of a self-service storage
facility company.
(3) "Renter" or "occupant" means any person obtaining the use of a storage unit from
a self-service storage company under the terms of a rental agreement.
(4) "Self-service storage company" means any person in the business of renting
storage units to the public.
(5) "Storage unit" means a semi-enclosed or fully enclosed area, room, or space that
is primarily intended for the storage of personal property and which shall be accessible by
the renter of the unit pursuant to the terms of the rental agreement.
B.(1) The commissioner of insurance may issue to a self-service storage company,
or to a franchisee of a self-service storage company, that has complied with the requirements
of this Section a limited license authorizing the licensee, known as a limited licensee for the
purposes of this Section, to act as an agent, with reference to the kinds of insurance specified
in this Section of any insurer authorized to write such kinds of insurance in this state.
(2) A license issued pursuant to this Section shall be subject to the same license and
fee requirements as limited line producers.
C. The prerequisites for issuance of a limited license pursuant to this Section are the
filing with the commissioner of insurance both of the following:
(1) A written application, signed by an officer of the applicant, for the limited license
on such form or forms, and supplements thereto, and containing such information as the
commissioner of insurance may prescribe.
(2) A certificate by the insurer that is to be named in such limited license, stating that
it has satisfied itself that the named applicant is trustworthy and competent to act as its
insurance agent for this limited purpose and that the insurer will appoint such applicant to
act as the agent in reference to the doing of such kind or kinds of insurance as are permitted
by this Section if the limited license applied for is issued by the commissioner of insurance.
The certificate shall be subscribed by an officer or managing agent of such insurer and
affirmed as true under the penalties of perjury.
D.(1) If any provision of this Section is violated by a limited licensee, the
commissioner may do any of the following:
(a) Revoke or suspend a limited license issued pursuant to this Section in accordance
with the provisions of R.S. 22:1554.
(b) Impose such other penalties, including suspending the transaction of insurance
at specific rental locations where violations of this Section have occurred, as the
commissioner deems to be necessary or convenient to carry out the purposes of this Section.
(2) An aggrieved party affected by the commissioner's decision, act, or order may
demand a hearing in accordance with Chapter 12 of this Title, R.S. 22:2191 et seq.
E. The self-service storage company or franchisee licensed pursuant to Subsection
B of this Section may act as agent for an authorized insurer only in connection with the rental
of storage units and only with respect to the following kinds of insurance:
(1) Personal effects insurance that provides coverage to renters of storage units at the
same facility for the loss of, or damage to, personal effects that occurs at the same facility
during the rental period.
(2) Any other coverage that the commissioner may approve as meaningful and
appropriate in connection with the rental of storage units.
F. No insurance may be issued pursuant to this Section unless all of the following
apply:
(1) The rental period of the rental agreement does not exceed two years.
(2) At every self-service storage location where self-service storage agreements are
executed, brochures or other written materials are readily available to the prospective renter
that:
(a) Summarize, clearly and correctly, the material terms of insurance coverage,
including the identity of the insurer, offered to renters.
(b) Disclose that these policies offered by the self-service storage company may
provide a duplication of coverage already provided by a renter's homeowners' insurance
policy, personal liability insurance policy, or other source of coverage.
(c) State that the purchase by the renter of the kinds of insurance specified in this
Section is not required in order to rent a storage unit.
(d) Describe the process for filing a claim in the event the renter elects to purchase
coverage and in the event of a claim.
(e) Contain any additional information on the price, benefits, exclusions, conditions,
or other limitations of such policies as the commissioner of insurance may by regulation
prescribe.
(3) Evidence of coverage is provided to every renter who elects to purchase such
coverage.
G. Any limited license issued pursuant to this Section shall also authorize any
employee of the licensee who is trained, pursuant to Subsection H of this Section, to act
individually on behalf, and under the supervision, of the licensee with respect to the kinds
of insurance specified in this Section.
H. Each self-service storage company or franchisee licensed pursuant to this Section
shall conduct a training program which shall be submitted to the commissioner for approval
prior to use and which shall meet all of the following minimum standards:
(1) Each trainee shall receive basic instruction about the kinds of insurance specified
in this Section offered for purchase by prospective renters of storage units.
(2) Each trainee shall be instructed to acknowledge to a prospective renter of a
storage unit that purchase of any such insurance specified in this Section is not required in
order for the renter to rent a storage unit.
(3) Each trainee shall be instructed to acknowledge to a prospective renter of a
storage unit that the renter may have insurance policies that already provide the coverage
being offered by the self-service storage company pursuant to this Section.
I. Limited licensees acting pursuant to and under the authority of this Section shall
comply with all applicable provisions of this Section, except that notwithstanding any other
provision of this Section, or any rule adopted by the commissioner, a limited licensee
pursuant to this Section shall not be required to treat premiums collected from renters
purchasing such insurance when renting storage units as funds received in a fiduciary
capacity, provided that both of the following apply:
(1) The insurer represented by the limited licensee has consented in writing, signed
by the insurer's officer, that premiums need not be segregated from funds received by the
self-service storage company on account of storage unit rental.
(2) The charges for insurance coverage are itemized but not billed to the renter
separately from the charges for storage units.
J. No limited licensee licensed pursuant to this Section shall advertise, represent, or
otherwise hold itself or any of its employees out as licensed insurance agents or brokers. No
renter or occupant shall be required to obtain insurance pursuant to this Section as a
condition of obtaining a rental agreement for a storage unit. The renter shall be informed that
the insurance offered pursuant to this Section is not required as a condition for obtaining a
rental agreement for a storage unit.

Legislative History

Acts 2016, No. 258, §1; Acts 2022, No. 185, §1.