§ 27-2.8-4 — § 27-2.8-4. Authority of owners.

Rhode Island § 27-2.8-4

• Jurisdiction: Rhode Island
• Title 27: Insurance
• Ch. 27-2.8: Self-Service Storage Insurance

Text

§ 27-2.8-4. Authority of owners.

(a) The employees and authorized representatives of owners may sell, solicit, and offer self-service storage insurance and shall not be subject to licensure as an insurance producer under this title; provided that:

(1) The insurer issuing the self-service storage insurance either directly supervises or appoints a supervising entity to supervise the administration of the program including development and implementation of a training program for employees and authorized representatives of the owners who are directly engaged in the activity of selling, soliciting, or offering self-service storage insurance. The training required by this subsection (a)(1) shall comply with the following:

(i) The training shall be delivered to employees and authorized representatives of owners who are directly engaged in the activity of selling, soliciting, or offering self-service storage insurance;

(ii) The training may be provided in electronic form. The supervising entity shall implement a system to monitor whether the electronic training has been taken by all relevant employees; and

(iii) Each employee and authorized representative shall receive basic instruction about the self-service storage insurance offered and the disclosures required under § 27-2.8-3(a).

(2) 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.

(b) Notwithstanding any other provision of law, employees or authorized representatives of an owner shall not be compensated based primarily on the number of occupants enrolled for self-service storage insurance coverage but may receive compensation for self-service storage insurance that is incidental to their overall compensation.

(c) The charges for self-service storage insurance coverage may be billed and collected by the owner. Any charge for the self-service storage insurance coverage that is not included in the cost associated with the lease of storage space at the self-service storage facility shall be separately itemized on the occupant's bill. If the self-service storage insurance coverage is included in the cost associated with the lease of storage space at the self-service storage facility, the owner shall clearly and conspicuously disclose to the occupant that the self-service storage insurance coverage is included in the cost associated with the lease of storage space at the self-service storage facility. Owners billing and collecting these charges shall not be required to maintain these funds in a segregated account; provided that, the owner is authorized by the insurer or supervising entity to hold these funds in an alternative manner and remits the premiums to the insurer or supervising entity within sixty (60) days of receipt. All premiums received by an owner from an occupant 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. Owners may receive compensation for billing and collection services.

Legislative History

P.L. 2022, ch. 342, § 1, effective January 1, 2023; P.L. 2022, ch. 343, § 1, effective January 1, 2023.