An Act To Create Limited Lines Self-storage Insurance
Maine Legislature, Session 130, LD 1494
Committee: Health Coverage, Insurance and Financial Services
Sponsors: SANBORN
Amends: 24-A MRSA §1420-C

Legislative Document
No. 1494
S.P. 481
In Senate, April 14, 2021
An Act To Create Limited Lines Self-storage Insurance
Received by the Secretary of the Senate on April 12, 2021.  Referred to the Committee on 
Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator SANBORN of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §1420-C, sub-§2, ¶G, as amended by PL 2011, c. 297, §3, is 
further amended to read:
G.  A salaried full-time employee who counsels or advises that person's employer 
relative to the insurance interests of the employer or of the subsidiaries or business 
affiliates of the employer if the employee does not sell or solicit insurance or receive a 
commission; or
Sec. 2.  24-A MRSA §1420-C, sub-§2, ¶H, as enacted by PL 2011, c. 297, §4, is 
amended to read:
H.  A person who offers to sell or sells portable electronic device insurance pursuant 
to a license issued by the superintendent under chapter 89.; or
Sec. 3.  24-A MRSA §1420-C, sub-§2, ¶I is enacted to read:
I.  A person who offers to sell or sells self-storage insurance pursuant to a license issued 
by the superintendent under chapter 97.
Sec. 4.  24-A MRSA c. 97 is enacted to read:
CHAPTER 97
LIMITED LINES SELF-STORAGE INSURANCE
§7501.  Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Customer.  "Customer" means a person who rents or leases a storage space within 
a self-storage facility under a rental agreement with a self-storage provider.  "Customer" 
includes the sublessee, assignee or successor in interest of the person originally a party to 
a rental agreement with a self-storage provider.
2.  Covered customer.  "Covered customer" means a customer who elects to receive 
coverage under a self-storage insurance policy.
3.  Limited lines license.  "Limited lines license" means a license to sell or offer a 
policy for self-storage insurance.
4.  Location.  "Location" means any physical location in the State or any publicly 
accessible website, call center or similar operation directed to residents of the State.
5.  Rental agreement.  "Rental agreement" means a written agreement between a 
customer and self-storage provider that establishes or modifies the terms, conditions or 
other provisions governing a customer's occupancy and use of a storage space within a self-
storage facility owned or operated by the self-storage provider.
6.  Self-storage facility.  "Self-storage facility" means any real property or facility in 
which individual storage spaces rented or leased by a self-storage provider to a customer 
are located and within which a customer is generally responsible for placing and removing 
property the customer stores within a rented or leased storage space.
7.  Self-storage insurance.  "Self-storage insurance" means personal property 
insurance authorized under section 705 providing coverage for the repair or replacement of 
personal property of a covered customer stored at a self-storage facility or in transit to or 
from a self-storage facility against various causes of loss, including loss or damage.  "Self-
storage insurance" does not include a homeowner's or renter's insurance, private passenger 
automobile insurance, commercial multiple peril insurance or any similar policy.
8.  Self-storage provider.  "Self-storage provider" means a person or business entity, 
as defined in section 1151-A, subsection 4, that is the owner, operator, lessor or sublessor 
of a self-storage facility.
9.  Supervising entity.  "Supervising entity" means a business entity that is a licensed 
insurance producer or insurer.
§7502.  Licensure of self-storage providers
1.  License required.  A self-storage provider must obtain a limited lines license under 
this chapter prior to selling or offering coverage under a policy of self-storage insurance.
2.  Authority provided by license.  A limited lines license issued under this chapter 
authorizes any employee or authorized representative of a self-storage provider to sell or 
offer coverage under a policy of self-storage insurance to a customer at each location at 
which the self-storage provider engages with a customer or prospective customer.
3.  List of locations.  In connection with a self-storage provider's application for a 
license under section 7506 and upon request by the superintendent, the self-storage 
provider shall provide a list to the superintendent of all locations in this State at which the 
self-storage provider offers coverage.
4.  Activities authorized by license.  Notwithstanding any provision of law to the 
contrary, a license issued pursuant to this chapter authorizes the licensee and its employees 
or authorized representatives to engage only in those activities that are expressly permitted 
in this chapter.
§7503.  Requirements for the sale of self-storage insurance
1.  Brochures.  At each location where a self-storage provider sells or offers self-
storage insurance to customers, the self-storage provider shall make available to a 
prospective customer brochures or other written materials that:
A.  Disclose that self-storage insurance may provide a duplication of coverage already 
provided by a customer's homeowner's insurance policy, renter's insurance policy or 
other source of coverage;
B.  State that the enrollment by the customer in a self-storage insurance policy is not 
required in order to rent or lease storage space within a self-storage facility;
C.  Summarize the material terms of the insurance coverage, including:
(1)  The identity of the insurer;
(2)  The identity of the supervising entity;
(3)  The amount of any applicable deductible and how it is to be paid; and
(4)  Benefits of the coverage;
D.  Summarize the process for filing a claim; and
E.  State that the customer may cancel enrollment for coverage under a self-storage 
insurance policy at any time and the person paying the premium must receive a refund 
of any applicable unearned premium.
2.  Periodic basis of coverage.  Self-storage insurance may be offered on a month-to-
month or other periodic basis as a group or master commercial inland marine policy issued 
to a self-storage provider under which individual customers may elect to enroll for 
coverage.
3.  Eligibility and underwriting standards.  Eligibility and underwriting standards 
for customers that elect to enroll in self-storage insurance must be established by an insurer 
for each self-storage insurance program.
§7504.  Authority of self-storage providers
1.  Requirements for employees and authorized representatives of self-storage 
providers.  An employee or authorized representative of a self-storage provider may sell 
or offer self-storage insurance to a customer and is not subject to licensure as an insurance 
producer under this chapter if:
A.  The self-storage provider obtains a limited lines license to authorize its employees 
or authorized representatives to sell or offer self-storage insurance pursuant to this 
section;
B.  The insurer issuing the self-storage insurance either directly supervises or appoints 
a supervising entity to supervise the administration of the sale of insurance, including 
development of a training program for employees and authorized representatives of the 
self-storage providers.
(1)  The training must be delivered to all employees and authorized representatives 
of the self-storage provider who are directly engaged in the activity of selling or 
offering self-storage insurance.  The training may be provided in electronic form.  
If the training is conducted in electronic form, the supervising entity shall 
implement a supplemental education program that is conducted and overseen by 
licensed employees of the supervising entity to supplement the electronic training.
(2)  Each employee and authorized representative must receive basic instruction 
about the self-storage insurance offered to customers and the disclosures required 
under section 7503, subsection 1; and
C.  The employee or authorized representative of the self-storage provider does not 
advertise, represent or otherwise hold that employee or authorized representative out 
as other than a nonlimited lines licensed insurance producer.
2.  Charges.  The charges for self-storage insurance coverage may be billed and 
collected by the self-storage provider.  Any charge to the customer for coverage that is not 
included in the cost associated with the rental or lease of self-storage or related services 
must be separately itemized on the customer's bill.  If the self-storage insurance coverage 
is included with the rental or lease of self-storage or related services, the self-storage 
provider shall clearly and conspicuously disclose to the customer that the self-storage 
insurance coverage is included with the rented or leased storage space.  A self-storage 
provider billing and collecting charges for coverage is not required to maintain those funds 
in a segregated account as long as the self-storage provider is authorized by the insurer to 
hold such funds in an alternative manner and remits the funds to the supervising entity 
within 60 days of receipt.  All funds received by a self-storage provider from a customer 
for the sale of self-storage insurance are considered funds held in trust by the self-storage 
provider in a fiduciary capacity for the benefit of the insurer.  A self-storage provider may 
receive compensation for billing and collection services.
§7505.  Violations
1.  Penalties.  If a self-storage provider or its employee or authorized representative 
violates any provision of this chapter, the superintendent may enforce this chapter in 
accordance with section 12-A except the superintendent may not impose a fine exceeding 
$15,000 for aggregate conduct in violation of this chapter.
2.  Suspension or revocation.  In addition to any other penalties authorized by law, 
the superintendent may:
A.  Suspend the authority of a self-storage provider to transact self-storage insurance;
B.  Suspend the authority of a self-storage provider to transact self-storage insurance 
pursuant to this chapter at specific business locations where violations have occurred; 
and
C.  Suspend or revoke the authority of an individual employee or authorized 
representative of a self-storage provider to act under a limited lines license under 
section 7502, subsection 2.
§7506.  Application for license and fees
1.  Application for license to be filed with superintendent.  A  self-storage provider 
must file a sworn application for a license under this chapter with the superintendent on 
forms prescribed and furnished by the superintendent.
2.  Contents of application.  In addition to other information required by the 
superintendent, the application for a license under this chapter must:
A.  Provide the name, residence address and other information required by the 
superintendent for an employee or authorized representative of the self-storage 
provider who is designated by the applicant as the person responsible for the self-
storage provider's compliance with the requirements of this chapter.  If the self-storage 
provider derives more than 50% of its revenue from the sale of self-storage insurance, 
the information specified in this paragraph must be provided for all officers, directors 
and shareholders of record having beneficial ownership of 10% or more of any class 
of securities registered under the federal securities laws;
B.  Appoint the superintendent as the applicant's attorney to receive service of all legal 
process issued against it in any civil action or proceeding in this State and agree that 
process so served is valid and binding against the applicant.  The appointment is 
irrevocable, binds the company and any successor in interest as well as the assets or 
liabilities of the applicant and must remain in effect as long as the applicant's license 
remains in force in this State; and
C.  Provide the location of the applicant's home office.
3.  Time of application.  An application for a license under this chapter must be made 
within 90 days of the application's being made available by the superintendent.
4.  Initial license valid for 24 months.  An initial license issued pursuant to this 
chapter is valid for 24 months and expires on the last day of the 24th month.
5.  Fee.  Each self-storage provider licensed under this chapter shall pay to the 
superintendent a fee equal to the amount prescribed by section 601, subsection 29.
SUMMARY
This bill creates self-storage insurance as a limited line insurance that provides 
coverage against loss or damage to the personal property of a self-storage customer that 
occurs while the property is inside a self-storage space or in transit to or from a self-storage 
facility.  The bill permits certain self-storage providers and their employees to sell or offer 
self-storage insurance to customers who rent or lease self-storage space.  The bill describes 
the application process for a self-storage insurance limited lines license and requires that 
self-storage providers obtain a limited lines license or receive training from a licensed 
insurer before selling or offering self-storage insurance to a customer.  The bill requires 
that certain disclosures be made to customers when selling or offering self-storage 
insurance, describes the duration and fees associated with a limited lines license and 
authorizes the Superintendent of Insurance to assess penalties for violations of the 
provisions related to self-storage insurance.