215 ILCS 5/500-107
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XXXI - Insurance Producers, Limited Insurance Representatives And Registered Firms

(Section scheduled to be repealed on January 1, 2027)Sec. 500-107.     Self-service storage facility limited line license for  self-storage  facilities.(a) Except as permitted by  subsection (j) of this Section, a  self-service storage facility must obtain a producer license or obtain  a  self-service storage facility limited line license before offering or selling  insurance in  connection with and incidental to the rental of storage space provided by a  self-service  storage facility. The sale of insurance may occur at the rental office or by  preselection of  coverage in a master, corporate, group rental, or individual agreement. The  following  general categories of coverage may be offered or sold:(1) insurance that provides hazard insurance coverage     to renters for the loss of, or damage to, tangible personal property in storage or in transit during the rental period; or(2) any other coverage the Director may approve as     meaningful and appropriate in connection with the rental of storage space.(b) Insurance may not be offered by a self-service storage limited line  producer  pursuant to this Section unless:(1) the self-service storage facility has applied for     and obtained a self-service storage facility limited line license;(2) at every rental location where rental 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 coverage offered to renters, including the identity of the insurer;(B) disclose that the coverage offered by the         self-service storage facility may provide a duplication of coverage already provided by the renter's personal homeowner's insurance policy, automobile insurance policy, personal liability insurance policy, or other source of coverage;(C) state that the purchase by the renter of the         kinds of coverage specified in this Section is not required in order to rent storage space; and(D) describe the process for filing a claim in         the event the consumer elects to purchase coverage and in the event of a claim; and(3) evidence of coverage is provided to each renter     who elects to purchase the coverage.(c) A self-service storage facility limited line license issued under this  Section  shall also authorize any employee of the self-service storage facility limited  line licensee  to act individually on behalf and under the supervision of the self-service  storage facility  limited line licensee with respect to the kinds of coverage specified in this  Section.(d) A self-service storage facility licensed pursuant to this Section must  conduct a  training program in which employees being trained shall receive basic  instruction about  the kinds of coverage specified in this Section and offered for purchase by  prospective  renters of storage space.(e) Notwithstanding any other provision of this Section or any rule adopted  by the  Director, a self-service storage facility limited line producer pursuant to  this Section is  not required to treat moneys collected from renters purchasing insurance when  renting  storage space as funds received in a fiduciary capacity, provided that the  charges for  coverage shall be itemized and ancillary to a rental transaction.(f) The sale of insurance not in conjunction with a rental transaction shall  not be  permitted.(g) A self-service storage facility limited line producer under this Section  may not  advertise, represent, or otherwise hold itself or any of its employees out as  licensed  insurers, insurance producers, insurance agents, or insurance brokers.(h) Direct commissions may not be paid to self-service storage facility  employees  by the insurer or the customer purchasing insurance products. The self-service  storage  facility may include insurance products in an overall employee performance  compensation incentive program.(i) An application for a self-service storage facility limited line license  must be  made on a form specified by the Director.(j) Nothing contained in this Section  shall prohibit an unlicensed person from enrolling, issuing, or otherwise  distributing certificates  of insurance under a group master policy lawfully issued in this or another  state when:(1) the enrollment or distribution is by an employee     of the group master policyholder;(2) no commission is paid for such enrollment or     distribution;(3) the distribution is incidental and ancillary to     the primary rental business of the group master policyholder; and(4) the group master policy is sold to the group     master policyholder by a licensed producer.(k) Nothing in this Section applies to or affects common carriers regulated  by  the Illinois Commerce Commission.    (Source: P.A. 93-288, eff. 1-1-04.)