Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 17 - INSURANCE AGENTS, SOLICITORS, OR ADJUSTERS (§§ 83-17-1 — 83-17-527) › Article 2 - LICENSING OF INSURANCE PRODUCERS (§§ 83-17-51 — 83-17-89) › Section 83-17-64 - Limited license as insurance producer for self-storage insurance; definitions; employee or representative of licensee may act on behalf of licensee under certain circumstances

(1)
For purposes of this section, the following terms have the following meanings unless the context clearly indicates otherwise. Any terms defined in Section
85-7-121
shall have the meaning provided therein unless otherwise defined in this section.
(a)
"Limited lines producer" means an individual or business entity authorized and licensed by the commissioner to offer, sell, solicit and negotiate self-storage insurance.
(b)
"Occupant" means a person, his sublessee, successor or assign entitled to the use of a leased space at a self-storage facility under a rental agreement to the exclusion of others.
(c)
"Owner" means the owner, operator, lessor or sublessor of a self-storage facility, an agent or any person authorized to manage the facility or to receive rent from an occupant under a rental agreement. The term "owner" shall not be construed to mean a warehouseman unless the owner issues a warehouse receipt, bill of lading or other document of title for the personal property stored.
(d)
"Personal property" means any movable property not affixed to land including, but not limited to, goods, wares, merchandise, motor vehicles, watercraft, and household items and furnishings.
(e)
"Rental agreement" means any written agreement or lease that establishes or modifies the terms, conditions, rules or any other provisions concerning the use and occupancy of a self-storage facility.
(f)
"Self-storage facility" means a business entity that offers individual storage space to nonresident occupants who are to have their own means of access to the facility at any time for the purpose of storing and removing personal property.
(g)
"Self-storage insurance" means personal property insurance offered in connection with and incidental to the lease or rental of leased space at a self-storage facility and that provides coverage to occupants for the loss of or damage to personal property that occurs at the self-storage facility or when such property is in transit to or from the self-storage facility during the period of the rental agreement.
(h)
"Supervising entity" means a business entity that is a licensed insurer or insurance producer that is authorized by an insurer to supervise the administration of a self-storage insurance program.
(2)
The commissioner may issue to an individual or business entity that has filed with the commissioner an application for such limited license in a form and manner prescribed by the commissioner, a limited lines self-storage insurance producer license which authorizes the limited lines producer to offer, sell, solicit and negotiate insurance through a licensed insurer at each location where the limited lines producer conducts business.
(3)
A limited lines producer may authorize any employee or representative of the licensee to act individually on behalf and under the supervision of the licensee to offer, sell, solicit and negotiate self-storage insurance under the limited lines producer's license and without the need for an individual producer's license only if the following conditions are met:
(a)
The limited lines producer complies with the provisions of Section
83-17-61(2)
. The designated responsible licensed producer required in Section
83-1-61(2)(b)
, Mississippi Code of 1972, need not be an employee or owner of the self-storage facility.
(b)
Written or electronic materials containing the following information must be made readily available to the purchasers of the self-storage insurance:
(i)
A description of the material terms or the actual material terms of the insurance coverage;
(ii)
A description of the process for filing a claim;
(iii)
A description of the review or cancellation process for the insurance coverage;
(iv)
A disclosure that the insurance coverage may provide a duplication of coverage already provided by an existing policy of insurance;
(v)
A statement that the purchase by the occupant of the insurance coverage offered by the limited lines producer is not required in order to enter into a rental agreement; and
(vi)
The identity and contact information of the insurer and limited lines producer.
(c)
At the time of licensure, the limited lines producer shall establish and maintain a register on a form prescribed by the commissioner of each self-storage facility that offers insurance on the limited lines producer's behalf. The register shall be maintained and updated by the limited lines producer and shall include the name, address and contact information of the self-storage facility and an officer or person who directs or controls the facility's operations. The limited lines producer shall submit such register to the Department of Insurance (department) upon reasonable request.
(d)
A self-storage facility employee or authorized representative, who is not licensed as an insurance producer, may not:
(i)
Evaluate or interpret the technical terms, benefits and conditions of the offered insurance coverage;
(ii)
Evaluate or provide advice concerning a prospective purchaser's existing insurance coverage; or
(iii)
Claim to be a licensed insurer, licensed producer, or insurance expert.
(e)
The insurer issuing the self-storage insurance either directly supervises or authorizes a supervising entity to supervise the administration of the program including development of a training program for employees and authorized representatives of the limited lines producer. The training required by this paragraph shall comply with the following:
(i)
The training shall be delivered to employees and authorized representatives of the limited lines producer who are directly engaged in the activity of selling, soliciting or negotiating self-storage insurance;
(ii)
The training may be provided in electronic form. However, if conducted in an electronic form, the supervising entity shall implement a supplemental education program regarding the self-storage insurance that is conducted and overseen by licensed employees of the supervising entity;
(iii)
Each employee and authorized representative shall receive basic instruction about the self-storage insurance offered by the limited lines producer and the disclosures required under subsection (3)(b) of this section; and
(iv)
The training shall include provisions required under any rules and regulations promulgated by the department.
(4)
Notwithstanding any other provision in law, an owner is authorized to receive compensation for billing and collection services. Limited lines producers shall not be required to maintain the funds from the sale of self-storage insurance in a segregated or trust account, provided that the limited lines producer is authorized by the insurer or supervising entity to hold the funds in an alternative manner and remits such amounts to the insurer or supervising entity within sixty (60) days of receipt. All premiums for self-storage insurance received by a limited lines producer, or any employee or representative of that producer, from an occupant shall be considered funds held in a fiduciary capacity for the benefit of the insurer.
(5)
Self-storage insurance may be provided under an individual policy or under a group, corporate or master policy.
(6)
The limited lines producer shall be subject to the provisions of Sections
83-5-29
through
83-5-51
and Section
83-17-71
.
(7)
An owner is not required to be licensed under this section solely to display and make available to occupants and prospective occupants brochures and other promotional materials created by or on behalf of an authorized insurer or a surplus lines insurer.
(8)
It shall be unlawful for any owner or employee of a self-storage facility, or any limited lines producer, or employee or representative of that producer, to require the purchase of insurance coverage offered by the owner or limited lines producer to enter into a rental agreement.
Added by Laws, 2019, ch. 324, HB 630,§ 3, eff. 7/1/2019.