Illinois § 500-107

§ 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.)