Oklahoma § 36-1435.20 - Limited lines producers - Qualification for license Travel accident and baggage policies

§ 36-1435.20. Limited lines producers - Qualification for license Travel accident and baggage policies

A. A limited lines producer may receive qualification for a

license in one or more of the following categories:

1. Prepaid legal liability insurance, which means the

assumption of an enforceable contractual obligation to provide

specified legal services or to reimburse policyholders for specified

legal expenses, pursuant to the provisions of a group or individual

policy;

2. Crop - insurance providing protection against damage to

crops from unfavorable weather conditions, fire or lightning, flood,

hail, insect infestation, disease or other yield-reducing conditions

or perils provided by the private insurance market, or that is

subsidized by the Federal Crop Insurance Corporation, including

Multi-Peril Crop Insurance;

3. Car rental - insurance offered, sold or solicited in

connection with and incidental to the rental of rental cars for a

period of two (2) years, whether at the rental office or by

preselection of coverage in master, corporate, group or individual

agreements that:

a.

is nontransferable,

b.

applies only to the rental car that is the subject of

the rental agreement, and

c.

is limited to the following kinds of insurance:

(1) personal accident insurance for renters and other

rental car occupants, for accidental death or

Oklahoma Statutes - Title 36. Insurance

dismemberment, and for medical expenses resulting

from an accident that occurs with the rental car

during the rental period,

(2) liability insurance that provides protection to

the renters and other authorized drivers of a

rental car for liability arising from the

operation or use of the rental car during the

rental period,

(3) personal effects insurance that provides coverage

to renters and other vehicle occupants for loss

of, or damage to, personal effects in the rental

car during the rental period,

(4) roadside assistance and emergency sickness

protection insurance, or

(5) any other coverage designated by the Insurance

Commissioner.

A car rental limited lines license issued to a rental or leasing

company shall authorize any employee or authorized representative of

the rental or leasing company to sell or offer coverage at each

location at which the rental or leasing company operates. Employees

or authorized representatives are not required to be individually

licensed;

4. Credit - credit life, credit disability, credit property,

credit unemployment, involuntary unemployment, mortgage life,

mortgage guaranty, mortgage disability, guaranteed automobile

protection insurance, or any other form of insurance offered in

connection with an extension of credit that is limited to partially

or wholly extinguishing that credit obligation and that is

designated by the Insurance Commissioner as limited line credit

insurance;

5. Surety - insurance or bond that covers obligations to pay

the debts of, or answer for the default of another, including

faithlessness in a position of public or private trust. For purpose

of limited line licensing, surety does not include surety bail

bonds;

6. Travel;

7. Self-service storage insurance, pursuant to Section 1435.20a

of this title; and

8. Motor Service Club limited lines producer, pursuant to

Sections 3101 et seq. of this title.

B. 1. An insurance producer or limited lines producer may

solicit applications for and issue travel accident policies or

baggage insurance by means of mechanical vending machines supervised

by the insurance producer or limited lines producer only if the

Insurance Commissioner shall determine that the form of policy to be

sold is reasonably suited for sale and issuance through vending

machines, that use of vending machines for the sale of policies

Oklahoma Statutes - Title 36. Insurance

would be of convenience to the public, and that the type of vending

machine to be used is reasonably suitable and practical for the sale

and issuance of policies. Policies so sold do not have to be

countersigned.

2. The Commissioner shall issue to the insurance agent or

limited insurance representative a special vending machine license

for each such machine to be used. The license shall specify the

name and address of the insurer and licensee, the kind of insurance

and type of policy to be sold, and the place where the machine is to

be in operation. The license shall expire, be renewable, and be

suspended or revoked coincidentally with the insurance agent license

or limited representative license of the licensee. The license fee

for each vending machine shall be that stated in the provisions of

Section 1435.23 of this title. Proof of existence of the license

shall be displayed on or about each machine in such manner as the

Commissioner may reasonably require.

Added by Laws 1997, c. 418, § 60, eff. Nov. 1, 1997. Amended by

Laws 1999, c. 36, § 1, eff. Nov. 1, 1999; Laws 1999, c. 333, § 1,

eff. July 1, 1999; Laws 2000, c. 353, § 9, eff. Nov. 1, 2000; Laws

2001, c. 156, § 20, eff. Nov. 1, 2001. Renumbered from § 1424.11 of

this title by Laws 2001, c. 156, § 35, eff. Nov. 1, 2001. Amended

by Laws 2003, c. 150, § 4, eff. Nov. 1, 2003; Laws 2008, c. 184, §

12, eff. July 1, 2008; Laws 2013, c. 224, § 1, eff. Nov. 1, 2013;

Laws 2014, c. 145, § 1, eff. Nov. 1, 2014; Laws 2018, c. 159, § 1,

eff. Nov. 1, 2018; Laws 2019, c. 263, § 1, eff. Nov. 1, 2019; Laws

2021, c. 478, § 10, emerg. eff. May 12, 2021.

§36-1435.20a. Sale of storage insurance by self-storage facility.

A. As used in this section:

1. "Self-service storage insurance" means personal property

insurance offered to occupants of a self-service storage facility in

connection with and incidental to the rental of space at the selfservice storage facility. Self-service storage insurance is limited

to coverage against the loss of or physical damage to personal

property that occurs on the premises of the self-service storage

facility or when the personal property is in transit to or from the

self-service storage facility during the period of the rental

agreement;

2. "Occupant" means a person, or his or her sublessee,

successor or assign, entitled to the use of the storage space at a

self-service storage facility under a rental agreement, to the

exclusion of others;

3. "Owner" means the owner, operator, lessor or sublessor of a

self-service storage facility, or any person authorized by him or

her to manage the facility or to receive rent from an occupant under

a rental agreement;

Oklahoma Statutes - Title 36. Insurance

4. "Self-service storage facility" means any real property

designed and used for the purpose of renting or leasing individual

storage space to occupants who are to have access to such facility

for the purpose of storing and removing personal property;

5. "Supervising entity" means a business entity that is a

licensed insurer or insurance producer.

B. The owner of a self-service storage facility may sell,

solicit and offer coverage for self-service storage insurance.

C. An owner is required to hold a limited lines license,

pursuant to Section 1435.20 of Title 36 of the Oklahoma Statutes, to

sell, solicit or offer coverage for self-service storage insurance.

An owner is not required to be licensed solely to display and make

available brochures and other promotional materials created by or on

behalf of an authorized insurer or surplus lines insurer. A limited

lines license shall authorize any employee or authorized

representative of the owner to sell, solicit and offer coverage for

self-service storage insurance to occupants at each location at

which the owner conducts business.

D. An owner holding a limited lines license pursuant to Section

1435.20 of Title 36 of the Oklahoma Statutes is exempt from the

examination requirements in Section 1435.6 of Title 36 of the

Oklahoma Statutes and the continuing education requirements in

Section 1435.29 of Title 36 of the Oklahoma Statutes.

E. An owner or supervising entity shall maintain a registry of

agents of the owner at each self-service storage facility who are

engaged in selling, soliciting or offering self-service storage

insurance coverage under the authority of the limited lines license

of the owner.

F. Upon request by the Insurance Commissioner and with tendays' notice, the books and records of the owner regarding the selfservice storage insurance shall be open to examination by the

Insurance Commissioner during regular business hours of the

supervising entity.

G. At every location where self-service storage insurance is

offered, brochures or other written or electronic materials must be

made available to prospective purchasers which:

1. Disclose that self-service storage insurance may provide a

duplication of coverage already provided by a homeowner's insurance

policy, renter's insurance policy or other source of coverage of the

occupant;

2. State that the purchase of the self-service storage

insurance offered by the owner is not required in order to lease

storage space;

3. Provide:

a.

the identity of the insurer,

b.

the identity of the owner,

c.

the process for filing a claim, and

Oklahoma Statutes - Title 36. Insurance

d.

that the insured may cancel the coverage at any time

and receive a refund of any applicable unearned

premium.

H. Each prospective purchaser of self-service storage insurance

shall be provided, prior to the time of sale, a copy of the policy

or certificate, as applicable.

I. Self-service storage insurance may be provided under an

individual, master, corporate, commercial or group insurance policy.

J. Self-service storage insurance rules, rates and forms are

subject to the provisions of Sections 1201 through 1219, Sections

309.1 through 309.7, and Section 1435.26 of Title 36 of the Oklahoma

Statutes.

K. The insurer issuing the self-service storage insurance shall

either directly supervise or appoint a supervising entity to oversee

compliance with applicable law. The insurer or supervising entity

shall provide a training program for employees and authorized

representatives of the owner that sell, solicit or offer selfservice storage insurance. The training required by this subsection

shall include each employee and authorized representative that

sells, solicits or offers self-service storage insurance receiving

basic instruction about the self-service storage insurance offered

to occupants and the disclosures required pursuant to subsection G

of this section.

L. 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.

M. The premium for self-service storage insurance coverage may

be billed and collected by the owner. The premium for the coverage

shall be separately itemized on the bill of the occupant. All

premiums received by an owner 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. An owner billing and

collecting charges for self-service storage insurance shall not be

required to maintain the funds in a segregated account provided that

the owner is authorized by the insurer or supervising entity to hold

the funds in an alternative manner and to remit the amounts to the

supervising entity or insurer within sixty (60) days of receipt.

Owners may receive compensation for billing and collection services.

N. A sworn application for a self-service storage insurance

limited lines license provided for in Section 1435.20 of Title 36 of

the Oklahoma Statutes shall be made to and filed with the Insurance

Commissioner on forms prescribed and furnished by the Insurance

Commissioner.

O. The application for licensure shall provide the name,

residence address, principal place of business, facilities covered

by the license, authorized representatives and other information

required by the Insurance Commissioner for the owner and the

Oklahoma Statutes - Title 36. Insurance

licensed producer that is designated by the applicant as the person

supervising compliance with the requirements of this section. Such

information shall be updated within thirty (30) days of any change.

The licensed producer that is designated by the applicant does not

need to own or be employed by the owner.

P. Limited lines licenses for self-service storage insurance

shall be valid for a period of twenty-four (24) months.

Q. Each owner licensed pursuant to this section shall pay to

the Insurance Commissioner a fee as prescribed by the Insurance

Commissioner.

Added by Laws 2019, c. 263, § 2, eff. Nov. 1, 2019.