Tennessee § 56-6-1204 - Employees not subject to licensure under certain conditions — Charge for insurance coverage allowed.

§ 56-6-1204. Employees not subject to licensure under certain conditions — Charge for insurance coverage allowed.

Notwithstanding any law to the contrary, the employees and authorized representatives of an owner may sell or offer self-service storage insurance to occupants and shall not be subject to licensure as an insurance producer under this part; provided, that: The owner obtains a limited lines license to authorize its employees or authorized representatives to sell or offer self-service storage insurance pursuant to § 56-6-1202; The insurer issuing the self-service storage insurance either directly supervises or appoints a supervising entity to supervise the administration of the program, including development of a training program for employees and authorized representatives of the owner. The training required by this subdivision (a)(2) shall comply with the following: The training shall be delivered to employees and authorized representatives of an owner who are directly engaged in the activity of selling or offering self-service storage insurance; The training may be provided in electronic form. If the training is conducted in an electronic form, the supervising entity shall implement a supplemental education program regarding self-service storage insurance that is conducted and overseen by the supervising entity; and Each employee and authorized representative shall receive basic instruction concerning the self-service storage insurance offered to customers and the disclosures required under § 56-6-1203; No employee or authorized representative of an owner of self-service storage space shall advertise, represent or otherwise hold themselves out as a nonlimited lines licensed insurance producer; and No employee or authorized representative of an owner shall be compensated based primarily on the number of occupants enrolled for self-service storage coverage; provided, however, the employee or authorized representative may receive compensation for activities under the limited lines license which is incidental to overall compensation. The charge for self-service storage insurance coverage may be assessed and collected by the owner; provided, however, that such charge shall be a separate item within or an addendum to a rental agreement. Owners assessing and collecting such charges shall not be required to maintain such funds in a segregated account; provided, the owner is authorized by the insurer to hold such funds in a nonsegregated account and remits such amounts to the supervising entity within sixty (60) days of receipt. All funds received by an owner from an enrolled occupant for the sale of self-service storage insurance shall be considered funds held in trust by the owner in a fiduciary capacity for the benefit of the insurer. Owners may receive compensation for assessing and collection services. Acts 2013, ch. 293, § 5. Code Commission Notes. Acts 2013, ch. 377, § 1 purported to enact title 56, chapter 6, part 12. Title 56, chapter 6, part 12 was previously enacted by Acts 2013, ch. 293, §§ 2-8; therefore, the enactment by Acts 2013, ch. 377, § 1 was designated as title 56, chapter 6, part 13 by authority of the code commission. Compiler's Notes. Acts 2013, ch. 293, § 11 provided that the commissioner is authorized to promulgate rules and regulations to effectuate the purposes of the act, which enacted this part. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.