Self-Service Storage Facility Sales of Insurance

An owner of a self-service storage facility, or the owner's employees and agents, may offer or sell certain kinds of insurance (see below) in connection with and incidental to the rental of space at a self-service storage facility. An owner and the owner's employees and agents are exempt from licensure as an insurance producer with respect to the sale of this insurance.

Definitions

"Owner" is the owner or the owner's managing agent of a self-service storage facility.

"Self-service storage facility" is any real property that is used for renting or leasing storage space in which the occupants themselves customarily store and remove personal property on a self-service basis.

"Occupant" is a person or the person's sublessee, successor, or assignee who is entitled to the use of a leased space or spaces at a self-service storage facility, to the exclusion of others.

"Personal property" is movable property that is not affixed to land and includes:

goods, wares, merchandise, household items, and furnishings;
vehicles, motor vehicles, trailers, and semitrailers; and
watercraft and motorized watercraft.

Types
Filing
Training
Offer or Sell
Conduct
Fees

Types of Insurance

The owner may offer or sell insurance only in connection with and incidental to the rental of space at a self-service storage facility as an individual policy issued to an individual or as a group policy and only with respect to personal property insurance that provides coverage to occupants at the self-service storage facility at which the insurance is transacted, for the loss of or damage to stored personal property that occurs at that facility.
Required Filing

The Self Storage Insurance form (.pdf) must be filed by the owner or the owner's managing agent of the self-service storage facility. Submit the completed form and attachments via e-mail to licensing.commerce@state.mn.us with "Self-service storage filing" in the subject field.

All locations in Minnesota at which the owner plans to conduct insurance sales must be listed in this filing. The owner must notify the Commerce Department within 30 days after commencing insurance sales at any additional locations in Minnesota by sending an e-mail to licensing.commerce@state.mn.us that lists the name, address, and city of each additional location. The e-mail must include "Self-service storage filing" in the subject field.
Required Training Program

The owner must provide a training program, which must be submitted to the Commerce Department for approval, that gives employees and agents of the owner basic instruction about the provisions of Minnesota Statutes Chapter 60K.60, including the kinds of insurance coverage described in Minnesota Statutes Chapter 60K.60. A copy of the training program must be attached to the original "Self-Service Storage Facility Sales of Insurance" filing.
Requirements to Offer or Sell

An owner is not allowed to offer or sell insurance in connection with and incidental to the rental of space at a self-service storage facility unless:
1. the owner provides to the occupant written notice that:
  - summarizes the material terms of insurance coverage offered to occupants, including the identity of the insurer, premium amount, benefits, exclusions, and conditions;
  - discloses that the policies offered by the owner may provide a duplication of coverage already provided by an occupant's homeowner's insurance policy, renter's insurance policy, vehicle insurance policy, watercraft insurance policy, or other source of property insurance coverage and that no liability coverage is provided by the insurance coverage. This disclosure must be displayed prominently in 12-point type or capital letters and shall read as follows:
  - [Your renters' or homeowners' policy may provide the insurance you need. Check with your insurance agent to determine if your personal property stored at a location other than your home or business is covered.];
  - states that if insurance is required as a condition of rental, the requirement may be satisfied by the occupant purchasing the insurance described in this section or by presenting evidence of other applicable insurance coverage; and
  - describes the process for filing a claim;
2. all costs related to the insurance are stated in writing;
3. evidence of coverage in a form approved by the insurer is provided to every occupant who purchases the coverage; and
4. the insurance is provided by an insurer authorized to transact the applicable kinds of insurance in this state.
Conduct

An employee or agent of an owner may act on behalf of and under the supervision of the owner in matters relating to the sale of insurance in connection with and incidental to the rental of space at a self-service storage facility. The conduct of an employee or agent of an owner acting within the scope of employment or agency is deemed the conduct of the owner for purposes of the law governing the sale of self-storage insurance.

An owner is not allowed to:
- offer or sell insurance except in connection with and incidental to the rental of space at a self-service storage facility; or
- advertise, represent, or otherwise portray itself or any of its employees or agents as licensed insurers or insurance producers.
An insurer may pay, and an owner may receive, a commission, service fee, or other valuable consideration dependent upon the sale of insurance.

An owner may pay, and its employees or agents may receive, production payments or incentive payments if the payments are not dependent on the sale of insurance.
Fees for Services

No person may charge a fee for any services rendered in connection with the solicitation, negotiation, or servicing of any self-service storage insurance unless the fees charged are reasonable in relation to the services rendered and, before the services are rendered, a written statement is provided to the prospective occupant disclosing:
- the services for which fees are charged;
- the amount of the fees;
- that the fees are charged in addition to premiums; and
- that premiums include a commission.