§ 58-33-18. Limited license for self-service storage companies.
§ 58‑33‑18. Limited license for self‑service storage companies.
(a) As used in thissection:
(1) "Limitedlicensee" means a person authorized to sell certain coverages relating tothe rental of self‑service storage units pursuant to the provisions ofthis section and Article 39 of Chapter 66 of the General Statutes.
(2) "Rentalagreement" means any written agreement setting forth the terms andconditions governing the use of a storage unit provided by the owner of a self‑servicestorage facility company.
(3) "Self‑servicestorage company" means any person in the business of renting storage unitsto the public.
(4) "Renter"or "occupant" means any person obtaining the use of a storage unitfrom a self‑service storage company under the terms of a rental agreement.
(5) "Storageunit" means a semienclosed or fully enclosed area, room, or space that isprimarily intended for the storage of personal property and which shall beaccessible by the renter of the unit pursuant to the terms of the rentalagreement.
(b) The Commissionermay issue to a self‑service storage company, or to a franchisee of a self‑servicestorage company, that has complied with the requirements of this section alimited license authorizing the licensee, known as a "limitedlicensee" for the purpose of this Article, to act as agent, with referenceto the kinds of insurance specified in this section of any insurer authorizedto write such kinds of insurance in this State.
(c) The prerequisitesfor issuance of a limited license under this section are the filing with theCommissioner of the following:
(1) A writtenapplication, signed by an officer of the applicant, for the limited license insuch form or forms, and supplements thereto, and containing such information asthe Commissioner may prescribe; and
(2) A certificate by theinsurer that is to be named in such limited license, stating that it hassatisfied itself that the named applicant is trustworthy and competent to actas its insurance agent for this limited purpose and that the insurer willappoint such applicant to act as the agent in reference to the doing of suchkind or kinds of insurance as are permitted by this section if the limitedlicense applied for is issued by the Commissioner. Such certificate shall besubscribed by an officer or managing agent of such insurer and affirmed as trueunder the penalties of perjury.
(d) In the event thatany provision of this section is violated by a limited licensee, theCommissioner may:
(1) Revoke or suspend alimited license issued under this section in accordance with the provisions ofG.S. 58‑33‑46; or
(2) After notice andhearing, impose such other penalties, including suspending the transaction ofinsurance at specific rental locations where violations of this Article haveoccurred, as the Commissioner deems to be necessary or convenient to carry outthe purposes of this section.
(e) The self‑servicestorage company or franchisee licensed pursuant to subsection (b) of thissection may act as agent for an authorized insurer only in connection with therental of storage units and only with respect to the following kinds ofinsurance:
(1) Personal effectsinsurance that provides coverage to renters of storage units at the samefacility for the loss of, or damage to, personal effects that occurs at thesame facility during the rental period; or
(2) Any other coveragethat the Commissioner may approve as meaningful and appropriate in connectionwith the rental of storage units.
(f) No insurance maybe issued pursuant to this section unless:
(1) The rental period ofthe rental agreement does not exceed two years; and
(2) At every self‑servicestorage location where self‑service storage agreements are executed,brochures or other written materials are readily available to the prospectiverenter that:
a. Summarize, clearlyand correctly, the material terms of insurance coverage, including the identityof the insurer, offered to renters;
b. Disclose that thesepolicies offered by the self‑service storage company may provide aduplication of coverage already provided by a renter's homeowners' insurancepolicy, personal liability insurance policy, or other source of coverage;
c. State that thepurchase by the renter of the kinds of insurance specified in this section isnot required in order to rent a storage unit;
d. Describe the processfor filing a claim in the event the renter elects to purchase coverage and inthe event of a claim; and
e. Contain anyadditional information on the price, benefits, exclusions, conditions, or otherlimitations of such policies as the Commissioner may by regulation prescribe;and
(3) Evidence of coverageis provided to every renter who elects to purchase such coverage.
(g) Any limited licenseissued under this section shall also authorize any employee of the licensee whois trained, pursuant to subsection (h) of this section, to act individually onbehalf, and under the supervision, of the licensee with respect to the kinds ofinsurance specified in this section.
(h) Each self‑servicestorage company or franchisee licensed pursuant to this section shall conduct atraining program which shall be submitted to the Commissioner for approvalprior to use and which shall meet the following minimum standards:
(1) Each trainee shallreceive basic instruction about the kinds of insurance specified in thissection offered for purchase by prospective renters of storage units;
(2) Each trainee shallbe instructed to acknowledge to a prospective renter of a storage unit thatpurchase of any such insurance specified in this section is not required inorder for the renter to rent a storage unit; and
(3) Each trainee shallbe instructed to acknowledge to a prospective renter of a storage unit that therenter may have insurance policies that already provide the coverage beingoffered by the self‑service storage company pursuant to this section.
(i) Limited licenseesacting pursuant to and under the authority of this section shall comply withall applicable provisions of this Article, except that notwithstanding anyother provision of this Article, or any rule adopted by the Commissioner, alimited licensee pursuant to this section shall not be required to treatpremiums collected from renters purchasing such insurance when renting storageunits as funds received in a fiduciary capacity, provided that:
(1) The insurerrepresented by the limited licensee has consented in writing, signed by theinsurer's officer, that premiums need not be segregated from funds received bythe self‑service storage company on account of storage unit rental; and
(2) The charges forinsurance coverage are itemized but not billed to the renter separately fromthe charges for storage units.
(j) No limitedlicensee under this section shall advertise, represent, or otherwise holditself or any of its employees out as licensed insurance agents or brokers. Norenter or occupant may be required to obtain insurance under this section as acondition of obtaining a rental agreement for a storage unit. The renter shallbe informed that the insurance offered under this section is not required as acondition for obtaining a rental agreement for a storage unit. (2003‑290, s. 5.)