AB469: Bill Text

Under the bill, the insurance is issued to the operator as a group or master commercial policy, and an individual (customer) who leases a unit or space in a facility from the operator may purchase coverage under the insurance policy to protect his or her personal property stored in the unit or at the facility from loss or damage during the term of the rental agreement for the unit or facility space. The bill prohibits an operator or employee or representative from advertising or representing that he or she is an insurance intermediary if he or she does not hold such a license; provides that an operator may not base an employee's or representative's compensation primarily on the number of customers who purchase coverage; requires an operator to remit all moneys collected from customers to the insurer; and authorizes an insurer to compensate an operator for billing and collection services.

The bill requires an operator to separately itemize any charge for the insurance that is not included in the cost of leasing the unit or space, and, if the charge for the insurance is included in the leasing cost, that must be clearly and conspicuously disclosed. Additionally, at every location where the insurance is offered to customers, the operator must make available written materials that provide specific information, such as the identity of the insurer, the amount of the deductible, the terms of coverage, how to make a claim, that the coverage may duplicate coverage under the customer's homeowner's or renter's policy, and, if insurance is required as a condition of leasing the unit or space, that the customer may satisfy that requirement by presenting evidence of other comparable insurance coverage. The bill specifies what happens if the insurer changes the policy terms or the operator or insurer terminates the policy; under what circumstances an insurer may terminate a customer's coverage; and the penalties that the commissioner may impose if an operator or an employee or representative violates any of the new provisions.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB469,1 Section 1 . 349.13 (3m) (a) 1. of the statutes is renumbered 349.13 (3m) (a) 1w.

AB469,2 Section 2 . 349.13 (3m) (a) 1g., 1n., 1r. and 3. of the statutes are created to read:

AB469,5,3 349.13 (3m) (a) 1g. “Leased space" has the meaning given in s. 704.90 (1) (b).

AB469,5,4 1n. “Lessee" has the meaning given in s. 704.90 (1) (c).

AB469,5,5 1r. “Operator" has the meaning given in s. 704.90 (1) (d).

AB469,5,6 3. “Rental agreement" has the meaning given in s. 704.90 (1) (f).

AB469,3 Section 3 . 349.13 (3m) (bm) of the statutes is created to read:

AB469,5,11 349.13 (3m) (bm) Notwithstanding par. (b), and subject to par. (dr) 1., an operator may have a vehicle that is stored in a lessee's leased space removed, at the vehicle owner's expense, without the permission of the vehicle owner, regardless of whether a citation is issued for illegal parking, if all of the following apply:

AB469,5,13 1. The lessee failed to pay rent or other charges under a rental agreement for at least 7 consecutive days after the due date under the rental agreement.

AB469,5,14 2. The operator has provided the notices under s. 704.90 (5) (b).

AB469,6,3 3. Before the operator sent the 2nd notice under s. 704.90 (5) (b) 2., the lessee had failed to pay rent or other charges under the rental agreement for more than 60 consecutive days after the due date under the rental agreement.

AB469,6,5 4. The lessee has failed to redeem the vehicle under s. 704.90 (5) (a) within the time specified in the notice under s. 704.90 (5) (b) 2. c.

AB469,4 Section 4 . 349.13 (3m) (d) of the statutes is amended to read:

AB469,6,11 349.13 (3m) (d) 1. Subject to par. (dr), a vehicle may be removed from private property under par. (b) or (c) only by a towing service at the request of the property owner or property owner's agent, a traffic officer, or a parking enforcer. Subject to par. (dr), a vehicle may be removed from leased space under par. (bm) only by a towing service at the request of the operator, a traffic officer, or a parking enforcer.

AB469,6,15 2. Before any vehicle is removed under par. (b) or to (c) by a towing service, the towing service shall notify a local law enforcement agency of the make, model, vehicle identification number, and registration plate number of the vehicle and the location to which the vehicle will be removed.

AB469,7,2 3. Subject to par. (dr) 2., if a vehicle is removed under par. (b) or to (c) by a towing service, the vehicle owner shall pay the reasonable charges for removal and, if applicable, storage of the vehicle, as well as any service fee imposed under par. (dm). Subject to par. (dr) 2., if the vehicle was removed at the request of the property owner or property owner's agent or at the request of an operator, these reasonable charges shall be paid directly to the towing service, and the towing service may impound the vehicle until these charges are paid. If these charges have not been paid in full within 30 days of the vehicle's removal and the vehicle owner has not entered into a written agreement with the towing service to pay these reasonable charges in installment payments, the vehicle shall be deemed abandoned and may be disposed of as are other abandoned vehicles.

AB469,5 Section 5 . 349.13 (3m) (dr) 2. of the statutes is amended to read:

AB469,7,10 349.13 (3m) (dr) 2. A towing service may not collect any charges for the removal or storage of an illegally parked vehicle under this subsection, or a vehicle removed under par. (bm), unless the towing service made a good faith effort to comply with par. (d) 2. with respect to the vehicle. A towing service operating in a 1st class city may not collect any charges for the removal or storage of an illegally parked vehicle under this subsection, or a vehicle removed under par. (bm), if the towing service has not complied with par. (d) 2. with respect to the vehicle.

AB469,6 Section 6 . 349.13 (5) (b) 2. of the statutes is amended to read:

AB469,7,17 349.13 (5) (b) 2. A person who has custody of a vehicle removed or stored under subs. (3) to (4) or otherwise at the request of a law enforcement officer, traffic officer, parking enforcer, property owner, or property owner's agent, or operator, as defined in s. 704.90 (1) (d), shall release the personal property within the vehicle to the owner of the vehicle during regular office hours upon presentation by the owner of proper identification.

AB469,7 Section 7 . 628.02 (1) (b) 10. of the statutes is created to read:

AB469,7,21 628.02 (1) (b) 10. An operator, as defined in s. 704.90 (1) (d), or an employee or authorized representative of an operator, selling or offering self-service storage insurance under s. 632.976.

AB469,8 Section 8 . 632.976 of the statutes is created to read:

AB469,7,23 632.976 Self-service storage insurance. (1) Definitions. In this section:

AB469,7,25 (a) “Customer" means a person who leases a self-service storage unit or space at a self-service storage facility under the terms of a rental agreement.

AB469,8,2 (b) “Enrolled customer" means a customer who elects coverage under a self-service storage insurance policy issued to an operator.

AB469,8,3 (c) “Leased space" has the meaning given in s. 704.90 (1) (b).

AB469,8,4 (d) “Operator" has the meaning given in s. 704.90 (1) (d).

AB469,8,5 (e) “Personal property" has the meaning given in s. 704.90 (1) (e).

AB469,8,6 (f) “Rental agreement" has the meaning given in s. 704.90 (1) (f).

AB469,8,7 (g) “Self-service storage facility" has the meaning given in s. 704.90 (1) (g).

AB469,8,11 (h) “Self-service storage insurance" means insurance that provides coverage for the loss of, or damage to, personal property contained in a leased space during the term of a rental agreement. “Self-service storage insurance" does not include any of the following:

AB469,8,12 1. Homeowner's insurance.

AB469,8,13 2. Renter's insurance.

AB469,8,14 3. Private passenger motor vehicle insurance.

AB469,8,16 4. Insurance that provides coverage similar to the coverage provided by any insurance described in subds. 1. to 3.

AB469,8,19 (i) “Self-service storage insurance program" means the coverage options made available to customers of an operator who elect to enroll for coverage under a policy of self-service storage insurance.

AB469,8,20 (j) “Self-service storage unit" has the meaning given in s. 704.90 (1) (h).

AB469,8,24 (k) “Supervising entity" means a business entity that is a licensed insurer or licensed intermediary and that is appointed by an insurer to supervise the administration of a self-service storage insurance program offered by an operator to its customers.

AB469,9,4 (2) Authority. (a) Requirements. An operator or an employee or authorized representative of an operator may sell or offer self-service storage insurance to customers without holding a certificate of authority under s. 601.04 or a license as an intermediary only if all of the following apply:

AB469,9,5 1. The operator complies with the requirements of this section.

AB469,9,10 2. The insurer issuing the self-service storage insurance either directly supervises, or appoints a supervising entity to supervise, the administration of the sale of self-service storage insurance, including development of a training program, as described under sub. (4), for operators and employees and authorized representatives of the operators.

AB469,9,17 3. The supervising entity, or insurer issuing the self-service storage insurance if there is no supervising entity, maintains a registry of operators and locations, as described in par. (c), at which an operator or an employee or authorized representative of the operator is authorized to sell or offer self-service storage insurance in this state. Upon request by the commissioner after providing 10 days' notice, the supervising entity or insurer maintaining the registry shall make the registry available for inspection and examination by the commissioner.

AB469,9,20 4. Any operator who is an individual, or any employee or authorized representative of an operator, who intends to sell or offer self-service storage insurance to customers shall complete a training program described under sub. (4).

AB469,9,24 (b) Prohibited representations. No operator and no employee or authorized representative of an operator may advertise, represent, or otherwise hold himself or herself out as a licensed insurance intermediary if the operator or employee or authorized representative does not hold a license as an intermediary in this state.

AB469,10,5 (c) Scope. Compliance by an operator with this section authorizes the operator or any employee or authorized representative of the operator to sell or offer coverage under a policy of self-service storage insurance to a customer at any location at which the operator leases self-service storage units or space in self-service storage facilities.

AB469,10,8 (d) Applicability of existing law. An operator selling or offering self-service storage insurance is subject to ss. 601.41, 601.42, 601.61, 601.63, and 601.64, except that any forfeitures or penalties shall be in the amounts specified in sub. (3).

AB469,10,11 (3) Penalties. If an operator or an employee or authorized representative of an operator violates any provision of this section, the commissioner may do any of the following:

AB469,10,13 (a) After notice and hearing conducted in accordance with s. 601.62, impose forfeitures not to exceed $500 per violation.

AB469,10,14 (b) Order, under s. 601.41 (4), any of the following:

AB469,10,16 1. Suspension of the selling or offering of self-service storage insurance at the location under sub. (2) (c) where the violation occurred.

AB469,10,18 2. Suspension of the selling or offering of self-service storage insurance by an employee or authorized representative of an operator.

AB469,10,20 3. Suspension or revocation of the selling or offering of self-service storage insurance by an operator in this state.

AB469,10,23 (4) Training. The insurer or supervising entity shall develop and administer a training program, as required under sub. (2) (a) 4., that complies with all of the following:

AB469,11,3 (a) The insurer or supervising entity shall deliver training to operators who are individuals, and to employees and authorized representatives of operators, who are directly engaged in selling or offering self-service storage insurance.

AB469,11,8 (b) The insurer or supervising entity may provide the training in electronic form. If the training is in electronic form, the insurer or supervising entity shall implement a supplemental education program regarding self-service storage insurance that is conducted and overseen by licensed employees of the insurer or supervising entity.

AB469,11,13 (c) The insurer or supervising entity shall provide to every operator who is an individual and who sells or offers self-service storage insurance, and to every employee and authorized representative of an operator that sells or offers self-service storage insurance, basic instruction about the self-service storage insurance offered to customers and the disclosures required under sub. (6).

AB469,11,19 (5) Compensation. (a) An operator may not compensate an employee or authorized representative based primarily on the number of customers enrolled in self-service storage insurance coverage but the operator may compensate an employee or authorized representative, in a manner that is incidental to his or her overall compensation, for activities related to the sale or offering of self-service storage insurance.

AB469,11,21 (b) 1. An operator may bill and collect the charges for self-service storage insurance coverage.

AB469,11,24 2. The operator shall separately itemize on the enrolled customer's bill any charge to the enrolled customer for coverage that is not included in the cost associated with the lease of the leased space.

AB469,12,3 3. If the self-service storage insurance coverage is included with the lease of the leased space, the vendor shall clearly and conspicuously disclose to the enrolled customer that the coverage is included with the lease of the leased space.

AB469,12,11 4. An operator that bills and collects charges from an enrolled customer is not required to maintain those moneys in a segregated account if the insurer authorizes the operator to hold those moneys in a manner other than a segregated account and if the operator remits the moneys to the insurer or supervising entity within 60 days after receiving those moneys. The operator shall consider all moneys received by that operator from an enrolled customer for the sale of self-service storage insurance to be held in trust by that operator in a fiduciary capacity for the benefit of the insurer.

AB469,12,13 5. The insurer or supervising entity may compensate the operator for billing and collection services.

AB469,12,16 (6) Disclosures. At every location where self-service storage insurance is offered to customers, an operator shall make available to prospective customers brochures or other written materials that contain all of the following:

AB469,12,19 (a) A disclosure that self-service storage insurance may provide a duplication of coverage already provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of insurance coverage.

AB469,12,22 (b) If self-service storage insurance is required as a condition of leasing leased space, a statement that a customer may satisfy that requirement by presenting evidence of other comparable insurance coverage.

AB469,12,24 (c) A summary of the material terms of the self-service storage insurance coverage including all of the following:

AB469,12,25 1. The identity of the insurer.

AB469,13,1 2. The identity of the supervising entity, if any.

AB469,13,2 3. The amount of any applicable deductible and how to pay that deductible.

AB469,13,3 4. The benefits of coverage.

AB469,13,4 5. The key terms and conditions of coverage.

AB469,13,5 (d) A summary of the process for filing a claim.

AB469,13,9 (e) A statement that the enrolled customer may cancel enrollment for coverage under a self-service storage insurance policy at any time and that upon cancellation the person paying the premium receives a refund of any applicable unearned premium.

AB469,13,12 (7) Permitted offering. An operator may offer self-service storage insurance on a month-to-month or other periodic basis as a group or master commercial policy that is issued to an operator for its enrolled customers.

AB469,13,17 (8) Termination of insurance; changes to policy. (a) Except as provided in par. (c), an insurer may terminate or otherwise change the terms and conditions of a policy of self-service storage insurance only after providing the policyholder and all enrolled customers at least 30 days' notice before terminating the coverage or making the change.

AB469,13,22 (b) If the insurer changes the terms and conditions in accordance with par. (a), the insurer shall provide the operator policyholder with a revised policy or endorsement and shall provide to each enrolled customer a revised certificate, endorsement, updated brochure, or other evidence indicating that a change in the terms and conditions has occurred and a summary of the material changes.

AB469,14,2 (c) 1. An insurer may terminate the enrollment of an enrolled customer under a self-service storage insurance policy after providing 15 days' notice if the insurer discovers that the enrolled customer committed fraud or made a material misrepresentation in obtaining coverage or in the presentation of a claim under the policy.

AB469,14,5 2. An insurer may immediately terminate the enrollment of an enrolled customer under a self-service storage insurance policy for any of the following reasons:

AB469,14,7 a. The enrolled customer fails to pay the premium for the self-service storage insurance policy.

AB469,14,9 b. The enrolled customer's rental agreement with the operator terminates and is not renewed.

AB469,14,17 3. An insurer may terminate the enrollment of an enrolled customer under a self-service storage insurance policy if the enrolled customer exhausts any aggregate limit of liability under the terms of the self-service storage insurance policy and the insurer sends notice of termination to the enrolled customer within 30 days after exhaustion of the limit. If the insurer does not send the notice within 30 days after exhaustion of the limit, the insurer shall continue the coverage, notwithstanding the exhaustion of the aggregate limit of liability, until the insurer sends notice of termination to the enrolled customer.

AB469,14,22 (d) If a self-service storage insurance policy is terminated by an operator policyholder, the operator shall mail or deliver, at least 30 days before the termination, written notice to each enrolled customer advising the customer of the termination of the self-service storage insurance policy and the effective date of termination.