AB469: Bill Text

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.

AB469,15,13 (e) Any notice or correspondence with respect to coverage under a policy of self-service storage insurance that is required under this section or otherwise required by law shall be in writing and may be mailed to the operator at the mailing address of the operator and to an enrolled customer at his or her last known mailing address on file with the insurer or delivered by electronic means to the operator or enrolled customer. If the notice or correspondence is mailed, the insurer or operator, whichever mails the notice or correspondence, shall maintain proof of mailing in a form authorized or accepted by the U.S. postal service or other commercial mail delivery service. If delivery of the notice or correspondence is by electronic means, the insurer shall use the electronic mail address specified by the operator for that purpose and the insurer or operator shall use the last-known electronic mail address provided by each enrolled customer. An enrolled customer who provides an electronic mail address to the insurer or operator consents to receive notices and correspondence by electronic means. If delivery is by electronic means, the insurer or operator, whichever delivers the notice or correspondence, shall maintain proof of delivery.

AB469,15,17 (f) A supervising entity may send any notice or correspondence required by this section or otherwise required by law. An insurer or operator is not required to provide the notice or correspondence if it is provided by a supervising entity in a manner that complies with this section.

AB469,9 Section 9 . 704.90 (1) (e) of the statutes is amended to read:

AB469,15,21 704.90 (1) (e) “Personal property" means movable property not affixed to land, including goods, wares, merchandise, motor vehicles, watercraft, household items, and furnishings.

AB469,10 Section 10. 704.90 (1) (i) of the statutes is created to read:

AB469,15,23 704.90 (1) (i) “Vehicle" has the meaning given in s. 340.01 (74).

AB469,11 Section 11 . 704.90 (1) (j) of the statutes is created to read:

AB469,16,3 704.90 (1) (j) “Verified mail" means any method of mailing that is offered by the U.S. postal service or other commercial mail delivery service and that provides evidence of mailing.

AB469,12 Section 12. 704.90 (4b) (a) of the statutes is amended to read:

AB469,16,7 704.90 (4b) (a) The operator may charge a reasonable late fee for each month a lessee does not pay rent by 5 weekdays days after the rent is due if the amount of the late fee is contained in the rental agreement.

AB469,13 Section 13. 704.90 (5) (a) of the statutes is amended to read:

AB469,16,14 704.90 (5) (a) At any time prior to disposal under sub. (5m), removal under sub. (5r), or sale under sub. (6), a lessee may redeem personal property by paying the operator any the full amount of rent and all other charges, if any, that are due. Upon receipt of such payment, the operator shall return the personal property, and thereafter the operator shall have no liability to any person with respect to such personal property.

AB469,14 Section 14. 704.90 (5) (b) (intro.) of the statutes is amended to read:

AB469,16,18 704.90 (5) (b) (intro.) An operator may not dispose of personal property under sub. (5m), have a vehicle removed under sub. (5r), or sell personal property under sub. (6) unless the operator first delivers the following 2 notices:

AB469,15 Section 15. 704.90 (5) (b) 1. (intro.) of the statutes is amended to read:

AB469,16,23 704.90 (5) (b) 1. (intro.) A Subject to sub. (7) (b), a first notice sent by either regular mail or electronic mail to the last-known address or electronic mail address of the lessee and the last-known address or electronic mail address of the person, if any, specified in the rental agreement under sub. (2m) containing all of the following:

AB469,16 Section 16. 704.90 (5) (b) 1. b. of the statutes is repealed.

AB469,17 Section 17. 704.90 (5) (b) 2. (intro.) of the statutes is amended to read:

AB469,17,4 704.90 (5) (b) 2. (intro.) A Subject to sub. (7) (b), a 2nd notice sent by certified mail or 1st class mail with a certificate of mailing verified mail to the last-known address of the lessee, or by electronic mail to the last-known electronic mail address of the lessee, containing all of the following:

AB469,18 Section 18. 704.90 (5) (b) 2. ag. of the statutes is repealed.

AB469,19 Section 19. 704.90 (5) (b) 2. d. of the statutes is amended to read:

AB469,17,15 704.90 (5) (b) 2. d. A statement that, unless the rent and other charges are paid within the time period under subd. 2. c., the personal property may be disposed of if the fair market value of the property is less than $100, may be removed by a towing company if the property is a vehicle, or will be sold,; a specification of the date, time, and place of the sale if the property is to be sold; and a statement that if the property is sold the operator first shall apply the proceeds of the sale first to satisfy the lien and then shall return any balance to the lessee or, if the operator cannot with due diligence locate the lessee, report and deliver any balance to the secretary of revenue as provided under ch. 177.

AB469,20 Section 20 . 704.90 (5) (c) of the statutes is created to read:

AB469,17,20 704.90 (5) (c) When the operator sends the 2nd notice under par. (b) 2., the operator shall have available, at the operator's discretion, either photographs or a video of the personal property. The operator shall make the photographs or video available to the lessee upon the lessee's request.

AB469,21 Section 21. 704.90 (5r) of the statutes is created to read:

AB469,17,25 704.90 (5r) Removal of vehicle. (a) If the personal property stored in the lessee's leased space is a vehicle, in lieu of a sale under sub. (6), the operator may have the vehicle removed from the leased space by a towing company as provided in s. 349.13 (3m) if all of the following apply:

AB469,18,2 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.

AB469,18,4 2. The operator has complied with the notice requirements under subs. (5) (b) and (7) (b).

AB469,18,7 3. Before the operator sent the 2nd notice under sub. (5) (b) 2., the lessee had failed to pay rent or other charges due under the rental agreement for more than 60 consecutive days after the due date under the rental agreement.

AB469,18,9 4. The lessee has failed to redeem the personal property under sub. (5) (a) within the time specified in the notice under sub. (5) (b) 2. c.

AB469,18,11 (b) The operator shall be immune from civil liability for any damage to or loss of the vehicle arising from or related to the removal and towing of the vehicle.

AB469,22 Section 22 . 704.90 (6) (a) 2. of the statutes is amended to read:

AB469,18,14 704.90 (6) (a) 2. The operator has complied with the notice requirements under sub. subs. (5) (b) and (7) (b).

AB469,23 Section 23. 704.90 (6) (a) 4. of the statutes is amended to read:

AB469,18,18 704.90 (6) (a) 4. An advertisement of the sale is published once a week for 2 consecutive weeks in a newspaper of general circulation where the self-service storage facility or unit is located.

AB469,24 Section 24 . 704.90 (6) (a) 5. (intro.) and b. of the statutes are consolidated, renumbered 704.90 (6) (a) 5. and amended to read:

AB469,18,23 704.90 (6) (a) 5. The advertisement under subd. 4. contains all of the following: b. The the address of the self-service storage facility or of the operator of the self-service storage unit and the name of the lessee.

AB469,25 Section 25 . 704.90 (6) (a) 5. a. of the statutes is repealed.

AB469,26 Section 26. 704.90 (6) (a) 6. of the statutes is amended to read:

AB469,19,2 704.90 (6) (a) 6. The sale takes place not sooner than 15 days after the first publication under subd. 4.

AB469,27 Section 27. 704.90 (6) (a) 7. (intro.) of the statutes is amended to read: