H.F. _____ Section 1. NEW SECTION . 522F.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Commissioner” means the commissioner of insurance. 4 2. “Endorsee” means an employee or an authorized 5 representative of an owner authorized to sell or offer 6 self-service storage insurance at one or more of the owner’s 7 locations. 8 3. “Financial institution” means any bank, savings and loan 9 association, credit union, or other entity subject to Title 10 XIII, subtitle 2. 11 4. “Insurance producer” means the same as defined in section 12 522B.1. 13 5. “Insurer” means the same as defined in section 522B.1. 14 6. “License” means the same as defined in section 522B.1. 15 7. “Limited lines producer” means the same as defined in 16 section 522B.1. 17 8. “Location” means any physical location in this state, or 18 any internet site, call center site, or other location at which 19 an owner engages in transactions related to a self-service 20 storage facility located in this state. 21 9. “Occupant” means a person, or the person’s successors or 22 assigns, entitled to the use of space at a self-service storage 23 facility under a rental agreement. 24 10. “Owner” means a resident or a nonresident person that is 25 the owner, operator, property management company, lessor, or 26 sublessor of a self-service storage facility. “Owner” does not 27 mean an occupant. 28 11. “Person” means the same as defined in section 522B.1. 29 12. “Personal property” means movable property not affixed 30 to land, including goods, wares, merchandise, household items, 31 and furnishings. 32 13. “Rental agreement” means any written agreement that 33 establishes or modifies the terms or conditions concerning an 34 occupant’s use of space at a self-service storage facility. 35 -1- LSB 5656YC (4) 88 ko/rn 1/ 10

H.F. _____ 14. “Self-service storage facility” or “facility” means 1 any real property used for the purpose of renting or leasing 2 individual storage space to occupants who have access to the 3 space for the purpose of storing personal property, but does 4 not include a garage used primarily for storage of motor 5 vehicles, or a repository at a financial institution used by 6 the financial institution’s customers for storage of money or 7 valuables. If an owner issues a warehouse receipt, bill of 8 lading, or other document of title for an occupant’s personal 9 property stored at the facility, the owner and the occupant are 10 subject to chapter 554, article 7, and this chapter shall not 11 apply. 12 15. “Self-service storage insurance” means insurance 13 providing coverage for the loss of, or damage to, personal 14 property that is contained in a storage space at a facility, or 15 is in transit to or from the storage space, during the term of a 16 rental agreement covering an occupant’s use of storage space at 17 the facility. 18 16. “Sell” means the same as defined in section 522B.1. 19 17. “Solicit” means the same as defined in section 522B.1. 20 18. “Supervising entity” means a person licensed as an 21 insurance producer under chapter 522B who is appointed by an 22 insurer to supervise the administration of self-service storage 23 insurance at an owner’s locations. 24 Sec. 2. NEW SECTION . 522F.2 License required. 25 1. Except as provided in subsection 2, an owner or endorsee 26 shall not sell or solicit self-service storage insurance 27 unless the owner is licensed pursuant to chapter 522B as a 28 self-service storage insurance limited lines producer and the 29 sale or solicitation of self-service storage insurance is in 30 conjunction with and incidental to the rental of self-service 31 storage to an occupant. 32 2. A license shall not be required for an owner or an 33 endorsee, on behalf of an insurer, to display and provide 34 promotional information regarding self-service storage 35 -2- LSB 5656YC (4) 88 ko/rn 2/ 10

H.F. _____ insurance to occupants and prospective occupants. 1 3. Any owner or endorsee that has solicited or sold 2 self-service storage insurance before July 1, 2020, shall 3 obtain a self-service storage insurance limited lines producer 4 license on or before October 1, 2020, or shall be prohibited 5 from continuing to solicit or sell self-service storage 6 insurance until licensed. Any owner or endorsee that begins 7 to solicit or sell self-service storage insurance on or after 8 July 1, 2020, shall obtain a self-service storage limited lines 9 insurance producer license prior to soliciting or selling 10 self-service storage insurance. 11 Sec. 3. NEW SECTION . 522F.3 Application for license —— 12 requirements. 13 1. The commissioner shall issue a self-service storage 14 insurance limited lines producer license to an owner pursuant 15 to section 522B.6 or 522B.7 if the owner satisfies the 16 applicable requirements of section 522B.5 and as part of the 17 application for the license the owner provides all of the 18 following information: 19 a. The physical address of the home office of the owner’s 20 facility and the physical address and internet sites of all 21 locations. 22 b. If less than fifty percent of the facility’s revenue 23 is derived from the sale of self-service storage insurance, 24 the owner shall provide the name, residential address, and 25 any other information required by the commissioner for one 26 employee or one authorized representative of the owner, or for 27 one employee or one authorized representative of a supervising 28 entity, designated as the person responsible for the owner’s 29 compliance with the requirements of this chapter. 30 c. If fifty percent or more of the facility’s revenue is 31 derived from the sale of self-service storage insurance, the 32 owner shall provide the residential address and any other 33 information required by the commissioner for all officers, 34 directors, and shareholders of record that have ten percent or 35 -3- LSB 5656YC (4) 88 ko/rn 3/ 10

H.F. _____ more beneficial ownership of the facility. 1 2. An owner applying for a self-service storage limited 2 lines producer license shall be exempt from the examination 3 requirements pursuant to section 522B.4 and section 522B.5, 4 subsection 1, paragraph “d” . 5 3. An owner applying to renew a self-service storage limited 6 lines producer license shall be exempt from the continuing 7 education requirements pursuant to section 522B.6, subsection 8 3. 9 Sec. 4. NEW SECTION . 522F.4 Endorsees —— conditions and 10 limitations. 11 1. An owner licensed pursuant to section 522F.3 may 12 authorize endorsees to solicit, offer, or sell self-service 13 storage insurance to occupants and prospective occupants at any 14 location. 15 2. An endorsee shall not be required to be licensed as an 16 insurance producer if all of the following requirements are 17 met: 18 a. The endorsee is eighteen years of age or older. 19 b. The insurer issuing the self-service storage insurance 20 either directly supervises, or appoints a supervising entity 21 to supervise, the administration of the self-service storage 22 insurance, including the development and implementation of a 23 training program for endorsees pursuant to subsection 3. 24 c. The owner has filed an affidavit with the commissioner, 25 in the form and manner required by the commissioner, 26 acknowledging that the owner is legally responsible for the 27 actions of all endorsees relating to an endorsee’s solicitation 28 or sale of self-service storage insurance in conjunction with 29 and incidental to the rental of storage space to an occupant at 30 any location. 31 3. An owner, or the supervising entity, shall provide 32 a training program for all endorsees who solicit or sell 33 self-service storage insurance. The training program shall 34 meet all of the following requirements: 35 -4- LSB 5656YC (4) 88 ko/rn 4/ 10

H.F. _____ a. The training shall be delivered to each endorsee 1 who sells or offers self-service storage insurance at any 2 location. The owner, or the supervising entity, shall maintain 3 documentation evidencing that each endorsee has completed the 4 training. The documentation and all training materials shall 5 be made available to the commissioner within five business days 6 of the commissioner’s request to review the documentation or 7 the training materials. 8 b. If the training is conducted in an electronic form, the 9 supervising entity shall implement a supplemental education 10 program regarding self-service storage insurance that is 11 conducted and overseen by an employee of the supervising entity 12 who is licensed as an insurance producer pursuant to chapter 13 522B. 14 c. The training program shall include basic information 15 about self-service storage insurance and shall address all of 16 the following: 17 (1) No endorsee shall advertise or otherwise represent the 18 endorsee as a licensed insurance producer unless the endorsee 19 holds a license. 20 (2) No endorsee shall solicit or sell self-service storage 21 insurance except in conjunction with and incidental to the 22 rental of storage space to an occupant at a location. 23 4. An endorsee shall not be paid directly by an insurer, 24 and an owner shall not pay an endorsee commission or compensate 25 an endorsee based primarily on the number of occupants the 26 endorsee enrolls for self-service storage insurance. An 27 owner may, however, include an endorsee’s performance related 28 to soliciting or selling self-service storage insurance to 29 occupants and prospective occupants in an overall performance 30 incentive compensation program the owner offers for all 31 endorsees. 32 Sec. 5. NEW SECTION . 522F.5 Registry of locations. 33 The owner, or the supervising entity, shall maintain a 34 registry of all locations and of all endorsees at each location 35 -5- LSB 5656YC (4) 88 ko/rn 5/ 10

H.F. _____ that are authorized to sell or solicit self-service storage 1 insurance. The owner, or the supervising entity, shall make 2 the registry available to the commissioner within five business 3 days of the commissioner’s request for the registry. 4 Sec. 6. NEW SECTION . 522F.6 Required documents and 5 disclosures. 6 1. At any location where self-service storage insurance 7 is offered to occupants or prospective occupants, written or 8 electronic documents shall be available to the occupants or 9 prospective occupants and must include all of the following: 10 a. The material terms of the self-service storage 11 insurance coverage, or a summary of the material terms of the 12 self-service storage insurance coverage, including all of the 13 following: 14 (1) The identity of the insurer. 15 (2) The identity of the supervising entity, if applicable. 16 (3) All benefits provided by the coverage. 17 (4) The key terms and conditions of the coverage, including 18 all exclusions. 19 (5) The amount of any deductibles and the process for paying 20 a deductible. 21 b. A summary of the claims process. 22 c. A disclosure specifying that self-service storage 23 insurance may be a duplication of coverage already provided by 24 an occupant’s or prospective occupant’s homeowner’s insurance 25 policy, renter’s insurance policy, or other source of insurance 26 coverage. 27 d. A disclosure specifying that self-service storage 28 insurance sold by the owner or an endorsee is not required as a 29 condition of obtaining a rental agreement. 30 e. Any other disclosures specified by rule as adopted by the 31 commissioner. 32 2. The written or electronic documents provided pursuant to 33 subsection 1 shall not be subject to filing with, or be subject 34 to the approval of, the commissioner. 35 -6- LSB 5656YC (4) 88 ko/rn 6/ 10

H.F. _____ Sec. 7. NEW SECTION . 522F.7 Authority conveyed by license. 1 1. All charges for self-service storage insurance on a 2 master, corporate, group, or individual policy basis may be 3 billed and collected by an owner or an endorsee, and the owner 4 may receive compensation for performing billing and collection 5 services if all of the following conditions are met: 6 a. If any charges for self-service storage insurance are 7 not included in the costs associated with an occupant’s rental 8 of self-service storage space, the owner shall itemize the 9 charges for the self-service storage insurance separately on 10 the occupant’s bill. 11 b. If any charges for self-service storage insurance are 12 included in the costs associated with an occupant’s rental 13 of self-service storage space, the owner shall clearly and 14 conspicuously disclose that information to the occupant in 15 writing. 16 2. All premiums received by an owner or endorsee from an 17 occupant for self-service storage insurance shall be considered 18 funds held by the owner in a fiduciary capacity for the benefit 19 of the insurer that issues the self-service storage insurance. 20 An owner that bills and collects such moneys shall not be 21 required to maintain the moneys in a segregated account if any 22 of the following apply: 23 a. The owner is authorized by the insurer to hold the funds 24 in an alternate manner. 25 b. The owner remits the funds to the supervising entity as 26 required by the supervising entity. 27 Sec. 8. NEW SECTION . 522F.8 License suspension, revocation, 28 denial, nonrenewal. 29 The commissioner may suspend, revoke, or refuse to issue or 30 renew an owner’s limited lines self-service storage insurance 31 producer license pursuant to section 522B.11. 32 Sec. 9. NEW SECTION . 522F.9 Rules. 33 The commissioner shall adopt rules pursuant to chapter 17A 34 as necessary to implement and administer this chapter. 35 -7- LSB 5656YC (4) 88 ko/rn 7/ 10

H.F. _____ Sec. 10. NEW SECTION . 522F.10 Enforcement. 1 The commissioner may take any action within the 2 commissioner’s authority to enforce compliance with this 3 chapter. 4 Sec. 11. APPLICABILITY. This Act applies to self-service 5 storage insurance that is delivered, issued for delivery, 6 continued, or renewed in this state on or after July 1, 2020. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill relates to self-service storage insurance. The 11 bill prohibits an owner or endorsee from soliciting or selling 12 self-service storage insurance (insurance) unless the owner 13 is licensed as a self-service storage insurance limited lines 14 producer (limited lines producer) and the solicitation or sale 15 of the insurance is in conjunction with or incidental to an 16 occupant’s rental of storage space at a self-service storage 17 facility (facility). “Self-service storage insurance” is 18 defined in the bill as insurance providing coverage for the 19 loss of, or damage to, personal property that is contained in 20 a storage space at a facility, or is in transit to or from the 21 storage space, during the term of a rental agreement covering 22 an occupant’s use of storage space at the facility. A license 23 is not required for an owner to display promotional information 24 regarding insurance to occupants and prospective occupants. 25 “Owner”, “endorsee”, “self-service storage facility”, 26 “occupant”, “personal property”, and “rental agreement” are 27 also defined in the bill. 28 An owner or endorsee that has solicited or sold insurance 29 before July 1, 2020, must obtain a limited lines producer 30 license on or before October 1, 2020, to continue to solicit or 31 sell insurance. Any owner or endorsee that begins to solicit 32 or sell insurance on or after July 1, 2020, must obtain a 33 limited lines producer license prior to soliciting or selling 34 insurance. The application and licensing requirements for 35 -8- LSB 5656YC (4) 88 ko/rn 8/ 10

H.F. _____ an owner to obtain a limited lines producer license, and the 1 conditions and limitations imposed on endorsees, are contained 2 in the bill. 3 At any location where insurance is offered to occupants or 4 prospective occupants, written or electronic documents must 5 be available to the occupants or prospective occupants and 6 must include the material terms of the insurance coverage as 7 outlined in the bill. The documents are not subject to filing 8 with, or requiring the approval of, the commissioner. The bill 9 defines “location” as any physical location in this state, or 10 any internet site, call center site, or other location at which 11 an owner engages in transactions related to a facility located 12 in this state. 13 An endorsee cannot be paid directly by an insurer, and 14 an owner cannot pay an endorsee commission, or compensate 15 an endorsee based primarily on the number of occupants the 16 endorsee enrolls for insurance. An owner may, however, include 17 an endorsee’s performance related to soliciting or selling 18 insurance to occupants in an overall performance incentive 19 compensation program the owner offers all endorsees. 20 The bill allows all charges for insurance on a master, 21 corporate, group, or individual basis to be billed and 22 collected by the owner or an endorsee. The owner may receive 23 compensation for performing billing and collection services if 24 the owner itemizes the charges for the insurance separately on 25 an occupant’s bill if any charges for the insurance are not 26 included in the costs associated with the occupant’s rental of 27 storage space; or the owner clearly and conspicuously discloses 28 to the occupant that the charges for insurance are included 29 with the storage space rental. 30 All premiums received by an owner from an occupant for 31 insurance must be considered funds held by the owner in a 32 fiduciary capacity for the benefit of the insurer that issues 33 the insurance. An owner that bills and collects such funds 34 is not required to maintain the funds in a segregated account 35 -9- LSB 5656YC (4) 88 ko/rn 9/ 10

H.F. _____ if the owner is authorized by the insurer to hold the funds 1 in an alternate manner, or the owner remits the funds to a 2 supervising entity as required by the supervising entity, if 3 applicable. “Supervising entity” is defined in the bill as a 4 person licensed as an insurance producer who is appointed by an 5 insurer to supervise the administration of self-service storage 6 insurance at an owner’s locations. 7 The bill gave the commissioner the authority to suspend, 8 revoke, or refuse to issue or renew an owner’s limited 9 lines producer license. The commissioner must adopt rules 10 as necessary to implement and administer the provisions of 11 the bill, and may take any action within the commissioner’s 12 authority to enforce compliance with the provisions of the 13 bill. 14 The provisions of the bill are applicable to self-service 15 storage insurance that is delivered, issued for delivery, 16 continued, or renewed in this state on or after July 1, 2020. 17 -10- LSB 5656YC (4) 88 ko/rn 10/ 10