APPROVED CHAPTER
JUNE 15, 2021 218
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-ONE
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S.P. 481 - L.D. 1494
An Act To Create Limited Lines Self-storage Insurance
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §601, sub-§33 is enacted to read:
33. Self-storage insurance provider. Self-storage insurance provider fees may not
exceed:
A. Issuance of license for self-storage insurance provider, $100; and
B. Annual renewal fee, $50.
Sec. 2. 24-A MRSA §1420-C, sub-§2, ¶G, as amended by PL 2011, c. 297, §3, is
further amended to read:
G. A salaried full-time employee who counsels or advises that person's employer
relative to the insurance interests of the employer or of the subsidiaries or business
affiliates of the employer if the employee does not sell or solicit insurance or receive a
commission; or
Sec. 3. 24-A MRSA §1420-C, sub-§2, ¶H, as enacted by PL 2011, c. 297, §4, is
amended to read:
H. A person who offers to sell or sells portable electronic device insurance pursuant
to a license issued by the superintendent under chapter 89.; or
Sec. 4. 24-A MRSA §1420-C, sub-§2, ¶I is enacted to read:
I. A person who offers to sell or sells self-storage insurance pursuant to a license issued
by the superintendent under chapter 97.
Sec. 5. 24-A MRSA c. 97 is enacted to read:
CHAPTER 97
LIMITED LINES SELF-STORAGE INSURANCE
§7501. Definitions
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 As used in this chapter, unless the context otherwise indicates, the following terms
have the following meanings.
1. Customer. "Customer" means a person who rents or leases a storage space within
a self-storage facility under a rental agreement with a self-storage provider. "Customer"
includes the sublessee, assignee or successor in interest of the person originally a party to
a rental agreement with a self-storage provider.
2. Covered customer. "Covered customer" means a customer who elects to receive
coverage under a self-storage insurance policy.
3. Limited lines license. "Limited lines license" means a license to sell or offer a
policy for self-storage insurance.
4. Location. "Location" means any physical location of a self-storage facility in the
State or any publicly accessible website, call center or similar operation directed to
residents of the State.
5. Rental agreement. "Rental agreement" means a written agreement between a
customer and self-storage provider that establishes or modifies the terms, conditions or
other provisions governing a customer's occupancy and use of a storage space within a self-
storage facility owned or operated by the self-storage provider.
6. Self-storage facility. "Self-storage facility" means any real property or facility in
which individual storage spaces rented or leased by a self-storage provider to a customer
are located and within which a customer is generally responsible for placing and removing
property the customer stores within a rented or leased storage space.
7. Self-storage insurance. "Self-storage insurance" means personal property
insurance authorized under section 705 providing coverage for the repair or replacement of
personal property of a covered customer stored at a self-storage facility or in transit to or
from a self-storage facility against various causes of loss, including loss or damage. "Self-
storage insurance" does not include a homeowner's or renter's insurance, private passenger
automobile insurance, commercial multiple peril insurance or any similar policy.
8. Self-storage provider. "Self-storage provider" means a person or business entity,
as defined in section 1151-A, subsection 4, that is the owner, operator, lessor or sublessor
of a self-storage facility.
9. Supervising entity. "Supervising entity" means a business entity that is a licensed
insurance producer or insurer.
§7502. Licensure of self-storage providers
1. License required. A self-storage provider must obtain a limited lines license under
this chapter prior to selling or offering coverage under a policy of self-storage insurance.
2. Authority provided by license. A limited lines license issued under this chapter
authorizes any employee or authorized representative of a self-storage provider to sell or
offer coverage under a policy of self-storage insurance to a customer at each location at
which the self-storage provider engages with a customer or prospective customer.
3. List of locations. In connection with a self-storage provider's application for a
license under section 7506 and upon request by the superintendent, the self-storage
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provider shall provide a list to the superintendent of all locations in this State at which the
self-storage provider offers coverage.
4. Activities authorized by license. Notwithstanding any provision of law to the
contrary, a license issued pursuant to this chapter authorizes the licensee and its employees
or authorized representatives to engage only in those activities that are expressly permitted
in this chapter.
§7503. Requirements for the sale of self-storage insurance
1. Brochures. At each location where a self-storage provider sells or offers self-
storage insurance to customers, the self-storage provider shall make available to a
prospective customer brochures or other written materials that:
A. Disclose that self-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 coverage;
B. State that the enrollment by the customer in a self-storage insurance policy is not
required in order to rent or lease storage space within a self-storage facility;
C. Summarize the material terms of the insurance coverage, including:
(1) The identity of the insurer;
(2) The identity of the supervising entity;
(3) The amount of any applicable deductible and how it is to be paid; and
(4) Benefits of the coverage;
D. Summarize the process for filing a claim; and
E. State that the customer may cancel enrollment for coverage under a self-storage
insurance policy at any time and the person paying the premium must receive a refund
of any applicable unearned premium.
2. Periodic basis of coverage. Self-storage insurance may be offered on a month-to-
month or other periodic basis as a group or master commercial inland marine policy issued
to a self-storage provider under which individual customers may elect to enroll for
coverage.
3. Eligibility and underwriting standards. Eligibility and underwriting standards
for customers that elect to enroll in self-storage insurance must be established by an insurer
for each self-storage insurance program.
§7504. Authority of self-storage providers
1. Requirements for employees and authorized representatives of self-storage
providers. An employee or authorized representative of a self-storage provider may sell
or offer self-storage insurance to a customer and is not subject to licensure as an insurance
producer under this chapter if:
A. The self-storage provider obtains a limited lines license to authorize its employees
or authorized representatives to sell or offer self-storage insurance pursuant to this
section;
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 B. The insurer issuing the self-storage insurance either directly supervises or appoints
a supervising entity to supervise the administration of the sale of insurance, including
development of a training program for employees and authorized representatives of the
self-storage providers.
(1) The training must be delivered to all employees and authorized representatives
of the self-storage provider who are directly engaged in the activity of selling or
offering self-storage insurance. The training may be provided in electronic form.
If the training is conducted in electronic form, the supervising entity shall
implement a supplemental education program that is conducted and overseen by
licensed employees of the supervising entity to supplement the electronic training.
(2) Each employee and authorized representative must receive basic instruction
about the self-storage insurance offered to customers and the disclosures required
under section 7503, subsection 1; and
C. The employee or authorized representative of the self-storage provider does not
advertise, represent or otherwise hold that employee or authorized representative out
as other than a limited lines licensed insurance producer.
2. Charges. The charges for self-storage insurance coverage may be billed and
collected by the self-storage provider. Any charge to the customer for coverage that is not
included in the cost associated with the rental or lease of self-storage or related services
must be separately itemized on the customer's bill. If the self-storage insurance coverage
is included with the rental or lease of self-storage or related services, the self-storage
provider shall clearly and conspicuously disclose to the customer that the self-storage
insurance coverage is included with the rented or leased storage space. A self-storage
provider billing and collecting charges for coverage is not required to maintain those funds
in a segregated account as long as the self-storage provider is authorized by the insurer to
hold such funds in an alternative manner and remits the funds to the supervising entity
within 60 days of receipt. All funds received by a self-storage provider from a customer
for the sale of self-storage insurance are considered funds held in trust by the self-storage
provider in a fiduciary capacity for the benefit of the insurer. A self-storage provider may
receive compensation for billing and collection services.
§7505. Violations
1. Penalties. If a self-storage provider or its employee or authorized representative
violates any provision of this chapter, the superintendent may enforce this chapter in
accordance with section 12-A except the superintendent may not impose a fine exceeding
$15,000 for aggregate conduct in violation of this chapter.
2. Suspension or revocation. In addition to any other penalties authorized by law,
the superintendent may:
A. Suspend the authority of a self-storage provider to transact self-storage insurance;
B. Suspend the authority of a self-storage provider to transact self-storage insurance
pursuant to this chapter at specific business locations where violations have occurred;
and
C. Suspend or revoke the authority of an individual employee or authorized
representative of a self-storage provider to act under a limited lines license under
section 7502, subsection 2.
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§7506. Application for license and fees
1. Application for license to be filed with superintendent. A self-storage provider
must file a sworn application for a license under this chapter with the superintendent on
forms prescribed and furnished by the superintendent.
2. Contents of application. In addition to other information required by the
superintendent, the application for a license under this chapter must:
A. Provide the name, residence address and other information required by the
superintendent for an employee or authorized representative of the self-storage
provider who is designated by the applicant as the person responsible for the self-
storage provider's compliance with the requirements of this chapter. If the self-storage
provider derives more than 50% of its revenue from the sale of self-storage insurance,
the information specified in this paragraph must be provided for all officers, directors
and shareholders of record having beneficial ownership of 10% or more of any class
of securities registered under the federal securities laws;
B. Appoint the superintendent as the applicant's attorney to receive service of all legal
process issued against it in any civil action or proceeding in this State and agree that
process so served is valid and binding against the applicant. The appointment is
irrevocable, binds the company and any successor in interest as well as the assets or
liabilities of the applicant and must remain in effect as long as the applicant's license
remains in force in this State; and
C. Provide the location of the applicant's home office.
3. Time of application. An application for a license under this chapter must be made
within 90 days of the application's being made available by the superintendent.
4. Initial license valid for 24 months. An initial license issued pursuant to this
chapter is valid for 24 months and expires on the last day of the 24th month.
5. Fee. Each self-storage provider licensed under this chapter shall pay to the
superintendent a fee equal to the amount prescribed by section 601, subsection 33.
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Statutes affected:
Bill Text LD 1494, SP 481: 24-A.1420
Bill Text ACTPUB , Chapter 218: 24-A.1420