The Connecticut General Assembly has proposed a bill that would permit owners of self-storage businesses to sell property insurance to their tenants. Under Senate Bill 1037 (the “Bill”), an owner is required to obtain a self-service storage insurance license in order to sell such insurance and the insurance policy must be issued by an insurer that is authorized to write such lines of business in Connecticut. The Bill would not require tenants of self-storage businesses to buy insurance.
Although the Bill requires an owner obtain a license to sell self-service storage insurance, the Connecticut Department of Insurance (the “Department”) has urged lawmakers to reject the Bill, as it believes it lacks certain requirements that would evidence competency to sell insurance as well as permits unlicensed owners to engage in activities normally reserved for licensed producers. In particular, the Department points to language in the Bill that would not require an owner “to undergo any examination, education or continuing education as a condition to receiving or renewing a self-service storage insurance license.” As currently drafted, the Bill would also authorize employees and authorized representatives of a licensed owner to offer and sell self-service storage insurance without holding a license. Finally, the Department notes that the Bill would permit an unlicensed owner “to display and make available to occupants and prospective occupants brochures and other promotional materials created by or on behalf of any insurer.”
No further actions have been taken on the Bill. The full text of the Bill can be found here.
The post Connecticut Considers Self-Service Storage Insurance Licensing Requirements appeared first on Insurance & Reinsurance.
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