No. 31081: R590-245. Self-Service Storage Insurance

DAR File No.: 31081
Filed: 07/01/2008, 04:12
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Changes are being made to this proposed rule as a result of comments received during the original comment period and hearing.

Summary of the rule or change:

One major change is being made to this rule: the elimination of the requirement to have a licensed insurance agent to sell, solicit, or negotiate insurance at each self-service storage location. (DAR NOTE: This change in proposed rule has been filed to make additional changes to a proposed new rule that was published in the April 15, 2008, issue of the Utah State Bulletin, on page 28. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike out indicates text that has been deleted. You must view the change in proposed rule and the proposed new rule together to understand all of the changes that will be enforceable should the agency make this rule effective.)

State statutory or constitutional authorization for this rule:

Sections 31A-2-201, 31A-23a-106, 31A-23a-104, and 31A-23a-111

Anticipated cost or savings to:

the state budget:

Deleting the requirement for a licensed agent at each storage location will reduce the initial revenue to the department and state budget by $87 per license per location, which includes $15 for fingerprinting. The total number of storage locations throughout the state is unknown to the department.

local governments:

This rule deals solely with the relationship between the department and their licensees, in this case, self-service storage insurance licensees. It will have no impact on local governments.

small businesses and persons other than businesses:

Self-service storage businesses will incur a reduced fiscal impact as a result of the elimination of the requirement to pay $72 to license and $34.25 to fingerprint an individual for each self-service storage location.

Compliance costs for affected persons:

Self-service storage businesses will incur a reduced fiscal impact as a result of the elimination of the requirement to pay $72 to license and $34.25 to fingerprint an individual for each self-service storage location.

Comments by the department head on the fiscal impact the rule may have on businesses:

The changes to this rule will reduce fiscal impact to self-service storage business owners in the state of Utah. Instead of licensing an individual for each of their storage locations, they will just need one licensed agent per agency. D. Kent Michie, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

Direct questions regarding this rule to:

Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

08/14/2008

This rule may become effective on:

08/21/2008

Authorized by:

Jilene Whitby, Information Specialist

RULE TEXT

R590. Insurance, Administration.

R590-245. Self-Service Storage Insurance.

 

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R590-245-4. Licensing and Renewal.

(1) All persons and entities involved in the sale, solicitation, or negotiation of self-service storage insurance must be licensed in accordance with Chapter 31A-23a, applicable department rules regarding individual and agency licensing, and this rule.

(2) A self-service storage insurance license is issued for a two-year license period and requires no examination or continuing education.

(3) A self-service storage insurance license must be renewed at the end of the two-year licensing period in accordance with Chapter 31A-23a and any applicable department rules regarding license renewal.

(4) A self-service storage insurance license may be held by an individual or by an agency, such as a self-service storage facility or franchisee of a self-service storage facility.

(5) An individual licensed under this rule must either be appointed by an insurance company underwriting the insurance policy the individual sells, or be designated to act by an agency licensed under this rule.

(6) An agency licensed under this rule must:

(a) be appointed by an insurance company underwriting the insurance policies the agency sells;

(b) designate a licensed individual to be responsible for the regulatory compliance of the agency in Utah.[; and

(c) designate at least one licensed individual at each location to sell, solicit, or negotiate self-service storage insurance.]

(7) An agency licensed under this rule may employ non-licensed personnel employed as self-service storage counter sales representatives to sell, solicit, or negotiate self-service storage insurance. Such non-licensed employees must:

(a) be trained and supervised in the sale of self-service storage insurance products; and

(b) be responsible to a licensed individual designated by the agency.[ at each location where these insurance products are sold, solicited, or negotiated.]

(8) No self-service storage facility, or franchisee of a self-service storage facility, may offer or sell self-service storage insurance unless it has complied with the requirements of this rule and has been issued a license by the commissioner.

 

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KEY: self-service storage, insurance

Date of Enactment or Last Substantive Amendment: 2008

Authorizing, and Implemented or Interpreted Law: 31A-2-201, 31A-23a-104, 31A-23a-106, 31A-23a-110, 31A-23a-111, 31A-1-301 and 31A-23a-102