                                 CODE OF VIRGINIA

AUTHORITY OF LESSORS OF SELF STORAGE UNITS (§ 38.2-1884)

A. The employees and authorized representatives of lessors may sell or offer
self storage insurance to customers and shall not be subject to licensure as an
insurance producer under this chapter provided that:

   1. The lessor obtains a limited lines property and casualty insurance agent
   license;

   2. The lessor selling the self storage insurance provides a training program
   for all employees and authorized representatives of the lessor. The training
   program shall consist of instruction about the self storage insurance offered
   to customers, the disclosures required by this article, and the conduct
   prohibited by &#xA7; 38.2-512. The training required by this subdivision may
   be delivered in person or in an electronic form. The licensed producer
   designated by the lessor as being responsible for its compliance with the
   insurance laws, rules, and regulations of the Commonwealth, as required by
   &#xA7; 38.2-1820, shall hold a property and casualty insurance agent license
   and shall supervise the administration of the training program required by
   this subdivision;

   3. No employee or authorized representative of a lessor of self storage units
   is compensated based primarily on the number of customers who purchase self
   storage insurance coverage; however, such an employee or authorized
   representative may receive compensation for activities under the limited lines
   license that is incidental to their overall compensation; and

   4. The employee or authorized representative of the lessor of self storage
   insurance does not represent or otherwise hold himself out as a licensed
   insurance producer.

B. No employee or authorized representative of a lessor of a self storage unit
may:

   1. Evaluate or interpret the technical terms, benefits, and conditions of the
   offered self storage unit insurance;

   2. Evaluate or provide advice concerning a prospective purchaser&#8217;s
   existing insurance coverage; or

   3. Hold himself out as a licensed insurer, licensed agent, or insurance
   expert.

C. The license authority of any lessor licensed as a limited lines property and
casualty producer selling self storage insurance shall terminate immediately if
the sole licensed responsible producer designated for the lessor&#8217;s
compliance with the insurance laws, rules, and regulations of the Commonwealth
is removed for any reason, and a new responsible producer has not been
appointed. The Commission shall be notified within 30 calendar days of such
removal and of the newly designated responsible producer.

D. A lessor shall report any violation of this article to the Commissioner
within 30 days of discovery of the violation by the lessor.

E. Any charge to the customer for self storage insurance that is not included in
the cost associated with the lease of a self storage unit shall be separately
itemized on the customer&#8217;s rental agreement. If the charge for self
storage insurance is included in the cost associated with the lease of the self
storage unit, the lessor shall clearly and conspicuously disclose to the
customer that the charge for the self storage unit covers the cost of the
insurance.

F. The charges for self storage insurance coverage may be billed and collected
by the lessor. Lessors billing and collecting premiums for self storage
insurance shall be required to comply with the provisions of &#xA7; 38.2-1813.
Lessors may receive compensation for billing and collection services.

G. Notwithstanding any other provision of law, applicants for licensure pursuant
to this article whose home state does not issue a producer license with a
similar line of authority as the license authorized by this article shall be
issued a limited lines property and casualty license for self storage insurance.
Any licensee whose home state does not have property and casualty limited lines
for self storage insurance or similar line of authority in its home state after
July 1, 2017, or such later date as may be determined by the Commission, shall
obtain a full property and casualty license or its license shall terminate in
Virginia. For purposes of this subsection, &#8220;home state&#8221; means the
District of Columbia and any state or territory of the United States except
Virginia, or any province of Canada, in which an applicant maintains such
person&#8217;s principal place of residence or principal place of business.

HISTORY: 2013, c. 203; 2015, c. 334.