As Passed by the Senate

130th General Assembly Regular Session 2013-2014

Sub. H. B. No. 430

Representatives Kunze, Stinziano 

Cosponsors: Representatives Hackett, Bishoff, Sears, Brown, Henne, Ruhl, Sprague Speaker Batchelder 

Senators Bacon, Hughes, Patton, Sawyer 

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A BILL

To amend sections 3905.01, 3905.06, and 3905.40 and

1

to enact section 3905.063 of the Revised Code to

2

regulate self-service storage facilities.

3

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 3905.01, 3905.06, and 3905.40 be	4
amended and section 3905.063 of the Revised Code be enacted to	5
read as follows:	6

Sec. 3905.01.  As used in this chapter:

7

(A) "Affordable Care Act" means the "Patient Protection and	8
Affordable Care Act," 124 Stat. 119, 42 U.S.C. 18031 (2011).	9

(B) "Business entity" means a corporation, association,	10
partnership, limited liability company, limited liability	11
partnership, or other legal entity.	12

(C) "Home state" means the state or territory of the United	13
States, including the District of Columbia, in which an insurance	14
agent maintains the insurance agent's principal place of residence	15
or principal place of business and is licensed to act as an	16
insurance agent.	17

(D) "In-person assister" means any person, other than a	18
navigator, who receives any funding from, or who is selected or	19
designated by, an exchange, the state, or the federal government	20
to perform any of the activities and duties identified in division	21
(i) of section 1311 of the Affordable Care Act. "In-person	22
assister" includes any individual that is employed by, supervised	23
by, or affiliated with an in-person assister and performs any of	24
the activities and duties identified in division (i) of section	25
1311 of the Affordable Care Act, any non-navigator assistance	26
personnel, and any other person deemed as such by rules adopted by	27
the superintendent under division (L) of section 3905.471 of the	28
Revised Code.	29

(E) "Insurance" means any of the lines of authority set forth	30
in Chapter 1739., 1751., or 1761. or Title XXXIX of the Revised	31
Code, or as additionally determined by the superintendent of	32
insurance.	33

(F) "Insurance agent" or "agent" means any person that, in	34
order to sell, solicit, or negotiate insurance, is required to be	35
licensed under the laws of this state, including limited lines	36
insurance agents and surplus line brokers.	37

(G) "Insurer" has the same meaning as in section 3901.32 of	38
the Revised Code.	39

(H) "License" means the authority issued by the	40
superintendent to a person to act as an insurance agent for the	41
lines of authority specified, but that does not create any actual,	42
apparent, or inherent authority in the person to represent or	43
commit an insurer.	44

(I) "Limited line credit insurance" means credit life, credit	45
disability, credit property, credit unemployment, involuntary	46
unemployment, mortgage life, mortgage guaranty, mortgage	47
disability, guaranteed automobile protection insurance, or any	48
other form of insurance offered in connection with an extension of	49
credit that is limited to partially or wholly extinguishing that	50
credit obligation and that is designated by the superintendent as	51
limited line credit insurance.	52

(J) "Limited line credit insurance agent" means a person that	53
sells, solicits, or negotiates one or more forms of limited line	54
credit insurance to individuals through a master, corporate,	55
group, or individual policy.	56

(K) "Limited lines insurance" means those lines of authority	57
set forth in divisions (B)(7) to (11)(12) of section 3905.06 of	58
the Revised Code or in rules adopted by the superintendent, or any	59
lines of authority the superintendent considers necessary to	60
recognize for purposes of complying with section 3905.072 of the	61
Revised Code.	62

(L) "Limited lines insurance agent" means a person authorized	63
by the superintendent to sell, solicit, or negotiate limited lines	64
insurance.	65

(M) "NAIC" means the national association of insurance	66
commissioners.	67

(N) "Insurance navigator" means a person selected to perform	68
the activities and duties identified in division (i) of section	69
1311 of the Affordable Care Act that is certified by the	70
superintendent of insurance under section 3905.471 of the Revised	71
Code. "Insurance navigator" refers to a navigator specified in	72
section 1311 of the Affordable Care Act, 42 U.S.C. 13031.	73

(O) "Negotiate" means to confer directly with, or offer	74
advice directly to, a purchaser or prospective purchaser of a	75
particular contract of insurance with respect to the substantive	76
benefits, terms, or conditions of the contract, provided the	77
person that is conferring or offering advice either sells	78
insurance or obtains insurance from insurers for purchasers.	79

(P) "Person" means an individual or a business entity.

80

(Q) "Sell" means to exchange a contract of insurance by any	81
means, for money or its equivalent, on behalf of an insurer.	82

(R) "Self-service storage facility" means an entity that is	83
engaged in the business of providing real property designed and	84
used for the purpose of renting or leasing individual storage	85
space to the public who are to have access to the space for the	86
purpose of storing and removing personal property on a	87
self-service basis, but does not include a garage or other storage	88
area in a private residence.	89

(S) "Solicit" means to attempt to sell insurance, or to ask	90
or urge a person to apply for a particular kind of insurance from	91
a particular insurer.	92

(S)(T) "Superintendent" or "superintendent of insurance"	93
means the superintendent of insurance of this state.	94

(T)(U) "Terminate" means to cancel the relationship between	95
an insurance agent and the insurer or to terminate an insurance	96
agent's authority to transact insurance.	97

(U)(V) "Uniform application" means the NAIC uniform	98
application for resident and nonresident agent licensing, as	99
amended by the NAIC from time to time.	100

(V)(W) "Uniform business entity application" means the NAIC	101
uniform business entity application for resident and nonresident	102
business entities, as amended by the NAIC from time to time.	103

(W)(X) "Exchange" means a health benefit exchange established	104
by the state government of Ohio or an exchange established by the	105
United States department of health and human services in	106
accordance with the "Patient Protection and Affordable Care Act,"	107
124 Stat. 119, 42 U.S.C. 18031 (2011).	108

Sec. 3905.06. (A)(1) The superintendent of insurance shall	109
issue a resident insurance agent license to an individual	110
applicant whose home state is Ohio upon submission of a completed	111
application and payment of any applicable fee required under this	112
chapter, if the superintendent finds all of the following:	113

(a) The applicant is at least eighteen years of age.

114

(b) The applicant has not committed any act that is a ground	115
for the denial, suspension, or revocation of a license under	116
section 3905.14 of the Revised Code.	117

(c) If required under section 3905.04 of the Revised Code,	118
the applicant has completed a program of insurance education for	119
each line of authority for which the applicant has applied.	120

(d) If required under section 3905.04 of the Revised Code,	121
the applicant has passed an examination for each line of authority	122
for which the applicant has applied.	123

(e) Any applicant applying for variable life-variable annuity	124
line of authority is registered with the financial industry	125
regulatory authority (FINRA) as a registered representative after	126
having passed at least one of the following examinations	127
administered by the FINRA: the series 6 examination, the series 7	128
examination, the series 63 examination, the series 66 examination,	129
or any other FINRA examination approved by the superintendent.	130

(f) If required under section 3905.051 of the Revised Code,	131
the applicant has consented to a criminal records check and the	132
results of the applicant's criminal records check are determined	133
to be satisfactory by the superintendent.	134

(g) The applicant is a United States citizen or has provided	135
proof of having legal authorization to work in the United States.	136

(h) The applicant is of good reputation and character, is	137
honest and trustworthy, and is otherwise suitable to be licensed.	138

(2) The superintendent shall issue a resident insurance agent	139
license to a business entity applicant upon submission of a	140
completed application and payment of any applicable fees required	141
under this chapter if the superintendent finds all of the	142
following:	143

(a) Except as provided under division (C)(2) of section	144
3905.062 or division (C)(2) of section 3905.063 of the Revised	145
Code, the applicant either is domiciled in Ohio or maintains its	146
principal place of business in Ohio.	147

(b) The applicant has designated a licensed insurance agent	148
who will be responsible for the applicant's compliance with the	149
insurance laws of this state.	150

(c) The applicant has not committed any act that is a ground	151
for the denial, suspension, or revocation of a license under	152
section 3905.14 of the Revised Code.	153

(d) Any applicant applying for a portable electronics	154
insurance license line of authority satisfies the requirements of	155
division (C)(1) of section 3905.062 of the Revised Code or any	156
applicant applying for a self-service storage insurance license	157
line of authority satisfies the requirements of division (C)(1) of	158
section 3905.063 of the Revised Code.	159

(e) The applicant has submitted any other documents requested	160
by the superintendent.	161

(B) An insurance agent license issued pursuant to division	162
(A) of this section shall state the licensee's name, the license	163
number, the date of issuance, the date the license expires, the	164
line or lines of authority for which the licensee is qualified,	165
and any other information the superintendent deems necessary.	166

A licensee may be qualified for any of the following lines of	167
authority:	168

(1) Life, which is insurance coverage on human lives,	169
including benefits of endowment and annuities, and may include	170
benefits in the event of death or dismemberment by accident and	171
benefits for disability income;	172

(2) Accident and health, which is insurance coverage for	173
sickness, bodily injury, or accidental death, and may include	174
benefits for disability income;	175

(3) Property, which is insurance coverage for the direct or	176
consequential loss or damage to property of any kind;	177

(4) Casualty, which is insurance coverage against legal	178
liability, including coverage for death, injury, or disability or	179
damage to real or personal property;	180

(5) Personal lines, which is property and casualty insurance	181
coverage sold to individuals and families for noncommercial	182
purposes;	183

(6) Variable life and variable annuity products, which is	184
insurance coverage provided under variable life insurance	185
contracts and variable annuities;	186

(7) Credit, which is limited line credit insurance;

187

(8) Title, which is insurance coverage against loss or damage	188
suffered by reason of liens against, encumbrances upon, defects	189
in, or the unmarketability of, real property;	190

(9) Surety bail bond, which is the authority set forth in	191
sections 3905.83 to 3905.95 of the Revised Code;	192

(10) Portable electronics insurance, which is a limited line	193
described in section 3905.062 of the Revised Code;	194

(11) Self-service storage insurance, which is a limited line	195
described in section 3905.063 of the Revised Code;	196

(12) Any other line of authority designated by the	197
superintendent.	198

(C)(1) An individual seeking to renew a resident insurance	199
agent license shall apply biennially for a renewal of the license	200
on or before the last day of the licensee's birth month. A	201
business entity seeking to renew a resident insurance agent	202
license shall apply biennially for a renewal of the license on or	203
before the date determined by the superintendent. The	204
superintendent shall send a renewal notice to all licensees at	205
least one month prior to the renewal date.	206

Applications shall be submitted to the superintendent on	207
forms prescribed by the superintendent. Each application shall be	208
accompanied by a biennial renewal fee. The superintendent also may	209
require an applicant to submit any document reasonably necessary	210
to verify the information contained in the renewal application.	211

(2) To be eligible for renewal, an individual applicant shall	212
complete the continuing education requirements pursuant to section	213
3905.481 of the Revised Code prior to the renewal date.	214

(3) If an applicant submits a completed renewal application,	215
qualifies for renewal pursuant to divisions (C)(1) and (2) of this	216
section, and has not committed any act that is a ground for the	217
refusal to issue, suspension of, or revocation of a license under	218
section 3905.14 of the Revised Code, the superintendent shall	219
renew the applicant's resident insurance agent license.	220

(D) If an individual or business entity does not apply for	221
the renewal of the individual or business entity's license on or	222
before the license renewal date specified in division (C)(1) of	223
this section, the individual or business entity may submit a late	224
renewal application along with all applicable fees required under	225
this chapter prior to the first day of the second month following	226
the license renewal date.	227

(E) A license issued under this section that is not renewed	228
on or before its renewal date pursuant to division (C) of this	229
section or its late renewal date pursuant to division (D) of this	230
section automatically is suspended for nonrenewal on the first day	231
of the second month following the renewal date. If a license is	232
suspended for nonrenewal pursuant to this division, the individual	233
or business entity is eligible to apply for reinstatement of the	234
license within the twelve-month period following the date by which	235
the license should have been renewed by complying with the	236
reinstatement procedure established by the superintendent and	237
paying all applicable fees required under this chapter.	238

(F) A license that is suspended for nonrenewal that is not	239
reinstated pursuant to division (E) of this section automatically	240
is canceled unless the superintendent is investigating any	241
allegations of wrongdoing by the agent or has initiated	242
proceedings under Chapter 119. of the Revised Code. In that case,	243
the license automatically is canceled after the completion of the	244
investigation or proceedings unless the superintendent revokes the	245
license.	246

(G) An individual licensed as a resident insurance agent who	247
is unable to comply with the license renewal procedures	248
established under this section and who is unable to engage in the	249
business of insurance due to military service, a long-term medical	250
disability, or some other extenuating circumstance may request an	251
extension of the renewal date of the individual's license. To be	252
eligible for such an extension, the individual shall submit a	253
written request with supporting documentation to the	254
superintendent. At the superintendent's discretion, the	255
superintendent may not consider a written request made after the	256
renewal date of the license.	257

Sec. 3905.063.  (A) As used in this section:

258

(1) "Customer" means a person who obtains the use of storage	259
space from a self-service storage facility under the terms of a	260
self-storage rental agreement.	261

(2) "Endorsee" means an employee or authorized representative	262
of a self-service storage facility authorized to sell or offer	263
self-service storage insurance.	264

(3) "Enrolled customer" means a customer who elects coverage	265
under a self-service storage insurance policy issued to a	266
self-service storage facility by an insurer or a policy issued	267
directly to a customer from an insurer.	268

(4) "Location" means any physical location in this state or	269
any web site, call center site, or similar location directed to	270
residents of this state.	271

(5) "Owner" means the owner, operator, property management	272
company, lessor, or sublessor of a self-service storage facility.	273
"Owner" does not mean an occupant.	274

(6) "Personal property" means moveable property not affixed	275
to land, and includes goods, merchandise, furniture, and household	276
items.	277

(7)(a) "Self-service storage insurance" means insurance	278
providing coverage for the loss of, or damage to, tangible	279
personal property that is contained in storage space or in transit	280
during a self-service storage rental agreement period, which may	281
be offered on a month-to-month or other periodic basis under an	282
individual policy, or as a group, commercial, or master policy	283
issued to a self-service storage facility to provide insurance for	284
the self-service storage facility's customers.	285

(b) "Self-service storage insurance" does not mean any of the	286
following:	287

(i) A consumer goods service contract governed by section	288
3905.423 of the Revised Code;	289

(ii) A policy of insurance covering a seller's or a	290
manufacturer's obligations under a warranty;	291

(iii) A homeowner's, renter's, private passenger automobile,	292
or similar insurance policy.	293

(8) "Self-service storage rental agreement" means a written	294
agreement containing the terms and conditions governing the use of	295
storage space provided by a self-service storage facility.	296

(9) "Supervising entity" means an insurer or a business	297
entity licensed as an insurance agent under section 3905.06 or	298
3905.07 of the Revised Code that is appointed by an insurer to	299
supervise the administration of self-service storage insurance.	300

(B)(1) Except as provided in division (B)(2) of this section,	301
no self-service storage facility or self-service storage	302
facility's endorsee shall offer, sell, solicit, or place	303
self-service storage insurance unless the self-service storage	304
facility is licensed under section 3905.06 or 3905.07 of the	305
Revised Code with a self-service storage insurance line of	306
authority and the offer, sale, solicitation, or placement is	307
incidental to the lease of self-service storage.	308

(2) Any self-service storage facility offering or selling	309
self-service storage insurance on or before the effective date of	310
this section that wishes to continue offering or selling that	311
insurance shall apply for a license within ninety days after the	312
superintendent of insurance makes the application available.	313

(C)(1) The superintendent shall issue a resident insurance	314
license to a self-service storage facility under section 3905.06	315
of the Revised Code if the self-service storage facility satisfies	316
the requirements of sections 3905.05 and 3905.06 of the Revised	317
Code, except that the application for a self-service storage	318
insurance license shall satisfy the following additional	319
requirements:	320

(a) The application shall include the location, including the	321
address for each location, of the self-service storage facility's	322
home office and any location at which the facility engages in	323
self-service storage transactions.	324

(b) If the application requires the self-service storage	325
facility to designate an individual or entity as a responsible	326
insurance agent, that agent shall not be required to be an	327
employee of the applicant and may be an individual agent who is an	328
employee of the supervising entity.	329

(c) If the self-service storage facility derives less than	330
fifty per cent of the self-service storage facility's revenue from	331
the sale of self-service storage insurance, the application for a	332
self-service storage insurance license may require the	333
self-service storage facility to provide the name, residence	334
address, and other information required by the superintendent for	335
one employee or officer of the self-service storage facility who	336
is designated by the self-service storage facility as the person	337
responsible for the self-service storage facility's compliance	338
with the requirements of this chapter.	339

(d) If the self-service storage facility derives fifty per	340
cent or more of the self-service storage facility's revenue from	341
the sale of self-service storage insurance, the application may	342
require the information listed under division (C)(1)(c) of this	343
section for all owners with at least ten per cent interest or	344
voting interest, partners, officers, and directors of the	345
self-service storage facility, or members or managers of a	346
self-service storage facility that is a limited liability company.	347

(2) The superintendent shall issue a nonresident insurance	348
agent license to a self-service storage facility if the	349
self-service storage facility satisfies the requirements of	350
section 3905.07 of the Revised Code. However, if the nonresident	351
self-service storage facility's home state does not issue a	352
limited lines license for self-service storage insurance, the	353
nonresident self-service storage facility may apply for a resident	354
license under sections 3905.05 and 3905.06 of the Revised Code in	355
the same manner and with the same rights and privileges as if the	356
self-service storage facility were a resident of this state.	357

(D) The holder of a limited lines license may not sell,	358
solicit, or negotiate insurance on behalf of any insurer unless	359
appointed to represent that insurer under section 3905.20 of the	360
Revised Code.	361

(E) Division (B)(34) of section 3905.14 of the Revised Code	362
shall not apply to the self-service storage facility or the	363
self-service storage facility's endorsees.	364

(F) If insurance is required as a condition of a self-service	365
storage rental agreement, the requirement may be satisfied by the	366
customer's purchase of self-service storage insurance that is	367
sold, solicited, or negotiated by the self-service storage	368
facility or presentation to the self-service storage facility of	369
evidence of other applicable insurance coverage.	370

Evidence of applicable insurance coverage includes a	371
representation by a licensed Ohio insurance agent that the	372
customer satisfies the requirements of this division.	373

(G)(1) A self-service storage facility may authorize any	374
endorsee of the self-service storage facility to sell or offer	375
self-service storage insurance to a customer at any location at	376
which the self-service storage facility engages in self-service	377
storage transactions.	378

(2) An endorsee is not required to be licensed as an	379
insurance agent under this chapter if the self-service storage	380
facility is licensed under this section and the insurer issuing	381
the self-service storage insurance either directly supervises or	382
appoints a supervising entity to supervise the administration of	383
the self-service storage insurance including development of a	384
training program for endorsees in accordance with division (H) of	385
this section.	386

(3) No endorsee shall do any of the following:

387

(a) Advertise, represent, or otherwise represent the	388
endorsee's self as an insurance agent licensed under section	389
3905.06 or 3905.07 of the Revised Code;	390

(b) Offer, sell, or solicit the purchase of self-service	391
storage insurance except in conjunction with and incidental to the	392
sale or lease of self-service storage;	393

(c) Make any statement or engage in any conduct, express or	394
implied, that would lead a customer to believe either of the	395
following:	396

(i) That, if insurance is required as a condition of a	397
self-service storage rental agreement, the purchase by the	398
customer of self-service storage insurance offered by the	399
self-service storage facility is the only method by which that	400
condition may be met;	401

(ii) That the self-service storage facility or its endorsees	402
are qualified to evaluate the adequacy of the customer's existing	403
insurance coverage.	404

(4) An endorsee shall disclose that self-service storage	405
insurance may duplicate coverage already provided under a	406
customer's homeowner's insurance policy, renter's insurance	407
policy, or other coverage.	408

(H) Each self-service storage facility, or the supervising	409
entity to that self-service storage facility, shall provide a	410
training and education program for all endorsees who sell or offer	411
self-service storage insurance. The program may be provided as a	412
web-based training module or in any other electronic or recorded	413
video form. The training and education program shall meet all of	414
the following minimum standards:	415

(1) The training shall be delivered to each endorsee of each	416
self-service storage facility who sells or offers self-service	417
storage insurance and the endorsee shall complete the training.	418

(2) If the training is conducted in an electronic form, the	419
supervising entity shall implement a supplemental education	420
program regarding self-service storage insurance that is conducted	421
and overseen by employees of the supervising entity who are	422
licensed as insurance agents under section 3905.06 or 3905.07 of	423
the Revised Code.	424

(3) The training and education program shall include basic	425
information about self-service storage insurance and information	426
concerning all of the following prohibited actions of endorsees:	427

(a) No endorsee shall advertise, represent, or otherwise	428
represent the endorsee's self as a licensed insurance agent.	429

(b) No endorsee shall offer, sell, or solicit the purchase of	430
self-service storage insurance except in conjunction with and	431
incidental to the rental of a storage space by the self-service	432
storage facility.	433

(c) No endorsee shall make any statement or engage in any	434
conduct, express or implied, that would lead a customer to believe	435
any of the following:	436

(i) That the insurance policies offered by the endorsee	437
provide coverage not already provided by a customer's homeowner's	438
insurance policy, renter's insurance policy, or by another source	439
of coverage;	440

(ii) That, if insurance is required as a condition of a	441
self-service storage rental agreement, the purchase by the	442
customer of self-service storage insurance offered by the	443
self-service storage facility is the only method by which that	444
condition may be met;	445

(iii) That the self-service storage facility or its endorsees	446
are qualified to evaluate the adequacy of the customer's existing	447
insurance coverage.	448

(I) A supervising entity appointed to supervise the	449
administration of self-service storage insurance under division	450
(G)(2) of this section shall maintain a registry of locations	451
supervised by that entity that are authorized to sell or solicit	452
self-service storage insurance in this state and the endorsees at	453
each location. The supervising entity shall make the registry	454
available to the superintendent upon request.	455

(J)(1) At every location where a self-service storage	456
facility offers self-service storage insurance to customers, the	457
self-service storage facility shall provide brochures or other	458
written materials to prospective customers that include all of the	459
following:	460

(a) A summary of the material terms of the insurance	461
coverage, including all of the following:	462

(i) The identity of the insurer;

463

(ii) The identity of the supervising entity;

464

(iii) The amount of any applicable deductible and how it is	465
to be paid;	466

(iv) Benefits of the coverage;

467

(v) Key terms and conditions of coverage.

468

(b) A summary of the process for filing a claim;

469

(c) A disclosure that self-service storage insurance may	470
provide a duplication of coverage already provided by a customer's	471
homeowner's insurance policy, renter's insurance policy, or other	472
source of coverage;	473

(d) A disclosure that, if insurance is required as a	474
condition of a self-service storage rental agreement, the	475
requirement may be satisfied by either of the following:	476

(i) The customer's purchase of self-service storage insurance	477
that is sold, solicited, or negotiated by the self-service storage	478
facility;	479

(ii) The customer's presentation to the self-service storage	480
facility of evidence of other applicable insurance coverage such	481
as a representation by a licensed Ohio insurance agent that the	482
customer satisfies the coverage requirement;	483

(e) A disclosure that neither the endorsee nor the	484
self-service storage facility is qualified to evaluate the	485
adequacy of the customer's existing insurance coverage;	486

(f) A disclosure that the customer may cancel enrollment for	487
coverage under a self-service storage insurance policy at any time	488
and receive a refund of any applicable premium.	489

(2) A self-service storage facility shall provide to every	490
customer who purchases self-service storage insurance a	491
certificate that is evidence of the coverage.	492

(K)(1) The charges for self-service storage insurance may be	493
billed and collected by the self-service storage facility, and the	494
self-service storage facility may receive compensation for	495
performing billing and collection services, if either of the	496
following conditions are met:	497

(a) If the charge to the customer for coverage is not	498
included in the cost associated with the purchase or lease of	499
self-service storage or related services, the charge for coverage	500
is separately itemized on the customer's bill.	501

(b) If the charge to the customer for coverage is included in	502
the cost associated with the lease of self-service storage, the	503
self-service storage facility clearly and conspicuously discloses	504
to the customer that the charge for self-service storage insurance	505
coverage is included with the lease for self-service storage.	506

(2) All funds received by a self-service storage facility	507
from a customer for the sale of self-service storage insurance	508
shall be considered funds held in trust by the self-service	509
storage facility in a fiduciary capacity for the benefit of the	510
insurer. Self-service storage facilities that bill and collect	511
such charges are not required to maintain those funds in a	512
segregated account if the self-service storage facility is	513
authorized by the insurer to hold those funds in an alternate	514
manner and the self-service storage facility remits the amount of	515
the charges to the supervising entity within sixty days after	516
receiving the charges.	517

(L)(1) Except as otherwise provided in divisions (L)(2) and	518
(3) of this section, an insurer may terminate or otherwise change	519
the terms and conditions of a policy of self-service storage	520
insurance only upon providing the self-service storage facility	521
policyholder and enrolled customers with at least sixty days'	522
prior notice. If the insurer changes the terms and conditions, the	523
insurer shall promptly provide the self-service storage facility	524
policyholder with a revised policy or endorsement and each	525
enrolled customer with a revised certificate, endorsement, updated	526
brochure, or other evidence indicating that a change in the terms	527
and conditions has occurred and a summary of material changes.	528

(2) An insurer may terminate an enrolled customer's	529
enrollment under a self-service storage insurance policy upon	530
fifteen days' prior notice for discovery of fraud or material	531
misrepresentation in obtaining coverage or in the presentation of	532
a claim under the policy.	533

(3) An insurer may immediately terminate an enrolled	534
customer's enrollment under a self-service storage insurance	535
policy for any of the following reasons:	536

(a) The enrolled customer fails to pay the required premium;

537

(b) The enrolled customer ceases to have an active lease at	538
the self-service storage facility;	539

(c) The enrolled customer exhausts the aggregate limit of	540
liability, if any, under the terms of the self-service storage	541
insurance policy and the insurer sends notice of termination to	542
the customer within thirty calendar days after exhaustion of the	543
limit. However, if the insurer does not send the notice within the	544
thirty-day time frame, enrollment shall continue notwithstanding	545
the aggregate limit of liability until the insurer sends notice of	546
termination to the enrolled customer.	547

(4) If a self-service storage insurance policy is terminated	548
by a self-service storage facility policyholder, the self-service	549
storage facility policyholder shall provide notice to each	550
enrolled customer advising the customer of the termination of the	551
policy and the effective date of the termination. The written	552
notice shall be sent by mail, electronic mail, or delivery to the	553
customer at least thirty days prior to the termination.	554

(5) Notice required pursuant to this section may be sent by	555
any of the following methods:	556

(a) Electronically, in accordance with section 3901.41 of the	557
Revised Code;	558

(b) Via ordinary, registered, or certified mail, return	559
receipt requested and postage prepaid;	560

(c) By overnight delivery using a nationally recognized	561
carrier.	562

(M) An enrolled customer may cancel the enrolled customer's	563
coverage under a self-service storage insurance policy at any	564
time. Upon cancellation, the insurer shall refund any applicable	565
unearned premium.	566

(N) A license issued pursuant to this section shall authorize	567
the self-service storage facility and its endorsees to engage only	568
in those activities that are expressly permitted by this section.	569

(O)(1) If a self-service storage facility or a self-service	570
storage facility's endorsee violates any provision of this	571
section, the superintendent may revoke or suspend the license	572
issued or impose any other sanctions provided under section	573
3905.14 of the Revised Code.	574

(2) If any provision of this section is violated by a	575
self-service storage facility, a self-service storage facility's	576
endorsee at a particular location, a supervising entity, or an	577
agent, the facility, endorsee, supervising entity, or agent is	578
deemed to have engaged in an unfair and deceptive act or practice	579
in the business of insurance under sections 3901.19 to 3901.26 of	580
the Revised Code.	581

(3) If the superintendent determines that a violation of this	582
section or section 3905.14 of the Revised Code has occurred, the	583
superintendent may assess a civil penalty in an amount not	584
exceeding twenty-five thousand dollars per violation and an	585
administrative fee to cover the expenses incurred by the	586
department in the administrative action, including costs incurred	587
in the investigation and hearing process.	588

(P)(1) Notwithstanding any other provision of law, if a	589
self-service storage facility's insurance-related activities, and	590
those of its endorsees, employees, and authorized representatives,	591
are limited to offering and disseminating self-service storage	592
insurance on behalf of and under the direction of a limited lines	593
self-service storage insurance agent that meets the requirements	594
of this section, the facility is authorized to offer and	595
disseminate insurance and receive related compensation for these	596
services if the self-service storage facility is registered by the	597
limited lines self-service storage insurance agent as described in	598
division (I) of this section. Any compensation paid to a	599
self-service storage facility's endorsee, employee, or authorized	600
representative for the services described in this section shall be	601
incidental to the endorsee's, employee's, or authorized	602
representative's overall compensation and not based primarily on	603
the number of customers who purchase self-service storage	604
insurance coverage.	605

(2) Nothing in this section shall be construed to prohibit	606
payment of compensation to a self-service storage facility or its	607
employees, endorsees, or authorized representatives for activities	608
under the limited lines self-service storage insurance agent's	609
license that are incidental to the overall compensation of the	610
self-service storage facility or the employees, endorsees, or	611
authorized representatives of the facility.	612

(3) All costs paid or charged to a consumer for the purchase	613
of self-service storage insurance or related services, including	614
compensation to the self-service storage facility, shall be	615
separately itemized on the customer's bill.	616

(Q) The superintendent may adopt rules implementing this	617
section.	618

Sec. 3905.40.  There shall be paid to the superintendent of	619
insurance the following fees:	620

(A) Each insurance company doing business in this state shall	621
pay:	622

(1) For filing a copy of its charter or deed of settlement,	623
two hundred fifty dollars;	624

(2) For filing each statement, one hundred seventy-five	625
dollars;	626

(3) For each certificate of authority or license, one hundred	627
seventy-five, and for each certified copy thereof, five dollars;	628

(4) For each copy of a paper filed in the superintendent's	629
office, twenty cents per page;	630

(5) For issuing certificates of deposits or certified copies	631
thereof, five dollars for the first certificate or copy and one	632
dollar for each additional certificate or copy;	633

(6) For issuing certificates of compliance or certified	634
copies thereof, sixty dollars;	635

(7) For affixing the seal of office and certifying documents,	636
other than those enumerated herein, two dollars;	637

(8) For each agent appointment and each annual renewal of an	638
agent appointment, not more than twenty dollars.	639

(B) Each domestic life insurance company doing business in	640
this state shall pay for annual valuation of its policies, one	641
cent on every one thousand dollars of insurance.	642

(C) Each applicant for licensure as an insurance agent except	643
applicants for licensure as surety bail bond agents, surplus line	644
brokers, and portable electronics insurance vendors, and	645
self-service storage facilities shall pay ten dollars for each	646
line of authority requested. Fees collected under this division	647
shall be credited to the department of insurance operating fund	648
created in section 3901.021 of the Revised Code.	649

(D) Each domestic mutual life insurance company shall pay for	650
verifying that any amendment to its articles of incorporation was	651
regularly adopted, two hundred fifty dollars with each application	652
for verification. Any such amendment shall be considered to have	653
been regularly adopted when approved by the affirmative vote of	654
two-thirds of the policyholders present in person or by proxy at	655
any annual meeting of policyholders or at a special meeting of	656
policyholders called for that purpose.	657

(E) Each insurance agent doing business in this state shall	658
pay a biennial license renewal fee of twenty-five dollars, except	659
the following insurance agents are not required to pay that	660
license renewal fee:	661

(1) Individual resident agents who have met their continuing	662
education requirements under section 3905.481 of the Revised Code;	663

(2) Surety bail bond agents;

664

(3) Surplus line brokers;

665

(4) Portable electronics insurance vendors;

666

(5) Self-service storage facilities.

667

(F) Each applicant for licensure as a portable electronics	668
insurance vendor with a portable electronics insurance limited	669
lines license and each licensed vendor doing business in this	670
state shall pay the following fees prescribed by the	671
superintendent:	672

(1) For vendors engaged in portable electronic transactions	673
at more than ten locations in this state, an application fee not	674
to exceed five thousand dollars for an initial license and a	675
biennial license renewal fee not to exceed two thousand five	676
hundred dollars for each renewal thereafter;	677

(2) For vendors engaged in portable electronic transactions	678
at ten or fewer locations in this state, an application fee not to	679
exceed three thousand dollars for an initial license and a	680
biennial license renewal fee not to exceed one thousand dollars	681
for each renewal thereafter.	682

(G) Each applicant for a self-service storage insurance	683
limited lines license and each holder of such a license in this	684
state shall pay an application fee not to exceed ten dollars for	685
an initial license and a biennial license renewal fee not to	686
exceed twenty-five dollars for each renewal thereafter.	687

(H) All fees collected by the superintendent under this	688
section except any fees collected under divisions (A)(2), (3), and	689
(6) of this section shall be credited to the department of	690
insurance operating fund created under section 3901.021 of the	691
Revised Code.	692

Section 2.  That existing sections 3905.01, 3905.06, and	693
3905.40 of the Revised Code are hereby repealed.	694