As Re-referred by the House Rules and Reference Committee

130th General Assembly
Regular Session
2013-2014
H. B. No. 430


Representatives Kunze, Stinziano 



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 of the 298
Revised Code that is appointed by an insurer to supervise the 299
administration of a self-service storage insurance program.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 employee 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.307

       (2) Any self-service storage facility offering or selling 308
self-service storage insurance on or before the effective date of 309
this section that wishes to continue offering or selling that 310
insurance shall apply for a license within ninety days after the 311
superintendent of insurance makes the application available.312

       (C)(1) The superintendent shall issue a resident insurance 313
license to a self-service storage facility under section 3905.06 314
of the Revised Code if the self-service storage facility satisfies 315
the requirements of sections 3905.05 and 3905.06 of the Revised 316
Code, except that the application for a self-service storage 317
insurance license shall satisfy the following additional 318
requirements:319

       (a) The application shall include the location of the 320
self-service storage facility's home office.321

       (b) If the application requires the self-service storage 322
facility to designate an individual or entity as a responsible 323
insurance agent, that agent shall not be required to be an 324
employee of the applicant and may be the supervising entity or an 325
individual agent who is an employee of the supervising entity.326

       (c) If the self-service storage facility derives less than 327
fifty per cent of the self-service storage facility's revenue from 328
the sale of self-service storage insurance, the application for a 329
self-service storage insurance license may require the 330
self-service storage facility to provide the name, residence 331
address, and other information required by the superintendent for 332
one employee or officer of the self-service storage facility who 333
is designated by the self-service storage facility as the person 334
responsible for the self-service storage facility's compliance 335
with the requirements of this chapter.336

       (d) If the self-service storage facility derives fifty per 337
cent or more of the self-service storage facility's revenue from 338
the sale of self-service storage insurance, the application may 339
require the information listed under division (C)(1)(c) of this 340
section for all owners with at least ten per cent interest or 341
voting interest, partners, officers, and directors of the 342
self-service storage facility, or members or managers of a 343
self-service storage facility that is a limited liability company.344

       (2) The superintendent shall issue a nonresident insurance 345
agent license to a self-service storage facility if the 346
self-service storage facility satisfies the requirements of 347
section 3905.07 of the Revised Code. However, if the nonresident 348
self-service storage facility's home state does not issue a 349
limited lines license for self-service storage insurance, the 350
nonresident self-service storage facility may apply for a resident 351
license under section 3905.06 of the Revised Code in the same 352
manner and with the same rights and privileges as if the 353
self-service storage facility were a resident of this state.354

       (D) The holder of a limited lines license may not sell, 355
solicit, or negotiate insurance on behalf of any insurer unless 356
appointed to represent that insurer under section 3905.20 of the 357
Revised Code.358

       (E) Division (B)(34) of section 3905.14 of the Revised Code 359
shall not apply to the self-service storage facility or the 360
self-service storage facility's endorsees.361

       (F) If insurance is required as a condition of a self-service 362
storage rental agreement, the requirement may be satisfied by the 363
customer's purchase of self-service storage insurance that is 364
sold, solicited, or negotiated by the self-service storage 365
facility or presentation to the self-service storage facility of 366
evidence of other applicable insurance coverage.367

       (G)(1) A self-service storage facility may authorize any 368
endorsee of the self-service storage facility to sell or offer 369
self-service storage insurance to a customer at any location at 370
which the self-service storage facility engages in self-service 371
storage transactions.372

       (2) An endorsee is not required to be licensed as an 373
insurance agent under this chapter if the self-service storage 374
facility is licensed under this section and the insurer issuing 375
the self-service storage insurance either directly supervises or 376
appoints a supervising entity to supervise the administration of 377
the self-service storage insurance program including development 378
of a training program for endorsees in accordance with division 379
(H) of this section.380

       (3) No endorsee shall do any of the following:381

       (a) Advertise, represent, or otherwise represent the 382
endorsee's self as an insurance agent licensed under section 383
3905.06 of the Revised Code;384

       (b) Offer, sell, or solicit the purchase of self-service 385
storage insurance except in conjunction with and incidental to the 386
sale or lease of self-service storage;387

       (c) Make any statement or engage in any conduct, express or 388
implied, that would lead a customer to believe either of the 389
following:390

       (i) That, if insurance is required as a condition of a 391
self-service storage rental agreement, the purchase by the 392
customer of self-service storage insurance offered by the 393
self-service storage facility is the only method by which that 394
condition may be met;395

       (ii) That the self-service storage facility or its endorsees 396
are qualified to evaluate the adequacy of the customer's existing 397
insurance coverage.398

       (4) An endorsee shall disclose that self-service storage 399
insurance may duplicate coverage already provided under a 400
customer's homeowner's insurance policy, renter's insurance 401
policy, or other coverage.402

       (H) Each self-service storage facility, or the supervising 403
entity to that self-service storage facility, shall provide a 404
training and education program for all endorsees who sell or offer 405
self-service storage insurance. The program may be provided as a 406
web-based training module or in any other electronic or recorded 407
video form. The training and education program shall meet all of 408
the following minimum standards:409

       (1) The training shall be delivered to each endorsee of each 410
self-service storage facility who sells or offers self-service 411
storage insurance and the endorsee shall complete the training.412

       (2) If the training is conducted in an electronic form, the 413
supervising entity shall implement a supplemental education 414
program regarding self-service storage insurance that is conducted 415
and overseen by employees of the supervising entity who are 416
licensed as insurance agents under section 3905.06 of the Revised 417
Code.418

       (3) The training and education program shall include basic 419
information about self-service storage insurance and information 420
concerning all of the following prohibited actions of endorsees:421

       (a) No endorsee shall advertise, represent, or otherwise 422
represent the endorsee's self as a licensed insurance agent.423

       (b) No endorsee shall offer, sell, or solicit the purchase of 424
self-service storage insurance except in conjunction with and 425
incidental to the rental of a storage space by the self-service 426
storage facility.427

       (c) No endorsee shall make any statement or engage in any 428
conduct, express or implied, that would lead a customer to believe 429
any of the following:430

       (i) That the insurance policies offered by the endorsee 431
provide coverage not already provided by a customer's homeowner's 432
insurance policy, renter's insurance policy, or by another source 433
of coverage;434

       (ii) That, if insurance is required as a condition of a 435
self-service storage rental agreement, the purchase by the 436
customer of self-service storage insurance offered by the 437
self-service storage facility is the only method by which that 438
condition may be met;439

       (iii) That the self-service storage facility or its endorsees 440
are qualified to evaluate the adequacy of the customer's existing 441
insurance coverage.442

       (I) A supervising entity appointed to supervise the 443
administration of a self-service storage insurance program under 444
division (G)(2) of this section shall maintain a registry of 445
locations supervised by that entity that are authorized to sell or 446
solicit self-service storage insurance in this state. The 447
supervising entity shall make the registry available to the 448
superintendent upon request by the superintendent if the 449
superintendent provides ten days' notice to the self-service 450
storage facility or supervising entity.451

       (J) At every location where a self-service storage facility 452
offers self-service storage insurance to customers, the 453
self-service storage facility shall provide brochures or other 454
written materials to prospective customers that include all of the 455
following:456

       (1) A summary of the material terms of the insurance 457
coverage, including all of the following:458

       (a) The identity of the insurer;459

       (b) The identity of the supervising entity;460

       (c) The amount of any applicable deductible and how it is to 461
be paid; 462

       (d) Benefits of the coverage;463

       (e) Key terms and conditions of coverage.464

       (2) A summary of the process for filing a claim;465

       (3) A disclosure that self-service storage insurance may 466
provide a duplication of coverage already provided by a customer's 467
homeowner's insurance policy, renter's insurance policy, or other 468
source of coverage;469

       (4) A disclosure that, if insurance is required as a 470
condition of a self-service storage rental agreement, the 471
requirement may be satisfied by the customer's purchase of 472
self-service storage insurance that is sold, solicited, or 473
negotiated by the self-service storage facility or the customer's 474
presentation to the self-service storage facility of evidence of 475
other applicable insurance coverage;476

       (5) A disclosure that neither the endorsee nor the 477
self-service storage facility is qualified to evaluate the 478
adequacy of the customer's existing insurance coverage;479

       (6) A disclosure that the customer may cancel enrollment for 480
coverage under a self-service storage insurance policy at any time 481
and receive a refund of any applicable premium.482

       (K)(1) The charges for self-service storage insurance may be 483
billed and collected by the self-service storage facility, and the 484
self-service storage facility may receive compensation for 485
performing billing and collection services, if either of the 486
following conditions are met:487

       (a) If the charge to the customer for coverage is not 488
included in the cost associated with the purchase or lease of 489
self-service storage or related services, the charge for coverage 490
is separately itemized on the customer's bill.491

       (b) If the charge to the customer for coverage is included in 492
the cost associated with the lease of self-service storage, the 493
self-service storage facility clearly and conspicuously discloses 494
to the customer that the charge for self-service storage insurance 495
coverage is included with the lease for self-service storage.496

       (2) All funds received by a self-service storage facility 497
from a customer for the sale of self-service storage insurance 498
shall be considered funds held in trust by the self-service 499
storage facility in a fiduciary capacity for the benefit of the 500
insurer. Self-service storage facilities that bill and collect 501
such charges are not required to maintain those funds in a 502
segregated account if the self-service storage facility is 503
authorized by the insurer to hold those funds in an alternate 504
manner and the self-service storage facility remits the amount of 505
the charges to the supervising entity within sixty days after 506
receiving the charges.507

       (L)(1) Except as otherwise provided in divisions (L)(2) and 508
(3) of this section, an insurer may terminate or otherwise change 509
the terms and conditions of a policy of self-service storage 510
insurance only upon providing the self-service storage facility 511
policyholder and enrolled customers with at least sixty days' 512
prior notice. If the insurer changes the terms and conditions, the 513
insurer shall promptly provide the self-service storage facility 514
policyholder with a revised policy or endorsement and each 515
enrolled customer with a revised certificate, endorsement, updated 516
brochure, or other evidence indicating that a change in the terms 517
and conditions has occurred and a summary of material changes.518

       (2) An insurer may terminate an enrolled customer's 519
enrollment under a self-service storage insurance policy upon 520
fifteen days' prior notice for discovery of fraud or material 521
misrepresentation in obtaining coverage or in the presentation of 522
a claim under the policy.523

       (3) An insurer may immediately terminate an enrolled 524
customer's enrollment under a self-service storage insurance 525
policy for any of the following reasons:526

       (a) The enrolled customer fails to pay the required premium;527

       (b) The enrolled customer ceases to have an active lease at 528
the self-service storage facility;529

       (c) The enrolled customer exhausts the aggregate limit of 530
liability, if any, under the terms of the self-service storage 531
insurance policy and the insurer sends notice of termination to 532
the customer within thirty calendar days after exhaustion of the 533
limit. However, if the insurer does not send the notice within the 534
thirty-day time frame, enrollment shall continue notwithstanding 535
the aggregate limit of liability until the insurer sends notice of 536
termination to the enrolled customer.537

       (4) If a self-service storage insurance policy is terminated 538
by a self-service storage facility policyholder, the self-service 539
storage facility policyholder shall provide notice to each 540
enrolled customer advising the customer of the termination of the 541
policy and the effective date of the termination. The written 542
notice shall be sent by mail, electronic mail, or delivery to the 543
customer at least thirty days prior to the termination.544

       (5) Notice required pursuant to this section shall be 545
provided in writing, either via mail or by electronic means.546

       (a) If notice is provided via mail, it shall be mailed or 547
delivered to the self-service storage facility at the self-service 548
storage facility's mailing address and to all affected enrolled 549
customers at the last known mailing addresses of those customers 550
on file with the insurer. The insurer or self-service storage 551
facility shall maintain proof of mailing in a form authorized or 552
accepted by the United States postal service or other commercial 553
mail delivery service.554

       (b) If notice is provided electronically, it shall be 555
transmitted via facsimile or electronic mail to the self-service 556
storage facility at the self-service storage facility's facsimile 557
number or electronic mail address and to all affected enrolled 558
customers at the last known facsimile numbers or electronic mail 559
addresses of those customers on file with the insurer. The insurer 560
or self-service storage facility shall maintain proof that the 561
notice was sent.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, or if an 575
unfair or deceptive practice is engaged in, by a self-service 576
storage facility or a self-service storage facility's endorsee at 577
a particular location, the superintendent may issue a cease and 578
desist order to a particular location, or take any other 579
administrative action authorized in section 3901.22 and division 580
(D) of section 3905.14 of 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) The superintendent may adopt rules implementing this 589
section.590

       Sec. 3905.40.  There shall be paid to the superintendent of 591
insurance the following fees:592

       (A) Each insurance company doing business in this state shall 593
pay:594

       (1) For filing a copy of its charter or deed of settlement, 595
two hundred fifty dollars;596

       (2) For filing each statement, one hundred seventy-five 597
dollars;598

       (3) For each certificate of authority or license, one hundred 599
seventy-five, and for each certified copy thereof, five dollars;600

       (4) For each copy of a paper filed in the superintendent's 601
office, twenty cents per page;602

       (5) For issuing certificates of deposits or certified copies 603
thereof, five dollars for the first certificate or copy and one 604
dollar for each additional certificate or copy;605

       (6) For issuing certificates of compliance or certified 606
copies thereof, sixty dollars;607

       (7) For affixing the seal of office and certifying documents, 608
other than those enumerated herein, two dollars;609

       (8) For each agent appointment and each annual renewal of an 610
agent appointment, not more than twenty dollars.611

       (B) Each domestic life insurance company doing business in 612
this state shall pay for annual valuation of its policies, one 613
cent on every one thousand dollars of insurance.614

       (C) Each applicant for licensure as an insurance agent except 615
applicants for licensure as surety bail bond agents, surplus line 616
brokers, and portable electronics insurance vendors, and 617
self-service storage facilities shall pay ten dollars for each 618
line of authority requested. Fees collected under this division 619
shall be credited to the department of insurance operating fund 620
created in section 3901.021 of the Revised Code.621

       (D) Each domestic mutual life insurance company shall pay for 622
verifying that any amendment to its articles of incorporation was 623
regularly adopted, two hundred fifty dollars with each application 624
for verification. Any such amendment shall be considered to have 625
been regularly adopted when approved by the affirmative vote of 626
two-thirds of the policyholders present in person or by proxy at 627
any annual meeting of policyholders or at a special meeting of 628
policyholders called for that purpose.629

       (E) Each insurance agent doing business in this state shall 630
pay a biennial license renewal fee of twenty-five dollars, except 631
the following insurance agents are not required to pay that 632
license renewal fee:633

       (1) Individual resident agents who have met their continuing 634
education requirements under section 3905.481 of the Revised Code;635

       (2) Surety bail bond agents;636

       (3) Surplus line brokers;637

       (4) Portable electronics insurance vendors;638

       (5) Self-service storage facilities.639

       (F) Each applicant for licensure as a portable electronics 640
insurance vendor with a portable electronics insurance limited 641
lines license and each licensed vendor doing business in this 642
state shall pay the following fees prescribed by the 643
superintendent: 644

       (1) For vendors engaged in portable electronic transactions 645
at more than ten locations in this state, an application fee not 646
to exceed five thousand dollars for an initial license and a 647
biennial license renewal fee not to exceed two thousand five 648
hundred dollars for each renewal thereafter;649

       (2) For vendors engaged in portable electronic transactions 650
at ten or fewer locations in this state, an application fee not to 651
exceed three thousand dollars for an initial license and a 652
biennial license renewal fee not to exceed one thousand dollars 653
for each renewal thereafter.654

       (G) Each applicant for a self-service storage insurance 655
limited lines license and each holder of such a license in this 656
state shall pay the following fees prescribed by the 657
superintendent:658

        (1) For self-service storage facilities engaged in 659
self-service transactions at more than ten locations in this 660
state, an application fee not to exceed one hundred dollars for an 661
initial license and a biennial license renewal fee not to exceed 662
twenty-five dollars for each renewal thereafter;663

        (2) For self-service storage facilities engaged in 664
self-service storage transactions at ten or fewer locations in 665
this state, an application fee not to exceed fifty dollars for an 666
initial license and a biennial license renewal fee not to exceed 667
ten dollars for each renewal thereafter.668

       (H) All fees collected by the superintendent under this 669
section except any fees collected under divisions (A)(2), (3), and 670
(6) of this section shall be credited to the department of 671
insurance operating fund created under section 3901.021 of the 672
Revised Code.673

       Section 2.  That existing sections 3905.01, 3905.06, and 674
3905.40 of the Revised Code are hereby repealed.675