HB419 Alabama 2018 Session

Updated Feb 26, 2026

Low Interest

Summary

Primary Sponsor: Kyle South
Republican
Session: Regular Session 2018
Title: Insurance, self-service storage facilities, limited license provided for personal property related to rental agreement, Sec. 27-7-5.3 added; Sec. 27-7-1 am'd.
Summary: The bill clarifies that self-service storage facilities are not insurance businesses when providing incidental coverages and creates a limited insurance licensing option for facilities to sell rental‑related insurance.
What This Bill Does
It designates self-service storage facility insurance as a form of limited lines insurance. It lets a storage facility owner obtain a limited license to sell insurance to occupants in connection with a rental agreement. It requires clear consumer disclosures, restricts coverage to personal property at or during transit in the rental period, and keeps purchase optional. It also sets training, supervision, advertising restrictions, and compensation rules for licensees.

Who It Affects
Occupants/tenants of self-service storage facilities: may purchase insurance coverage offered by the facility in connection with their rental; coverage is optional, must be clearly disclosed, and unearned premiums must be refunded if canceled.
Owners/operators of self-service storage facilities (and supervising entities) and their staff: may obtain a limited license to sell insurance, must provide training, must itemize charges, and are restricted to offering coverage only in relation to the rental agreement; they cannot present themselves as licensed insurers.

Key Provisions
Provision 1: Amends Section 27-7-1 to include self-service storage facility insurance within the definition of limited lines insurance and to clarify that facilities are not engaged in the insurance business when providing incidental coverages.
Provision 2: Adds Section 27-7-5.3 to create a limited license for self-service storage facilities to offer, sell, solicit, or negotiate insurance tied to rental agreements, including definitions, scope, disclosures, licensing exemptions, training requirements, and compensation rules.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Insurance