SB328 Alabama 2018 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

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

SB 328 would confirm that self-service storage facilities are not insurance companies and would create a limited license for them to sell insurance related to storage rental agreements.

What This Bill Does

It clarifies that providing certain coverages for stored personal property does not make a storage facility an insurance business. It adds a new limited license (27-7-5.3) allowing a self-service storage facility to offer, sell, solicit, or negotiate insurance for occupants in connection with a rental agreement, through a licensed insurer, for specified personal property coverages. It also expands the statutory definitions to include self-service storage facility insurance as a form of limited lines insurance and requires disclosures and training for limited licensees, while keeping the insurance sale tied to rental agreements and not promoting the facility as a licensed insurer.

Who It Affects

• Self-service storage facility owners/operators who may obtain a limited license to sell insurance related to storage rentals and must meet training, disclosure, and supervision requirements.
• Storage facility occupants (renters) who may purchase optional insurance coverage tied to their rental agreement, with required disclosures and protections but not required to buy insurance.

Key Provisions

• Self-service storage facility insurance is recognized within the limited lines insurance category, clarifying the facility is not an insurer when providing related coverages.
• A new Section 27-7-5.3 creates a limited license for a facility to offer, sell, solicit, or negotiate insurance through a licensed insurer in connection with a rental agreement.
• Limited licensees may provide coverage for losses to personal property stored at the facility or losses related to the rental agreement, either as individual or group/master policies, but only in connection with the rental.
• Prospective purchasers must receive written disclosures about terms, duplication of coverage, claim process, price/deductible/benefits, cancellation rights, and that purchase is not required to rent.
• Limited licensees cannot advertise as licensed insurers; compensation for sales may come from a supervising entity, and sales must be ancillary to a rental agreement.
• The act sets training requirements for owners and employees, and requires an application process for obtaining the limited license.
• The act becomes effective on the first day of the third month after passage and governor approval.

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