Title 806 | Chapter 009 | Regulation 380
SUPERSEDED
This document is no longer current.
PUBLIC PROTECTION CABINET
Department of Insurance
Licensing Division
(New Administrative Regulation)
806 KAR 9:380.Limited Lines Self-Service Storage Space Insurance Requirements.
Section 1.
Definitions.(1)
"Limited lines self-service storage space insurance producer" is defined by KRS 304.9-495(1).(2)
"Self-service storage facility" is defined by KRS 304.9-495(6).(3)
"Self-service storage space insurance" is defined by KRS 304.9-495(7).Section 2.
License Application. To apply for a limited lines self-service storage space insurance license, an applicant shall submit:(1)
The appropriate completed form:(a)
For individuals, Form 8301, incorporated by reference in 806 KAR 9:025;(b)
For Business Entities, Form 8301-BE, incorporated by reference in 806 KAR 9:025; and(c)
A register, signed by the licensed limited lines self-service storage space insurance produce applicant, as prescribed on the Self-Service Storage Space Location Form, that shall include:1.
All facility locations proposed to offer and disseminate self-service storage space insurance by the limited lines self-service storage space insurance producer applicant;2.
Federal Employment Identification Number; and3.
Contact information for each self-service storage facility proposed to offer and disseminate self-service storage space insurance, including contact information for any facility operators.(2)
The register provided on the Self-Service Storage Space Location Form shall be made available to the department upon request.Section 3.
Limited Lines Self-Service Storage Space Insurance Producer Responsibilities. The licensed limited lines self-service storage space insurance producer shall:(1)
Be responsible for the acts of the self-service storage facility operator that occur within the scope of their operation of a self-service storage facility;(2)
Provide a program for instructional training to the employees of the self-service storage facility operator;(3)
Be responsible for the insurance activities of the self-service storage facility, its operators, unlicensed employees, and representatives;(4)
Report all material changes and additions to the department within thirty (30) days; and(5)
Before transacting any business at any location, ensure that the self-service storage facility and its operators provide the appropriate consumer protection disclosures as prescribed in KRS 304.9-497 to all prospective consumers in writing.Section 4.
Material Incorporated by Reference.(1)
The Self-Service Storage Space Location Form, 2/2022 is incorporated by reference.(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Department of Insurance, Mayo-Underwood Building, 500 Mero Street, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 pm. This material is also available on the Department's Web site at https://insurance.ky.gov/ppc/CHAPTER.aspx.SHARON P. CLARK, Commissioner
RAY A. PERRY, Secretary
APPROVED BY AGENCY: March 29, 2022
FILED WITH LRC: April 14, 2022 at 3 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held at 9:00 a.m. on June 21st, 2022 at 500 Mero Street, Frankfort, Kentucky 40602. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on June 30th, 2022. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person below.
CONTACT PERSON: Abigail Gall, Executive Advisor, 500 Mero Street, Frankfort, Kentucky 40601, phone +1 (502) 564-6026, fax +1 (502) 564-1453, email abigail.gall@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Abigail Gall
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes the procedures for an entity to apply to the Department to act as a self-service storage space insurance producer and requires the commissioner to prescribe an application form for a business entity seeking to act as a self-service storage facility.
(b) The necessity of this administrative regulation:
The regulation is necessary to establish the licensure requirements and reporting procedures for a self-service storage space insurance producer, as well as explaining said producer’s responsibilities.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 304.2-110 authorizes the commissioner to promulgate administrative regulations necessary for or as an aid to the effectuation of any provision of the Kentucky Insurance Code. KRS 304.9-496 authorizes the commissioner to issue an agent’s license with the limited line of authority for self-service storage space insurance producer and requires the commissioner to promulgate administrative regulations to establish the requirements.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
By setting forth the licensure requirements and responsibility of requirements for self-service storage space producers.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This is a new administrative regulation.
(b) The necessity of the amendment to this administrative regulation:
This is a new administrative regulation.
(c) How the amendment conforms to the content of the authorizing statutes:
This is a new administrative regulation.
(d) How the amendment will assist in the effective administration of the statutes:
This is a new administrative regulation.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
there are currently 191 self-service storage space producers.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
Those who wish to be licensed as a self-service storage insurance producer will have to file the appropriate application with the Department.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
Resident individual license, forty (40) dollars and an additional forty (40) dollars for each line of authority; Nonresident individual license, fifty (50) dollars and an additional fifty (50) dollars for each line of authority; Resident business entity license, $100 and an additional $100 for each line of authority; and Nonresident business entity license, $120 and an additional $120 for each line of authority.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Entities will be properly licensed under the insurance code.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Implementation of this amendment is not anticipated to have an initial cost on the Department of Insurance.
(b) On a continuing basis:
Implementation of this amendment is not anticipated to have an on-going cost on the Department of Insurance.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
The Department will use funds from its current operational budget to perform the tasks necessary.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
An increase of fees will not be necessary because additional personnel is likely unnecessary.
(8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees:
This administrative regulation does not directly establish any new fees.
(9) TIERING: Is tiering applied?
Tiering is not applied because this regulation applies equally to all self-service storage licensees.
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
(1) What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
The Kentucky Department of Insurance will be impacted as the implementer of the regulation.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 304.2-110, 304.9-496
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
This administrative regulation may generate revenue should any new licensees apply to the Department, but this is expected to be very minimal.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
The revenue generated by this administrative regulation is expected to be minimal.
(c) How much will it cost to administer this program for the first year?
This administrative regulation will not have a cost to implement in the first year.
(d) How much will it cost to administer this program for subsequent years?
This administrative regulation will not have a cost to administer subsequent years.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Neutral
Expenditures (+/-):
Neutral
Other Explanation:
As the amendments to this administrative regulation clarify an existing process, this administrative regulation will not have a fiscal impact on the Department of Insurance.
PUBLIC PROTECTION CABINET
Department of Insurance
Licensing Division
(New Administrative Regulation)
806 KAR 9:380.Limited Lines Self-Service Storage Space Insurance Requirements.
Section 1.
Definitions.(1)
"Limited lines self-service storage space insurance producer" is defined by KRS 304.9-495(1).(2)
"Self-service storage facility" is defined by KRS 304.9-495(6).(3)
"Self-service storage space insurance" is defined by KRS 304.9-495(7).Section 2.
License Application. To apply for a limited lines self-service storage space insurance license, an applicant shall submit:(1)
The appropriate completed form:(a)
For individuals, Form 8301, incorporated by reference in 806 KAR 9:025;(b)
For Business Entities, Form 8301-BE, incorporated by reference in 806 KAR 9:025; and(c)
A register, signed by the licensed limited lines self-service storage space insurance produce applicant, as prescribed on the Self-Service Storage Space Location Form, that shall include:1.
All facility locations proposed to offer and disseminate self-service storage space insurance by the limited lines self-service storage space insurance producer applicant;2.
Federal Employment Identification Number; and3.
Contact information for each self-service storage facility proposed to offer and disseminate self-service storage space insurance, including contact information for any facility operators.(2)
The register provided on the Self-Service Storage Space Location Form shall be made available to the department upon request.Section 3.
Limited Lines Self-Service Storage Space Insurance Producer Responsibilities. The licensed limited lines self-service storage space insurance producer shall:(1)
Be responsible for the acts of the self-service storage facility operator that occur within the scope of their operation of a self-service storage facility;(2)
Provide a program for instructional training to the employees of the self-service storage facility operator;(3)
Be responsible for the insurance activities of the self-service storage facility, its operators, unlicensed employees, and representatives;(4)
Report all material changes and additions to the department within thirty (30) days; and(5)
Before transacting any business at any location, ensure that the self-service storage facility and its operators provide the appropriate consumer protection disclosures as prescribed in KRS 304.9-497 to all prospective consumers in writing.Section 4.
Material Incorporated by Reference.(1)
The Self-Service Storage Space Location Form, 2/2022 is incorporated by reference.(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Department of Insurance, Mayo-Underwood Building, 500 Mero Street, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 pm. This material is also available on the Department's Web site at https://insurance.ky.gov/ppc/CHAPTER.aspx.SHARON P. CLARK, Commissioner
RAY A. PERRY, Secretary
APPROVED BY AGENCY: March 29, 2022
FILED WITH LRC: April 14, 2022 at 3 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held at 9:00 a.m. on June 21st, 2022 at 500 Mero Street, Frankfort, Kentucky 40602. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on June 30th, 2022. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person below.
CONTACT PERSON: Abigail Gall, Executive Advisor, 500 Mero Street, Frankfort, Kentucky 40601, phone +1 (502) 564-6026, fax +1 (502) 564-1453, email abigail.gall@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Abigail Gall
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes the procedures for an entity to apply to the Department to act as a self-service storage space insurance producer and requires the commissioner to prescribe an application form for a business entity seeking to act as a self-service storage facility.
(b) The necessity of this administrative regulation:
The regulation is necessary to establish the licensure requirements and reporting procedures for a self-service storage space insurance producer, as well as explaining said producer’s responsibilities.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 304.2-110 authorizes the commissioner to promulgate administrative regulations necessary for or as an aid to the effectuation of any provision of the Kentucky Insurance Code. KRS 304.9-496 authorizes the commissioner to issue an agent’s license with the limited line of authority for self-service storage space insurance producer and requires the commissioner to promulgate administrative regulations to establish the requirements.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
By setting forth the licensure requirements and responsibility of requirements for self-service storage space producers.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This is a new administrative regulation.
(b) The necessity of the amendment to this administrative regulation:
This is a new administrative regulation.
(c) How the amendment conforms to the content of the authorizing statutes:
This is a new administrative regulation.
(d) How the amendment will assist in the effective administration of the statutes:
This is a new administrative regulation.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
there are currently 191 self-service storage space producers.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
Those who wish to be licensed as a self-service storage insurance producer will have to file the appropriate application with the Department.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
Resident individual license, forty (40) dollars and an additional forty (40) dollars for each line of authority; Nonresident individual license, fifty (50) dollars and an additional fifty (50) dollars for each line of authority; Resident business entity license, $100 and an additional $100 for each line of authority; and Nonresident business entity license, $120 and an additional $120 for each line of authority.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Entities will be properly licensed under the insurance code.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Implementation of this amendment is not anticipated to have an initial cost on the Department of Insurance.
(b) On a continuing basis:
Implementation of this amendment is not anticipated to have an on-going cost on the Department of Insurance.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
The Department will use funds from its current operational budget to perform the tasks necessary.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
An increase of fees will not be necessary because additional personnel is likely unnecessary.
(8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees:
This administrative regulation does not directly establish any new fees.
(9) TIERING: Is tiering applied?
Tiering is not applied because this regulation applies equally to all self-service storage licensees.
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
(1) What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
The Kentucky Department of Insurance will be impacted as the implementer of the regulation.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 304.2-110, 304.9-496
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
This administrative regulation may generate revenue should any new licensees apply to the Department, but this is expected to be very minimal.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
The revenue generated by this administrative regulation is expected to be minimal.
(c) How much will it cost to administer this program for the first year?
This administrative regulation will not have a cost to implement in the first year.
(d) How much will it cost to administer this program for subsequent years?
This administrative regulation will not have a cost to administer subsequent years.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Neutral
Expenditures (+/-):
Neutral
Other Explanation:
As the amendments to this administrative regulation clarify an existing process, this administrative regulation will not have a fiscal impact on the Department of Insurance.