NMSA 1978, § 59A-62-1 Short title
59A-62-1. Short title
Sections 1 through 11 [59A-62-1 to 59A-62-11 NMSA 1978] of this act may be cited as the "Self-Service Storage Insurance License Act".
Laws 2019, ch. 219, § 1.
Self-Service Storage Insurance License
NMSA 1978 ch. 59A, art. 62
in effectNMSA 1978, § 59A-62-2 Definitions
59A-62-2. Definitions
As used in the Self-Service Storage Insurance License Act:
A. "occupant" means a person who is entitled to the use of storage space at a self-service storage facility, to the exclusion of others, under terms of a rental agreement, including a sublessee, successor or assignee;
B. "owner" means the owner, operator, franchisee, lessor or sublessor of a self-service storage facility, agent or any person authorized to manage the facility or to receive rent from an occupant under a rental agreement;
C. "personal property" means movable property not affixed to land, and includes goods, merchandise and household items;
D. "rental agreement" means any written agreement or lease between the owner and the occupant that establishes or modifies the terms, conditions or rules or any other provisions concerning the use and occupancy of storage space at a self-service storage facility;
E. "self-service storage facility" means any real property designed and used in the business of providing leased or rented storage space to occupants who have access to such facility for the purpose of storing and removing personal property;
F. "self-service storage insurance" means personal or commercial property insurance offered to an occupant in connection with and incidental to the rental of storage space at a self-service storage facility and that provides coverage for the loss of or damage to the occupant's personal property that occurs at the self-service storage facility or when such property is in transit to or from the facility during the period of the rental agreement;
G. "self-service storage insurance producer" means a business entity licensed only to offer insurance in connection with, and incidental to, rental agreements on behalf of an insurer authorized to write self-service storage insurance; and
H. "supervising entity" means an insurer issuing self-service storage insurance or a licensed insurance producer licensed pursuant to Article 11 of the Insurance Code that is authorized by an insurer to supervise the administration of a self-service storage insurance program.
Laws 2019, ch. 219, § 2.
NMSA 1978, § 59A-62-3 Self-service storage insurance producer license
59A-62-3. Self-service storage insurance producer license
A. The superintendent may issue a self-service storage insurance producer license to an applicant who is qualified to solicit or sell self-service storage insurance.
B. An owner shall not sell, solicit or offer self-service storage insurance unless the owner has complied with the requirements of the Self-Service Storage Insurance License Act and has been issued a self-service storage insurance producer license by the superintendent.
C. A self-service storage insurance producer license authorizes the licensee and its employees and authorized representatives to sell, solicit and offer self-service storage insurance to occupants at any self-service storage facility at which the owner conducts business.
D. Self-service storage insurance producers shall be licensed pursuant to Article 11 of the Insurance Code.
E. An owner is not required to be licensed as a self-service storage insurance producer solely to display and make available to occupants and prospective occupants brochures and other promotional materials created by or on behalf of an insurer, if the owner and its unlicensed employees and authorized representatives do not sell, solicit or offer self-service storage insurance.
F. A licensee pursuant to this section may provide self-service storage insurance under an individual policy or under a commercial, corporate, group or master policy.
G. An owner shall not:
(1) require an occupant to purchase insurance offered by the owner as a requirement to lease storage space at a self-service storage facility; or
(2) advertise, represent or otherwise hold the owner's self out as a self-service storage insurance producer unless licensed pursuant to the Self-Service Storage Insurance License Act.
Laws 2019, ch. 219, § 3.
NMSA 1978, § 59A-62-4 Registry of authorized locations
59A-62-4. Registry of authorized locations
A. Before offering self-service storage insurance at a location, a self-service storage insurance producer shall provide the superintendent with a complete list of each location where the self-service storage insurance producer will offer self-service storage insurance. The supervising entity shall maintain a registry of each location at which a self-service storage insurance producer is authorized to sell, solicit or offer self-service storage insurance in this state.
B. The registry shall be made available for inspection by the superintendent upon reasonable request.
C. A self-service storage insurance producer shall notify the superintendent within thirty days after:
(1) engaging in the sale or solicitation of self-service storage insurance at any additional location in the state; or
(2) ceasing to sell, solicit or offer self-service storage insurance.
Laws 2019, ch. 219, § 4.
NMSA 1978, § 59A-62-5 Disclosure of terms
59A-62-5. Disclosure of terms
A. A self-service storage insurance producer shall not sell, solicit or offer self-service storage insurance to occupants at any location unless the licensee makes available a brochure or other written or electronic material that:
(1) discloses that self-service storage insurance may provide a duplication of coverage already provided by an occupant's homeowner's insurance policy, renter's insurance policy, vehicle insurance policy, watercraft insurance policy or other property insurance coverage;
(2) states that the purchase by the occupant of the self-service storage insurance offered by the owner is not required in order to lease storage space at the self-service storage facility;
(3) provides the actual terms of the self-service storage insurance coverage or summarizes the material terms of the self-service storage insurance coverage, including:
(a) the identity of the insurer;
(b) the price of coverage and how payment shall be made;
(c) the identity of the supervising entity;
(d) deductibles, exclusions and conditions;
(e) benefits of the coverage; and
(f) key terms and conditions of coverage;
(4) summarizes the process for filing a claim; and
(5) states that an occupant that purchases self-service storage insurance may cancel the insurance at any time by notifying the insurer or the supervising entity in writing and shall receive a refund of any unearned premium within twenty days of cancellation.
B. The written or electronic material required pursuant to this section shall be submitted to the superintendent for approval upon request.
Laws 2019, ch. 219, § 5.
NMSA 1978, § 59A-62-6 Authorized employees and representatives
59A-62-6. Authorized employees and representatives
A. At the time of filing a self-service storage insurance producer license application, the applicant shall establish a list of the names of all employees and authorized representatives whose duties may include offering and selling self-service storage insurance. The list shall be:
(1) maintained by the licensee in a form prescribed by the superintendent;
(2) updated annually; and
(3) retained by the self-service storage facility for three years and made available to the superintendent for review and inspection upon request.
B. An employee or authorized representative of a self-service storage insurance producer who is at least eighteen years of age and has been trained pursuant to Section 8 [59A-62-8 NMSA 1978] of the Self-Service Storage Insurance Act may act on behalf and under the supervision of the self-service storage insurance producer in matters relating to the conduct of business under that producer's license.
C. An employee or authorized representative of a self-service storage insurance producer may sell, solicit and offer self-service storage insurance to occupants and shall not be subject to licensure as an insurance producer.
Laws 2019, ch. 219, § 6.
NMSA 1978, § 59A-62-7 Commissions
59A-62-7. Commissions
A self-service storage insurance producer shall not compensate an employee or authorized representative based primarily on the number of occupants that purchase self-service storage insurance from the self-service storage insurance producer unless that compensation is incidental to the employee's or authorized representative's overall compensation.
Laws 2019, ch. 219, § 7.
NMSA 1978, § 59A-62-8 Required training programs
59A-62-8. Required training programs
A. The supervising entity shall supervise the administration of the self-service storage insurance program, including development of a training program approved by the superintendent for employees and authorized representatives of the self-service storage insurance producer.
B. The training program shall be provided to an employee or authorized representative of a self-service storage insurance producer prior to that person engaging in the activity of selling, soliciting or offering self-service storage insurance.
C. The training shall inform employees and authorized representatives:
(1) that employees and authorized representatives of an owner are prohibited from advertising, representing or otherwise holding themselves out as insurance producers;
(2) about ethical sales practices; and
(3) about the self-service storage insurance offered to occupants and regarding the disclosures required pursuant to the Self-Service Storage Insurance License Act.
D. The training materials used by or on behalf of the self-service storage facility to train employees and authorized representatives shall be submitted to the superintendent at the time the owner applies for a self-service storage insurance producer license and whenever modified. Any changes to those training materials shall be submitted to the superintendent prior to their use by the licensee and in a form prescribed by the superintendent.
E. Training materials and changes to those materials that are submitted to the superintendent in accordance with this section shall be deemed approved for use by the supervising entity unless the superintendent notifies the supervising entity otherwise.
F. Failure by a self-service storage facility to submit training materials or changes for the superintendent's review, or use of disapproved training materials, shall constitute grounds for the denial of an application for license, nonrenewal of a license or a suspension of a license.
Laws 2019, ch. 219, § 8.
NMSA 1978, § 59A-62-9 Collection of fees
59A-62-9. Collection of fees
A. Charges for self-service storage insurance coverage may be billed and collected by a self-service storage insurance producer.
B. A charge to an occupant for coverage that is not included in the cost associated with the rental of storage space shall be separately itemized on the occupant's bill.
C. If self-service storage insurance coverage is included with the rental of storage space, the self-service storage insurance producer shall clearly and conspicuously disclose to the occupant in the rental invoice or otherwise that the self-service storage insurance coverage is included with charges for the rental of storage space.
D. An occupant that purchases self-service storage insurance may cancel the insurance at any time by notifying the insurer or the supervising entity in writing and shall receive a refund of any unearned premium within twenty days of cancellation.
Laws 2019, ch. 219, § 9.
NMSA 1978, § 59A-62-10 Fiduciary funds
59A-62-10. Fiduciary funds
A. Self-service storage insurance producers billing and collecting charges shall comply with the fiduciary requirements set forth in Section 59A-12-22 NMSA 1978, except that, pursuant to Paragraph (1) of Subsection B of Section 59A-12-22 NMSA 1978, the self-service storage insurance producer may remit received premiums, less applicable commissions, if any, and return premiums to the insurer or supervising entity within a time established by contract with the insurer or supervising entity, not to exceed sixty days after such receipt.
B. All money received by a self-service storage insurance producer or its employees or authorized representatives from an occupant for the sale of self-service storage insurance shall be held by the self-service storage insurance producer in a fiduciary capacity for the benefit of the insurer. A self-service storage insurance producer may receive compensation for billing and collection services, as established by contract with the insurer or supervising entity.
Laws 2019, ch. 219, § 10.
NMSA 1978, § 59A-62-11 Penalties
59A-62-11. Penalties
After notice and hearing by the superintendent, the superintendent may impose by administrative penalty upon a person who violates a provision of the Self-Service Storage Insurance License Act the following:
A. a fine not to exceed one thousand dollars ($1,000) per violation and not to exceed a total of ten thousand dollars ($10,000);
B. suspension of transacting self-service storage insurance at specific locations where violations have occurred;
C. suspension or revocation of the rights of individual employees or authorized representatives of a self-service storage insurance producer to act under the license; or
D. suspension or revocation of the self-service storage insurance producer's or supervising entity's license to transact insurance in this state.
Laws 2019, ch. 219, § 11.
Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18562/index.doFetched: 10/20/2026