TN Insurance Bulletin (2015-04-08): Designated Responsible Licensed Producer Requirement

STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE 500 JAMES ROBERTSON PARKWAY NASHVILLE, TENNESSEE 37243-5065 BILL HASLAM GOVERNOR JULIE MIX MCPEAK COMMISSIONER BULLETIN TO: Self-Service Storage Owners and Insurers FROM: Julie Mix McPeak, Commissioner ~ ~ U1, P.u.t Designated Responsible Licensed Producer Requirement RE: DATE: April ~, 2015 It has been brought to the Department's attention that there has been a concern over the appropriate application of Tenn. Code Ann. § 56-6-1207(b)(l) related to self-service storage facility owners applying for a limited lines license and the requirement to provide a designated responsible insurance producer ("DRLP"). Tenn. Code Ann. § 56-6-1202 permits an owner of a self-service storage facility to offer insurance for the repair or replacement of covered personal property due to loss, theft, damage, or other similar causes of loss under a limited lines business entity producer license. In order to receive a license Tenn. Code Ann. § 56-6-1207(b)(1) provides that the application shall: "Provide the name, residence address and other information required by the department for an individual that is designated by the applicant as the individual responsible for the owner's compliance with this part and the name ofthe principal, officer, employee, or representative who holds a current producer license in this state." The Department takes the position that an owner of a self-storage facility applying for a limited lines license may list a principal, officer, employee, or representative of either the self-storage facility or the sponsoring insurer as the applicant's DRLP. In the case that a sponsoring insurer elects to have a representative of the insurance company listed as the DRLP, the Department takes the position that the sponsoring insurer would be responsible for ensuring that the DRLP's license and contact information remains current. Any questions regarding the intent of this Bulletin should be directed to the Insurance Division's Agent Licensing Section, 6 111 Floor, Davy Crockett Tower, 500 James Robertson Parkway, Nashville, Tennessee, 37243, and/or (615) 741-2693.