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LADERA RANCH, Calif., Sept. 8, 2020 /PRNewswire/ -- On August 31, 2020, SmartStop Asset Management, LLC ("SmartStop") reached a settlement with the California Department of Insurance ("CDI") in the amount of $250,000 for what CDI alleged was the unlicensed sale of self storage insurance. These allegations dealt with technical rules regarding sales procedures of self storage insurance and nuances between such insurance and tenant protection plans. As part of the settlement agreement, SmartStop denied entirely all allegations by CDI and agreed to resolve the matter without any admission of liability or wrongdoing.
During the brief period in question, SmartStop provided contents protection to self storage renters through a program created by an experienced third party insurance brokerage and insurance company. SmartStop relied on its broker's many assurances that no license was needed for the sale of the program. When CDI contacted SmartStop in the summer of 2019, it advised SmartStop that the assurances provided by its broker were, in fact, incorrect and that SmartStop needed a license to continue operating as it had been. Immediately, SmartStop began a cooperative and transparent relationship with CDI, working to answer all of its questions and address all of its concerns. Since that time, SmartStop and its affiliates have made changes to address the concerns raised by CDI. The full and complete cooperation by SmartStop with CDI shows its commitment to complying with all applicable laws in all jurisdictions in which it operates.
SmartStop and its affiliates are committed to delivering a high-level of customer service by providing quality programs in connection with the rental experience. Throughout the entire period, the customers of SmartStop and its affiliates have benefitted—and continue to benefit—from such programs.
SmartStop Asset Management ("SmartStop") is a diversified real estate company focused on student housing and senior housing. SmartStop and its affiliates have a managed portfolio that includes approximately $2.0 billion of assets.