(1) SECURITY REQUIRED; FORM OF SECURITY. Every applicant for a public warehouse keeper’s license shall file with the department any of the following: (a) A commercial surety bond that is issued by a surety company licensed to do business in this state, that secures the applicant’s faithful performance of all duties and obligations of a public warehouse keeper, that is payable to the department for the benefit of owners of stored property or their assignees, that is issued in a form acceptable to the department that provides that it may not be terminated without at least 30 days’ written notice to the department. (b) An original or certified copy of a legal liability insurance policy that is payable to the department for the benefit of the owners of stored property or their assignees, that is in a form acceptable to the department and that provides that it may not be terminated except upon at least 30 days’ written notice to the department. (c) A personal bond or 3rd-party guarantee in a form acceptable to the department and supported by one of the following forms of security held under sub. (3): 1. Cash. 2. A certificate of deposit. 3. Bonds. 4. An irrevocable bank letter of credit issued by a financial institution in this state. (d) If the warehouse keeper is engaged exclusively in storing wearing apparel, an original or certified copy of a bailee’s customers’ insurance policy that protects the owners of all stored property against loss or damage by fire, wind, water or theft, that names the department as an additional insured party for the benefit of owners of stored property, that is in a form acceptable to the department and that provides that it may not be terminated except upon 30 days’ written notice to the department. (2) AMOUNT OF SECURITY REQUIRED. The aggregate amount of the security required under sub. (1) (a) to (c) shall be not less than the following: (a) For a Class 1 public warehouse, $10,000. (b) For a Class 2 public warehouse, $20,000. (c) For a Class 3 public warehouse, $30,000. (d) For a Class 4 public warehouse, $40,000. (e) For a Class 5 public warehouse, $50,000. (3) SECURITY HELD BY DEPARTMENT; RELEASE. The department or its agent shall hold security filed under sub. (1) (c). The security shall remain in effect, and the department may not release it, until one of the following occurs: (a) A period of 180 days elapses after the warehouse keeper gives notice to the department that the warehouse keeper is no longer in business. (b) A period of 180 days elapses after the warehouse keeper’s license expires or is revoked. (c) The department determines that the warehouse keeper is no longer in business and that all claims of persons storing property at the warehouse have been satisfied. (4) USE OF A DEDUCTIBLE CLAUSE. Nothing in this section prohibits the use of a deductible clause in any insurance policy by agreement between the public warehouse keeper and the insurer if the insurer remains liable to owners of stored property or their assignees for the deductible portion of any loss or damage to stored property. (5) NOTICE OF LIABILITY LIMITS. At the time a contract to store property is entered into with individuals for the storage of noncommercial personal, family or household goods, the public warehouse keeper shall notify the property owner of any limit on the public warehouse keeper’s liability for loss or damage to the property while in storage and of the property owner’s responsibility to provide additional coverage if desired. (6) INSUFFICIENT SECURITY; DEPARTMENT ORDER; LICENSE SUSPENSION. If the department finds that the security or insurance policy filed by a warehouse keeper does not comply with sub. (2) or that a bond or insurance policy has been canceled without the required notice to the department, the department may summarily suspend the warehouse keeper’s license without notice or a hearing. A person adversely affected by an order under this subsection is entitled to a prompt hearing before the department upon request. A request for hearing does not stay an order under this subsection.
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