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Statutes Text

Article - Insurance




§26–402.

    (a)    Each motor club shall provide to its members:

        (1)    a service contract;

        (2)    a membership card; and

        (3)    the following information:

            (i)    the exact name of the motor club;

            (ii)    the street address of the motor club’s home office;

            (iii)    the street address of the motor club’s principal place of business in the State;

            (iv)    the telephone numbers of the motor club’s home and business offices; and

            (v)    a description of the motor club services or benefits to which the member is entitled.

    (b)    Unless a motor club provides and the Commissioner approves another form of service contract, the service contract consists of:

        (1)    the completed application or renewal application of the motor club;

        (2)    the filed fees to be charged to members of the motor club; and

        (3)    the description of motor club services or benefits to which the members are entitled.

    (c)    A service contract may not:

        (1)    contain inconsistent, ambiguous, or misleading clauses, exceptions, or conditions that deceptively affect the risk purported to be assumed or the motor club service to be performed;

        (2)    contain an inequitable provision that does not have a substantial benefit to the member;

        (3)    require the payment of fees that are unreasonable in relation to the motor club service agreed to be performed; or

        (4)    offer reimbursement only, unless the contract clearly states that emergency road service will not be provided.



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