This chapter constitutes and may be
cited as the Motor Club Law.
(Added to NRS by 1971, 1875)
Except where the context otherwise
requires, the terms used in this chapter shall be given the meanings set
forth in NRS 696A.030 to 696A.070
, inclusive, but such meaning shall
not, merely by reason of the enactment of NRS 696A.030 to 696A.070 , inclusive, govern the interpretation of any
other provision of this Code.
(Added to NRS by 1971, 1876)
Any act by a motor club
for the purpose of rendering a service defined in this chapter
constitutes such service, whether or not the service as defined is
completed.
(Added to NRS by 1971, 1876)
“Club agent” means a person
other than the motor club itself who acts or aids in any manner in the
solicitation, delivery or negotiation of any service contract, or of the
renewal or continuance thereof.
(Added to NRS by 1971, 1876)
“Motor club” means any person
who in consideration of dues, assessments or periodic payments of money,
promises its members or subscribers to assist them in matters relating to
travel and the operation, use and maintenance of a motor vehicle in the
supply of features or services or reimbursement thereof, which may
include:
1. Such services as community traffic safety services, travel and
touring service, theft or reward service, map service, towing service,
buying and selling service, discount service, emergency road service,
bail bond service and legal fee reimbursement service in the defense of
traffic offenses, none of which enumerated services, if provided by motor
club itself, shall be subject to the insurance laws of this state.
2. The purchase of accidental injury and death benefits insurance
coverage, as provided by applicable statutes, by an insurer authorized to
do business in this state.
3. Other features or services not deemed by the Commissioner to
constitute the business of insurance.
(Added to NRS by 1971, 1876)
“Person” is limited to any person
who conducts a motor club business in this state.
(Added to NRS by 1971, 1876; A 1985, 539)
“Service contract” means
a written contract whereby any person promises for a consideration to
render, furnish or procure motor club service for any other person.
(Added to NRS by 1971, 1876)
1. A person shall not render or agree to render motor club service
without first depositing and thereafter continuously maintaining security
in one of the following forms with the Commissioner:
(a) The sum of $100,000 in cash.
(b) Securities approved by the Commissioner, having a market value
of $100,000 and being of a type approved by the Commissioner and legal
for investment by admitted insurers issuing nonassessable policies on a
reserve basis.
(c) A surety bond in the principal sum of $100,000 with an admitted
surety insurer as surety.
2. In lieu of the deposit required by subsection 1, a foreign or
alien motor club may deposit evidence satisfactory to the Commissioner
that it has on deposit with an officer of a state of the United States of
America, authorized by the law of such state to accept such deposit:
(a) Securities which meet the requirements of paragraph (b) of
subsection 1 of at least a like amount for the benefit and security of
all members and creditors of such motor club; or
(b) A surety bond, in the principal sum of $100,000, which meets
the requirements of NRS 696A.090 ,
issued by a bonding company authorized to do business in the State of
Nevada and in the state where the bond is posted.
(Added to NRS by 1971, 1877)
Such security
shall:
1. Be for the protection, use and benefit of all persons whose
applications for membership in a motor club have been accepted by such
club or its representative.
2. Be subject to the following conditions and, if a bond, shall be
so expressly conditioned:
(a) The club will faithfully furnish and render to such persons any
and all of the motor club services sold or offered for sale by it.
(b) The club will pay any fines, fees or penalties imposed upon it
under or pursuant to this chapter.
(Added to NRS by 1971, 1877)
If such bond or
evidence that such bond is filed in another state is filed, any person
defrauded or injured by any wrongful act, misrepresentation or failure on
the part of a motor club with respect to the selling or rendering of any
of its services may bring suit on such bond in his own name; but the
aggregate liability of the surety for all such suits shall, in no event,
exceed the sum of such bond.
(Added to NRS by 1971, 1877)
A deposit of cash or securities, in lieu of such
bond, shall be subject to the conditions applying to the bond and is also
subject to execution on judgments against the club.
(Added to NRS by 1971, 1878)
The name of a motor club shall be submitted to the
Commissioner for approval pursuant to NRS 696A.140 , before the commencement of business under
the provisions of this chapter. The Commissioner may reject any name so
submitted when the proposed name would interfere with the transactions of
a motor club already doing business in this state or is so similar to one
already appropriated as to confuse or is likely to mislead the public in
any respect. In such case a name not liable to such objections shall be
chosen.
(Added to NRS by 1971, 1878)
A person shall not render
or agree to render motor club service in this state without first
procuring from the Commissioner a certificate of authority so to act.
(Added to NRS by 1971, 1878)
The Commissioner shall not issue a certificate of authority to any motor
club until:
1. It files with him the following:
(a) A formal application for the certificate in such form and
detail as the Commissioner requires, executed under oath by its president
or other principal officer.
(b) A certified copy of its charter or articles of incorporation
and its bylaws.
2. It pays to him the following:
(a) A fee of $500 for the filing of an application for the
certificate; and
(b) A fee of $283 for the issuance of the certificate.
3. It deposits the required cash, securities, bond or evidence of
such a deposit in another state as provided in NRS 696A.080 with the Commissioner.
4. Its name is approved by the Commissioner pursuant to NRS
696A.120 .
(Added to NRS by 1971, 1878; A 1987, 471; 1991, 2206)
Every certificate of authority issued to a motor club expires
annually on March 1 unless it is revoked or suspended. The certificate
may be renewed by paying to the Commissioner an annual fee for renewal of
$500 before the expiration of the certificate.
(Added to NRS by 1971, 1878; A 1987, 472; 1991, 1635; 1993, 614)
1. The Commissioner shall revoke or suspend the certificate of
authority of a motor club whenever, after a hearing, he finds in
accordance with the procedure provided in NRS 679B.310 to 679B.370 , inclusive, that any of the following
circumstances exist:
(a) The club has violated any provision of this chapter.
(b) It is insolvent.
(c) Its assets are less than its liabilities.
(d) It or its officers refuse to submit to an examination.
(e) It is transacting business fraudulently.
2. The Commissioner shall give notice of such revocation or
suspension to the public in such manner as he deems proper.
(Added to NRS by 1971, 1879)
1. Every motor club shall be subject to examination by the
Commissioner in the manner and under the conditions provided for
examination of insurers contained in NRS 679B.230 to 679B.290 , inclusive.
2. The expense of such examination shall be paid by the motor club.
(Added to NRS by 1971, 1879)
1. Every motor club desiring to transact business in this state
shall file with the Commissioner a duly executed instrument whereby the
motor club shall appoint and constitute the Commissioner and his
successor or successors in office the true and lawful attorney of such
motor club upon whom all lawful process in any action or legal proceeding
against it on a contract issued or cause of action arising in this state
may be served, and shall agree that any such lawful process against it
which may be served upon its attorney as provided in this section shall
be of the same force and validity as if served upon the motor club and
that the authority thereof shall continue in force irrevocably so long as
any liability of the motor club in the State remains outstanding. The fee
for filing such power of attorney shall be $5.
2. Process authorized by such instrument or by any similar
instrument executed prior to January 1, 1972, shall be served in the
manner and under the conditions provided in NRS 680A.260 .
(Added to NRS by 1971, 1879)
1. Every motor club shall file with the Commissioner on or before
March 1 of each year a report which summarizes its activities for the
preceding calendar year. The report must be verified by at least two
officers of the motor club.
2. The report must be on a form prescribed by the Commissioner and
must include:
(a) A financial statement for the motor club, including its balance
sheet and receipts and disbursements for the preceding calendar year;
(b) Any material changes in the information given in the previous
report;
(c) The number of members enrolled in the year;
(d) The costs of all services provided for that year; and
(e) Any other information relating to the motor club requested by
the Commissioner.
3. The motor club must pay to the Commissioner an annual fee of
$500.
4. Every motor club shall file with the Commissioner on or before
June 1 of each year a financial statement of the motor club certified by
an independent public accountant.
5. Any motor club failing, without just cause beyond its
reasonable control, to file timely the report or financial statement
required by this section shall pay an administrative penalty of $100 per
day until the report or statement is filed, except that the total penalty
must not exceed $3,000. The Attorney General shall recover the penalty in
the name of the State of Nevada.
6. A motor club is not exempt from the provisions of NRS 679B.700
.
(Added to NRS by 1987, 471; A 1991, 1635, 2207; 1993, 613)
1. Every motor club shall furnish to its members a service
contract or a membership card and the following information:
(a) The exact name of the motor club;
(b) The exact location of the motor club’s home office, and of its
usual place of business in this state, giving street, number and city; and
(c) A description of the services or benefits to which the member
is entitled.
2. A completed application for membership and the description of
services shall constitute the service contract.
(Added to NRS by 1971, 1879)
1. No motor club shall issue for delivery or deliver in this state
any evidence of membership, or statement of services and benefits, or
service contract until the form thereof has been filed with and approved
in writing by the Commissioner. The Commissioner shall approve any such
form found by him to be in compliance with law and free of ambiguous,
inequitable and misleading provisions.
2. Every motor club having met the requirements of subsection 1
shall thereafter file with the Commissioner every revision or
modification of any document required in subsection 1. Such revision or
modification shall be effective when filed and shall be deemed to meet
the requirements of this chapter until disapproved by the Commissioner.
(Added to NRS by 1971, 1880)
A service contract as defined
in NRS 696A.070 shall not be
executed, issued or delivered in this state unless it contains the
following:
1. The exact corporate or other name of the club.
2. The exact location of its home office and of its usual place of
business in this state, giving street number and city.
3. A provision that the contract may be cancelled at any time by
either the club or the holder, and that the holder will, if he has
actually paid the consideration, thereupon be entitled to the unused
portion of the consideration paid for such contract, calculated on a pro
rata basis over the period of the contract, without any deductions.
4. A provision plainly specifying:
(a) The services promised.
(b) That the holder will not be required to pay any sum, in
addition to the amount specified in the contract, for any services thus
specified.
(c) The territory wherein such services are to be rendered.
(d) The date when such service will commence.
5. A statement in not less than 14-point modern type at the head
of the contract stating, “This is not an insurance contract.”
(Added to NRS by 1971, 1880)
A person shall not solicit or aid in the solicitation of
another person to purchase a service contract issued by a club not having
a certificate of authority procured pursuant to this chapter.
(Added to NRS by 1971, 1880)
A club or an officer or agent
thereof shall not in any manner misrepresent the terms, benefits or
privileges of any service contract issued or to be issued by it.
(Added to NRS by 1971, 1881)
Any
service contract made, issued or delivered contrary to any provision of
this chapter, shall nevertheless be valid and binding on the club.
(Added to NRS by 1971, 1881)
No person shall act
as a club agent in this state without first procuring a license so to act
from the Commissioner.
(Added to NRS by 1971, 1881)
[Effective until
the date of the repeal of the federal law requiring each state to
establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings.]
1. An application for a license as a club agent must be submitted
to the Commissioner upon forms prescribed and furnished by him. If the
applicant is a natural person, the application must include the social
security number of the applicant. As a part of, or in connection with,
any application, the applicant shall furnish information concerning his
identity, personal history, experience, business record and other
pertinent facts which the Commissioner may reasonably require.
2. If the applicant is a firm, partnership or corporation, the
application, in addition to the requirements of subsection 1, shall:
(a) Contain the names of all members and officers of the firm,
partnership or corporation; and
(b) Designate who is to exercise the powers to be conferred by the
license on the firm, partnership or corporation.
3. The Commissioner shall require each natural person of a firm,
partnership or corporation to furnish information to him as though
applying for an individual license.
4. Any person willfully misrepresenting any fact required to be
disclosed in any application is subject to the penalties provided in NRS
696A.350 .
(Added to NRS by 1971, 1881; A 1997, 2206; 1999, 520 , 545 )
[Effective on the
date of the repeal of the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and
for noncompliance with certain processes relating to paternity or child
support proceedings.]
1. An application for a license as a club agent must be submitted
to the Commissioner upon forms prescribed and furnished by him. As a part
of, or in connection with, any application, the applicant shall furnish
information concerning his identity, personal history, experience,
business record and other pertinent facts which the Commissioner may
reasonably require.
2. If the applicant is a firm, partnership or corporation, the
application, in addition to the requirements of subsection 1, shall:
(a) Contain the names of all members and officers of the firm,
partnership or corporation; and
(b) Designate who is to exercise the powers to be conferred by the
license on the firm, partnership or corporation.
3. The Commissioner shall require each natural person of a firm,
partnership or corporation to furnish information to him as though
applying for an individual license.
4. Any person willfully misrepresenting any fact required to be
disclosed in any application is subject to the penalties provided in NRS
696A.350 .
(Added to NRS by 1971, 1881; A 1997, 2206; 1999, 520 , 545 , effective on the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings)
For
the protection of the people of this state, the Commissioner shall not:
1. Issue or renew any club agent’s license except in compliance
with this chapter.
2. Issue or renew any club agent’s license to, or to be exercised
by, any person found by him to be untrustworthy or incompetent, or who
has not established to the satisfaction of the Commissioner that he is
qualified therefor in accordance with this chapter.
(Added to NRS by 1971, 1881)
The Commissioner shall
license as a club agent only an individual who has otherwise complied
with this chapter, and who has furnished evidence satisfactory to the
Commissioner that he:
1. Is at least 21 years of age.
2. Has been a bona fide resident of this state or is a resident of
a state which will permit residents of this state to act as club agents
in such other state.
3. Is a trustworthy person with a good reputation.
(Added to NRS by 1971, 1882)
The Commissioner shall
prescribe the form of the club agent’s license, but it shall contain:
1. The name of the licensee and his business address.
2. The date of issuance and the date of expiration.
3. The name of the represented motor club.
(Added to NRS by 1971, 1882)
[Effective until the
date of the repeal of the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and
for noncompliance with certain processes relating to paternity or child
support proceedings.]
1. Each license for a club agent issued under this chapter
continues in force for 3 years unless it is suspended, revoked or
otherwise terminated. A license may be renewed upon submission of the
statement required pursuant to NRS 696A.303 and payment to the Commissioner of the
applicable fee for renewal and a fee established by the Commissioner of
not more than $15 for deposit in the insurance recovery account created
by NRS 679B.305 . The statement must
be submitted and the fees must be paid on or before the last day of the
month in which the license is renewable.
2. Any license not so renewed expires at midnight on the last day
specified for its renewal. The Commissioner may accept a request for
renewal received by him within 30 days after the expiration of the
license if the request is accompanied by the statement required pursuant
to NRS 696A.303 , a fee for renewal of
150 percent of the fee otherwise required and the fee established by the
Commissioner of not more than $15 for deposit in the insurance recovery
account created by NRS 679B.305 .
3. The Commissioner shall collect in advance and deposit with the
State Treasurer for credit to the State General Fund the following fees
for licensure as a club agent:
(a) Application and
license....................................................................
....................... $78
(b) Appointment by each motor
club.......................................................................
....... 5
(c) Triennial renewal of each
license....................................................................
......... 78
(Added to NRS by 1971, 1882; A 1987, 472; 1989, 527; 1995, 1103;
1997, 2206; 2005, 2159 )
[Effective on the
date of the repeal of the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and
for noncompliance with certain processes relating to paternity or child
support proceedings.]
1. Each license for a club agent issued under this chapter
continues in force for 3 years unless it is suspended, revoked or
otherwise terminated. A license may be renewed upon payment to the
Commissioner of the applicable fee for renewal and a fee established by
the Commissioner of not more than $15 for deposit in the insurance
recovery account created by NRS 679B.305 . The fees must be paid on or before the last
day of the month in which the license is renewable.
2. Any license not so renewed expires at midnight on the last day
specified for its renewal. The Commissioner may accept a request for
renewal received by him within 30 days after the expiration of the
license if the request is accompanied by a fee for renewal of 150 percent
of the fee otherwise required and the fee established by the Commissioner
of not more than $15 for deposit in the insurance recovery account
created by NRS 679B.305 .
3. The Commissioner shall collect in advance and deposit with the
State Treasurer for credit to the State General Fund the following fees
for licensure as a club agent:
(a) Application and
license....................................................................
....................... $78
(b) Appointment by each motor
club.......................................................................
....... 5
(c) Triennial renewal of each
license....................................................................
......... 78
(Added to NRS by 1971, 1882; A 1987, 472; 1989, 527; 1995, 1103;
1997, 2206; 2005, 2159 , effective on the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings)
[Expires by
limitation on the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.]
1. A natural person who applies for the issuance or renewal of a
club agent’s license shall submit to the Commissioner the statement
prescribed by the Division of Welfare and Supportive Services of the
Department of Health and Human Services pursuant to NRS 425.520 . The statement must be completed and signed by
the applicant.
2. The Commissioner shall include the statement required pursuant
to subsection 1 in:
(a) The application or any other forms that must be submitted for
the issuance or renewal of the license; or
(b) A separate form prescribed by the Commissioner.
3. A club agent’s license may not be issued or renewed by the
Commissioner if the applicant is a natural person who:
(a) Fails to submit the statement required pursuant to subsection
1; or
(b) Indicates on the statement submitted pursuant to subsection 1
that he is subject to a court order for the support of a child and is not
in compliance with the order or a plan approved by the district attorney
or other public agency enforcing the order for the repayment of the
amount owed pursuant to the order.
4. If an applicant indicates on the statement submitted pursuant
to subsection 1 that he is subject to a court order for the support of a
child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the
repayment of the amount owed pursuant to the order, the Commissioner
shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2205)
[Expires by limitation on the date of the repeal of the federal
law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and
recreational licenses for child support arrearages and for noncompliance
with certain processes relating to paternity or child support
proceedings.]
1. If the Commissioner receives a copy of a court order issued
pursuant to NRS 425.540 that provides
for the suspension of all professional, occupational and recreational
licenses, certificates and permits issued to a person who has been issued
a club agent’s license, the Commissioner shall deem the license to be
suspended at the end of the 30th day after the date on which the court
order was issued unless the Commissioner receives a letter issued to the
holder of the license by the district attorney or other public agency
pursuant to NRS 425.550 stating that
the holder of the license has complied with the subpoena or warrant or
has satisfied the arrearage pursuant to NRS 425.560 .
2. The Commissioner shall reinstate a club agent’s license
suspended by a district court pursuant to NRS 425.540 if he receives a letter issued by the district
attorney or other public agency pursuant to NRS 425.550 to the person whose license was suspended
stating that the person whose license was suspended has complied with the
subpoena or warrant or has satisfied the arrearage pursuant to NRS
425.560 .
(Added to NRS by 1997, 2206)
The Commissioner may suspend, revoke or refuse to
renew any club agent’s license issued under this chapter for any cause
specified in any other provision of this chapter, or for any of the same
applicable grounds and in the manner provided for a producer of insurance
in NRS 683A.451 and 683A.461 .
(Added to NRS by 1971, 1882; A 2001, 2251 )
The club agent’s license of any
firm, partnership or corporation may be suspended, revoked or refused for
any cause which relates to any individual designated in the license to
exercise its powers.
(Added to NRS by 1971, 1882)
The holder of any club agent’s license which has
been revoked or suspended shall immediately surrender the license
certificate to the Commissioner.
(Added to NRS by 1971, 1882)
This chapter does not apply to:
1. A duly authorized attorney at law acting in the usual course of
his profession.
2. Any authorized insurer.
3. Any motor carrier association providing one or more of the
services described in NRS 696A.050 to
its members.
(Added to NRS by 1971, 1883)
1. Any person violating the provisions of NRS 696A.080 to 696A.110 , inclusive, is guilty of a gross misdemeanor.
2. Any person violating any other provisions of NRS 696A.010
to 696A.340 , inclusive, other than NRS 696A.080 to 696A.110 , inclusive, is guilty of a misdemeanor.
(Added to NRS by 1971, 1883)
Motor clubs are
also subject, in the same manner as insurers, to the following provisions
of this Code to the extent reasonably applicable:
1. Chapter 679A of NRS (scope and
definitions);
2. Chapter 679B of NRS (Commissioner
of Insurance);
3. NRS 683A.400 (fiduciary
funds);
4. Chapter 685B of NRS (unauthorized
insurers);
5. NRS 686A.010 to 686A.310
, inclusive (trade practices and
frauds); and
6. Chapter 696B of NRS (delinquent
insurers).
(Added to NRS by 1971, 1883)
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