A club agent doing business in this State shall not execute, issue or deliver any service contract to any person owning or operating motor vehicles without first obtaining a license from the commissioner.
Motor ClubsAgents
Section § 12280
If you're a club agent in California dealing with service contracts for people who have motor vehicles, you need to get a license from the commissioner before you can issue or provide those contracts.
club agent service contract motor vehicles
Section § 12280.2
If you want to apply for a license to become a motor club agent, you will need to pay an $85 fee. However, if you're already a licensed property broker-agent, casualty broker-agent, personal lines broker-agent, or limited lines automobile insurance agent in California, you don't need a separate license to act as a motor club agent. This law doesn't allow motor club agents to have certificates of convenience or nonresident licenses, but they must have club appointments. They also don't need to keep records or manage fiduciary accounts. The commissioner can set rules for the licenses and applications.
(a)CA Insurance Code § 12280.2(a) The fee for filing application for license as motor club agent is eighty-five dollars ($85).
(b)CA Insurance Code § 12280.2(b) Property broker-agents, casualty broker-agents, personal lines broker-agents, and limited lines automobile insurance agents licensed under Chapter 5 (commencing with Section 1621) of Part 2 of Division 1 need not be licensed to act as motor club agents under this chapter.
(c)CA Insurance Code § 12280.2(c) This section shall not permit a motor club agent to have a certificate of convenience nor a nonresident license, but shall require only club appointments, and shall not require the keeping of records or fiduciary accounts. Appropriate licenses and license applications may be prescribed by
the commissioner.
motor club agent license fee broker-agents
Section § 12281
This law states that a club agent cannot collect any payment or valuable item before a service contract is officially executed, issued, or delivered. In simpler terms, agents must wait until the contract is finalized before taking any money or promises for it.
Without first obtaining such license, a club agent shall not collect or receive from any person, in advance of the execution, issuance or delivery of any such service contract, any money or other thing of value upon any promise or agreement to execute, issue or deliver any such service contract.
club agent service contract advance payment
