If you want to provide motor club services in California, you need to get a certificate of authority from the commissioner first.

Motor clubs in the state must follow specific rules when issuing or selling their own securities. These rules align with certain insurance code articles, and motor clubs are not governed by the usual securities laws that apply to corporations.

If you want a certificate to operate an insurance business in California, you need to apply using a specific form and pay a fee of $4,939. You won't receive the certificate until you meet all the necessary legal requirements. Once you have it, you must keep following these requirements to maintain it.

A motor club in California must meet several requirements before it can receive a certificate of authority from the commissioner. First, it needs to submit a formal application with necessary documents like its charter, financial statements, and business plan. If it's a foreign company, it must also provide proof of authorization from its home state. Second, it has to deposit $100,000 in approved securities or a surety bond. The club must pay an annual license fee of $424, get its name approved, and demonstrate it's qualified to protect its members. Lastly, it must be a separate legal entity that the commissioner can examine.

If a motor club wants to operate in the state, it must prove to the commissioner that its total assets are at least $250,000 more than its total debts. This financial requirement, known as 'net worth,' must be maintained continuously for the club to keep its authority to operate.

This law says that motor clubs in California, which are organizations providing motoring-related services, have specific requirements to stay solvent and keep their operating certificate if issued before January 1, 1992. They can retain their certificate without needing to meet the new financial standards until July 1, 1996.

However, if a motor club's net worth falls below $250,000, it is considered insolvent unless it either gets an annual audit by a certified accountant and submits the report by the end of June the next year, or it can prove every quarter that it has enough liquid assets to cover what it owes to its members.

This law defines "liquid assets" as various forms of money or investments that can easily be turned into cash. This includes cash, stocks, bonds, certificates of deposit, short-term investments, certain types of receivables due within 90 days, and other forms of income like interest, dividends, and potential federal tax refunds.

This law section explains that a motor club may be deemed financially inadequate, or 'materially deficient', if its audit report raises concerns about financial health or its ability to continue operating, or if it cannot prove it has enough liquid assets to cover what it owes its members. When this happens, it must comply with certain legal requirements as outlined in other sections.

This law requires motor clubs to keep a form of security, like a bond or security deposit, to protect their members and the state. Without it, they can lose their authorization to operate. This security ensures that motor clubs provide promised services and comply with state laws, including paying any required fees or taxes.

If they stop operating, they must follow proper procedures for withdrawal. If someone is cheated or harmed by the motor club, they can sue using the bond or seize the security deposit to recover damages.

This law allows the insurance commissioner to revoke or suspend a motor club's authority if certain issues arise. This can happen if the club breaks specific laws, refuses required examinations, conducts fraudulent business, or can no longer qualify for its certificate. The commissioner can also notify the public about such actions. Moreover, related legal provisions apply to motor clubs unless they conflict with this part. An "insolvency" is when a club's assets are less than its liabilities.

This law explains that every insurance certificate of authority in California is valid indefinitely but will end if certain conditions occur. The certificate will terminate if the organization holding it ceases to exist as a separate entity, if the entity is dissolved or winds up its affairs, if it completes a withdrawal process and surrenders its certificate, or if a court order decides so in a specific legal proceeding.

If you hold a certificate of authority for insurance in California, you must pay a $205 yearly fee to the commissioner. This fee is for each year starting on July 1 and ending on June 30. The payment is due on March 1 and becomes late after April 1.

If a motor club wants to get a certificate to operate in California, it doesn't need to be registered with the Secretary of State under the Corporations Code first. However, once it gets the certificate, it still has to register with the Secretary of State before doing business within the state.

Each year by March 1st, companies must submit any changes to their articles of incorporation, bylaws, membership certificates, or service contracts to the commissioner. These documents need official certification that they are true copies. There's a $50 fee for filing these amended documents annually.

If the insurance commissioner suspects a motor club might be insolvent (running out of money) or acting fraudulently, they can demand a detailed financial statement from the club. This statement, under oath, outlines the club's assets and debts.

If the club fails to provide this statement within 20 days or if it contains lies, they must pay for the examination costs. Also, if a foreign motor club wants to operate in California, the commissioner might investigate the club's operations, and certain legal procedures will apply to this examination.

If a motor club already has a certificate as of when this law took effect, they don't need to apply for a new one. However, they must follow the rules of this chapter, and they will be given ongoing certificates of authority as long as they meet certain conditions outlined in this law.